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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: DECEMBER 20, 2022
FROM: PLANNING AND BUILDING DEPARTMENT
SUBJECT: ANNUAL REVIEW OF DEVELOPMENT AGREEMENT NO. 96-01
FOR THE DISNEYLAND RESORT PROJECT
ATTACHMENT (Y/N): YES ITEM # 05
RECOMMENDATION:
That the City Council, by Motion, determine that on the basis of the evidence submitted by Walt Disney Parks and Resorts U.S., Inc. (Disney), the property owner has complied in good faith with the terms and conditions of Development Agreement No. 96-01 for the 2021-2022 review period for The Disneyland Resort Project located in The Anaheim Resort.
DISCUSSION:
A Development Agreement is a contract between the City and property owner that provides certainty to the developer that the approved project will be exempt from future changes to zoning laws and requires the developer to provide benefits to the city in exchange for that certainty. In October 1996, the City of Anaheim and Disney executed Development Agreement No. 96-01 (Agreement) to govern development of The Disneyland Resort®. The project included development of a second theme park (Disney California Adventure), additional hotel (Disney’s Grand Californian Hotel & Spa), entertainment areas (Downtown Disney), administrative office facilities, back-of-house facilities, new public and private parking facilities, an internal transportation system, and the ongoing maintenance, enhancement, and expansion of The Disneyland Resort. The Agreement has a 40-year term that expires in 2036. The Agreement covers all properties owned or controlled by Disney within The Disneyland Resort Specific Plan (DRSP).
The Agreement does not cover properties that Disney owns or controls outside of the boundaries of the DRSP. Attachment 3 provides a map showing all of the Disney- controlled properties within The Anaheim Resort.
The Agreement refers to the public benefits provided by the Agreement as “obligations.” Section 3.1 of the Agreement specifies Disney’s seven obligations. The Agreement required Disney to comply with four of the seven obligations prior to the “Opening Day Project.” The “Opening Day Project” included Disney California Adventure theme park, Downtown Disney, and the Grand Californian Hotel.
The Disneyland Resort® Development Agreement (Annual Review) December 20, 2022
Disney demonstrated to the City Council in February 2002, that Disney completed the four obligations with the 2001 opening of Disney California Adventure, Downtown Disney, and the Grand Californian Hotel. As part of its 2006-2007 annual review of the Agreement, the City Council deemed a fifth obligation complete, which pertained to right-of-way acquisition and dedication.
The last two obligations concern the Phasing of Remaining Development and the Anaheim Jobs program. The attached letter outlines Disney’s activities and compliance with the Agreement within the reporting period, including Disney’s performance concerning its remaining two obligations as described below.
Phasing of Remaining Development
Beyond the Opening Day Project, Disney has the right, but is not obligated, to continue to develop the theme park, hotels, and entertainment area in accordance with the development limits set forth in the DRSP. From October 22, 2021, through October 21, 2022, Disney has completed construction of the following new projects/additions to the Disneyland Resort:
1. Star Wars Galaxy’s Edge Service Platform Addition
2. Hotel Retail within the Grand Californian Hotel
a. Lovepop
b. Pele Soccer
Anaheim Jobs Program
The Agreement required Disney to develop and submit an “Anaheim Jobs” program six months prior to the opening of the Disney California Adventure theme park and to maintain the program throughout the term of the Agreement. The attached letter provides an updated Anaheim Jobs Program report on the components of the current program and the activities/events held during the reporting period. Disney employs over 34,000 employees at the Disneyland Resort, including more than 5,000 Anaheim residents. The report describes Disney’s recruitment efforts and a variety of education, training, childcare, and workforce development programs offered to Disney employees.
Pursuant to the Agreement, the City Council is required to determine annually if the property owner has complied in good faith with the terms and conditions of the Agreement.
Demonstration of good faith compliance includes conformance with all terms and conditions set forth in the Agreement. If the Council finds that the property owner has demonstrated good faith compliance, the review for that period is complete.
A representative of the Walt Disney World Company submitted the attached letter (Attachment 1), dated October 20, 2022, that outlines Disney’s activities and compliance with Development Agreement No. 96-01 (Attachment 2). Pursuant to the letter, staff believes that the property owner complies with its remaining two obligations under the Agreement. Therefore, staff recommends that the City Council determine that the property owner has complied in good faith with the terms and conditions of the Agreement for this review period.
The Disneyland Resort® Development Agreement (Annual Review) December 20, 2022
Disney has submitted applications to the City for the proposed DisneylandForward Project to provide for continued, long-term growth of the Disneyland Resort within The Anaheim Resort.
The proposed project would provide flexibility as to the location of permitted uses within Disney’s properties in the DRSP and the Anaheim Resort Specific Plan No. 92-2 areas and would streamline review of future Disney projects in these areas. The City Council will consider this project, including an amendment to the existing Development Agreement, at a future public hearing.
IMPACT ON BUDGET:
There is no budgetary impact. The property owner is paying the cost of this annual review.
Respectfully submitted,
Ted White
Planning and Building Director
Attachments:
1. Annual Review Letter
2. Development Agreement No. 96-01
3. Disney Properties Map