Anaheim Gives Initial OK to New Development Fees

The City Council has taken its first step toward imposing storm drain and sewer fees on new developments to help pay for a major face lift of the area around Disneyland and the Anaheim Convention Center.

The onetime fees would help pay for the ambitious $172.5-million Anaheim Resort revitalization program, which is designed to eliminate urban blight in the city’s major tourist area.

After a public hearing Tuesday night, the council gave preliminary approval to the new fees over the objections of Councilman Lou Lopez, who said they would unfairly burden property owners away from the city’s tourism hub.

“It just doesn’t make sense to me,” Lopez said. “It should only occur in the area that the development is going to occur.”

Council members are expected to take a formal vote on the issue later.

City staff members said all new or expanded developments benefiting from sewage and drainage improvements, should pay their fair share, regardless of whether they are located in the tourist area.

The area affected by the sewer fees is bounded by South Street on the north, Chapman Avenue on the south, Euclid Street on the west and Sunkist Avenue on the east.

The storm drain fee area is bounded by Lincoln Avenue on the north, Chapman Avenue on the south, Euclid Street on the west and State College Boulevard on the east.

City officials estimate that the fees will raise $1.25 million over the next five years and about $11.5 million by 2010.

The overall improvements to the tourism area include new landscaping, putting unsightly utility lines underground, widening streets and replacing old signs for businesses. The city hopes to complete the planned improvements over a five-year period starting this year.

New sewer fees are $800 per single-family residence, $900 per unit for multiple-family dwellings, and $400 per unit for a hotel or motel. Storm drain fees are $11,000 for single-family residences, $14,000 for multiple-family dwellings and $20,000 for hotels or motels.

City officials and the tourism industry consider the improvements crucial to maintaining Anaheim as a magnet for tourist and convention business. The improvements are being paid for with an increase in the city’s hotel bed tax, which will be at 15% in July, as well as state and federal funds and money from Measure M, the half-cent sales tax increase approved by voters for county transportation projects.

Councilman Bob Zemel raised concerns about imposing the new fees, especially since the Walt Disney Co. has decided against building a $3-billion resort next to Disneyland that was to go hand-in-hand with the revitalization effort.