Let's look at the 1996 deal...
http://articles.latimes.com/1996-07-16/news/mn-24723_1_disney-theme-park
>>Seeking to allay worries about an extra burden on Anaheim taxpayers, the Walt Disney Co. and city officials on Monday said hotel bed taxes, sales taxes and state and federal grants would fully finance the $550 million needed to improve streets, landscaping and utilities for an expanded Anaheim Convention Center and a second Disney theme park.<<
So we have a $550 million package, $150 million funded by various grants. Those grants are the $110 million for the parking structure and Ball Road Overpass, plus a large grant the city got for improving air quality in setting up the ART transportation system, both from the Federal Government and State Government. Also Transportation grants for road improvements in the entire Resort area, plus a few others.
>>Anaheim plans to issue nearly $400 million in bonds to finance the improvements and provide $150 million to expand the convention center.
Hotel and sales taxes as well as tourist revenue would pay the interest on the bonds, according to city officials.
In case of a shortfall, Disney would guarantee about $200 million of the debt, agreeing to step in and pay investors if the city can't.
At an afternoon briefing, City Manager James Ruth portrayed the financing approach as a "partnership" and an "unprecedented collaboration between the public and private sector that minimizes municipal risk."
Officials estimate the Disneyland Resort expansion, expected to be unveiled in full this week, will generate annually an additional $25 million for the city of Anaheim, $10 million for Orange County and $35 million for California through various sales and property taxes within the resort area.<<
So out of the $550 million, about $100 million for the parking structure, and $150 million for a large expansion for the city owned convention center. leaving the rest for the general "to improve streets, landscaping and utilities" plus buy the ART fleet and other general items.
That $150 million built a large expansion for the Convention Center (other funds came from profits made in prior years from the center). This expansion brought a lot of new business to the city, in fact, with the failure of DCA in the early years, a lot of the Hotel and Restaurant Growth came from the convention business. Heck, Ruth Chris's and Morton's didn't come for Disneyland, but for the business expenses accounts. Another large expansion just finished, paid for by the profits made from the 1996 expansion. It creates a lot of jobs and tax revenue.
When the City brokered the deal with Disney, the city got everything it wanted, and thought it was a win-win, and it has created more tax revenues than expected, money that goes directly to the city's General Fund, basically half of the cities revenue comes from the resort district.
If you see what has done to the city residents, well, increased government spending, improvements in the city's parks, the addition of many more police officers, a department that trains many other cities in how to do things, aka a gold standard. And remember that Disney directly pays for the 10 officers that work on property, plus all the hours needed for traffic control on city streets in regards to parking control. Low costs from the city's public utilities, same with the building department. How many jobs are due to the resort. how much sales taxes, how about property tax revenue.
If there are issues with the residents, one big one is jealousy, I hear it all the time, why does the Resort area have better roads, landscaping, police presence, etc. They don't realize that doesn't come from the general fund, but for a part of the TOT tax and convention center profits earmarked to provide the upkeep. (A small percentage does come from the general, the amount that is spent on the rest of the city. For example, if the city spends $1 per foot of roads, the resort area also gets allocated the same amount. But the resort area spends $4 per foot. Well the other $3 comes from the resort district funds from the TOT surcharge, and Convention Center profits. The city cannot shortchange the district of the general fund dollars due to legal rulings.
The other big problem was the "Disney is Evil" campaign that the ACLU, UNITE HERE and others came up with years ago, about the time there was a legal push to convert at-large council members to district elections. This is straight out of the Left's playbook in demonizing corporations and trying to gain more control for Democrat in Anaheim and Orange County.
It wasn't an issue, maybe some complaints about fireworks, but that was it.
So the campaigning that was picked up by Mayor Tait, Dr. Moreno and others, continuing the "Disney is Evil" theme in its campaigns, and comments from the council chambers.
Has Disney gotten special treatment from the city, of course yes, but they, along with the convention center and resort area pays the city's bills and allows a lot better level of services than other nearby cities, many of which have tax increases on the ballot in their city, or just passed one (Station is one example). Now the city is $7 million short in the upcoming budget due to the expected income from the 4th Hotel project. (Loss of the Construction jobs and related revenue). Looks like the city will cut planned items as a short term fix.
What an absolutely absurd deal.
