The 1,605 page Anaheim Planning Commission staff report in regards to the DVC tower for the Disneyland Hotel

Darkbeer1

Well-Known Member
Original Poster
>>CONCLUSION: The proposed vacation ownership resort tower represents a significant positive investment that would enhance the visitor experience by providing additional options for accommodations in the Disneyland Resort. The proposed development complies with all guidelines and standards applicable to development in the DRSP. Staff recommends approval of this request. <<
 

Darkbeer1

Well-Known Member
Original Poster
Here is the Full Staff Report (9 pages) without attachments.

>>ITEM NO. 3

PLANNING COMMISSION REPORT

City of Anaheim PLANNING AND BUILDING DEPARTMENT

DATE: JULY 20, 2020

SUBJECT: CONDITIONAL USE PERMIT NO. 2020-06054
FINAL SITE PLAN NO. 2020-00001
TENTATIVE PARCEL MAP NO. 2020-111
LOCATION: 1150 West Magic Way (Disneyland Hotel)

APPLICANT/PROPERTY OWNER/AGENT: The applicant and property owner are Walt Disney Parks and Resorts, represented by Deanna Detchemendy. The applicant’s agent is Joe Haupt with Spectrum Development.

REQUEST: The applicant requests approval of the following: 1) A Conditional Use Permit (CUP) to allow for the construction of Vacation Ownership Resort (VOR) units; 2) A Final Site Plan to construct a twelve-story, 350-unit VOR adjacent to, and integrated with, the Disneyland Hotel; and 3) A Tentative Parcel Map for condominium purposes, to allow the sale of VOR units.

RECOMMENDATION: Staff recommends that the Planning Commission approve the attached resolutions, determining that an Addendum to the previously certified Final Environmental Impact Report No. 311 (FEIR 311), along with Mitigation Monitoring Plan No. 011.4, is the appropriate environmental document for this project, and approving Conditional Use Permit No. 2020-06054, Final Site Plan No. 2020-00001 and Tentative Parcel Map No. 2020-111.

BACKGROUND: This 1.77-acre project site is located within the Hotel District of the Disneyland Resort Specific Plan (DRSP) and designated for Commercial Recreation land uses by the General Plan. The project site is part of the Disneyland Hotel campus of the Disneyland Resort. The Disneyland Hotel campus consists of a convention center, three 12- and 13-story hotel towers containing 973 guest rooms, multiple restaurants, a themed pool with waterslides, and surface parking lots totaling nearly 2,000 parking spaces. Existing Disneyland Hotel uses on the project site include an event lawn, guest fitness and laundry facilities, and back of house maintenance shops. Surrounding land uses include the Disneyland Hotel Convention Center, “Fantasy Tower,” and hotel parking lot to the north; the Disneyland Hotel “Frontier” Tower and Central Energy Plant to the south; the Disneyland Hotel pool deck and “Adventure” Tower to the east; and Walnut Street and residential uses to the west.

In addition to the requests identified and analyzed in this staff report, the VOR is subject to a Transient Occupancy Tax (TOT) Agreement. This is an agreement between the City and the applicant that determines a method for calculating TOT for the VOR equivalent to the amount of TOT that the applicant would pay if the unit were a traditional hotel room. The applicant is working with the City Manager’s Office and Finance Department to prepare a TOT Agreement, which the City Council will consider at a future date. The TOT Agreement is not under the purview of the Planning Commission.

PROPOSAL: The applicant proposes to construct a 350-unit VOR, which would be 12 stories, in addition to one subterranean level. An existing event lawn, guest fitness and laundry facilities, and back of house maintenance shops would be demolished as part of the project. The applicant plans to integrate the VOR with the existing Disneyland Hotel. The project would include typical amenities, such as fitness and laundry facilities, a pool, and outdoor bar. The existing amenities at the Disneyland Hotel would also be available for use by VOR guests, including parking and valet service, registration, restaurants, and pools. Guests would arrive via Magic Way and utilize the existing hotel’s valet service or self-parking lots and registration desk. In addition, the proposed project would integrate its back of house functions with the existing hotel. The proposed project would not create any new vehicular access points to the Disneyland Hotel or the Disneyland Resort.

The proposed VOR includes an L-shaped tower, which would be 12-stories at the highest point. There would be one basement level for back of house activities that would connect to an existing service tunnel system. Outdoor amenities include a pool, bar, and interactive water feature; this area would be connected to the existing hotel’s recreation area via a breezeway under the northern end of the tower. The first floor would include a lobby, fitness room, laundry, lounge area, and 15 guest rooms. Floors two through 12 would only include guest rooms. The maximum height of the 12-story building would be approximately 132 feet, including all architectural elements. Where the building is closest to Walnut Street, the height would be limited to approximately 60 feet, or five stories. With each higher level, the building would step back from Walnut Street, at a ratio of two feet back for every one foot in additional height. The elevations would consist of insulated vision glass, aluminum panel system with reveals, fiber cement and wood polymer composite assemblies, laminated glass railings for balconies, honeycomb accent glass, and stone clad exterior columns located in the breezeway.

Proposed landscaping within the hotel complex would include several shade, flowering and vertical tree species, as well as a variety of shrubs and groundcovers. Along Walnut Street, where there is currently a chainlink fence with clinging vines at the property line, the applicant proposes to provide a new landscape setback area that is approximately 19 feet wide. The new landscape area would include regularly-spaced Ficus trees, closely planted Podocarpus shrubs to form a hedge in front of the fence, and a variety of shrubs and groundcover. In addition, the proposed project would demolish several existing shed structures that are located behind the existing fence, which would further enhance views of the project site from Walnut Street.

FINDINGS AND ANALYSIS: Conditional Use Permit: Before the Planning Commission may approve a conditional use permit, it must make a finding of fact that the evidence presented shows that all of the following conditions exist, including Finding Number 6, which is specific to VORs:

1) That the proposed use is properly one for which a conditional use permit is authorized by the Zoning Code;

2) That the proposed use will not adversely affect the adjoining land uses, or the growth and development of the area in which it is proposed to be located;

3) That the size and shape of the site proposed for the use is adequate to allow the full development of the proposed use, in a manner not detrimental to either the particular area or health and safety;

4) That the traffic generated by the proposed use will not impose an undue burden upon the streets and highways designed and improved to carry the traffic in the area; and

5) That the granting of the conditional use permit under the conditions imposed, if any, will not be detrimental to the health and safety of the citizens of the City of Anaheim.

6) That there are adequate visitor-serving facilities in the City and the project will not preclude or significantly reduce the development of other needed tourist facilities or hotel or motel facilities.

The DRSP permits the development of up to 5,600 hotel rooms in the Hotel District; up to 150 of these rooms may be VOR units. These hotel rooms/units require approval of a final site plan to confirm that they conform to the DRSP; they do not require approval of a conditional use permit. Any VOR units in excess of the 150 permitted units, are subject to the review and approval of a conditional use permit. The Grand Californian Hotel & Spa, which is also within the Hotel District, includes 71 VOR units within a portion of the hotel called The Villas. The proposed 350-unit Disneyland Hotel VOR project exceeds the number of VOR units that the DRSP permits by 271 units; therefore, the proposed project is subject to the review and approval of both a final site plan (described later in this staff report) and a conditional use permit. The project would integrate aesthetically, and would be similar in size and scale, with the adjacent Disneyland Hotel towers.

The project site is bordered by structures associated with the Disneyland Hotel on three sides and Walnut Street and residential uses approximately 130 feet west across Walnut Street. The building would step down from twelve stories approximately 220 feet from Walnut Street to five stories approximately 70 feet from Walnut Street to reduce the apparent scale of the building from the residential neighborhood across Walnut Street. As shown in Figure 3 below, which includes a visual simulation submitted by the applicant, the project would also have limited visibility from the residences across Walnut Street due to the existing mature trees in the median and parkways.

The project would incorporate design features to limit potential noise that could affect neighboring properties, including construction of a twelve-foot masonry wall along the western boundary of the outdoor pool area and insulation of roof-top mechanical equipment. Additionally, the applicant proposes to improve the setback on the east side of Walnut Street by removing some back-of-house storage facilities along the edge of the property, moving the current fence line 19 feet east of its current location, and adding trees and shrubs to this area.

The applicant is voluntarily proposing this improvement; the DRSP permits the existing fence at the property line. Figure 3: View from Walnut Street Rendering of Proposed Setback Area Existing View The applicant submitted a Traffic Study, dated May 2020, prepared by Gibson Transportation, Inc. The project’s traffic impacts were envisioned and analyzed in FEIR 311, prepared for the DRSP. The Traffic Study shows that the project will not result in new, significant traffic impacts at nearby intersections or road segments or increase the severity of previous traffic impacts considered in the EIR. The Traffic Study also confirms that the street systems in the DRSP have sufficient capacity to accommodate traffic to and from the project site after implementation of the project. The applicant would provide parking for the proposed project in existing Disneyland Resort surface parking lots and parking structures. The DRSP requires 305 parking spaces to accommodate both guests and staff of the proposed project. The applicant proposes to provide guest parking in an existing 669-space surface parking lot and 564-space parking structure, located north of the Disneyland Hotel and currently used for guests of the Disneyland Hotel Convention Center. The applicant proposes to provide employee parking in a portion of the 528- space surface parking lot north of Downtown Disney. On peak days, estimated to be approximately 20% of the year, the Disneyland Resort would direct convention guests to park at the Pixar Pals parking structure, on the north side of Magic Way and would only permit VOR guests to park in the hotel’s parking lots south of Magic Way.

The Pixar Pals parking structure is located within the Parking District of the DRSP. The DRSP allows parking spaces required for the Hotel District to be located in another district, subject to the approval of the City Traffic and Transportation Manager (former title of the City Traffic Engineer). The applicant has submitted the attached letter and circulation plan to demonstrate new directional signage and safe pedestrian paths of travel from the Pixar Pals structure to the Disneyland Hotel Convention Center. Rafael Cobian, City Traffic Engineer, has approved the shift of parking to the Parking District, with the stipulation that the Magic Way entrance to the Pixar Pals structure be open on the days that the Disneyland Resort directs convention guests to the structure. This requirement is included as a recommended condition of approval in the draft resolution.

Finally, the proposed project will not preclude or significantly reduce the development of other needed tourist facilities or hotel or motel facilities. The proposed project would meet a demand anticipated by the applicant for VOR units within the Disneyland Resort.

The proposed project will meet this demand while not eliminating the ability to continue to develop additional visitor serving uses, including hotel rooms. Even accounting for the development of the proposed 350- unit project, and the existing 71-VOR units and 1,921-hotel rooms within the Hotel District, the DRSP would allow the development of an additional 3,258 hotel rooms to meet future demand for hotel rooms. Final Site Plan: The DRSP requires Planning Director review and approval of a final site plan for all development within the Hotel District; however, the Planning Director but may refer any application to the Planning Commission for review.

Consistent with Chapter 18.60 (Procedures) of the Anaheim Municipal Code, which requires the Planning Director to refer any application to the Planning Commission that is in conjunction with, and as a part of, a project that requires Planning Commission action, the Planning Director has referred the subject final site plan to the Planning Commission for review and approval. Before the Planning Commission may approve the final site plan, it must make a finding of fact that the evidence presented shows that all of the following conditions exist: 1) The design and layout of the proposed development are consistent with the General Plan, any applicable specific plan, the development standards of the applicable zoning district, and any special area guidelines or policies; 2) The design and layout of the proposed development will not interfere with the use and enjoyment of neighboring existing or future developments, and will not create traffic or pedestrian hazards; 3) The architectural design of the proposed development is compatible with the character of the surrounding neighborhood; 4) The design of the proposed development will provide a desirable environment for its occupants, visiting public, and its neighbors, through the appropriate use of materials, texture and color, and will remain aesthetically appealing and be appropriately maintained; and 5) The proposed development will not be detrimental to the public health, safety or welfare, or materially injurious to the properties or improvements in the vicinity.

The applicant has proposed a final site plan that is consistent with the site’s General Plan designation of Commercial Recreation and within the development thresholds permitted by the DRSP. The DRSP allows for the construction of up to 5,600 hotel rooms. The existing hotel development within the DRSP and the proposed project combined would total 2,342 rooms. The applicant has designed the project in a manner intended to address the potential concerns of residents in the neighborhood west of the Disneyland Resort. The proposed project would integrate the VOR tower into the existing Disneyland hotel complex with a similar design, in aesthetic and height, to the adjacent Disneyland Hotel towers. The proposed building would step down from twelve stories to five stories to respect the residential neighborhood across Walnut Street. The visual simulations indicate that the project would have limited visibility from the residential community due to the mature trees along Walnut Street. In addition, as described above, the applicant proposes to improve public views of the site by providing a new 19-foot wide landscape setback along Walnut Street. The attached compliance matrix, prepared by the applicant, identifies how and where in the plans the project complies with all applicable sections of the specific plan and Code. Staff has reviewed and concurred with the matrix. In addition, staff has independently reviewed and determined that the project complies with all applicable provisions of the DRSP. Tentative Parcel Map:

Before the Planning Commission may approve the tentative parcel map, it must make a finding of fact that the evidence presented shows that all of the following conditions exist: 1) That the proposed map is consistent with the General Plan and applicable specific plan. 2) That the design or improvement of the proposed subdivision is consistent with the General Plan and applicable specific plan. 3) That the site is physically suitable for the type of development. 4) That the site is physically suitable for the proposed density of development. 5) That the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat. 6) That the design of the subdivision or type of improvements are not likely to cause serious public health problems. 7) That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision.

The purpose of the proposed tentative parcel map for condominium purposes is to allow the sale of vacation ownership units. The proposed project will be a part of the Disney Vacation Club (DVC), which is a vacation ownership resort program operated by a subsidiary of The Walt Disney Company. The map is consistent with the General Plan designation of Commercial Recreation and the provisions of the DRSP. As described in the analysis to support the approval of the conditional use permit, the project site is suitable for development of a vacation ownership resort and the proposed density is well below what the DRSP allows. Since the project site is within a developed area, the project will not injure fish or wildlife or cause public health problems. This map will not conflict with easements acquired by the public and complies with all subdivision requirements. Therefore, staff recommends approval of the tentative parcel map request. Community Outreach: The applicant conducted substantial outreach to the surrounding community to bring about awareness of the proposed project.

Prior to the Governor’s stay-at home orders, Disney staff had one-on-one meetings with several residents to share preliminary plans. More recently, the applicant held two virtual town hall meetings to provide information to the neighboring community. The applicant mailed invitations to properties within the area bounded by Ball Road to the north, Katella Avenue to the south, Ninth Street to the west, and Walnut Street to the east, as well as properties fronting on Cerritos Avenue, west to Euclid Street. The applicant held the town hall meetings on Thursday, May 21, 2020 at 5:30 p.m. and Wednesday, June 3, 2020 at 5:30 p.m. and had a combined attendance of over 60 residents. The applicant presented the project and conducted a Q & A session. The attendees mostly asked questions about what would be demolished, parking, and project timing.

As required by the City’s “Sunshine Ordinance,” the applicant posted project information signs notifying the public of the proposed project on March 3, 2020. The applicant posted one sign on Magic Way, just west of Walnut Street and the other sign on Walnut Street, at the intersection with Cerritos Avenue. Staff also mailed Public Notices to properties within 1,000 feet of the project site, including the owner of record and the physical address of each property within the buffer area, and to others who have previously contacted the City about being notified of future projects in the area.

Environmental Impact Analysis: An Addendum to FEIR 311 has been prepared to evaluate the potential environmental effects of the proposed project. The City Council certified FEIR 311 in June 1993 for the DRSP. The Addendum analyzed whether the environmental effects from the proposed project would be any different from those disclosed by FEIR 311 for the implementation of the DRSP. The Addendum specifically analyzed the potential impacts on areas such as traffic, lighting, noise, and air quality. The Addendum concluded that the proposed project would not result in any environmental impacts beyond those analyzed and addressed in FEIR 311. A Mitigation Monitoring Plan (MMP) specific to this project, comprised of mitigation measures from FEIR 311, is included in the Addendum. These required mitigation measures are also included as conditions of approval within the attached resolution.

CONCLUSION: The proposed vacation ownership resort tower represents a significant positive investment that would enhance the visitor experience by providing additional options for accommodations in the Disneyland Resort. The proposed development complies with all guidelines and standards applicable to development in the DRSP. Staff recommends approval of this request <<
 

NobodyElse

Well-Known Member
Page 486 of the report discloses the code name for the DVC Tower - Project Pascal

Project Rascal was already taken.
seinfeld-scooter.gif
 

Darkbeer1

Well-Known Member
Original Poster

>>DATE: OCTOBER 6, 2020
FROM: FINANCE DEPARTMENT
SUBJECT: APPROVAL OF TIMESHARE TRANSIENT OCCUPANCY TAXAGREEMENT WITH DISNEY VACATION DEVELOPMENT, INC. ATTACHMENT (Y/N): YES
ITEM # 09

RECOMMENDATION: That the City Council, by Motion, approve the Transient Occupancy Tax (TOT) Agreement with Disney Vacation Development, Inc. (DVD) for payment of TOT-in-lieu revenue to the city for Disney timeshares, authorize the City Manager to finalize and execute the agreement and any other related documents, take the necessary actions to implement and administer the agreement, and authorize changes that do not substantially change the terms and conditions of the agreement as determined by the City Attorney.

DISCUSSION: Disney’s Disneyland Hotel is planning a significant expansion to add a new Disney Vacation Club (DVC) timeshare 12-story tower which will include 332 new rooms. The proposed 280,000-square-foot tower would be built on approximately two acres next to the Disneyland Hotel and has a proposed opening date of 2023. The units will be sold on a point basis and the purchasers will own the units.

Since the facility is not operated as a traditional hotel, it is necessary to reach an agreement on the methodology for calculating the amount of Transient Occupancy Tax to be collected and remitted to the city. Pursuant to Anaheim Municipal Code Chapter 2.12 as amended, the city must impose TOT on operators and timeshare vacation club resorts. The amount agreed upon is slightly different than the way timeshare TOT has been calculated for the Disney Grand Californian timeshare that was established in 2009. The Grand Californian timeshare agreement was established with a specific base dollar amount and since that time, it has escalated annually at Consumer Price Index (CPI). The city and Disney both agreed that the annual increase in the average daily rate (ADR) in Anaheim has exceeded CPI over the last several years and a new methodology would be needed for the new agreement.

The new tower will be 332 new rooms, which would be equal to 34% of the Disneyland Hotel (currently 973 rooms). In order to capture the appropriate TOT value from the timeshare, we used the Disneyland Hotel’s TOT as the basis for the in-lieu payment. Inlieu TOT for the first year of operation will be based on 34% of the Disneyland Hotel’s actual TOT from the year prior, or the highest consecutive 12-months, and increased by the inflation factor of 3.2% for the first year and each year thereafter during the 50-year operating period. The inflation factor of 3.2% is based on the 20-year compound annual growth rate (CAGR) of the ADR of Anaheim’s Tier 1 hotels (those hotels with an ADR greater than $150 which includes the Disneyland Hotel). The city has three existing timeshare agreements that increase by CPI annually, which has had a 20-year CAGR of 2.2%. Staff believes this new methodology will be more equitable for the city.

IMPACT ON BUDGET: Upon opening of the DVC, the approval of this agreement will provide for the payment of TOT-in-lieu revenue to the city, increasing annually by 3.2%.

Respectfully submitted,

Deborah A. Moreno
Finance Director/City Treasurer<<

Sorry, posted the wrong staff report initially, edited to show the correct item.
 
Last edited:

Darkbeer1

Well-Known Member
Original Poster
The DVC TOT item is currently being discussed during the City Council Meeting.

Denise Barnes just gave a very positive speech about the project.

And Dr. Moreno just said he agreed with much of it.

The praise is mainly in how the TOT calculation is calculated, but also the design of the new tower and surrounding area.

Dr. Moreno wants to know the project revenue of this project in advance.... You can't, just like you can't project traditional ones.

Motion was approved 7-0.
 
Last edited:

TP2000

Well-Known Member
Dr. Jose Moreno, constantly on a voyage of discovery, using Anaheim City Council meetings to learn how capitalism and American Free Enterprise works and how anyone could risk their own capital in a private business.

That man is... brilliant. Simply brilliant. 🧐
 

nmdisfan

New Member
What do you mean by “DVC has sold enough new points that they need units to back those points”?

Aren't timeshares regulated to prevent over selling? Maybe I’m reading this wrong......
 

Darkbeer1

Well-Known Member
Original Poster
What do you mean by “DVC has sold enough new points that they need units to back those points”?

Aren't timeshares regulated to prevent over selling? Maybe I’m reading this wrong......
Yes, they are regulated, but there is an acceptable amount of construction time to build those units.
 

mandelbrot

Well-Known Member
The DVC TOT item is currently being discussed during the City Council Meeting.

Denise Barnes just gave a very positive speech about the project.

And Dr. Moreno just said he agreed with much of it.

The praise is mainly in how the TOT calculation is calculated, but also the design of the new tower and surrounding area.

Dr. Moreno wants to know the project revenue of this project in advance.... You can't, just like you can't project traditional ones.

Motion was approved 7-0.
Assuming all the units are prepaid why couldn't you project revenue for this?
 

Darkbeer1

Well-Known Member
Original Poster
Assuming all the units are prepaid why couldn't you project revenue for this?
Because the formula is based on the average room rate and TOT collected on the traditional rooms, and then charge 34% of that amount. (That percentage is the amount of the DVC as compared to the traditional rooms).

As I understand it (I am not a DVC expert), those TOT fees end up in the yearly fees charged and/or extra fees when booking the room.
 

Register on WDWMAGIC. This sidebar will go away, and you'll see fewer ads.

Back
Top Bottom