Disneyland Resort Puts Hold on New Luxury Hotel Over Tax Dispute

Last October, Disneyland Resort unveiled plans for a brand new Four Diamond Hotel slated to open in 2021.  This was said to transform the west end of the Downtown Disney District and anchor a new gateway to the Disneyland Resort.  Now, due to a tax dispute over subsidies, the plans for the hotel have been put on hold indefinitely.

According to the Orange County Register, Disney executives pulled the project on Wednesday, August 15 saying they could not reach an agreement with the city over terms under which the hotel was to be constructed.

The article goes on to say that the move was in response to an Aug. 6 letter in which Anaheim City Attorney Robert Fabela wrote to Disney saying that a change in the site plan would make the hotel ineligible for expected tax incentive rebates.

“Given the city’s position that our project does not comply with the requirements of the Agreement, you have given us no other choice other than to put construction of the hotel on indefinite hold,” David Ontko, chief counsel for Disneyland Resort and International Parks & Resorts wrote to the city attorney Wednesday, Aug. 15.

City spokesman Mike Lyster said late Wednesday that officials “are disappointed the hotel isn’t moving forward.”

“This is one of the most coveted locations for a hotel in the Anaheim Resort, and it would join nearly a dozen other hotels under construction or set to start soon in the area,” Lyster said. “All the necessary planning is in place, and we would love to see it happen. Nothing has changed on that front.”

Many business in Downtown Disney District closed back in June to make way for the new 700-room hotel including Rainforest Cafe, ESPN Zone sports bar and restaurant, the AMC Theatres and the popular Earl of Sandwich eatery.   This would have been the first hotel built at the Disneyland Resort in over two decades.