In a unanimous vote, the Anaheim City Council early Wednesday morning gave preliminary approval to the Disneyland Forward initiative, clearing the way for a $1.9 billion expansion of the Disneyland Resort. The vote was the penultimate step in a three-year process, which included an environmental impact study and prior approval from the Anaheim planning commission. Prior to calling for the vote, Anaheim Mayor Ashleigh E. Aitken voiced her support of the project, saying, “Allowing Disneyland to grow ensures Anaheim thrives.” The council will meet on May 7 to give final approval to the program.
At issue was whether to amend the 1993 Disneyland Resort Specific Plan, (DRSP) and allow Disney to build new theme park, hotel, shopping and entertainment venues on land Disney already owns.
The DRSP, which paved the way for the construction of Disney California Adventure and Downtown Disney, set up land use and site development standards for the Disneyland Resort. Each parcel was designated for use in one of five “districts,” with specific rules governing each, including theme park, hotel, parking and future expansion.
In November, Disney Parks chairman Josh D’Amaro said there’s enough room to build another Disneyland if they wanted, but that land isn’t properly zoned for the use they want. In an interview with the City Square podcast on Monday, Disneyland Resort president Ken Potrock said the resort could expand by 50% if the city approved the proposal.
During the 8-hour meeting, city staff gave a summary of the final subsequent environmental impact report for the project. Disneyland Resort Ken Potrock addressed the council members, saying it is is “a privilege to follow in the footsteps of Walt Disney and partner with you” on what he termed a “legacy project.”
Cal State Fullerton economist Dr. Anil Puri spoke about an economic impact study prepared about the project, which he estimates could more than double the company’s financial contribution to the city. The study also estimates, “direct annual employment would increase by 26,764 jobs and total average annual employment by 28,352 jobs.”
Following the presentations was a lengthy public comment period, where 92 speakers – Anaheim residents, Disney cast members, local business owners, labor organizers, trade association leaders and elected officials – shared their opinions for nearly 4 hours. An additional 130 comments were submitted electronically, and distributed to the council members. During the public comment period, Disneyland Ambassador Nataly Guzman Garcia delivered 731 letters and 2169 petitions in support of Disneyland Forward.
One of the topics most frequently mentioned during the comment period was the plan for the city to abandon its right of way on Magic Way, along with two other city streets. Others were concerned that the proposal allows city staff to issue future building permits following administrative review, but without going through the city planning commission or the city council.
With final approval almost certain, attention turns to the next steps. During his comments to the council, Potrock said that the Walt Disney company is currently evaluating how to allocate the $60 billion in capital expenditures it announced last September, and said he wants the Anaheim resort to get more than its fair share of the money. Potrock shared that the previously-announced Avatar Experience is at the top of the list for the Disneyland Resort.
Beyond that, Disney has been remarkably tight-lipped about their plans. The economic impact study estimates a four-year construction phase, so it will be some time before we see earth moved in the construction zones. The new development agreement calls for $1.9 billion in theme park, hotel, retail and dining in the next 10 years. Potrock said this will go beyond re-theming and re-imagining of existing attractions, and will bring “engaging new entertainment and experiences to loyal fans and new audiences.”
More certain are the obligations Disney now has to the city of Anaheim, including:
- $30 million contribution into an affordable housing trust which is to be managed by the city.
- $8 million contribution to improve city parks outside the Anaheim Resort district.
- $40 million to purchase the right of way to three existing city streets.
- $10 million contribution towards sewer improvements along Katalla Ave.
- Enter into a Fire Operations Agreement, which includes construction of a new fire substation.
- Enter into a Police Operations Agreement, which includes construction of a new police substation and satellite police office.
- Enter into a Staffing Reimbursement and Enhanced Services Agreement to cover the increased cost associated with DisneylandForward projects and on-going maintenance and improvement projects.
- Enter into an agreement to reimburse the city for costs associated with traffic control services.
- Continue to implement an Anaheim jobs and workforce development program.
