Disneyland Expansion Approved in California – Without Taxpayer Subsidies

 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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DisneylandForward for the Entire Economy

 by Ray Keating

Commentary

DisneyBizJournal.com

March 26, 2021

(This piece originally was published at KeatingFiles.com) 

 

Whenever a large company pitches government on a proposal that’s supposed to help that firm and the economy in general, this economist’s free-market radar goes up. After all, most of the time, such proposals involve a business looking for taxpayer handouts, but trying to dress up such welfare as being great for everybody, including the taxpayers footing the bill.

That’s why the Walt Disney Company’s new pitch to the City of Anaheim – called  DisneylandForward – to expand, well, Disneyland is so refreshing. It also should serve as a template for policymaking related to entrepreneurs, businesses, their employees, and investors, as we all work to climb out of this pandemic mess.

 

Disney is not looking for any kind of government aid, subsidies, or handouts in this proposal. In fact, in its various materials on the undertaking, the company explicitly declared: “To be clear, Disney is not seeking any public funding for DisneylandForward, nor are we seeking additional square footage or hotel rooms beyond what is currently approved and allowed.”

 

This is music to the ears of this economist. Please, tell me more!

 

Instead of seeking handouts, Disney is looking for Anaheim to be more flexible in terms of how it regulates the company. Specifically, Disney is looking for flexibility in terms of zoning regulations so that the company can move ahead and make investments in expansion that will serve new and current customers, boost the region’s economy, and create jobs. Disney is beginning a process of explaining and illustrating to Anaheim that a shift in its zoning from traditional, specific-use approval to zoning that allows for increased flexibility and integration in terms of uses – such as allowing a hotel, restaurants, attractions and entertainment in one area or facility, as opposed to just one of those options – not only makes sense for Disney and its business, but how the House of Mouse ties in with the rest of the regional economy and beyond.

 

Disney pointed out, “While Disney has the development rights and the desire to continue investing in Anaheim, the space to develop integrated offerings is severely limited. Without broadening the uses allowed within each district or demolishing and replacing many beloved theme park attractions, further integrated development and theme park investment are not possible.”

 

I’m always frustrated when government stakes out overtly hostile stances against entrepreneurs, businesses and investors. Such misguided actions spring from failures to grasp how the economy and business work; and how growth, wealth and jobs are created; as well as political philosophies rooted in fantasy, and/or politics built on cynicism and special-interest favors. And then there are businesses that seek government handouts, which only serves to gin up further hostility toward business. So, I wonder if the vast costs of the pandemic might change things, at least somewhat. 

 

Disney put its DisneylandForward effort in the proper context of what we have been suffering through for the past year-plus:

 

“While no one could have predicted just how far-reaching the job loss and economic impacts would be as a result of the COVID-19 pandemic, we know this past year has been incredibly difficult. It has taken a major toll on our cast, The Anaheim Resort, Anaheim residents and families, Orange County, and California. But, with time, we will recover, and we’ll do it together. We believe in the future of this great city, and we are ready to join hands as even stronger partners. With continued investment, we can make an even larger impact on short-term recovery, enhance long-term growth, and help address some of Anaheim’s more difficult problems in the future.”

 

Again, how will we recover and grow? Not via government subsidies. Not by some big governmental undertakings with commensurate tax and regulatory costs. Not thanks to the us-vs.-them mentality that dominates too much of our public discourse and manifests itself in public policies. Instead, it will be accomplished by government thinking clearly and providing flexibility – dare I say: providing relief? – from burdens that make no sense, and only serve to raise the costs of or block productive, private-sector investment. In turn, entrepreneurs and businesses, including Disney, will be better able to make growth-generating investments.

 

Let’s call it the DisneylandForward agenda for Anaheim, for California, for other states and for the nation: No subsidies. Provide flexibility and relief from government regulations and other actions that make no sense. And thereby, free up the private sector to invest, innovate and drive economic, income and job growth.

 

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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the  Pastor Stephen Grant 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?

 

Keating has two new books out. Vatican Shadows: A Pastor Stephen Grant Novel is the 13ththriller/mystery in the Pastor Stephen Grant series. Get the paperback or Kindle edition at Amazon, or signed books at www.raykeatingonline.com. Past Lives: A Pastor Stephen Grant Short Story is the 14th book in the series. Get the paperback or Kindle edition at Amazon, or signed book at www.raykeatingonline.com. 

 

You also can order his book Behind Enemy Lines: Conservative Communiques from Left-Wing New York  from Amazon or signed books  at RayKeatingOnline.com. His other recent nonfiction book is Free Trade Rocks! 10 Points on International Trade Everyone Should Know. 

 

Please support the efforts of DisneyBizJournal.com to bring news, analysis and commentary on Disney to readers such as yourself. Make a contribution right here via PayPal. Thanks!

 

DisneylandForward Plans for Disneyland Expansion Seeks Flexibility by Government

 by Ray Keating

News

DisneyBizJournal.com

March 25, 2021

 

Apparently, the business and Imagineering minds at Disneyland haven’t exactly been dormant during the COVID-19 pandemic. Far from it. Disneyland made a splash today with big expansion plans for the resort. Or more specifically, the company announced plans for a path to major expansion.

The Walt Disney Company’s DisneylandForward plan appears to be chock full of potential for those who enjoy Disneyland, but the central effort, at this point in time, is to gain flexibility from local government, i.e., the City of Anaheim, so that investments by Disney – investments that would help the region’s economic recovery and growth – are able to move ahead. That kind of common-sense flexibility, however, often is in short supply in politics and government, especially in places like California. So, time and negotiations in coming months will tell the tale. But initial responses should please Disney and other local business representatives.

 

As Ken Potrock, president of Disneyland Resort, put it, “Thinking big and leading the way is both our legacy and our best path forward. Now is the time to be bold, to dream, to believe, and to lead! The world-renowned Disneyland Resort is poised to bring back jobs to our community as well as new entertainment and experiences to loyal fans and new audiences for generations to come.”

 

Disney is looking for Anaheim to essentially shift its zoning from traditional, specific-use approval to zoning that allows for increased flexibility and integration in terms of uses, such as hotel and entertainment. As Disney explains, “While Disney has the development rights and the desire to continue investing in Anaheim, the space to develop integrated offerings is severely limited. Without broadening the uses allowed within each district or demolishing and replacing many beloved theme park attractions, further integrated development and theme park investment are not possible.”

 

Considering that most plans like this from large companies seek taxpayer backing, Disney states that this is not the case. The goals are summed up as follows:

 

“To be clear, Disney is not seeking any public funding for DisneylandForward, nor are we seeking additional square footage or hotel rooms beyond what is currently approved and allowed. Rather, we are simply working with the city and community to update our existing approvals to allow for integrated development to be located and built throughout Disney properties.”

 

Where might such increased zoning flexibility take Disneyland? Well, there’s a great deal to consider in what Disney put forward today, but at the same time, the company said, “We are not announcing any future projects at this time.” Still, possibilities have been dangled: “With DisneylandForward and more flexibility within our existing properties, new lands and adventures like those underway at Tokyo DisneySea and Shanghai Disneyland could inspire new experiences here.” Mentioned were lands coming to Tokyo DisneySea, such as Frozen, Repunzel’s tower from Tangled, and Peter Pan’s Neverland, along with Shanghai’s Zootopia and Tron ride, and Hollywood Studio’s “Toy Story Land.” 

 

The following is a general map of possibilities presented by Disney.

Regarding the new Disney entertainment area, the company put forth: “This property could be the perfect location to cater to locals, conventioneers, hotel and Disneyland Resort guests with restaurants, hotels, live music, shopping, ticketed shows and theme park experiences modeled after the popular Disney Springs at Walt Disney World Resort.”

 

The plan also calls for enhanced parking, transportation and transit options.

 

Disney does in fact hit on the need for investment to get the economy moving again. It specifically addresses the impact of the pandemic, and what’s needed:

 

“While no one could have predicted just how far-reaching the job loss and economic impacts would be as a result of the COVID-19 pandemic, we know this past year has been incredibly difficult. It has taken a major toll on our cast, The Anaheim Resort, Anaheim residents and families, Orange County, and California. But, with time, we will recover, and we’ll do it together. We believe in the future of this great city, and we are ready to join hands as even stronger partners. With continued investment, we can make an even larger impact on short-term recovery, enhance long-term growth, and help address some of Anaheim’s more difficult problems in the future.”

 

The Orange County Register quoted Anaheim Mayor Harry Sidhu saying: “In the past year, we have seen what the Disneyland Resort means to Anaheim’s economy and the role it plays in helping us provide vital public services for our residents, neighborhoods and businesses… I welcome fresh thinking about how the Disneyland Resort evolves and how we best maximize this resource for our city.”

 

Flexibility by government in allowing private investment to move ahead would, indeed, be fresh thinking – and that’s needed in Anaheim, in the rest of California, and across the nation.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the  Pastor Stephen Grant 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?

 

Keating has two new books out. Vatican Shadows: A Pastor Stephen Grant Novel is the 13ththriller/mystery in the Pastor Stephen Grant series. Get the paperback or Kindle edition at Amazon, or signed books at www.raykeatingonline.com. Past Lives: A Pastor Stephen Grant Short Story is the 14th book in the series. Get the paperback or Kindle edition at Amazon, or signed book at www.raykeatingonline.com. 

 

You also can order his book Behind Enemy Lines: Conservative Communiques from Left-Wing New York  from Amazon or signed books  at RayKeatingOnline.com. His other recent nonfiction book is Free Trade Rocks! 10 Points on International Trade Everyone Should Know. 

 

Please support the efforts of DisneyBizJournal.com to bring news, analysis and commentary on Disney to readers such as yourself. Make a contribution right here via PayPal. Thanks!

Disneyland to Serve As Super Site for Vaccine Distribution

 by Beth Keating

News

DisneyBizJournal.com

January 12, 2021

 

It’s been more than ten months since Disneyland closed its gates to guests hoping to ride “Pirates of the Caribbean” or “it’s a small world” in Anaheim. But in the effort to help stem the tide of the pandemic that brought its operations to a standstill, Disneyland will be partnering with Orange County to become the first large COVID-19 vaccination site in the county. Four additional sites are in the process of being finalized.

It’s no surprise that Disneyland was chosen for the task. It’s a sizeable facility, and Disney is certainly no stranger to moving large crowds. The site will become one of five regional “point-of-dispensing” sites, or “Super PODs,” vaccinating thousands of people each day.

 

Andrew Do, Acting Chairman of the Orange County Board of Supervisors, said in a press release, “The Disneyland Resort, the largest employer in the heart of Orange County, has stepped up to host the county’s first Super POD site – undertaking a monumental task in our vaccination distribution process.”

 

The goal of Orange County’s “Operation Independence” is to vaccinate all residents by July 4.

 

In Florida, where Disney World has already served as a COVID-19 testing site at its Maingate Complex, talks are underway to add vaccines to the mix. 

 

According to the Orlando Sentinel:

 

“Like hospitals across the state, Disney World has the capacity to store the vaccine with an ultracold freezer,” said state emergency director Jared Moskowitz during a virtual town hall with state Rep Anna Eskamani, D-Orlando, last week.

 

“We have no ultracold freezer storage problems here in the state. There are plenty of hospitals with them. County health departments have them. Some universities have them. Disney World has one,” Moskowitz said, adding his department bought some, too.

 

For information about the Orange County California COVID-19 vaccination process, as well as who is eligible to receive vaccines and when, access the Orange County Health Care Agency’s website. 

 

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Beth Keating is a regular contributor to DisneyBizJournal.

 

Please support the efforts of DisneyBizJournal.com to bring news, analysis and commentary on Disney to readers such as yourself. Make a contribution right here via PayPal. Thanks!

Walt Disney and Our National Pastime

by Ray Keating

Feature Story

DisneyBizJournal.com

July 25, 2020

Baseball is finally back. And as previously baseball-starved fans enjoy watching games this first weekend of the season, it’s also an ideal time to reflect upon Walt Disney, his love of the game, and how he and his company have been involved in our national pastime over the years.

It’s not surprising that Walt enjoyed baseball, since he also loved this country, and there’s perhaps nothing more American than baseball. As explained in the following D23 video, Walt was a big fan, and sometimes joined his employees in games at Disney’s Hyperion Studios. An athletic field, available for baseball, also was set up when Disney moved to its new studio in Burbank in 1940.

Walt once said, “Baseball is a great teacher of an important secret of living: the giving and taking in the group, the development of qualities and behavior that will stand us in good stead through life pursuits both personal and professional.”

But there has been even more to the Disney-baseball relationship. 

Before the Dodgers and Giants arrived in California in 1958, the Pacific Coast League (PCL) from 1903 to 1957 was about as close to the big leagues as the Golden State could get. The PCL served up high-quality baseball. In fact, there were efforts to make it a third major league, though that ultimately failed.

One of the PCL teams was the Hollywood Stars. From 1926 to 1935, the Stars played at Wrigley Field in Los Angeles, home to the PCL’s Los Angeles Angels. When unable to afford the Wrigley Field rent charged by the Angels’ owner, the Stars went south to become the original San Diego Padres. But in 1938, the Mission Reds in San Francisco moved and became the new Hollywood Stars. 

Walt not only was a fan and season ticket holder of the Stars, but he contributed funds to help build the team a new ballpark. When the team owners, including Robert H. Cobb, owner of the Brown Derby restaurants, sought funds to build a stadium, they formed the Hollywood Baseball Association, and sold ownership shares to prominent local leaders and celebrities. Disney became a part owner in the ballclub, along with folks like Cecil B. DeMille, Gary Cooper, Bing Crosby, Gene Autry, George Burns, Jack Benny, Barbara Stanwyck, and Harry Warner. Gilmore Field opened on May 2, 1939, and the Hollywood Stars were billed as “the Hollywood Stars baseball team, owned by the Hollywood stars.”

Years later, the arrival of the Dodgers from Brooklyn actually got Walt involved in Major League Baseball. As reported by WalterOMalley.com, Disneyland influenced Dodger Stadium in a few ways, including where it was located:

The influence of Disneyland for its layout, parking facilities, trams and high level of customer service did not go unnoticed by O’Malley, who had his executives visit the Magic Kingdom in Anaheim and take notes. O’Malley had corresponded with Walt Disney and asked if he might have some suggestions as he built his new ballpark. Interestingly, Disney had rejected the idea of using the same unattractive Chavez Ravine land for a potential Disneyland site (quite possibly because of the massive amounts of earth that would have to be moved).

The Los Angeles Angels started play in the American League in 1961. Walt Disney, friend of team owner Gene Autry, served on the team’s board of directors from 1960 until his death in 1966. Walt also played a part in the team’s moving into a new stadium in 1966 located in Anaheim, not far from Disneyland.

More than two decades later, the Angels became part of the Disney family. As DisneyBizJournal.com noted in an April 1, 2019, story:

Michael Eisner and Disney acquired a stake in the Angels in 1996, and then purchased the entire team in 1998 from the Autry family. Autry passed away in 1998.

As for the ballpark, Angel Stadium underwent a $118 million renovation for Opening Day 1998, with Disney picking up $78 million of the tab, and the taxpayers covering the rest. And Walt Disney Imagineering was involved in the process. One can see the Disney touch with one particular part of the renovation, as described by Ballparks of Baseball.com: “In left centerfield is the ‘California spectacular’ where geysers erupt and a stream cascades down a mountainside covered with real trees and artificial rocks.” Very Disney.

However, while Disney magic was evident on the field, with the ultimate success of the 2002 World Series victory, the financial aspects of owning a baseball team didn’t add up for Disney. The team was sold in 2003 to Arturo Moreno, an Arizona businessman who made his money in the outdoor advertising industry.

By the way, pro baseball has been played in Disney’s Florida home as well. The Atlanta Braves spent spring training each season at The Stadium at the ESPN Wide World of Sports Complex in Walt Disney World from 1998 to 2019. For good measure, the minor league Gulf Coast League Braves played at the ballpark from 1997 to 2007. Also, the Orlando Rays, another minor league team, called the ballpark home from 2000 to 2003.

Yes, Walt loved baseball, and the link between the game and his company has persisted.

I have no doubt that if Walt were alive today, he’d be quite pleased to see the return of baseball.

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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Also, get the paperback or Kindle edition of Ray Keating’s new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York.