Tax break rift sees new Disneyland hotel development put on hold
Walt Disney Co. has suspended plans for a fourth hotel at Disneyland Resort after another dispute with the Anaheim City Council.
The rift relates to the location of the new hotel development.
The City Council approved plans for the 700-room hotel and a 20-year tax break worth a reputed $267 million.
However Disney changed the location of the hotel after approval which has irked the City Council.
The site was initially at a parking lot on Disneyland Way but then changed it to a larger parcel of land at the Downtown Disney shopping district.
The Anaheim City Council approval allowed the proposed hotel at the original site a 70% break on transient occupancy tax.
A hotel planned for the new location does not qualify for the subsidy, Anaheim City attorney Robert Fabela said.
"You have given us no other choice than to put construction of the hotel on indefinite hold as the resort re-evaluates the economic viability of future hotel development in Anaheim," David Ontko, chief counsel for Disneyland Resorts wrote in a letter responding to the city council.
The relationship between Anaheim and Disneyland Resort has become more tetchy in recent times with more pressure being exerted on Disney to pay a living wage as the city’s largest employer.
There is a ballot measure being considered to increase the minimum wage for hotel employees which work for companies that get tax breaks and incentives from the city.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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