Disneyland’s Luxury Hotel On Hold Due to Dispute with City of Anaheim

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If you were hoping to stay at Disneyland’s newest resort hotel, you might be waiting awhile longer.

The plans for the as-of-yet unnamed hotel that’s being built in the Downtown Disney District have been put on hold due to a tax dispute with the City of Anaheim.

From the Los Angeles Times…

The dispute centers on a $267-million tax break that the Anaheim City Council approved in 2016 for a 700-room hotel — the fourth hotel at the Disneyland Resort and the first high-end property built in 20 years.

“You have given us no other choice than to put construction of the hotel on indefinite hold as the resort reevaluates the economic viability of future hotel development in Anaheim,” according to a letter dated Wednesday from David Ontko, chief counsel for Disneyland Resorts, to Anaheim City Atty. Robert Fabela.

Asked to respond to the dispute, Disneyland Resort representatives said the resort’s position is made clear in Ontko’s letter.

The hotel was originally intended to go in a location other than the current construction site in Downtown Disney, and therein seems too lie the issue.

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The ordinance approved by the Anaheim City Council in July 2016 gave the proposed hotel a 70% break on the city’s transient occupancy tax but specified that the subsidy go to a luxury hotel built at 1401 Disneyland Way, near the north end of the resort — not for a luxury hotel in the shopping district.

Fabela, the city attorney, outlined the city’s position in a letter dated Aug. 6 to Ontko, saying the public hearing and the language in the city legislation involving the tax break specifically described the location of the hotel. A hotel in the new location would not qualify for the subsidy, he said.

“Because this proposed site is inconsistent with the site intended in the agreement, it is the city’s position that Disney would not be entitled to the tax rebate were it to move forward under its current hotel construction plan,” Fabela’s letter said.

To make way for the new hotel in Downtown Disney, several businesses were closed including AMC Theaters and Earl of Sandwich.

It’s likely that this legal “hiccup”will delay the planned 2021 opening of the hotel. We will keep you posted as things progress here on The Kingdom Insider.

[Source: LA Times]

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I've loved Disney as long as I can remember. As a former newspaper editor, web developer, and Disney comics freelancer, I'm able to combine that experience into writing about Disney online. I'm also the co-host of a Disney fan podcast called 'Pirates & Princesses.' Opinions mine.

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