Revitalization Project OKd in Anaheim : Environment: The deteriorating area around Disneyland will get a face lift aimed at increasing tourism and city revenue. Sources of financing for the $172-million plan were not spelled out.

Concluding three years of work, the City Council on Tuesday night unanimously approved a sweeping, $172-million revitalization plan aimed at eliminating urban deterioration around Disneyland.

“It’s going to be a complete rejuvenation of the area,” said Councilman Irv Pickler. “The area has been deteriorating, and this plan is going to enhance the whole area. The people of Anaheim are really going to benefit from this.”

Officials said the face lift for the 550 acres around the theme park would boost tax revenue, encourage growth and be a pivotal complement to the Walt Disney Co.’s proposed $3-billion Westcot resort.

But opponents Tuesday night argued that the city’s environmental impact report failed to adequately address negative effects of the project on traffic, housing and air quality. Others urged the council to postpone a decision until a firm financing schedule has been made public.

The plan includes landscaping, burying overhead utility lines, installing wide walkways and transforming the decaying area into a more attractive and “pedestrian friendly” environment, say city planners. Also, businesses will be encouraged but not required to display more understated signs.

During the hearing, however, concerns were raised again about who will pay for the landscaping, street and sewer improvements called for in the plan. City officials expect a large chunk of it to be paid with county, state and federal money.

But, officials say, developers and property owners probably will have to pay the remainder, estimated at $63 million. Anaheim officials repeatedly have ruled out using money from the city’s general fund or raising residential taxes to support the improvements.

City officials would not discuss the plan’s financing Tuesday, but said details will be laid out at another meeting on Oct. 4.

Also in October, city officials are expected to consider a $60-million plan to renovate Anaheim Convention Center, which is part of the area. Officials regard the Convention Center renovation as another key component to keeping Anaheim competitive with other cities trying to attract convention business.

The Convention Center plan would include a citywide increase of two percentage points, to 15%, in the hotel bed tax which, if approved, would generate $5 million yearly in additional revenue, officials said.

The bed tax would help finance the Convention Center remodeling and revitalizing of the area.

That triangular area includes Disneyland, the Convention Center and high-rise hotels. It is bounded by Orangewood Avenue, Walnut Street, Haster Street and the Santa Ana Freeway.

The council also approved an environmental impact report for the project area. According to the report, even with mitigation measures, the plan will cause traffic congestion at four intersections, reduced air quality and the loss of 56 acres of prime agricultural land.

City officials, however, have said the plan’s financial benefits outweigh the environmental loss. When the improvements are done, the area is expected to generate an extra $4 million to $6 million in yearly city revenue.