by Ray Keating
News/Analysis
DisneyBizJournal.com
April 18, 2024
It might seem strange to some in other parts of the country, but in places like California and New York, efforts by business to invest in the economy, in the community and in jobs often get rebuffed, or chased away by draconian costs. But then the same politicians who chased away business and investment will use taxpayer dollars to subsidize other businesses – you know, the ones they happen to like. Sure, it makes no economic sense, but that’s politics and government.
Therefore, The Walt Disney Company’s effort to get approval for an expansion of Disneyland was anything but automatic in Anaheim, California.
But Disney’s plan to expand the Disneyland theme park did get unanimous approval on Wednesday, April 17, from the Anaheim City Council. A second vote related to the project comes on May 7, and is expected to pass. Disney is pledging a $1.9 billion investment over the coming 10 years, including new rides, attractions, dining and hotels.
As the Orange County Register reported: “The development agreement the city is agreeing to maps out where new theme park construction could occur over the next 40 years, giving Disney flexibility to determine what exactly would be built – though all still within the footprint of its current properties.”
Interestingly, Disney isn’t seeking taxpayer subsidies. Instead, the company has agreed to pay “more than $100 million in community benefits,” which would fund related infrastructure upgrades, and would “give Anaheim $30 million to use to help build affordable housing and $8 million for city parks.” In another Register report, Anaheim Mayor Ashleigh Aitken was quoted, “I have been a critic of city subsidies to private corporations. I have been a critic of sometimes not working with the community … a critic of the city shortchanging itself and selling its assets for below fair market value, I do believe (Disney) did it right.”
Government subsidizing business makes no economic sense, and quite frankly, a private company having to effectively pay extra – on top of very burdensome taxes and regulations in California – to get its project approved is a costly precedent.
Regarding payments to the city from Disney, the Register noted, “City staff are already thinking of ways to use money coming from Disney.” Of that, I have no doubt.
In the end, Disney got their project approved, and Anaheim got a really good deal … for now.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
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• Cathedral: An Alliance of Saint Michael Novel is at Amazon.
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