The real reason why Disney is panicking over the L.A. Times news coverage over Mickey Mouse not paying his fair share in Anaheim
At the end of September, the Los Angeles Times published a scathing, in-depth, four-part investigative series on Disneyland's political lobbying efforts over the years inside the City of Anaheim entitled, Anaheim's Subsidy Kingdom.
The Times articles questioned the theme park giant's lopsided and often heavy-handed involvement in local politics, not only in influencing the outcome of the elections of Anaheim City Council with massive infusions of PAC money and campaign contributions, but also the Times showed how the powerful multinational media conglomerate financially benefited, election after the election, from numerous kickbacks, massive government subsidies, political favors and sweetheart deals from the city over the years.
The Times insinuated from their articles that these kinds of questionable, if not outright illegal, crony-capitalist kick-backs to Disney from its elected pro-Disney political puppets—who are often referred to as the "Disney Tali-heim" by their political foes inside Anaheim city hall and whose remaining members on the current City Council are Kris Murray, Lucille Kring and Steve Faessel—may be a thing of the past with the recent changes in city council elections from all being citywide elections to now becoming six discrete elections by city districts.
While none of these corrupt quid pro quo political practices inside Anaheim's city hall that were reexamined by the Times are really new—they are really rehashed, old stories previously covered by OC Weekly, Voice of OC, Disneyleaks, the Times itself and even the pro-Disney paper the OC Register that had previously been published and largely had gone under the radar of mainstream media without anyone really questioning their legality—Disney is still acting like the revelation of these scandals is somehow going to badly damage its business reputation to the point that it will affect its bottom line.
It seems Disney was going way out of its way to shoot the messenger in a lot of old, rehashed but highly truthful stories about Disneyland's seedy involvement and under-the-table dealings with Anaheim's city government when they have much bigger things to worry about these days (e.g., declining corporate revenues, a drop in their stock prices, subscriber loses in its cable businesses, falling ratings in all its network and cable channels, decreased attendance in all their theme parks around the world, a sharp drop in box office revenues for its studio entertainment, trying to implement its expansion plans for the resort, etc.)
So why is Disney going bat-sh*t crazy over summaries of some old news stories of political quid pro quo cronyism that they had been playing out over decades with Disney's hand-chosen political cronies inside Anaheim's city hall?
While the Times' investigative series is not alleging anything new, we do see the series for what it is trying to do, which is to establish a foundation and exposition for the real news-breaking stories that have yet to be published and are, most assuredly, coming very soon from the Times. It's really just the calm before the real storm that is brewing on the horizon.
It's obvious to us, if not everyone else, that the Times got an inside tip from city officials, with knowledge of the situation inside Anaheim's city hall, that they plan to take major steps to push back against Disneyland in the coming months, if not years, so the Times is beginning the build-up to the real series of investigative stories they plan on breaking on the Disneyland Resort in the news.
That is what has Disney executives very worried.
Those municipal initiatives most assuredly include increases in existing and new taxes on Disneyland to try to help recover billions of dollars of public city funds that were long given away to Disney for various public works projects and subsidies that tax payers paid for, in which Disneyland but not the public primarily benefited from (e.g., Mickey & Friends parking structure, the overpasses from the I-5 into the parking structure on North Disneyland Drive, the Downtown Disney pedestrian bridge and underpass on Disneyland Drive, the numerous renovations of Harbor Boulevard and Katella Avenue along the Anaheim Resort District, and the list goes on and on.)
Success of Disneyland's ambitious expansion plans will greatly rely on expanding parking spaces and managing traffic gridlock around the resort |
That is what has Disney executives very worried.
Those municipal initiatives most assuredly include increases in existing and new taxes on Disneyland to try to help recover billions of dollars of public city funds that were long given away to Disney for various public works projects and subsidies that tax payers paid for, in which Disneyland but not the public primarily benefited from (e.g., Mickey & Friends parking structure, the overpasses from the I-5 into the parking structure on North Disneyland Drive, the Downtown Disney pedestrian bridge and underpass on Disneyland Drive, the numerous renovations of Harbor Boulevard and Katella Avenue along the Anaheim Resort District, and the list goes on and on.)
We've already seen the beginnings of the city council's rollbacks last December when Anaheim Mayor Tom Tait's majority coalition on the city council swiftly terminated two existing Disney pet-projects sponsored by the previous Disney-majority led city councils: 1. a controversial tax subsidy program for luxury hotel developers, and 2. the Anaheim Streetcar project transporting visitors and employees to and from the ARTIC transportation hub, right by Angel Stadium in Anaheim's Platinum Triangle.
Anaheim City Council elections last November, which shifted the majority control of the City Council from the pro-Disney Tali-heim to a more moderate, Disney-skeptical, pro-Anaheim residents' coalition led by Anaheim Mayor Tom Tait.
And now, like many of Disney's other previously acquiescent business partners who over the years had gotten the short end of the stick in dealing with the Walt Disney Company, it looks like the Tait-led coalition is ready to hit back to take back control of the City of Anaheim from the Walt Disney Corporation.
Battleground Harbor Blvd.: A bridge too far
That support is coming not only from many long-suffering local residents, tired of supporting the Disneyland Resort with billions of dollars in taxpayer funds from city coffers for a bottomless pit of corporate welfare initiatives at the expense of badly needed repairs to roads, funding of essential city services, and supporting local schools and community improvement projects, but it seems that many local businesses are now also fed up with always getting the short end of the stick when the city gives unfair, preferential treatment to Disneyland at the expense of other local businesses' interests.
The proposed pedestrian bridge over Harbor Boulevard in Disney's ambitious Eastern Gateway Project is a great example of how many local business feel that Disney has become too greedy and have just gone too far in lobbying the city for public works projects that exclusively benefit the Walt Disney Company at the expense and detriment of other local businesses in the Resort District.
Carousel Inn across the street from Disneyland's Harbor Gate on Harbor Boulevard for $32 million.
No one knew at the time what Disney was going to do with a dinky hotel on a long, narrow strip of land, but soon enough, it became very apparent what Disney's intentions were.
Disney purchased the hotel in order to demolish it, so that they could then convert the land that the hotel sits on into a connecting pedestrian walkway from large plots of land they owned behind the hotel on Manchester Avenue to Harbor Blvd.
The plan by Disney, which is now known as the massive Eastern Gateway Project, proposed that a badly-needed seven-story parking structure be built on the current Pumba parking lot, which will allow guests to park close to the east main gate entrance and walk over to Disneyland via the walkway that was to be built on the existing Carousel Inn.
What the Carousel Inn would become as a connecting walkway from the Eastern Gateway plaza to the pedestrian bridge over Harbor Blvd. |
The public pedestrian bridge would then allow all guests entering the Disneyland Resort on the east side to walk across into the Disneyland Resort, unimpeded by oncoming traffic on Harbor Blvd.
Disneyland needs to build this new transportation hub in order to guarantee the success of its ambitious and very expensive future expansion plans for the resort, which includes the new Star Wars Land project currently under construction, the construction of a new luxury hotel which is currently in the planning stages, and several other future expansion projects for the theme parks and shopping district, which have yet to be finalized or announced to the public.
Schematic of Disneyland's various and very ambitious future expansion plans |
The proposed Eastern Gateway expansion project is one solution to the problem of the anticipated massive traffic gridlock around the Disneyland Resort.
There is, however, one little twist to this plan to build the Eastern Gateway Project that Disney did not want the public to figure out.
Disneyland wants to put its east side security checkpoint to inspect all guests somewhere in the Eastern Gateway plaza, before guests even enter the Carousel walkway, so that would exclude the possibility of having any public access ways onto the pedestrian bridge to and from Harbor Blvd.
The Harbor Blvd. strip across the Disneyland Resort sees a great deal of business from tourist foot traffic coming from the Disneyland Resort |
The way that Disney has it planned out now, anyone walking from the hotels on Harbor Blvd. would have to walk in a circuitous path around the entire block to get into the Eastern Gateway plaza to cross Harbor Blvd., using only the pedestrian bridge to get into the Disneyland Resort.
As part of the master plan, Disneyland will, most assuredly, close off the East Shuttle Area gates to all foot traffic and any other public access into the resort from anywhere on Harbor Blvd, except through the proposed pedestrian bridge. (See Disney's Eastern Gateway flythrough to the security gateway on YouTube above.)
The Eastern Gateway Project also proposes to move the entire East Shuttle Area transportation hub to the Eastern Gateway Project site |
It should be noted that the Harbor merchants did not necessarily oppose the idea of building a public pedestrian bridge over Harbor Blvd., per se.
In fact, many of the HBMC welcomed the construction of a publicly accessible pedestrian bridge because that would make it easier for and encourage many Disneyland guests to cross over Harbor Blvd. to patronize their restaurants, stores and hotels. They only opposed not having any public access to the bridge from Harbor Blvd.
But Disney clearly does not want that particular scenario to happen, in worst way possible, because they will risk losing a significant amount of business to the businesses on Harbor Blvd. who could better compete with Disney's high prices for products, services and rent for retail space from the Disneyland Theme Parks & Resort.
Harbor merchants reasonably demanded that the public have full access to the proposed public bridge from Harbor Blvd, which will be built on public property (i.e., the supporting columns would be sunken into Harbor Boulevard which is owned by the city) and, therefore, the bridge (which is over public property of Harbor Blvd.) would, in and of itself, be considered public domain, regardless of who built the bridge or paid for its construction.
The current Disney-led plans to exclude access from Harbor Blvd. also goes against the very purpose and public mission of building the pedestrian bridge, which is to give the public safe passage across Harbor Blvd. against the inherent safety hazards posed by oncoming traffic from having to cross Harbor Blvd. on foot.
So far, the Eastern Gateway Project has stalled because neither side wants to give an inch in compromising to the other side's demands |
The HBMC also listed several other laws, municipal codes and preexisting legal binding agreements on their website, which makes the blocking of public access of a public pedestrian bridge on Harbor Blvd., actionable in a court of law.
What has become very clear is that there is also absolutely no reason that Disney needs to put its security screening checkpoint arbitrarily onto the Eastern Gateway plaza before its guests cross the bridge, except to use that as a convenient excuse to block any public access to and from Harbor Blvd.
Disney could just as easily put the east side security checkpoint anywhere immediately after crossing the bridge, but they don't want to do that for "some reason," and one of those reasons is that they don't want the Harbor Blvd. businesses to benefit in any way from the establishment of a public bridge into and out of their resort.
Currently, crowds walking into the Disneyland east main gate must all use Harbor Blvd. and enter into Disneyland's East Shuttle Area transportation hub |
Despite what some Disney fanboys have been posting on YouTube to try to convince the HBMC to simply give into all of Disney's demands on the Eastern Gateway Project, these delusional pro-Disney podcasters really have no say or vote on local municipal business matters involving the Anaheim Resort District, but the current Tait-led majority on the City Council does have the final say, and it appears they are very sympathetic to the HBMC's concerns.
Unfortunately for Disney and their fan base, these local businesses have just as much say, if not more in the current political climate inside city hall, in how the Harbor Blvd. bridge will be built since it has to be built, owned and operated by the city for public use for everyone to enjoy.
Paying toll on an existing public bridge to the Disney trolls
Is it legal for Disney to charge rent from vendors on a public pedestrian bridge that sits on top of a city street, such as the Downtown Disney bridge that sits on top of Disneyland Drive? |
It can be clearly seen in the architectural drawings of the Harbor Blvd. bridge that the support columns for the bridge are firmly embedded into Harbor Blvd which is public property solely intended for the public's use.
Clearly, this would even pose a significant legal problem and a huge liability for Disneyland's existing pedestrian bridge in Downtown Disney that spans over the city-owned underpass of Disneyland Drive on the west side of the resort.
Thus, removing all the public access ways to the bridge from Disneyland Drive (e.g., blocking the walkway north of Gate 4 and the pathway between the AMC Theatre and Legoland to get into Downtown Disney) has created a lot of potential legal liabilities for both the city and Disneyland.
We would like to more closely examine the fine print of the legal agreement between Disney and the city on what exclusive rights Disney has on the public domain of the pedestrian bridge that also happens to sit on a city street, because there may be a very real possibility that Disney is also illegally squatting on public property by placing retail kiosks on the bridge and charging operating partners rent to run those retail kiosks with the clear intent to conduct private commerce on public property.
Since the city took out public bus benches on Harbor Blvd. to discourage the homeless from sleeping on them, the public benches along either side of the pedestrian bridge are now fair game to sleep on |
So Disneyland may not be able to kick out anybody, such as panhandlers who might choose to sleep on the concrete benches on the sides of the bridge, from the Downtown Disney bridge since it is public property and considered public domain.
Thus, these endeavors of "building bridges" with the city—both literally and figuratively—may be a bigger headache for Disney than anyone could have ever imagined.
There is no doubt Disney has been under great pressure of late to offset long-term declines in most of its business divisions (e.g., media networks, studio entertainment, digital interactive, etc.), that are vulnerable to ongoing digital disruption from streaming video services and video piracy on the internet, with some positive results from its only remaining viable division left that has any potential for growth—in other words, its theme parks and resorts division.
Thus, Disney executives have adopted a very inconspicuous predatory business scheme in Disneyland's hometown of Anaheim, California, whereby they will do whatever they can to drive out other local mom and pop businesses on Harbor Blvd. to eventually force all of them to sell off their lands to the Walt Disney Corporation.
Unfortunately for Disney, the Tait-led majority on the Anaheim City Council and the HBMC, led by their capable executive director Robert "Red" Harbin, are just too smart for the House of Mouse and have figured out Disney's schemes before they could be implemented without anyone noticing.
Sources:
- Anaheim Blog: OC Register: Does Disney Pay Its Fair Share? Yes. (10/15/17)
- OC Register: In fact, Disney does pay its fair share (10/15/17)
- OC Register: Does Disney pay its fair share? Yes (10/14/17)
- LA Times: Opinion: Higher revenues, improved streets show Anaheim leaders made the right call on working with Disneyland (10/01/17)
- Business partners finally push back on Disney after years of Mickey Mouse getting away with sweetheart deals (10/01/17)
- Theme Park Insider: Is Anaheim getting a fair deal from the Disneyland Resort? (9/27/17)
- Anaheim Blog: Dear Los Angeles Times: Yes, Disney Does Pay Its Fair Share in Anaheim (9/25/17)
- LA Times - Anaheim's Subsidy Kingdom:
- How one election changed Disneyland’s relationship with its hometown (9/26/17)
- Essential California: Is Disneyland wearing out its welcome in Anaheim? (9/25/17)
- Disney spent heavily to sway an election in Anaheim — did it pay off? (9/24/17)
- Is Disney paying its fair share in Anaheim? (9/24/17)
- Disney gives its own union workers the finger by refusing to pay lost wages during the Hurricane Irma disaster in Florida (9/15/17)
- Disney undercuts workers union's proposal for a 37 percent increase in wages with a merger 2.5 percent counter proposal (8/29/17)
- Anaheim removes bus benches near Disneyland to keep the public from noticing that the neighborhood around Disneyland is nothing but a ghetto (7/07/17)
- Former Disneyland Security Cast Member tells all about his experiences at 'The Happiest Place on Earth' (6/30/17)
- All Disney theme parks' attendance numbers are down, industry study reports (6/01/17)
- OC Register: Harbor Boulevard businesses create website to oppose Disneyland’s Eastern Gateway Project (1/27/17)
- Disney agrees to pay a whopping $100 million to settle an anti-poaching lawsuit brought on by its own animators and special effects wizards (2/01/17)
- Harbor Boulevard Merchants Coalition: Say No to Disney (1/23/17)
- Harbor Boulevard Merchants Coalition: Citizens Say No to Disneyland’s Massive Eastern Gateway Project (1/23/17)
- OC Register: Anaheim derails luxury hotel subsidies, $300 million streetcar and chamber funding (12/21/16)
- Voice of OC: Anaheim’s New Majority Rolls Back Controversial Policies (12/21/16)
- Disney agrees to settle with 9 state attorney generals to drop unfair labor practices of placing employees on-call for work (12/20/16)
- Voice of OC: Business Owners: Disney Foot Bridge Will Make Customers Walk Away (12/13/16)
- OC Register: Anaheim business owners air issues with Disneyland bridge, company vows to collaborate (12/13/16)
- OC Register: Disneyland neighbors have a bad feeling about park’s new parking, bridge project (12/12/16)
- City of Anaheim: Disneyland Resort Eastern Gateway Project (12/12/16)
- Laughing Place: Disneyland Resort Construction Update: November 2016 — Security Change Progess, Parade Floats, and Cupcakes (12/06/16)
- Voters back Anaheim Mayor Tom Tait's majority for City Council despite Disney's best efforts to rig elections with overwhelming campaign money to elect its own cronies (11/28/16)
- OC Weekly: Mayor Tom Tait Finally Wins a Council Majority in Anaheim—Now What? (11/23/16)
- OC Register: Anaheim council looks poised for shift as Brandman concedes to Moreno (11/22/16)
- Voice of OC: Moreno scores comeback win in pivotal Anaheim city council race (11/21/16)
- LA Times: In election spending, Disneyland puts its thumb on the scale in Anaheim, its company town (11/2/16)
- Voice of OC: Disney Breaks Its Own Spending Record in This Year’s Anaheim Council Election (11/1/16)
- Man and woman in critical condition after being stabbed in 'gang injunction zone' next to Disneyland (9/18/16)
- OC Register: Q&A on Disneyland’s massive parking project (8/18/16)
- OC Register: Video: Disney Resort to build new 7-story parking structure, elevated walkway ahead of 'Star Wars' land (8/10/16), with video
- Skift: Disney Will Get Millions from Anaheim to Build a New Luxury Hotel in California (7/13/16)
- Street: Disney's Force Overcomes Anaheim's Mayor on Tax Break (7/13/16)
- Bloomberg: Disney Gets $267 Million From City to Build $450-a-Night Hotel (7/13/16)
- OC Business Journal: Anaheim Tax Break to Luxe Hotels (7/13/16)
- OC Weekly: Hard Hats Help Fat Cats Score $550 Million in Anaheim 4-Star Hotel Subsidies (7/13/16)
- Voice of OC: Anaheim City Council Approves Massive Luxury Hotel Subsidy Deals (7/13/16)
- OC Register: Wincome Group, Disney to get $550 million from tax revenues for building luxury hotels (7/13/16)
- LA Times: Anaheim gives Disney a tax break for a new luxury hotel (7/13/16)
- LA Times: The mayor of a Disney company town pushes back, in vain, against a tax handout to Disneyland (7/12/16)
- OC Weekly: Anaheim to Award Biggest Tax Subsidy in City History to Disney—Union Leaders Remain Quiet (7/12/16)
- OC Register: Stop giving away our taxpayers' dollars (7/10/16)
- Credible terrorist alert on Disneyland: Feds convict two men from Anaheim of conspiring to form a local ISIS sleeper cell (6/21/16)
- Bob Iger whines U.S. corporate taxes are 'too high' and 'ridiculously complex' for Disney (6/12/16)
- LA Times: New high-end hotel is proposed for Disneyland (6/07/16)
- OC Register: Disney plans to add luxury hotel at Disneyland Resort (6/07/16), with video
- Disney CEO Bob Iger Responds to Bernie Sanders’ Criticism Like a Petulant Child (5/25/16)
- Disney security managers: Applicant with criminal records desired (5/04/16)
- Voice of OC: Anaheim Councilwoman criticized for trip with Disneyland lobbyist (8/07/15)
- LA Times: Anaheim mayor gets into deep political waters in clash over Disney tax break (7/10/15)
- OC Register: Dubious tax deal pushed through for Disney (7/10/15)
- OC Weekly: Anaheim passes 30-year Disney gate-tax ban, to resort elite's delight (7/8/15)
- Voice of OC: Anaheim Council approves ticket tax protection for Disneyland (7/8/15)
- OC Register: Anaheim City Council votes 3-2 to extend gate-tax ban for Disneyland for 30 years (7/7/15)
- OC Register: Overflow crowd on hand as Anaheim City Council debates gate-tax ban for Disneyland (7/7/15)
- LAist: Anaheim Faces Off Against Disneyland Over 'Gate Tax’ (7/07/15)
- KCBS: Disneyland At Center Of Debate Over Hefty Tax Break Related To $1B Investment (7/07/15), with video
- OC Register: Don't tie hands of Anaheim's future generations (7/5/15)
- Voice of OC: Experts: Disneyland Would Expand With or Without Ticket Tax (7/02/15)
- OC Register: Here’s why Disney is working to stop an Anaheim gate tax, and why the city needs it (6/30/15)
- Union Tribune San Diego: Disneyland under fire in new tax push (6/29/15)
- OC Register: Disney works to stop Anaheim gate tax (6/28/15)
- Skift: Disneyland Seeks Sweetheart Deal on Gate-Tax Waiver for Expansion (6/27/15)
- LA Times: For $1-billion investment, Disney would be spared Anaheim tax for 30 years (6/26/15)
- OC Register: Disney wants to invest $1 billion at Disneyland, California Adventure in exchange for no new gate tax (6/26/15)
- OC Register: Anaheim attempts to lure upscale hotels with big tax breaks (6/10/15)
- OC Register: Disney land buy pleases hotelier (5/7/15)
- OC Register: Disney purchases Carousel Inn across the street from Disneyland for $32 million (4/30/15)
- OC Register: Disney pumps money into Anaheim election (10/27/14)
- LA Times: O.C. Register's university ad deals pose credibility questions (3/29/13)
- OC Register: Anaheim OKs $9.6 million more on streetcar plan (11/14/12)
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