A new hotel that was slated to be built on the west end of the Downtown Disney District has been put on hold indefinitely. This new upscale hotel was supposed to bring 700 new rooms to the Disneyland Resort. However, a disagreement with Anaheim has stopped the process.

The hotel was supposed to begin construction on July 1st west of the Monorail track in Downtown Disney at the Disneyland Resort. Several businesses were closed earlier this summer to make way for it. However, both the Disneyland Resort an Anaheim both acknowledged on Wednesday that they could not agree over development terms. There was a meeting scheduled for the Anaheim Planning Commission to consider the hotel on August 20th. This will most likely not happen now. If it had moved forward, this would have become the fourth Disneyland Resort Hotel. When an agreement could not be reached, Disney pulled the project.

At this point, it isn’t known what the next step will be for a fourth Disney hotel at the Disneyland Resort. It was expected that this location would provide Disney a 70 percent hotel tax rebate for 20 years. This was included in a rebate program offered by Anaheim in 2015 to encourage new AAA 4-star hotels in the city. It is also unclear if Anaheim will be returning to the issue.

 

The root of the problem came from an August 6th letter from Anaheim City Attorney Robert Fabela who informed Disney that changes in the site plan would cause the expected tax incentive rebates to not be applicable. Disney responded through David Ontko, chief counsel for Disneyland Resort and International Parks & Resorts. He said, “Given the city’s position that our project does not comply with the requirements of the Agreement, you have given us no other choice other than to put construction of the hotel on indefinite hold,” in a letter to Fabela on Wednesday, Aug. 15.

Anaheim spokesperson Mike Lyster said city officials were disappointed. “This is one of the most coveted locations for a hotel in the Anaheim Resort, and it would join nearly a dozen other hotels under construction or set to start soon in the area,” Lyster said. “All the necessary planning is in place, and we would love to see it happen. Nothing has changed on that front.”

Work had already begun on the space where this hotel was to be built. ESPN Zone, Rainforest Cafe, Earl of Sandwich, Starbucks, and AMC Theaters all have already been closed. With the halt of this project, it leaves the area with lots of question marks. What do you think about this development between Anaheim and the Disneyland Resort? What do you think will come next? What do you think should come next? Let us know your thoughts in the comments below.