The mouse that roared: Disney’s employer-obstructed housing

June 6, 2007 | Uncategorized

 

At a time when workforce housing, especially in blue states and cities, is becoming an ever-more-serious problem, particularly at the local level, some employers are forging partnerships with local government to create new affordable housing.

And then there is Disney, which appears to be doing everything it can to keep ‘those’ people — who make the Magic Kingdom go — living far away from Disneyland.

 

Mickey_minnie_disneyland

Bring your children, bring your dollars, but don’t try to live near us

As reported in the New York Times:

 

Mouse_that_roared_book

For 52 years, the Walt Disney Company has called Disneyland, its Southern California theme park, “the happiest place on earth.”

But now Disney is angry that the city of Anaheim, where the park is based, has approved plans for 1,500 apartments on a site zoned for tourist facilities.

In February, Disney sued the city, hoping to force it to abandon the decision permitting the project. The development would have 225 subsidized units, and advocates of affordable housing are accusing Disney of turning its back on low-income residents, including many of its own employees.

 

Scooge_mcduck books

“Yes, here’s the passage — tort liability.”

Disney argues that it is simply trying to make Anaheim an attractive place for tourists. In the 1950s, Walt Disney, the company’s founder, bought 244 acres in Anaheim, for which he paid about $4,500 an acre. By the time the park opened, in 1955, Disney wished it had bought more.

In fact, Disneyland’s success spawned thousands of acres of development around the park including some that the company found tacky. The disputes that arose have forced Anaheim to take sides, and it has almost always taken Disney’s.

But the relationship between Anaheim and its largest employer has become strained over the planned housing, on a 26-acre site that now holds a trailer park.

Thanks, New York Times, for perpetuating stereotypes.

 

Trailer_trash_cover

I’ve previously documented that mobile home parks are a very low-value use of land — because they are single-story, and therefore inefficient use of the development space — so I endorse the idea of creating high-density, mixed-income housing (provided, of course, that the existing mobile home park residents have their rights respected and a reasonable relocation plan). Swapping mobile homes for 1,500 apartments (sixty to the acre, meaning mid-rise and high-rise), of which 225 will be

affordable, has got to be in Anaheim’s long run interest — and in the interest of its lower-income households:

Theresa Medina, an Anaheim resident, was visiting relatives at the trailer park this month. She said that one-bedroom apartments in Anaheim can cost $1,400 a month, and that many landlords won’t rent to large families.

 

Such inclusionary-zoning-style housing affordability also eases both Anaheim’s traffic burden and its workers’ total occupancy costs:

The prices and the occupancy restrictions cause many workers to commute long distances to Anaheim, she said.

 

Magic_kingdom

Affordable housing not wanted here

Lorri Galloway, one of three on the five-member Anaheim City Council who voted in favor of the housing project, said, “Research shows that we have a need in and around the resort area for 27,000 units of affordable housing.”

 

Lorri_galloway

Anaheim resident for 29 years

In other words, the proposed development, dense though it will be, will add supply equal to about 6% of Anaheim’s overall need, and the affordable component will be less than 1% of the demand.

 

By trying to block some of that housing, she said, Disney is showing “complete disregard for the workers who make the resorts so successful.”

Ms. Galloway is right.

 

Right_answer

But Rob Doughty, a spokesman for the Disneyland Resort, said the goal was simply to keep housing [‘those’ people NIMBYism — Ed.] out of an area zoned for resort development in 1994.

 

Once the special zoning district was created, “the state and federal governments invested billions of dollars to clean it up,” Mr. Doughty said.

Mr. Doughty’s logic is backwards.

 

Backwards_cycling

No, I’m building up logical momentum

If the state and federal government invested billions to make the property — including Disney’s property — more valuable, does that give the government even more moral standing to change the zoning in the public interest?

 

Disney and other companies then began building lavish facilities, including Disney’s 745-room Grand Californian Hotel and Spa, which opened in 2001. “And now they want to throw all that away,” he said, referring to the City Council.

 

Here too Mr. Doughty is tacitly appealing to prejudice, because he is suggesting that adding affordable housing and ‘those people’ will lower property values. The evidence is that it does not — fact, because the site will be enormously more valuable, it will generate substantial new real estate taxes, and therefore more local services.

Mr. Doughty added that “companies like Marriott and Disney and Hilton make their investment decisions on what they assume the zoning is going to be.”

Wrong again, Mr. Doughty.

 

Wrong_again

You know full well companies know zoning can be changed — and frequently try to change it themselves.

Anaheim’s mayor, Curt Pringle, who voted against the housing plan, said he understood the frustration that led Disney to file a lawsuit.

 

Curt_pringle

Anaheim mayor Curt Pringle, resident for 36 years

Mayor Pringle likes incentives:

In August 2005, the Anaheim city council adopted an ambitious new housing strategic plan, coauthored by Mayor Pringle. The Plan uses market incentives rather than command-and-control policies to sizably increase the affordable housing stock in the City of Anaheim over the next 4 years.

 

He cites increasing affordable housing development:

The city has recently completed 663 affordable rental units and has another 1,243 under way, according to statistics provided by the mayor.

That’s good — though it falls far short of what Anaheim needs.

 

“I certainly think they have a legal right to protect their interests,” Mayor Pringle said, adding that “no one contemplated that three members of the City Council would turn their back on that engine [Block that metaphor! — Ed.] of economic development within the city.”

 

Massive_engine

Mayor Pringle’s statements also make no sense to me. In what way is replacing an existing mobile home park with 1,500 new homes, of which 1,300 will be market-rate, bringing workers into Anaheim, going to undermine economic development?

 

The controversy began when the SunCal Companies, a developer based in nearby Irvine, signed a contract to buy 26 acres and announced plans to build 1,300 condominiums and 225 rental units on the site.

Frank Elfend, a project manager for SunCal, said the idea for affordable housing came about in consultation with the city. “Whenever you do a big project, you talk to the community about what their needs are,” he said. “In Anaheim, the priority was affordable housing.”

Evidently.

SunCal’s approach won the support of several members of the City Council. In February, the Council approved the project, leading Disney to file its first lawsuit ever against the city.

 

I will be fascinated to hear on what legal basis Disney believes it can prevent a city from exercising a normal prerogative of local government.

In late April, at the end of a contentious six-hour public hearing, the City Council voted to reaffirm its support for the housing project, ensuring that the litigation would continue. The vote was 3 to 2.

 

Another reason for the lawsuit suggests itself — to raise the political stakes, in hopes of persuading one of the three stalwart councilors to change his or her mind.

 

Marathon_man

Are you ready for some litigation?

Mayor Pringle, who opposed the new housing, said that Anaheim was building at least as much affordable housing as any other city in Orange County

Mayor Pringle’s comments suggest he sees affordable housing as a noxious burden to be discharged rather than an asset to his community — a very curious perspective for an elected official.

 

Perspective

It all makes sense from my point of view

—and that it would build more when it found appropriate sites.

A 26-acre mobile home park, that can increase its density sixty-fold, isn’t appropriate?

 

Goofy_cover_eyes

“We like you, but not living here.”

[Continued tomorrow in Part 2.]

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