Disneyland Resort wants to end all tax incentives with Anaheim. This is in an effort to end the strained relations between the resort and the city.
This change would put an end to the way that Disney has historically handled business in the birthplace of its first theme park for years and years.
It seems like eliminating tax agreements currently in place, Disney may be able to avoid a November 6th ballot item that, if passed, would make it a requirement that Disneyland Resort pay all workers a “living wage.”
While Disney is insisting that they just want to improve relations with the city and not avoid having to pay a higher wage to employees. According to Disney spokeswoman Lisa Haines, “We want to reset the relationship.”
First of the two tax benefits in question prohibits the city from adopting an entertainment tax on the price of admission as long as the resort promises to invest at least $1 billion by 2024 – which the Star Wars: Galaxy’s Edge expansion will do. While the second gives the resort a $267-million rebate on the city’s hotel tax if Disney builds a luxury hotel. This was adopted in 2016 and Disney drew up plans for a new hotel to open in 2021. However, it was learned last week that because Disney moved the location of the new property it would not qualify for this rebate.
Disney officials sent this letter to the Mayor and City Council of Anaheim last week, found on the Los Angles Times site:
Disney has also negotiated contracts with its four biggest unions for an hourly wage increase of as much as 20% immediately with another 13% increase in January. Union employees currently making the minimum $11 per hour would see that increase to $13.25 right away and then up to $15 in January 2019. In June of 2020 the minimum rate for union employees would increase again to $15.50.
According to Anaheim Mayor Tom Tait, the City Council will, most likely, need to take formal action to bring these two tax agreements to an end. According to him this move is just a formality as Disney is now stating they no longer want the incentives.
Source: Los Angeles Times
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