Disney will invest US$1bn in California resort if Anaheim waives gate taxes
Disney is considering a US$1bn (€892m, £635m) investment into its Disneyland Resort in California on the basis that the city of Anaheim waives a tax on park admission tickets for a 30-year period.
Disneyland California currently holds the same tax exemption ruling after an agreement made with the city in 1996, but that deal expires on 30 June 2016.
In exchange for the tax cut, the large-scale investment would include new attractions, a new parking structure with more than 5,000 spots and other cosmetic and infrastructure improvements to the theme park and resort complex.
According to local reports, two members of Anaheim’s City Council are supporting the plans, while two others are undecided. Mayor Tom Tait, who approved the initial deal in 1996, has opposed the plans.
According to Disney, the tentative ticket-tax ban could also be extended another 15 years if Disney later embarks on a separate US$500m (€446m, £317m) expansion project.
In 2012, Disney’s California Adventure underwent a US$1bn expansion, which included the addition of Cars Land. Disney now has about 28,000 workers in Anaheim, making it the largest employer in Orange County. The new proposal would create an estimated 1,400 new jobs.
A recent independent study on Disneyland California suggested that resort is responsible for more than US$5.7bn (€5bn, £3.6bn) in economic activity across the south of the state. At present, no Disneyland park anywhere in the world pays an admission tax.
A public hearing on 7 July will discuss whether or not to extend the resort’s tax exemption, which any potential expansion is contingent on.
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