Disney, City Start Big A Discussions

Walt Disney Co. and city officials Thursday held their first face-to-face meeting since the entertainment giant imposed a 60-day deadline last week to settle the issue of renovating Anaheim Stadium as a condition of its purchase of the California Angels baseball team.

City Manager James D. Ruth, who was initially skeptical that the two sides could reach agreement in such a short time, characterized the meeting as “very positive and upbeat.” He said both sides had identified the “magnitude of the problem.”

Ruth declined to comment more specifically on the negotiations, which have taken on an added urgency since the deadline was set Jan. 18, the day major league baseball owners approved Disney’s proposal to purchase 25% and controlling interest of the California Angels franchise.

If an agreement over stadium renovations is not reached with the city by March 17, Disney can walk away from the deal, leaving the Angels searching for another buyer. Current owners Gene and Jackie Autry are determined give up day-to-day operations of the team.

Disney Sports Enterprises spokesman Bill Robertson said Thursday that the company wants “to get this thing done as soon as possible.”

The two parties have had ongoing telephone discussions since last week. Ruth said they will now meet weekly.

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The city manager said both sides agree that the 30-year-old stadium needs to be renovated but there are key issues that have yet to be resolved, such as how the city will help pay for improvements--estimated by Disney at $110 million--without dipping into its general fund or creating a new tax.

City officials have not said how much they would be willing to pay for improvements to the stadium. All five members of the City Council said this week that the stadium renovations will not come at the expense of the city’s taxpayers.

From Disney’s point of view, the question is how they can operate a franchise that is “frankly very expensive” and make a profit, Ruth said.

If Disney has its way, the stadium’s renovation would come at a hefty price.

Disney Sports Enterprises President Tony Tavares said last week that the company would like to make renovations that could cost as much as $110 million, although it is unclear how funding would be divided between the city and Disney.

Disney architects have drawn designs for the renovation, but the plans have not been released to the public.

However, Disney has said the renovation of the stadium would include demolition of the outfield seats to transform the facility from a 67,000-seat multipurpose stadium suitable for both football and baseball into a more intimate, 47,000-seat baseball-only stadium.

Disney has proposed removing outfield seats and adding a restaurant overlooking the field.

A renovated Big A is already a component of Sportstown Anaheim, the proposed sports, entertainment, retail and office complex that was unveiled earlier this month and is slated to be built on 159 acres of stadium property.

The city is looking for funding from the private sector to build the project--which does not yet have a price tag--and said there has been heavy interest from potential investors although no deals are pending.

Some City Council members said this week that they have not seen any of Disney’s plans and do not know what kind of improvements the city would be paying for. Most said they don’t know how the $110 million would be used.

“We haven’t seen anything,” said Councilman Lou Lopez. “It seems to me that whatever they are thinking, they aren’t conveying it to us.”

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Some city officials are still stinging from the last-minute negotiating tactic involving the stadium renovation.

“That was brought into the negotiations at the 11th hour,” said Councilman Bob Zemel. “I think we are in total agreement with Disney that something will happen. Whether it can happen in the 60-day time limit, I don’t know. Given the time and the ability to work on the situation, I think we will work it out.”

Councilman Frank Feldhaus said, “I wonder whose figures we are talking about here.”

Still, Feldhaus said he’s hoping for the best.

“We have a very, very innovative city manager,” Feldhaus said. “I feel confident that there is some kind of creative financing they will come up with without burdening the taxpayers. I’d love to see it all work out.”