New Luxury Disneyland Hotel put on hold

[anthony2k7]

Do they really need another "luxury" hotel? Surely a moderate / lower price point might be more popular considering they already have Disneyland hotel and grand Californian at the high price point

 

[The Pho]

Do they really need another "luxury" hotel? Surely a moderate / lower price point might be more popular considering they already have Disneyland hotel and grand Californian at the high price point

Can make more money with a higher priced hotel. They don't have the land there so better off letting people pay more for on property and less for the dozens of walkable hotels.

 

[maltdizzy]

But how did it change that particular lot's fate?

When they cancelled the Eastern gateway, they announced...

• A new parking structure will be built on the Pinocchio lot to replace the cancelled garage across Harbor, this is for park guests
  
• The hotel, this was their first formal press release with real details, but it was a “block” south of original filings
• A new parking structure would be built on the Simba lot for hotel guests

I can only guess that the original plan was to build the hotel's parking on the Pinocchio lot, but that location had better freeway access when they had to find a new location for "parks" parking. With the higher traffic, and infrastructure needed, they moved the hotel (and gained the Simba parking lot for the hotel garage).

 

[hakepb]

Do they really need another "luxury" hotel? Surely a moderate / lower price point might be more popular considering they already have Disneyland hotel and grand Californian at the high price point

I think the project started because Anaheim offered any developer a tax break to anyone building a luxury hotel (to support convention growth / upscale tourism or something)

 

[Dean Marino]

So a wild thought?

Sell the land in CA.... Move everything to the Texas Gulf Coast . If there is a company that could pull this off? It would be Disney.
Out of curiosity... there isn't anyone buying up huge tracks of land around Galveston, right? Some guy named M.T. Lott? .

All personal opinion - I'm not necessarily right, no one else is necessarily wrong.

 

[mom2rtk]

So a wild thought?

Sell the land in CA.... Move everything to the Texas Gulf Coast . If there is a company that could pull this off? It would be Disney.
Out of curiosity... there isn't anyone buying up huge tracks of land around Galveston, right? Some guy named M.T. Lott? .

All personal opinion - I'm not necessarily right, no one else is necessarily wrong.

So what are the odds you live in Texas?

 

[GXIncognto]

I have a strong inclination to believe this hotel will still be built in DTD spot it has been targeted for. It just may take longer than they wanted.

Since they won't be getting a tax break for building a "luxury" hotel, wouldn't it be a good idea to build a "nice" hotel with a large DVC component? It seems like more DVC at Disneyland would sell very briskly based on the demand for the Grand Californian. Or does the city want to block them on timeshares as well?

 

[Texans_loyal]

So a wild thought?

Sell the land in CA.... Move everything to the Texas Gulf Coast . If there is a company that could pull this off? It would be Disney.
Out of curiosity... there isn't anyone buying up huge tracks of land around Galveston, right? Some guy named M.T. Lott? .

All personal opinion - I'm not necessarily right, no one else is necessarily wrong.

I would kill for a Texas park! a girl can dream...

 

[DLgal]

Not nearly the amount it would have had this hotel went into the Simba lot. The Eastern Gateway falling through changed a lot of plans.

I have a strong inclination to believe this hotel will still be built in DTD spot it has been targeted for. It just may take longer than they wanted.

I think you are confused. The hotel's original site was not the Simba lot. It was to be located at 1401 Disneyland Drive, which is the corner parcel at Magic Way and Disneyland Drive, just across from the M&F structure. The Simba lot was never the intended location of this hotel. They changed it to 1601 Disneyland Drive, which is smack in the middle of DtD.

 

[rteetz]

I think you are confused. The hotel's original site was not the Simba lot. It was to be located at 1401 Disneyland Drive, which is the corner parcel at Magic Way and Disneyland Drive, just across from the M&F structure. The Simba lot was never the intended location of this hotel. They changed it to 1601 Disneyland Drive, which is smack in the middle of DtD.

My apologies. I still believe the Eastern gateway changed everything.

 

[rteetz]

Since they won't be getting a tax break for building a "luxury" hotel, wouldn't it be a good idea to build a "nice" hotel with a large DVC component? It seems like more DVC at Disneyland would sell very briskly based on the demand for the Grand Californian. Or does the city want to block them on timeshares as well?

I believe there is some sort of limit or rules on timeshares in the city.

 

[rteetz]

Some Anaheim officials want to talk it out or see if a compromise can be made.

https://www.ocregister.com/2018/08/16/anaheim-officials-to-disney-lets-talk-about-hotel-subsidy/

 

[The Pho]

Some Anaheim officials want to talk it out or see if a compromise can be made.

https://www.ocregister.com/2018/08/16/anaheim-officials-to-disney-lets-talk-about-hotel-subsidy/

Well sure they'll say this and look like the good guys now (at least that has to be what they're thinking). This is all a very odd situation.

 

[rteetz]

Well sure they'll say this and look like the good guys now (at least that has to be what they're thinking). This is all a very odd situation.

Its all politics. I have a feeling Disney is going to win this battle eventually.

 

[adam.adbe]

Disney isn’t a regular business and most regular businesses don’t bring in the money like Disney does for a city. While Disney surely shouldn’t get every break they want it seems the two side are not on good terms right now which may not be good.

Tax breaks aren't intended to be a thank-you note for cherished friends. Unless Disney are seriously threatening to take their business elsewhere, the city has no incentive to offer breaks, and an obligation to the voters to collect all taxes owed.

The question simply is: will this tax break encourage growth that will long-term benefit the city and help fund services, or will it not? In the case of Disney, they're likely spending the money anyway.

 

[rteetz]

Tax breaks aren't intended to be a thank-you note for cherished friends. Unless Disney are seriously threatening to take their business elsewhere, the city has no incentive to offer breaks, and an obligation to the voters to collect all taxes owed.

The question simply is: will this tax break encourage growth that will long-term benefit the city and help fund services, or will it not? In the case of Disney, they're likely spending the money anyway.

Then why would the city offer the tax break to begin with? Anaheim is the one who came out and offered it to get a new luxury hotel in the area. Disney wanted to take advantage of that and then Anaheim said nope not anymore.

To your question, maybe Disney will spend less money now.

 

[maltdizzy]

Then why would the city offer the tax break to begin with? Anaheim is the one who came out and offered it to get a new luxury hotel in the area. Disney wanted to take advantage of that and then Anaheim said nope not anymore.

To your question, maybe Disney will spend less money now.

The tax rebates were a very contentious issue when they were originally debated. Did the city need more 4-diamond hotels (were travelers going elsewhere), did they just want to redevelop some lots, or where they being convinced by developers who wanted to build 4-diamond hotels? It's one of the reasons the voters moved so strongly against Disney/tourist lobby in the following election. According to some in city government, a large majority of tourist revenue always seems to be earmarked to be reinvested into these tourist projects, while it spurs jobs, it doesn't add money to the city coffers. There is a current "free market" belief that Disney and others will have to make enhancements on their own, and should be allowed to do so with minimal red tape, without tax concessions. The market will scale the industry as it always has and Anaheim can step back and just collect the tax revenue.

These are purely observations. Your mileage may vary.

There are still two non-Disney hotels in development with the tax rebates. I think there were originally slots for a maximum of four.

 

[rteetz]

What's next for Downtown Disney?

https://www.ocregister.com/2018/08/...disney-now-that-the-hotel-project-is-on-hold/

 

[middlechild]

Reading the first OC Register link about talking it out.. If Disney built the hotel under the tax rebate program, the city of Anaheim makes $7 Million a year for the first 20, then potentially $20 Million after that expiration. The $20 Million number comes from the value of the incentive, $267 Million benefit divided by 20 years, or roughly $13 Million per year benefit. The city has a $400 Million annual fund budget. Then the city pulls the incentive. Now Disney stops the hotel. Now the city does not get the tax revenue at all, at any amount. The numbers come from that article, so perhaps I am mistaken?

Elections to the city council are fast approaching, with two new seats to be added. If two pro-Disney candidates are elected, the board swings back to allowing these types of things.

 

[DLgal]

I find the point interesting that, as originally planned, this new hotel would add something like 1100 new jobs, and that was a big reason why they were approved for the tax subsidies.

When they moved the location, they laid off 400 employees in the locations they closed, for a net gain of only 700 ish new jobs. This is a significant change from the original agreement and I totally understand Anaheim city officials being upset and rescinding the offer. The terms have changed, and Disney did not seek an amendment to the agreement prior to announcing the location change. Honestly, Disney shot themselves in the foot here and they are the ones who need to be flexible and be willing to compromise with whatever Anaheim decides is acceptable.