Anaheim votes to extend $76.3 million tax break to Disney hotel developer

[lockmat]

The Anaheim City Council voted Tuesday to extend a $76.3-million tax break to a developer to build two Disney-operated luxury hotels, despite strong opposition from a council member, community activists and union members who called the deal a corporate handout.

Last year, Anaheim, which depends heavily on revenues from a 15% hotel bed tax, approved a policy of economic incentives to attract four-star hotels. The policy essentially lowered their bed taxes to the rate paid by three-star hotels. In March, the city approved a similar agreement to grant tax breaks to a four-star hotel.

Councilwoman Lorri Galloway cast the lone dissenting vote, saying the agreement gave special treatment to a private company at the expense of city revenue. She was also critical of the item's placement on the agenda at the last minute as a "consent" item, which has limited opportunity for public comment.

"Why do we create an unfair policy where the rest of the hotels have to pay 15% but they don't have to?" she asked. "The hotels are saying: I want a Mercedes but I only have money for a Chrysler. Will you give me the money for the Mercedes?"

http://www.latimes.com/news/local/la-me-an...0,5013032.story

Yikes, that seems like a lot of subsidy. COH is giving almost $10 mil to Embassy. What's the most we've ever given for a hotel or office project. What was it for HP?