Phroobar
Well-Known Member
or money laundering.Where I come from, shifting money away from one thing and to another instead, is also called a "budget cut."
or money laundering.Where I come from, shifting money away from one thing and to another instead, is also called a "budget cut."
That's not at all the definition of money laundering.or money laundering.
Pretty sure he was just making a joke. Not trying to give an actual dictionary definition.That's not at all the definition of money laundering.
I'm joking. I know the definition of it. They make us take classes in it at work.That's not at all the definition of money laundering.
I was afraid that some of our less world-wise forumites with hair trigger rage issues would think it serious.I'm joking. I know the definition of it. They make us take classes in it at work.
Still it makes me wonder how much money is lost in corruption in these kind of deals with the city.
Yeah, the ones that don't have the manors of a ChatGPT chat bot.I was afraid that some of our less world-wise forumites with hair trigger rage issues would think it serious.
The $2.5B number includes the all incentives that Disney is committing to spend around Anaheim including housing, parks, etc., if the project gets approval. So its $1.9B over 10 years for the Resort and $600M+ for Anaheim over the same period.
The things people talk about being cut due to budget aren’t cut because the project budget was reduced but because the money was shifted to another aspect of the project.
Read today's L.A.Times article on it. Unless I'm misreading this, not much of a penalty if they don't deliver what they promised.
"Under the plan, Disney promises to invest between $1.9 billion to $2.5 billion within the next 10 years. If Disney’s investment does not reach the $2.5-billion mark, the company vows to pay an additional $5-million payment to the city."
Yes, I'm actually aware of the actual breakdown and the penalty.No, that's inaccurate. But it's easy to misunderstand if you haven't read the actual planning agreement, because much of the reporting from fansites on this early on was very inaccurate.
The actual dollar amount that Disney pays to Anaheim is $133 Million. That $133 Million is broken down this way;
The difference in dollar amounts between $1.9 Billion and $2.5 Billion is a clause that says that if Disney invests less than $2.5 Billion over the next ten years, they must pay a fine of $5 Million to Anaheim for not going bigger than $1.9 Billion. As @Parteecia noted earlier, that clause and $600 Million difference in investment amounts was accurately reported by the LA Times recently. But many fan websites, and a few actual news sites, glommed on to the $2.5 Billion as the agreement number, when it is not.
- $45 Million paid to Anaheim for Resort area street improvements/refurbishment/widening.
- $40 Million paid to Anaheim for Disney to take over 3 small city-owned streets; all of Magic Way, 100 yards of Clementine south of Katella that is entry driveway into the Toy Story lot, and 50 yards of entry driveway into the Pumbaa parking lot. (Those two entrance driveways are currently city owned streets, technically. This is Disney buying them for $40 Million.)
- $30 Million paid to Anaheim to help develop subsidized low-income housing across the city, paid over 5 years.
- $10 Million paid to Anaheim to pay for sewer improvements needed along Katella Avenue (please don't defer that!)
- $8 Million paid to Anaheim to refurbish existing city parks throughout Anaheim.
And the dollar amount Disney will pay to Anaheim to fund city services and improvements is $133 Million, noted above.
Again, for anyone who hasn't read the full planning documents, the City of Anaheim has a very nicely put together website that has all of those documents. Including the original planning documents from 1996 which the DisneylandForward plan would amend. The Anaheim website is far more useful, and forthright, than the splashier Disney website for DisneylandForward.
DisneylandForward | Anaheim, CA - Official Website
The city of Anaheim and the Disneyland Resort are looking at updating the mix of uses in the Anaheim Resort.www.anaheim.net
I don't see why the city wouldn't approve DisneylandForward without a $5 million penalty but it does seem laughably small in comparison to the size of the claimed investment amount.
Yes, I'm actually aware of the actual breakdown and the penalty.
The $2.5B number includes the all incentives that Disney is committing to spend around Anaheim including housing, parks, etc., if the project gets approval. So its $1.9B over 10 years for the Resort and $600M+ for Anaheim over the same period.
As I not only read the site, but watched the actual City Council "Workshop" where all this was discussed including almost all 4 hours of citizen comments, something I believe you didn't do.
Anyways, I just lumped it all together and called it "incentives" as that is what they are, and its the easiest way to describe in quick conversation.
The point being though that you also seem to gloss over is that the $1.9B is just the minimum Disney investment they will spend over that 10 year period for the Resort, not the maximum. But thank you for breaking it down for everyone to see.
The resort district makes up 60% of Anaheims tax revenue, after driving around outside the resort area I’d argue they 100% need that extra revenue.Did anyone stop to consider does Anaheim really need 5150 hotel/dvc rooms and more shopping?
The rest of the $600M that I was referring to was, in the City Council Workshop there is discussion from the various City Council members that they would like to see Disney invest more into the housing then the $30M committed, such as yearly investments. Also if i recall correctly they were wanting to increase the penalty, but I could be misremembering that. But this is the exact reason why I watched the actual proceedings, because its the nuisance of what is said that makes all the difference versus just the bullet points in the slides when discussing the numbers.Oh. It seemed like you were saying that Disney would be giving Anaheim $600 Million for city projects, while Disney spends $1.9 Billion developing its own property, which you added up to $2.5 Billion...
It's not $1.9 Billion over 10 years for the Resort and $600M+ for Anaheim.
It's $1.9 Billion over 10 years for the Resort, and $133 Million for Anaheim.
The $133 Million is for those five very specific categories that I noted above. The most vague category is the cheapest; $8 Million for "city parks", and Anaheim decides if they use that $8 Million to build a new park, or renovate their existing parks.
Sometimes I get bored, but I don't get that bored.
Well, let's unlump it, because it's not $600 Million in cash going to Anaheim. It's $133 Million in cash (for Anaheim to spend on Resort and citywide upgrades) going to Anaheim. Not sure where your other $477 Million in incentives comes from.
The $1.9 Billion is what Disney wants to spend. Then Disney pretends that they might spend over $2.5 Billion in the same timeframe, but if they don't reach that dollar amount they give Anaheim city hall a check for $5 Million cash....
TDA In 2035: Darnit! You got us good Anaheim politicians, here's your $5 Millionkickbackpenalty check from Disney!
The resort district makes up 60% of Anaheims tax revenue, after driving around outside the resort area I’d argue they 100% need that extra revenue.
The rest of the $600M that I was referring to was, in the City Council Workshop there is discussion from the various City Council members that they would like to see Disney invest more into the housing then the $30M committed, such as yearly investments.
Also if i recall correctly they were wanting to increase the penalty, but I could be misremembering that.
But this is the exact reason why I watched the actual proceedings, because its the nuisance of what is said that makes all the difference versus just the bullet points in the slides when discussing the numbers.
As for the actually investment, we all know that Disney projects go beyond their budgets a majority of the time. So look at the $1.9B as the floor, not the ceiling. It might be what they want to spend initially, but it'll likely balloon beyond that number fairly quickly.
DisneylandForward is a done deal at this point. Barring some major citizen revolt, or new political scandal, it's all wrapped up.
Disney will spend $1.9 Billion to build thousands of new hotel rooms, DVC units, and 800,000+ square feet of conference space, retail, and dining. Plus a few "attractions", perhaps one E Ticket for each park, accessed via bridges over Disneyland Drive. That will use up the $1.9 Billion pretty quickly.
I don't think there's any meaningful argument against allowing Disney to develop their property as they see fit, but I'd be remiss not to say that the barriers to development in southern california aren't that there aren't people willing to pay development costs, it's that development costs are extremely high because of local zoning ordinances. The city council would achieve more for housing affordability by up zoning than pushing Disney to contribute to a housing fund.The rest of the $600M that I was referring to was, in the City Council Workshop there is discussion from the various City Council members that they would like to see Disney invest more into the housing then the $30M committed, such as yearly investments. Also if i recall correctly they were wanting to increase the penalty, but I could be misremembering that. But this is the exact reason why I watched the actual proceedings, because its the nuisance of what is said that makes all the difference versus just the bullet points in the slides when discussing the numbers.
Cost overruns generally don't generate more investment - they'll just mean Disney gets less for what they choose to spend. Whether it's $1.9B or $2.5B in ~2035 dollars isn't really enough to deliver the kind of results we'd probably all like to see. $2 billion is the cost of 3-4 large attractions (CR in Florida was (somehow?1?) over $400 million, Fantasy Springs in TDS is apparently north of $1 billion, and BATB at TDL was >$200 million) and 1-2 hotels. Substantial growth but not transformative.As for the actual investment, we all know that Disney projects go beyond their budgets a majority of the time. So look at the $1.9B as the floor, not the ceiling. It might be what they want to spend initially, but it'll likely balloon beyond that number fairly quickly.
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