Following the halt on construction of their new luxury hotel, Disneyland is walking away from $267 in tax breaks from the city of Anaheim.
And the end to those tax incentives was at Disney’s request.
From the Los Angeles Times…
The Anaheim City Council voted Tuesday to end agreements that offer the Disneyland Resort tax breaks for investing in its theme parks and an adjacent shopping district, a move requested by theme park owner Walt Disney Co.
After sometimes heated debate, the council voted unanimously to end the incentive deals, which were designed to encourage Disney to build a 700-room luxury hotel at the resort and to invest in multimillion-dollar expansions at Disneyland and Disney California Adventure Park.
Mayor Tom Tait said he was “very surprised” by Disney’s request, but added that he is optimistic that the move will be a “rare opportunity to push the reset button” with the city’s biggest employer.
But Councilwoman Lucille Kring said the end of the subsidies will mean that dozens of construction jobs to build the luxury hotel that is now on hold will be lost.
Critics believe that Disney may be ending the tax breaks to “be ensuring that it isn’t affected by a Nov. 6 ballot measure that, if passed, would require the resort to pay all its workers a living wage.”
Disney has been repeatedly called on to pay their Disneyland cast members a higher hourly rate, which could be causing some of the friction with the city of Anaheim.
Disney has also had an acrimonious relationship with the LA Times in recent years over the Disneyland pay controversy, which led to what many pundits believed was a blacklisting of the LA Times from Disney movie premieres.
It’s unclear where Disney goes from here, but it would appear that the new Disneyland hotel is dead in the water for now until they figure it out.
[Source: LA Times]
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