Walt Disney Co. is weighing a plan to invest at least $1 billion in its Disneyland resort in Anaheim, California, in exchange for extending a deal with the city that protects the company from a potential entertainment tax.
The company would have until the end of 2024 to spend the money on new attractions and road improvements that will improve local traffic flow, according to a statement posted Thursday on the city’s website.
The current tax deal, which dates back to 1996, would be replaced with a new one that runs 30 years. Disney would be reimbursed if an entertainment tax was created. There isn’t one now and one is planned, according to the city’s statement.
“This proposed entertainment tax policy is a pragmatic way to facilitate investment and future revenue for city services,” interim City Manager Paul Emery said in the statement.
A resolution will be considered at the city council’s July 7 meeting. Disney would get tax relief for another 15 years if it invested an additional $500 million, according to a summary released by the city.