Expansion of Disney Is Urged in Report

Hoping to erase any last-minute doubts City Council members have about the $1.4-billion Disney theme park expansion plan, officials released a report Friday that assures more revenue with less risk than if the city does not move forward with the project.

Several council members expressed concern this week that the expansion would be a burden to taxpayers. In response, an economic consultant prepared a five-page report maintaining that the only downside to the expansion plan “is today’s status quo.”

“By not doing the project, the city could see its current net tax revenues from the Anaheim Resort Area drop in the future,” wrote Richard Berkson, vice president of the Berkeley-based Economic & Planning Systems.

City and Disney officials have held marathon negotiating sessions in recent weeks, working out details of a plan introduced in concept last summer. A majority of the council appears poised to approve the project’s financial agreement at Tuesday’s meeting.

Up to $546 million worth of improvements would be made within the city’s tourism district. They would include improving streets, landscaping and utilities, and building a $90-million parking garage for both the new theme park and the expanded Convention Center.

The city plans to issue $395 million worth of bonds to finance much of the work. In case of a shortfall in revenue, Disney would guarantee the bond debt and pay investors if the city could not, officials said.

Deputy City Manager Tom Wood said the city will lose business to other visitor destinations if Disneyland and the area do not expand.

Council members will hear public comment on the Disney proposal at 5 p.m. Tuesday.