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Disneyland Resort Cancels Downtown Disney Luxury Hotel Project, Indefinitely.

Photo: Disney

In a snit rarely seen between the city of Anaheim and the Disneyland Resort, Anaheim City Atty. Robert Fabela wrote to Disney saying that a change in the site plan would make the hotel ineligible for expected tax incentive rebates.

The "I know you are, but what am I...?" back and forth between the city of Anaheim's Attorney, Disney's own legal counsel and Anaheim Mayor Tom Tait is over a change of approximately 1000 ft. The hotel was originally proposed for the site of a parking lot on the north end of Disney’s property, at 1401 Disneyland Way. However, in the time since the tax breaks were approved, Disney moved the hotel to the Western end of Downtown Disney shuttering popular eateries Rainforest Cafe, ESPN Zone, Earl of Sandwich and the AMC movie theater (which has announced plans to move across the street to Anaheim Garden Walk) in the process. The new address, about 1,000 feet south, would be 1601 Disneyland Way.

“Because this proposed site is inconsistent with the site intended in the agreement, it is the city’s position that Disney would not be entitled to the tax rebate were it to move forward under its current hotel construction plan,” Fabela’s letter said.

“You have given us no other choice than to put construction of the hotel on indefinite hold as the resort reevaluates the economic viability of future hotel development in Anaheim,” according to a letter dated Wednesday from Disneyland's chief legal council.

The hotel, which was slated to have around 700 rooms would have brought 1,500 construction jobs and 1,000 permanent jobs according to a statement from the Anaheim Chamber of Commerce. The yet unnamed hotel would have been the 4th at the Disneyland Resort and had been scheduled to open in 2021. There was no immediate word as to what would happen to the now vacant storefronts at Downtown Disney, or whether anyone has reminded the Anaheim City Council that without Disneyland, Anaheim would look a lot like neighboring Garden Grove, or Fountain Valley or whatever other anonymous Orange County city you drive through on the 22 Freeway...

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