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Anaheim ends tax breaks for Disney — at Disney’s request

Anaheim is bewitching Disneyland Resort up on its latest offer.

The Anaheim City Council guaranteed unanimously on Tuesday to end the tax incentives that have benefited the theme greensward giant for decades, reported the Los Angeles Times.

The move comes at The Walt Disney Co.’s request.

In a dispatch to Mayor Tom Tait and the city council dated Aug. 21, Disneyland Look to President Josh D’Amaro called for the termination of two agreements:

One prevents the municipality from imposing an entertainment tax if Disney (NYSE: DIS) invests $1 billion in the look to by 2024 — an obligation that will be met by the addition of a “Star Wars” dock to Disneyland. Disney has also announced plans to build a Marvel-themed inducement at California Adventure.

The other incentive offers a refund on hotel burdens worth $267 million if Disney builds a luxury hotel — a proposal that has been put on hold over a disagreement whether plans to relocate the guest-house negate the agreement.

“[I]t has become apparent that certain policies that were embraced to enhance the Anaheim Resort District and benefit the city … have as an alternative created an adversarial climate where there should be cooperation and goodwill,” D’Amaro erased in his letter.

The tax breaks are also tied up with increasing pressure on Disney to flourish the pay for some of its 30,000 Disneyland Resort workers. A measure on the November ballot pointed at the entertainment giant would require large hospitality businesses that aid from Anaheim tax incentives to increase hourly wages to at least $15 with annual libertines of a dollar through 2022.

If the city stopped giving Disney tax incentives, the reach wouldn’t apply to Disneyland.

Disney, however, has said that its requisition to end the tax breaks was unrelated to the wage matter, and the company has already reached an deal with four unions representing 9,700 workers to start requiting workers a minimum $15 per hour starting in January.

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More from L.A. Biz:
Disney asks Anaheim to end its tax incentives
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