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Disneyland stops development of luxury hotel

Disney has put the brakes on a new Disneyland luxury hotel because of a fight with Anaheim officials over a multi-million dollar tax break.

In 2016, the Anaheim City Council approved a $267 million tax break to Disney for a 700-room hotel near the north end of the resort at 1401 Disneyland Way. However, Disney is planning on building the luxury hotel in the Downtown Disney shopping district.

Anaheim city officials said the new location doesn’t meet the criteria for the tax break.

Disney the halted its plans.  “You have given us no other choice than to put construction of the hotel on indefinite hold as the resort reevaluates the economic viability of future hotel development in Anaheim,” according to a letter from David Ontko, chief counsel for Disneyland Resorts, to Anaheim City Atty. Robert Fabela.

Anaheim Mayor Tom Tait, who has opposed the subsidy for the hotel project, said Disney can build the project without a subsidy from the city, the Los Angeles Times reports.

Disney has already closed a number of businesses in Downtown Disney in anticipation of the hotel, including the AMC Theatre, Rainforest Cafe, Earl of Sandwich and ESPN Zone.

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