200 S. Anaheim Blvd.
Suite 162
Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: JUNE 17, 2025
FROM: PLANNING AND BUILDING DEPARTMENT
SUBJECT: ANNUAL REVIEW OF FIRST AMENDED AND RESTATED
DEVELOPMENT AGREEMENT WITH WALT DISNEY PARKS
AND RESORTS U.S., INC. NO. 96-01 FOR THE DISNEYLAND
RESORT PROJECT
ATTACHMENT (Y/N): YES ITEM # 05
GOVERNMENT CODE § 84308 APPLIES: NO
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), that the property owner has complied in good faith with the terms and conditions of First Amended and Restated Development Agreement No. 96-01 for the 2024-2025 review period for the Disneyland Resort Project located in The Anaheim Resort.
DISCUSSION:
A Development Agreement is a contract between the City and the 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 the development of the Disneyland Resort®. The project included the development of Disney California Adventure Park, Disney’s Grand Californian Hotel & Spa, 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.
In May 2024, the City of Anaheim and Disney executed First Amended and Restated Development Agreement No. 96-01 in conjunction with approval of the DisneylandForward project. The Agreement has a 40-year term that expires on June 6, 2064. The Agreement covers all properties owned or controlled by Disney within the Disneyland Resort Specific Plan (DRSP) and Anaheim Resort Specific Plan (ARSP). The Agreement does not cover properties that Disney owns or controls outside of the boundaries of the DRSP and ARSP. Attachment 2 provides a map showing all Disney-controlled properties within The Anaheim Resort.
The Disneyland Resort® Development Agreement (Annual Review) June 17, 2025
The City is required annually to review the extent of good faith compliance by the property owner. Demonstration of good faith compliance includes conformance with all terms and schedules set forth in the Development Agreement. If the Council finds that the property owner has demonstrated good faith compliance, the review for that period is complete. This is the first annual review since approval of the DisneylandForward project.
Disney has submitted the attached letter (Attachment No. 1), dated June 3, 2025, requesting a determination of good faith compliance with the Development Agreement. The letter describes each obligation under the Development Agreement and its status. The obligations with deadlines within this review period include Disney’s first $15 million payment into the City’s Local Housing Trust Fund and the $8 million park improvement payment, which were made to the City on May 28 and May 21, respectively. Additionally, during the review period, Disney recorded a covenant against their property to ensure reimbursement for City provided traffic control services at fully burdened hourly rates. As documented in the letter, several other obligations are either ongoing or not yet triggered within this review period.
Staff confirmed that Disney has complied in good faith with the terms and conditions of the Development Agreement required during the 2024-2025 review period and continues to make progress towards completion of future obligations of the Development Agreement. Therefore, staff recommends that the City Council determine that the Property Owners have complied in good faith with the terms and conditions of the Development Agreement for this review period.
IMPACT ON BUDGET:
There is no budgetary impact. The property owner is paying the cost of this annual review.
Respectfully submitted,
Heather Allen
Director of Planning and Building
Attachments:
1. Annual Review Letter
2. Disney Properties Map
3. First Amended and Restated Development Agreement No. 96-01