Yeah, there's a long convoluted story behind the Paradise Pier Hotel and why it sits there on an island of untouchable land that is exempt from the rest of the planning documents and processes. It's been that way since Disney bought it in the 1990's.
Notice the square white island on Disneyland Drive? That's the Paradise Pier Hotel, and it's exempt from stuff like this.
I've heard this story a few times over the decades from people who would know, and my mind is trying to remember the right version that sifts out some of the urban legend, but it involves the Japanese hotel company that originally bought that land and built that hotel. Their legal agreement on that hotel stretches well into the 21st century, and it's obviously still untouchable per this latest planning proposal.
I wish I could explain it better. But it's also the reason why Yamabuki, the fabulous Japanese restaurant that Disney upgraded in 2009 had to close. The agreement with the Japanese firm dictates they still get a cut of the profits from that hotel and its business, so TDA tried one last time to make Yamabuki profitable by sending it further upscale but it still didn't pencil out and was closed a decade ago. It's also why the lone restaurant in that hotel is a buffet that has a high profit margin, and why the lobby bar that has a low profit margin really stinks.
There's a legal property rights story there, and it's getting lost to the mists of time. But this latest planning document proves the longstanding
Paradise Pier Hotel Problem still exists, and the legal agreement with the Japanese is still in effect. There's no good reason to keep that turkey of a hotel otherwise, especially if Disney invests this big in all the property around it.