Good Afternoon,

My name is Julian Sebastian Gutierrez, a Policy Analyst with the Kennedy Commission. Below will be our comments, concerns, and suggestions regarding Agenda Item 14 regarding the Disney Forward project.

Thank you,

 Julian Sebastian Gutierrez

April 16,2024

Mayor Aitkens and City Councilmembers

City of Anaheim

200 S.Anaheim Blvd

Anaheim,CA 92805

Re:Comments to Action Item 14 on Anaheim’s discussion of establishing a Local Housing Trust Fund

Dear Honorable Mayor Aitkens and Members of the Anaheim City Council

The Kennedy Commission (the Commission)is a broad coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $30,000 annually in Orange County.Formed in 2001,the Commission has been successful in partnering and working with jurisdictions in Orange County to create effective policies that have led to the production of new homes affordable to low income working families.

Thank you for the opportunity to comment on the city’s discussion on The Disneyland expansion plan under Disney Forward.

The Kennedy Commission strongly disapproves of the Disneyland Park expansion.The relationship between The Walt Disney Company and Anaheim has been largely one-sided,where the City contributes millions of dollars in investment and land while receiving nearly nothing in return.According to a 2017 report,despite contributing $108.2 million to build a parking garage that has been generating more than $35 million in annual revenue,Disney is charged only a dollar a year for the lease of the parking garage.In 1997,Anaheim took on $510 million in debt for improvements to the Resort District that despite receiving a surplus ranging in the hundreds of millions,Anaheim can only use the surplus to pay off the debt instead of the funds going to the General Fund.

Disney has taken in significant subsidies and tax breaks from the City and has given little in return to either the City or the residents of Anaheim.Although Disney has promised $30 million in affordable housing and $8 million for park and nearby road improvements,it is important to remember that those investments are minor when compared to what the city could earn annually from a gate tax imposed on the park.Additionally it is important to remember that despite there being no budget impact,such improvements would make a significant difference on the ability for Anaheim’s low and very low income residents to afford to live comfortably in the City through the significant increase in cost,traffic,and noise/air pollution that will be brought by the Disneyland expansion.While Disney asserts that it has created jobs that support Anaheim’s residents,a good portion of those employees are underpaid and overworked.The assertion that Anaheim needs Disneyland is an unfair assumption by the over-confident conglomerate.Instead of permitting Disneyland to expand their park,the city should evaluate the long-term effects a 2%gate tax could have on The City.What benefits would a park expansion be for Anaheim’s low and very low income residents if they cannot even afford to attend the park,enjoy its amenities, or worse lose their homes because of the increased housing costs?

The Commission opposed the park expansion and believes that greater evaluation is necessary on Disney’s economic contribution to the City and how Anaheim has used those funds to support Anaheim’s low and very low income residents and their ability to comfortably live in the City. Additionally, we support the imposition of a 2% gate tax on Disneyland Park as a means to increase the available budget funds that could be invested in housing,community services,and infrastructure on a long-term basis.

Thank you for your consideration of these concerns. We look forward to further conversation regarding this important matter

Very truly yours,

 Cesar Covarrubias

 Executive Director