A Public-Private Deal That Benefits Both Sides

Anaheim’s grand dreams of furthering its position as an entertainment and sports capital have dominated the city’s public policy debate throughout the 1990s. On Tuesday, the City Council capped five years of discussion about the expansion of Disneyland by voting to approve the new $1.4-billion theme park called Disneyland Resort.

It was significant that the project finally arrived at all at the point of approval. For a while, it wasn’t even clear that Anaheim would get a Disney expansion. Initially, there was a competing proposal for a project in Long Beach, and also a distracting debate over a development proposal in suburban Virginia.

But it always has been apparent that the fortunes of both Anaheim and the Walt Disney Co. were intricately connected. This has been so ever since Walt Disney located his dream park in orange groves south of Los Angeles many years ago. Not long ago, the relationship between Disney and Anaheim was reinforced when the Walt Disney Co. bought the Angels baseball team, and now, in partnership with the city, it is proceeding with the renovation of Anaheim Stadium.

Originally, the Disney expansion was very ambitious, but today, amid the more modest expectations of the mid-1990s, it has come down to city cooperation in the construction of a 55-acre theme park called Disney’s California Adventure. It includes a 750-room luxury hotel, and a 200,000-square-foot shopping, dining and entertainment complex--Disneyland Center.

The city has agreed to a generous infrastructure expenditure of $450 million for improvements in the tourism area. This will cover expansion of the Anaheim Convention Center, and the construction of a huge parking garage to be operated by Disney. It also will pay for various neighborhood and transportation programs, as well as a general sprucing up of the area. There will be an expenditure of about $95 million in state and regional money for freeway and street improvements.

The unanimous approval vote by the City Council, which contrasted with divided balloting on the Anaheim Stadium renovation, indicates a recognition by city leaders that this partnership is necessary to keep the city competitive as an entertainment destination center.

It is important to note that city financing depends on the retention of the increase in the hotel bed tax that took effect in January of 1995. A Nov. 5 ballot measure, Measure B, would protect this additional revenue stream from potential repeal if statewide Prop. 218 passes. That proposition would require that any local tax imposed after Jan. 1, 1995 be approved by the voters, or reduced to the level that existed before that date.

This revenue is already being collected, and is not imposed on property owners or residents of Anaheim. It represents an important component of the city’s investment and is worth protecting.

The city’s long-term repositioning as an entertainment and resort destination hinges on taking the necessary steps now to secure financing. Voters would be well advised to regard this money as a down payment to be made on their behalf by visitors. The expansion project also will be a boon to the county, which itself is poised for a new century after weathering recession and bankruptcy in recent years.

Disney seems to be getting a favorable deal on the garage, as it will keep nearly all the revenue while the city pays for construction. The city has been defending this agreement by saying that the convention center also will benefit from the garage. In any case, the public investment promises to pay off down the road by making the most of the mutual interests of both the city and its major entertainment attraction.