Anaheim’s city council on July 8 voted to extend the moratorium on entertainment taxes that would have otherwise applied to ticket sales at the two theme parks. The extension policy was adopted as a resolution and agreement with Disney, it said. The agreement calls for Disney to invest a minimum of $1 billion in the Anaheim Resort by December 31, 2024. According to an earlier statement from the city, Burbank, which is California-based Disney, would be getting tax relief for another 15 years, in case it is invested considerably over $1 billion.
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The agreement comes as Disney is evaluating the addition of new attractions that would drive attendance and longer stays at the Anaheim Resort. Also, a parking garage and road improvements will be part of the construction so as to improve local traffic flow.
Disney will have until December 31, 2017 to begin an expansion of its existing operations. “That doesn’t mean that in 10 years from now there might not be a financial crisis in our city that requires a gate tax”. Tuesday’s action does not require a second reading by the City Council. According to an e-mailed statement from the council, the company has time until within six months of 2024’s end for confirming the value of improvements.
If Disney elects not to proceed with an investment, the agreement will be terminated.
The five-member advice should choose on Tuesday throughout the firms engagement to go regarding its Disneyland Resort re-design for your a continued agreement of nearly any forthcoming everyone tax the metropolitan area might charge enjoyment locations.
The three hotels Disney operates within its resort and surrounding hotels that cater to theme park visitors also generate roughly $110 million a year in “transient occupancy” tax revenues paid to Anaheim, according to the city.
A $1.5 billion investment could generate $26.8 million per year in additional hotel stay and sales tax revenue for the city of Anaheim, according to the Beacon study. A study commissioned by Disney projected the project would support an average of 2,600 local jobs a year, and lead to creation of 2,100 permanent jobs.
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The article above was released by the City of Anaheim.
