The resolution extends an almost 20-year old tax policy agreement with Disney.
The new agreement was approved 3-2 this past Tuesday and will run for 30 years with conditions for an additional 15 year extension. The agreement will therefore run until 2045, with an opportunity to extend to 2060.
Disney is required to invest $1 billion by the end of 2024, and if Disney invests another $500 million by the end of the agreement in 2045, the 2060 extension can be exercised.
In exchange for the investment, Disney would receive a rebate for any entertainment tax policy levied during the term of the agreement.
Anaheim’s General Fund draws a sizeable portion of its gross revenue from the resort. The 2015-16 budget lists a total of $147.8 million from hotel, sales, property and business license taxes.
An investment of $1 billion or $1.5 billion respectively would generate an additional $17.9 million or $26.8 million.
However, should the terms of the agreement not be met, the city of Anaheim can seek repayment tax rebates plus interest.
The City Council press release stated that any expansion to the resort would fall within the resort’s existing footprint.
The full press release can be found here.
Image Credit: Flickr User andycastro, https://flic.kr/p/7BfH7G via (CC BY-NC 2.0)