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View Full Version : Disney, developer reportedly end talks - OC Register, 8/6/07



Darkbeer
08-06-2007, 08:49 PM
http://www.ocregister.com/news/disney-suncal-resort-1799945-council-talks

QuikQuote: Talks between a developer and Disney apparently have broken off without a resolution to a dispute over a housing proposal in the Anaheim Resort area.
Disney officials announced late Monday that they failed to reach a settlement with SunCal, the developer that wants to build 1,500 homes across from Disney property. SunCal's representatives could not be reached for comment late Monday.

Darkbeer
08-07-2007, 05:40 AM
http://www.latimes.com/news/printedi...-pe-california (http://www.latimes.com/news/printedition/california/la-me-disney7aug07,1,1223733.story?coll=la-headlines-pe-california)

QuikQuote: Disney officials released a statement late Monday saying that months of discussions had failed to resolve the dispute: "It is in everyone's best interest for the council to make a decision as soon as possible," the statement said. Officials for SunCal, the developer, could not be reached for comment.
A spokesman for Save Our Anaheim Resort, a Disney-funded coalition of business and community leaders that organized the referendum drive -- collecting more than 14,000 signatures -- asked the council to immediately place the zoning issue on a ballot. "The people didn't ask for a compromise," said Todd Ament, a co-chairman of the coalition. "They asked this issue to be given to the voters. If those actions aren't taken, we'll seek all remedies, including legal action, to get this on the ballot."

Darkbeer
08-07-2007, 05:47 AM
So what's next?

Well, SunCal has to make a decision, and that is, do they want to spend a lot of money (Hundreds of Thousands of Dollars) to try and get the voters of Anaheim to vote against the referendum, or do they cut their losses and give up on this project, and focus on another site.

Whatever they decide, they will let at least one councilmember know of their desire to fight or not.

And then the city council will just rescind the zoning change if SunCal doesn't want to fight, or place it on the ballot if SunCal says they want to go forward.

I seriously doubt that the three council members who have sided with SunCal in the past will vote to rescind if SunCal says they want to fight.

shadyln
08-07-2007, 07:34 AM
So what's next?

Well, SunCal has to make a decision, and that is, do they want to spend a lot of money (Hundreds of Thousands of Dollars) to try and get the voters of Anaheim to vote against the referendum, or do they cut their losses and give up on this project, and focus on another site.

Whatever they decide, they will let at least one councilmember know of their desire to fight or not.

And then the city council will just rescind the zoning change if SunCal doesn't want to fight, or place it on the ballot if SunCal says they want to go forward.

I seriously doubt that the three council members who have sided with SunCal in the past will vote to rescind if SunCal says they want to fight.

I must say, if it goes to the voters it will be very interesting to see what they decide. Disney's revenue for the City of Anaheim has got to be a big chunk of change. And low cost housing with make up the difference for prospective city revenue? To hear what the voters think will be very interesting indeed!

Darkbeer
08-07-2007, 07:50 AM
I must say, if it goes to the voters it will be very interesting to see what they decide. Disney's revenue for the City of Anaheim has got to be a big chunk of change. And low cost housing with make up the difference for prospective city revenue? To hear what the voters think will be very interesting indeed!

A review of the Economic Benefits of the Anaheim Resort District states that a Present Value of 40-year Impact gives a net income to the city of $1.1 million if the SunCal Housing project is built, but $163.1 million if it remains zoned as is. A big difference.

A lot more info and numbers can be found here...

http://www.soaranaheim.com/

Jim Hawkins
08-08-2007, 02:16 PM
There are a few points I still don't understand.
1. Why that specific area for housing development? Is it because of the proximity to the park that makes it more desirable for home owners? I would think that would be a negative based on traffic, noise etc.

2. Why did the Council vote to change the Zoning to residential, when from an economic standpoint it clearly benefits the City to be developed by Disney?

3. With this developer getting things rolling, are they speculating, hoping Disney would pay them off?

Darkbeer
08-08-2007, 02:48 PM
!. Because the developer, SunCal, got a good deal on the land, and thinks it can make tens of millions by getting it rezoned (currently commercial is worth about $2 million per acre, and residental is worth $5 million).

2. Because SunCal offered the 15% low cost housing, and has sweet talked the council in agreeing with them, in fact, usually the developer pays for all the initial studies, in this case, the CITY paid for them, a very rare event. So there are certain councilpersons that are working with SunCal on this project.

3. The compromise that the council hoped would happen was that SunCal make changes to the project that would make Disney "happy" and wouldn't oppose the project, looks like that hasn't happened, and now the council will be forced to take action.

Bytebear
08-08-2007, 02:56 PM
Why didn't Disney buy the property themselves. It would seem to make sense for them to be buying as much of Anaheim as they can. Even if the price is a little high.

Darkbeer
08-08-2007, 03:07 PM
Why didn't Disney buy the property themselves. It would seem to make sense for them to be buying as much of Anaheim as they can. Even if the price is a little high.

Good question, the two mobile home parks maybe weren't even on the market, but SunCal approached them with a good offer.

Disney has been trying to be "lean" in business and has been selling off some property in Florida that they feel they don't need, so maybe they aren't in the market for land currently. Also, maybe they don't want to run a Mobile Home Park until they need the land for the third park or other reason.

Technically, SunCal has not purchased the land, they just have an agreement to buy the land at a certain price if they choose to go forward (though I presume if they decide to cancel the project, the Mobile Home property owners will get a payment from SunCal, similar to a buy-out offer.)

But then during the compromise hearings, they might have talked about transferring the land purchase agreement to Disney if they paid SunCal for the rights.

spectromen
08-09-2007, 08:26 AM
It's odd, then, that the residents have already been evicted and their homes boarded up if the land isn't even sold yet....

For a property so far from the Resort (Haster and Katella, isn't it?) I'm surprised this has become such an issue. That's pretty far removed from the heart of the Disney area, and no tourist would ever notice if that specific plot of land was low income apartments or mobile homes..it's just not a highly visible location. If this were the corner of Harbor and Katella, or the Fugishe (sp?) field, I'd understand, of course.

PhiSigDuchessCV
08-09-2007, 09:38 AM
It's odd, then, that the residents have already been evicted and their homes boarded up if the land isn't even sold yet....

For a property so far from the Resort (Haster and Katella, isn't it?) I'm surprised this has become such an issue. That's pretty far removed from the heart of the Disney area, and no tourist would ever notice if that specific plot of land was low income apartments or mobile homes..it's just not a highly visible location. If this were the corner of Harbor and Katella, or the Fugishe (sp?) field, I'd understand, of course.

From what I understand it is near property that Disney currently owns and has future plans for the rumored 3rd park.

Darkbeer
08-09-2007, 11:26 AM
It's odd, then, that the residents have already been evicted and their homes boarded up if the land isn't even sold yet....

For a property so far from the Resort (Haster and Katella, isn't it?) I'm surprised this has become such an issue. That's pretty far removed from the heart of the Disney area, and no tourist would ever notice if that specific plot of land was low income apartments or mobile homes..it's just not a highly visible location. If this were the corner of Harbor and Katella, or the Fugishe (sp?) field, I'd understand, of course.

There are a few Mobile homes on the edge of Haster that the city has bought and condemmened. Those were bought for a street project to expand Haster. Has nothing to do with the current issue. The vast majority of Mobile Homes are still there and being used (which makes a good point, the Mobile Homes are basically low cost housing units, and will be lost if the SunCal project goes forward, so actually, it will be a net loss of affordable housing, as only 225 units are proposed in the SunCal project for low cost housing).

And the property is right across the street from land Disney owns (currently the Katella CM parking lot) that is planned for the Third Park, it does have an impact to the Resort area.

pisces
08-10-2007, 12:14 PM
For a property so far from the Resort (Haster and Katella, isn't it?) I'm surprised this has become such an issue. That's pretty far removed from the heart of the Disney area, and no tourist would ever notice if that specific plot of land was low income apartments or mobile homes..it's just not a highly visible location.

But, it doesn't matter what the distance is. As far away as the location is, it probably isn't zoned for new housing construction. The Developer is looking for a change in zoning. So, the question becomes .....will the City enforce current zoning laws or not ?? , no matter where the location might be.

There was a reason for all the restrictive zoning laws and anti-growth measures taken in the 1980s. To undo all that now sets a bad precedent, and it puts areas, closer to the Park, at risk.