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Disney Shelves Plans for Luxury Hotel at Disneyland

Walt Disney World, in Orlando, has more than 30 resorts to house guests on or near its property. Disneyland, in Anaheim, Calif., has three – and now plans for a fourth have been put on hold.

The company has put plans for a luxury hotel in Disneyland’s shopping district on “indefinite hold” amidst a battle with city officials over $267 million in subsidies.

Disney originally planned to build the 700-room facility at the north end of its property. But after a 20-year tax break, adding up to $267 million, was announced, it moved the location roughly 1,000 feet south. City attorneys then argued that a hotel in the new location would not qualify for the subsidy.

That decision was announced 10 days ago. And Wednesday, Disney put the brakes on the project.

“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,” wrote David Ontko, chief counsel for Disneyland Resorts, in a letter to Anaheim City Atty. Robert Fabela.

The Anaheim City Council could vote to amend the tax subsidy ordinance or approve a separate tax break at the new location at an upcoming meeting, but since the original subsidies were approved, several members have joined the council who were opposed to those breaks, making it less certain Disney would get the incentives it hoped for.