Disneyland At Center Of Debate Over Hefty Tax Break Related To $1B Investment
ANAHEIM (CBSLA.com) — The happiest place on Earth is in the middle of a heated political fight.
A debate was held Tuesday night over the future of Disneyland in light of the company asking for a hefty tax break from Anaheim.
Mayor Tom Tait is not the only one upset over the prospect of such a large tax break, which is the result of the company looking to invest $1 billion into the park. The council is voting on terms of an agreement between the city and the park, in which Disney will invest the money into upgrading and expanding Disneyland over the next nine years if the city agrees not to impose a gate or entertainment tax on tickets.
Speakers urged the council to reject the proposed agreement, arguing that Anaheim needs the revenue from a ticket tax to address major issues.
"We have 90 percent of the children going to school in the city eligible for free lunches," one speaker pointed out. "We have kids playing on dirt on soccer fields. Schools are falling apart, police departments are under-funded. We have a massive unfunded public pension liability, and week after week, month after month, this council seems to think that you can keep giving away generations of future tax revenue money."
Meanwhile, former state Sen. Lou Correa, who grew up in Anaheim, says the investment should bring substantial economic benefits to the city, as well as those who live and work there.
"Supporting Disney today, supporting job creation, is very important," Correa said. "I'm going to be supporting it, because, in my opinion, if you create jobs, jobs are a good thing for our economy. Jobs are good for our community."
The Orange County Lincoln Club and other business support groups also appear to be in support of the agreement, arguing that Disney's request regarding the ticket tax is not unreasonable.
"All Disney wants is, please don't add a tax onto a ticket to get into the park," OC Lincoln Club's Teresa Hernandez said. "They're going to use them like ATM machines to pay future investments and future liabilities for the city."
Many opponents, however, charge that Disney is making a large investment in Disneyland because its developed solid competition from Universal Studios Hollywood and other parks, which are opening new attractions.
"Why do you serve Mickey Mouse and not the people?" resident Victoria Degomez asked council members. "We are not a Dollar Tree store. Don't sell yourselves to Mickey Mouse."
At last count, Tait and another council member remain against extending the no-ticket-tax agreement, while three other members support it.
