Disneyland Promises $2.5 Billion Expansion
Disneyland Resort officials are ready to pitch the Anaheim City Council on a game-changing proposal.
Council members and Disney have negotiated for a while about the so-called DisneylandForward project.
A vote could come this Spring, as Disney prepares its final pitch, which sounds pretty good.
Disneyland is promising a $2.5 billion expansion and financial assistance for affordable housing in the area.
Here are five key points we just learned about Disney’s upcoming City Council vote.
Disney Will Spend $2.5 Billion


Photo: Disney
Let’s start with the headline here.
Disney previously filed the corporate paperwork to spend $60 billion on theme park expansion over the next decade.
Now, we’ve learned that Disney will direct at least $2.5 billion of that total toward Disneyland Resort.


Photo: Disney
What could Disney build with that sort of investment? I’ve previously speculated on 16 potential rides.
That article quotes from Disney’s own documentation given to the Anaheim government.


Photo: Richard Harbaugh
While we have no idea which projects Disney will choose, $2.5 billion is more than the combined cost of Star Wars: Galaxy’s Edge and Cars Land.
That statement identifies just how massive this project should become, presuming that Anaheim’s City Council agrees to the proposal.
As a reminder, Disney previously signed documents in the 1990s preventing it from building on certain parts of the Disneyland campus.
Park officials hope to persuade the current Anaheim City Council to modify those zoning ordinances to enable park expansion.
Disney Promises a $38 Million Investment in Anaheim


Photo: Anaheim.net
To garner those votes and be a great neighbor to the city of Anaheim, Disney has added several enticements.
Specifically, Disney promises to donate $30 million to affordable housing in Anaheim.
According to the report, half of this donation would occur in the first year, with the rest occurring in five years.
Disney wouldn’t build housing of its own. Instead, Anaheim officials would direct the money toward existing affordable housing projects.
In addition, Disney has promised an $8 million investment in Anaheim’s public park system.


Photo: Jeff Antenore / for Voice of OC)
The proposal would also include $90 million of spending directed toward street improvements.
Of course, Disney will benefit directly from some of those. So, let’s talk about specifics.
Disney May Buy Its Streets


Disneyland is building a bridge over Magic Way to connect the Pixar Pals parking structure and Downtown Disney in Anaheim, CA on Friday, June 14, 2019. Pixar Pals parking structure will have more than 5,000 spaces. (Photo by Paul Bersebach, Orange County Register/SCNG)
Long story short, Disney wants to buy some of the streets the Disneyland campus uses.
The proposal would provide the city of Anaheim with $40 million in exchange for Disney’s ownership of the following:
- Hotel Way
- Magic Way
- A Portion of Clementine Street
Disney hopes to secure those two roads plus part of another.
In exchange, the company is willing to spend $50 million more to pay for Anaheim street improvements.
Again, some of those changes will help Disney as well.
Specifically, construction would widen Katella Avenue at locations east and west of Harbor Boulevard.
Ultimately, the city would maintain control over the precise adjustments, though.
Disney has shown confidence in Anaheim’s willingness to find an equitable compromise for both parties.
Meanwhile, Anaheim has taken a unique approach…
Anaheim Trusts Its Planning Department


Photo: Disney
A spokesperson for Anaheim’s City Council made an interesting comment.
Apparently, most negotiations aren’t occurring with Disney executives and elected officials.
Instead, Anaheim’s Planning Department is working directly with Disney.
This tactic suggests that the City Council trusts its Planning Department to secure an agreement that pleases both parties.
In politics, negotiations often fall apart due to the meddling of people who have no experience with the impacted businesses.
The City Council members deserve credit for demonstrating faith in their unelected professionals rather than interfering.


Image Credit: Disneyland Forward
Anaheim Spokesperson Mike Lyster explains the rationale behind this demonstration of trust.
As a tourist destination, Anaheim relies on its $230 million in annual hotel taxes to pay for the city’s operations.


Photo: Disney
To keep those revenues flowing, it’s in the best interest of the elected officials AND Anaheim employees to work closely with Disney.
These professionals are smart enough not to endanger the golden goose, unlike what we’ve seen with Disney in Florida.
The Matter Is Far from Settled


Image Credit: Jeff Gritchen, Orange County Register/SCNG
The final bullet point here is the most significant one.
None of these proposals are finalized yet. Instead, Disney has suggested a quick timeline.
All the information discussed today comes from a City Council workshop.


Concept art of new parking area coming to Disneyland
Image Credit: Disney
Anaheim officials have scheduled another one for next month, including an overview of the current developer agreement.
These negotiations have a political component, as City Council members are elected officials.
As such, they don’t want to do anything without public approval, and Disney recognizes this concern.


Disneylandforward
The two parties are currently working together to provide as much transparency as possible during these delicate negotiations.
Disney appears well-positioned to present a final proposal that the City Council will support.
However, that vote probably won’t occur until this Spring.
Final Thoughts


Image Credit: @kenpotrock/Instagram
As we’ve seen in the past, plenty can change in a short timeframe.
Still, Disney has promised a massive growth phase for Anaheim’s signature tourist attraction.
In combination with the improvements to the city of Anaheim, this proposal appears likely to succeed.


Image Credit: @kenpotrock/Instagram
Ken Potrock, the President of Disneyland Resort, released the following statement:
“We listened to Anaheim’s leaders and worked hard to address what is important for the city.


Photo: Disney
We are proud that DisneylandForward will provide many important benefits directly to the residents of Anaheim.”
That’s a very confident quote that sounds as if Potrock+ expects the DisneylandForward project to end successfully.


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