Disneyland Expansion Deal Gets Approval

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The Anaheim City Council voted on Tuesday night to extend for 30 years a policy not to collect admission taxes for tickets sales to Walt Disney Co.’s Disneyland Resort in exchange for a $1 billion expansion of the theme park.

The Burbank entertainment and media giant has until the end of 2017 to start the $1 billion expansion at the resort, which includes Disneyland and Disney California Adventure, and must finish it within seven years. If Disney invests an additional $500 million in the parks by the end of 2045, the ticket tax exemption will continue for another 15 years.

The current agreement between Disney and Anaheim to not collect an admission tax expires in June 2016.

The new agreement between the parties does not specifically say if Disney will make the improvements in Disneyland, Disney California Adventure or both parks, only that they will occur within the resort’s existing boundaries.

“The company also is considering significant infrastructure improvements that would have a direct, positive impact on circulation and traffic flow along Harbor Boulevard and Ball Road,” a press release from the city said.

A study prepared for Anaheim by Beacon Economics LLC, in Los Angeles, concluded that a $1 billion investment in the resort would translate into an additional $17.9 million in tax revenue coming to the city and the creation of 3,000 to 4,500 jobs.

Disney did a $1 billion expansion of California Adventure in 2012 that resulted in the hiring of 5,000 new employees. The Disneyland resort is the largest employer in Orange County.

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