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Anaheim expects economic boost from DisneylandForward

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Now that DisneylandForward has approval from the City Council, city leaders believe that Anaheim will benefit from decades of new development in the resort and hope to make the most of the millions in community benefits the company has pledged.

"When Disneyland invests in Anaheim, we as a city thrive," Mayor Ashleigh Aitken said Wednesday afternoon. "That gives us the resources that we need to focus on neighborhoods all over Anaheim."

Following eight hours of public discussion, the City Council gave unanimous support for DisneylandForward early Wednesday morning, which is expected to pave the way for Anaheim to continue growing as a tourism destination and bring more investment into the region - the council has to take a second finalizing vote May 7.

Councilmembers seemed largely pleased with the DisneylandForward proposal, highlighting the years of public engagement they said occurred on the project, the expected economic boost, and the more than $100 million in community benefits to help the city address key issues.

Aitken said Disney allayed all her concerns with DisneylandForward in the three years since the company first unveiled the proposal, with the city not having to subsidize any part of the project and it not displacing residents.

"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," Aitken said. "I do believe (Disney) did it right."

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. The goal, Disney officials say, is to use underutilized land around the resort to build immersive experiences in Anaheim as the company has done elsewhere around the world.

Much of the development DisneylandFoward will clear the way for will occur in the parking lots bordered by Walnut Street and Disneyland Drive, mixing rides and attractions with hotels, dining and other amenities. The company has said it may also develop the Toy Story parking lot on the southeast corner of the resort with shopping and experiences modeled after Disney Springs in Walt Disney World.

Disney won't say when it will break ground on any new development. It has 10 years to meet a $1.9 billion investment commitment.

Councilmember Carlos Leon at the meeting spoke about his concerns with binding future councils with the development agreement that will guide four decades of development.

Leon told Disneyland Resort President Ken Potrock that he's taking Potrock's word that this isn't the end of the conversation, and that city will be able to continue to work with Disney should issues arise.

A large part of the councilmember's discussion was how the city could get more money to build affordable housing.

DisneylandForward is expected to create thousands of jobs, and Aitken stressed the importance of having people live where they work and that means there is a need for more housing.

DisneylandForward will require the entertainment company to contribute $30 million to Anaheim for affordable housing - $15 million this year and the rest in five years. The money will go into a city housing trust that will soon be created.

City staff are already thinking of ways to use money coming from Disney.

"We've been aware that this might be coming down the pipeline so my staff has engaged in an exercise of what would be our stretch goals if we had this kind of money," Grace Ruiz-Stepter, Anaheim's community development director, previously said. She added that building affordable housing and home ownership and eviction protection programs could be done with the money.

But that might not be the end of more affordable housing dollars for Anaheim.

Disneyland Resort President Ken Potrock promised at the council meeting that Disney would take a leadership role in pushing for Anaheim's tourism improvement district to provide a continuous supply of affordable housing dollars, calling it a sound approach for a revenue source.

The district, which receives money from a 2% assessment on hotel stays at participating businesses, funds Visit Anaheim and transportation improvements in the resort. Potrock said if the district, which gets more than $20 million a year, is changed to continuously supply some affordable housing money, that could be leveraged and bonded against.

"We think that it is a wonderful solution to creating a sustainable flow of funds into affordable housing," Potrock said.

Aitken said she was open to having those conversations right away. Disney represents around 30% of the district's vote, according to city spokesperson Mike Lyster.

A loss for some locals is the city agreeing to sell Magic Way to Disney, which they say offers important to access the 5 Freeway. Some residents asked for the vote to be delayed for that reason.

Randy Lewis, who lives across the street from the west side of the Disneyland Resort, lobbied the council to not sell the street since he uses it for his commute.

"I can understand why the decision was made," Lewis said, "but I just don't like it."

Lewis said his opposition to Magic Way was his first foray into community politics, and while it didn't go how he hoped, he isn't left bitter. Overall, he had little problem with Disney's desire to grow its theme parks.

Tourism drives Anaheim's economy. Anaheim Finance Director Debbie Moreno said the resort district pays for almost a third of the city's general fund, which is used to fund services such as parks, libraries and public safety.

Orange County Business Council CEO Jeff Ball said it's unheard of for this level of private investment to come without any tax breaks or public subsidies.

"To be able to draw investment into a region, you often have to provide a lot of incentives," Ball said. "But that's not happening here."

Ball believes that DisneylandForward will be a major economic boost for the entire region, he said.

"The ripple effect is going to be significant."

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