Budget Panel Backs City Deal With Disney

The much-publicized agreement between the city and Walt Disney Co. for the operation and $100-million renovation of Anaheim Stadium has received the unanimous backing of the City Council-appointed Budget Advisory Commission.

The seven-member commission voted its support this week after hearing a detailed presentation on the agreement from City Manager James D. Ruth and Finance Director William G. Sweeney.

Commissioner Phil Knypstra, who teaches college accounting classes, said he has some reservations about the economics of the deal but that “it’s the best the city manager could negotiate at this time.”

The deal is a good one for Disney, the Angels and Orange County in general, Knypstra said Thursday, but not necessarily for Anaheim.

“I’m not sure in the long run if it will be in the best interest of the taxpayers of Anaheim,” he said, adding that the financial impact may not become evident until a decade from now.

“The point is that the revenue flow and the expense flow are so close, there is no guarantee,” Knypstra said. “Things could turn out very positively, but in a way there is a gamble on it. What will the future bring?”

Under a memorandum of understanding approved April 3 by the City Council, the stadium will undergo a $100-million renovation with Disney paying 70% of the cost.

Anaheim’s $30-million share will be paid from stadium advertising revenue, a bond issue based on hotel bed taxes, and the city’s reserve fund.

The agreement with Disney was approved by a 3-2 vote of the City Council.

The final agreement regarding the stadium lease is expected to come before the council in May.