Connect with us

Business

Column: Disneyland has already turned my hometown into a giant tourist trap. What's next?

Published

on

Column: Disneyland has already turned my hometown into a giant tourist trap. What's next?

Somewhere in my personal papers is a folded up, tattered poster of Mickey Mouse commemorating his long reign as the world’s most famous rodent. It shows scenes from some of his iconic shorts — “Steamboat Willie,” “The Band Concert,” “Brave Little Tailor” — above the legend “Thanks Mickey for 60 Years!”

Signed, Disneyland.

My fourth-grade classmates and I received the posters in the fall of 1988 at Patrick Henry Elementary School in Anaheim, along with a T-shirt of a tuxedoed Mickey wearing sneakers and a free trip to the Happiest Place on Earth for his birthday bash. We cheered alongside kids from around the world and rode rides until the evening. I can still hum parts of the gratingly cheery song from the parade held in Mickey’s honor. (A quick YouTube search confirmed I have the melody right.)

The poster hung on my wall through junior high, even though I was more of a Donald Duck fan. It was a symbol for me that a company whose products and productions I loved cared about us Anaheim kids. How cool was it that one of the world’s most popular theme parks was in my hometown? And how cool was it that they let us kids hang out with Mickey on his birthday for free?

I hadn’t thought about my souvenir for decades until yesterday, when the Anaheim City Council passed yet another Disneyland-friendly ordinance. Zoning regulations will be relaxed so Disney can build new attractions and hotels on its 490-acre campus, and three public roads will be sold to Disney for $40 million.

Advertisement

In return, Disney promises to undertake nearly $2 billion in construction over the next decade, donate $30 million to a yet-to-be-formed public housing trust run by Anaheim, give $8 million toward improving city parks and pay $45 million in “transportation improvements,” according to the website for DisneylandForward, the name Disney has bestowed on its plans.

A Disney-funded study by Cal State Fullerton’s Woods Center for Economic Analysis and Forecasting predicted that the company’s most ambitious proposals — a full build-out of Disneyland and Disney California Adventure, and a new hotel — will create tens of thousands of jobs and generate $244 million in annual tax revenue.

Who could possibly be against this windfall of cash and fun? Me, of course!

The Anaheim City Council unanimously approved the agreement despite the lack of concrete plans from Disney — all it’s revealing right now is “possibilities” inspired by attractions from its theme parks worldwide, according to the DisneylandForward website. There might be more specifics in the Woods Center forecast, but city officials and the public alike can see only a nine-page summary because Disney claims it contains proprietary information.

This cryptic Mouse long ago replaced the Mickey of my childhood memories. By the time I became a reporter, I knew that Disney has long treated Anaheim as a political chamois, looking to squeeze as much as possible out of Orange County’s largest city.

Advertisement

Walt Disney Co. Chief Executive Bob Iger at “Mickey’s 90th Spectacular” at the Shrine Auditorium in 2018.

(Valerie Macon / AFP via Getty Images)

In 1996, the city paid for a $108.2-million parking structure — at the time, the largest in the world — that it leases to Disney for a buck a year, allowing the company to keep all the revenue and eventually assume ownership. A 2017 Times analysis found that Disney had “secured subsidies, incentives, rebates and protections from future taxes” worth more than $1 billion over the previous two decades. Disney has repaid that goodwill with millions of dollars in donations to political action committees that push pro-Mickey candidates.

Two years ago, FBI agents and city-funded independent investigators characterized a Disneyland Resort lobbyist as part of a “cabal” that has undue influence over city politics. Meanwhile, the cost of a one-day pass to the Mouse House has increased from $43 in 2000 to $194 as of last year. Nightly fireworks at the resort scare dogs, set off car alarms in working-class neighborhoods and make the 5 Freeway a smoky mess.

Advertisement

Yet, to paraphrase the most famous quote in “The Usual Suspects,” the greatest trick Disney ever pulled was convincing Anaheimers that its bad side doesn’t exist. The few DisneylandForward skeptics have been easily drowned out by supporters.

Unions? Leaders showed up to support DisneylandForward when the Anaheim City Council first voted on it in April. The council? From Republican Stephen Faessel to progressive Carlos Leon to independent Jose Diaz, they hardly asked any hard-hitting questions. The millions of visitors to the Disneyland Resort, half of whom seem to be my cousins and friends? They’re celebrating like Ewoks at the end of “Return of the Jedi” at the thought of more rides to enjoy and swag to grab.

Only a few of us cranks are pointing to the environmental impact report finding that the construction noise and permanent change in air quality as a result of the expansion would be “significant and unavoidable.” Or pulling out a calculator to crunch the numbers in the Woods Center report.

For instance, the study says that if Disneyland maximizes its acreage and builds a new hotel, that will create 28,352 jobs, translating into $1.8 billion in income for those employees.

Sounds nice and big. But it doesn’t say what kind of jobs and whether they’d be permanent or full time. The $63,487 average yearly salary from those jobs is considered low-income for a one-person household in Orange County, according to the California Department of Housing and Community Development. These are hardly the jobs Anaheimers need to be able to afford to live here, let alone live a good life.

Advertisement

I still remember when Anaheim was a city of factories and blue-collar jobs that allowed my immigrant elders and my cousins to buy homes. Near the granny flat where I lived before transferring to Patrick Henry were a lumberyard, a Kwikset factory and a trucking depot where my dad would pick up cargo containers.

All those places vanished decades ago. Now, there are hipster hangouts, beer gardens and high-priced apartments, because Anaheim leaders took Disney’s lead and transformed my hometown into one giant tourist trap, with longtime residents little better than an afterthought.

Which brings me back to that Mickey Mouse 60th anniversary poster. I eventually took it down because the edges were fraying, and I thought it would be a collectors’ item one day. I thought Disneyland had bestowed on me yet another wonderful prize.

I looked up the poster on eBay recently. I can get one for $20. But, hey: At least I got something free from Disney back in the day.

In 2016, the company vowed to give all Anaheim sixth-graders free Disneyland tickets in honor of its 60th anniversary if they did community service projects.

Advertisement

The promotion was supposed to continue for a decade but was discontinued in 2021, during the pandemic. It has yet to be reinstated, even though Disney just announced that its theme park division increased revenue in the second fiscal quarter to $8.39 billion.

Stay classy, Mouse House!

Business

Commentary: A leading roboticist punctures the hype about self-driving cars, AI chatbots and humanoid robots

Published

on

Commentary: A leading roboticist punctures the hype about self-driving cars, AI chatbots and humanoid robots

It may come to your attention that we are inundated with technological hype. Self-driving cars, human-like robots and AI chatbots all have been the subject of sometimes outlandishly exaggerated predictions and promises.

So we should be thankful for Rodney Brooks, an Australian-born technologist who has made it one of his missions in life to deflate the hyperbole about these and other supposedly world-changing technologies offered by promoters, marketers and true believers.

As I’ve written before, Brooks is nothing like a Luddite. Quite the contrary: He was a co-founder of IRobot, the maker of the Roomba robotic vacuum cleaner, though he stepped down as the company’s chief technology officer in 2008 and left its board in 2011. He’s a co-founder and chief technology officer of RobustAI, which makes robots for factories and warehouses, and former director of computer science and artificial intelligence labs at Massachusetts Institute of Technology.

Having ideas is easy. Turning them into reality is hard. Turning them into being deployed at scale is even harder.

— Rodney Brooks

Advertisement

In 2018, Brooks published a post of dated predictions about the course of major technologies and promised to revisit them annually for 32 years, when he would be 95. He focused on technologies that were then — and still are — the cynosures of public discussion, including self-driving cars, human space travel, AI bots and humanoid robots.

“Having ideas is easy,” he wrote in that introductory post. “Turning them into reality is hard. Turning them into being deployed at scale is even harder.”

Brooks slotted his predictions into three pigeonholes: NIML, for “not in my lifetime,” NET, for “no earlier than” some specified date, and “by some [specified] date.”

On Jan. 1 he published his eighth annual predictions scorecard. He found that over the years “my predictions held up pretty well, though overall I was a little too optimistic.”

Advertisement

For example in 2018 he predicted “a robot that can provide physical assistance to the elderly over multiple tasks [e.g., getting into and out of bed, washing, using the toilet, etc.]” wouldn’t appear earlier than 2028; as of New Year’s Day, he writes, “no general purpose solution is in sight.”

The first “permanent” human colony on Mars would come no earlier than 2036, he wrote then, which he now calls “way too optimistic.” He now envisions a human landing on Mars no earlier than 2040, and the settlement no earlier than 2050.

A robot that seems “as intelligent, as attentive, and as faithful, as a dog” — no earlier than 2048, he conjectured in 2018. “This is so much harder than most people imagine it to be,” he writes now. “Many think we are already there; I say we are not at all there.” His verdict on a robot that has “any real idea about its own existence, or the existence of humans in the way that a 6-year-old understands humans” — “Not in my lifetime.”

Brooks points out that one way high-tech promoters finesse their exaggerated promises is through subtle redefinition. That has been the case with “self-driving cars,” he writes. Originally the term referred to “any sort of car that could operate without a driver on board, and without a remote driver offering control inputs … where no person needed to drive, but simply communicated to the car where it should take them.”

Waymo, the largest purveyor of self-driven transport, says on its website that its robotaxis are “the embodiment of fully autonomous technology that is always in control from pickup to destination.” Passengers “can sit in the back seat, relax, and enjoy the ride with the Waymo Driver getting them to their destination safely.”

Advertisement

Brooks challenges this claim. One hole in the fabric of full autonomy, he observes, became clear Dec. 20, when a power blackout blanketing San Francisco stranded much of Waymo’s robotaxi fleet on the streets. Waymos, which can read traffic lights, clogged intersections because traffic lights went dark.

The company later acknowledged its vehicles occasionally “require a confirmation check” from humans when they encounter blacked-out traffic signals or other confounding situations. The Dec. 20 blackout, Waymo said, “created a concentrated spike in these requests,” resulting in “a backlog that, in some cases, led to response delays contributing to congestion on already-overwhelmed streets.”

It’s also known that Waymo pays humans to physically deal with vehicles immobilized by — for example — a passenger’s failure to fully close a car door when exiting. They can be summoned via the third-party app Honk, which chiefly is used by tow truck operators to find stranded customers.

“Current generation Waymos need a lot of human help to operate as they do, from people in the remote operations center to intervene and provide human advice for when something goes wrong, to Honk gig workers scampering around the city,” Brooks observes.

Waymo told me its claim of “fully autonomous” operation is based on the fact that the onboard technology is always in control of its vehicles. In confusing situations the car will call on Waymo’s “fleet response” team of humans, asking them to choose which of several optional paths is the best one. “Control of the vehicle is always with the Waymo Driver” — that is, the onboard technology, spokesman Mark Lewis told me. “A human cannot tele-operate a Waymo vehicle.”

Advertisement

As a pioneering robot designer, Brooks is particularly skeptical about the tech industry’s fascination with humanoid robots. He writes from experience: In 1998 he was building humanoid robots with his graduate students at MIT. Back then he asserted that people would be naturally comfortable with “robots with humanoid form that act like humans; the interface is hardwired in our brains,” and that “humans and robots can cooperate on tasks in close quarters in ways heretofore imaginable only in science fiction.”

Since then it has become clear that general-purpose robots that look and act like humans are chimerical. In fact in many contexts they’re dangerous. Among the unsolved problems in robot design is that no one has created a robot with “human-like dexterity,” he writes. Robotics companies promoting their designs haven’t shown that their proposed products have “multi-fingered dexterity where humans can and do grasp things that are unseen, and grasp and simultaneously manipulate multiple small objects with one hand.”

Two-legged robots have a tendency to fall over and “need human intervention to get back up,” like tortoises fallen on their backs. Because they’re heavy and unstable, they are “currently unsafe for humans to be close to when they are walking.”

(Brooks doesn’t mention this, but even in the 1960s the creators of “The Jetsons” understood that domestic robots wouldn’t rely on legs — their robot maid, Rosie, tooled around their household on wheels, a perception that came as second nature to animators 60 years ago but seems to have been forgotten by today’s engineers.)

As Brooks observes, “even children aged 3 or 4 can navigate around cluttered houses without damaging them. … By age 4 they can open doors with door handles and mechanisms they have never seen before, and safely close those doors behind them. They can do this when they enter a particular house for the first time. They can wander around and up and down and find their way.

Advertisement

“But wait, you say, ‘I’ve seen them dance and somersault, and even bounce off walls.’ Yes, you have seen humanoid robot theater. “

Brooks’ experience with artificial intelligence gives him important insights into the shortcomings of today’s crop of large language models — that’s the technology underlying contemporary chatbots — what they can and can’t do, and why.

“The underlying mechanism for Large Language Models does not answer questions directly,” he writes. “Instead, it gives something that sounds like an answer to the question. That is very different from saying something that is accurate. What they have learned is not facts about the world but instead a probability distribution of what word is most likely to come next given the question and the words so far produced in response. Thus the results of using them, uncaged, is lots and lots of confabulations that sound like real things, whether they are or not.”

The solution is not to “train” LLM bots with more and more data, in the hope that eventually they will have databases large enough to make their fabrications unnecessary. Brooks thinks this is the wrong approach. The better option is to purpose-build LLMs to fulfill specific needs in specific fields. Bots specialized for software coding, for instance, or hardware design.

“We need guardrails around LLMs to make them useful, and that is where there will be lot of action over the next 10 years,” he writes. “They cannot be simply released into the wild as they come straight from training. … More training doesn’t make things better necessarily. Boxing things in does.”

Advertisement

Brooks’ all-encompassing theme is that we tend to overestimate what new technologies can do and underestimate how long it takes for any new technology to scale up to usefulness. The hardest problems are almost always the last ones to be solved; people tend to think that new technologies will continue to develop at the speed that they did in their earliest stages.

That’s why the march to full self-driving cars has stalled. It’s one thing to equip cars with lane-change warnings or cruise control that can adjust to the presence of a slower car in front; the road to Level 5 autonomy as defined by the Society of Automotive Engineers — in which the vehicle can drive itself in all conditions without a human ever required to take the wheel — may be decades away at least. No Level 5 vehicles are in general use today.

Believing the claims of technology promoters that one or another nirvana is just around the corner is a mug’s game. “It always takes longer than you think,” Brooks wrote in his original prediction post. “It just does.”

Advertisement
Continue Reading

Business

Versant launches, Comcast spins off E!, CNBC and MS NOW

Published

on

Versant launches, Comcast spins off E!, CNBC and MS NOW

Comcast has officially spun off its cable channels, including CNBC and MS NOW, into a separate company, Versant Media Group.

The transaction was completed late Friday. On Monday, Versant took a major tumble in its stock market debut — providing a key test of investors’ willingness to hold on to legacy cable channels.

The initial outlook wasn’t pretty, providing awkward moments for CNBC anchors reporting the story.

Versant fell 13% to $40.57 a share on its inaugural trading day. The stock opened Monday on Nasdaq at $45.17 per share.

Comcast opted to cast off the still-profitable cable channels, except for the perennially popular Bravo, as Wall Street has soured on the business, which has been contracting amid a consumer shift to streaming.

Advertisement

Versant’s market performance will be closely watched as Warner Bros. Discovery attempts to separate its cable channels, including CNN, TBS and Food Network, from Warner Bros. studios and HBO later this year. Warner Chief Executive David Zaslav’s plan, which is scheduled to take place in the summer, is being contested by the Ellison family’s Paramount, which has launched a hostile bid for all of Warner Bros. Discovery.

Warner Bros. Discovery has agreed to sell itself to Netflix in an $82.7-billion deal.

The market’s distaste for cable channels has been playing out in recent years. Paramount found itself on the auction block two years ago, in part because of the weight of its struggling cable channels, including Nickelodeon, Comedy Central and MTV.

Management of the New York-based Versant, including longtime NBCUniversal sports and television executive Mark Lazarus, has been bullish on the company’s balance sheet and its prospects for growth. Versant also includes USA Network, Golf Channel, Oxygen, E!, Syfy, Fandango, Rotten Tomatoes, GolfNow, GolfPass and SportsEngine.

“As a standalone company, we enter the market with the scale, strategy and leadership to grow and evolve our business model,” Lazarus, who is Versant’s chief executive, said Monday in a statement.

Advertisement

Through the spin-off, Comcast shareholders received one share of Versant Class A common stock or Versant Class B common stock for every 25 shares of Comcast Class A common stock or Comcast Class B common stock, respectively. The Versant shares were distributed after the close of Comcast trading Friday.

Comcast gained about 3% on Monday, trading around $28.50.

Comcast Chairman Brian Roberts holds 33% of Versant’s controlling shares.

Advertisement
Continue Reading

Business

Ties between California and Venezuela go back more than a century with Chevron

Published

on

Ties between California and Venezuela go back more than a century with Chevron

As a stunned world processes the U.S. government’s sudden intervention in Venezuela — debating its legality, guessing who the ultimate winners and losers will be — a company founded in California with deep ties to the Golden State could be among the prime beneficiaries.

Venezuela has the largest proven oil reserves on the planet. Chevron, the international petroleum conglomerate with a massive refinery in El Segundo and headquartered, until recently, in San Ramon, is the only foreign oil company that has continued operating there through decades of revolution.

Other major oil companies, including ConocoPhillips and Exxon Mobil, pulled out of Venezuela in 2007 when then-President Hugo Chávez required them to surrender majority ownership of their operations to the country’s state-controlled oil company, PDVSA.

But Chevron remained, playing the “long game,” according to industry analysts, hoping to someday resume reaping big profits from the investments the company started making there almost a century ago.

Looks like that bet might finally pay off.

Advertisement

In his news conference Saturday, after U.S. Special Forces snatched Venezuelan President Nicolás Maduro and his wife in Caracas and extradited them to face drug-trafficking charges in New York, President Trump said the U.S. would “run” Venezuela and open more of its massive oil reserves to American corporations.

“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during a news conference Saturday.

While oil industry analysts temper expectations by warning it could take years to start extracting significant profits given Venezuela’s long-neglected, dilapidated infrastructure, and everyday Venezuelans worry about the proceeds flowing out of the country and into the pockets of U.S. investors, there’s one group who could be forgiven for jumping with unreserved joy: Chevron insiders who championed the decision to remain in Venezuela all these years.

But the company’s official response to the stunning turn of events has been poker-faced.

“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” spokesman Bill Turenne emailed The Times on Sunday, the same statement the company sent to news outlets all weekend. “We continue to operate in full compliance with all relevant laws and regulations.”

Advertisement

Turenne did not respond to questions about the possible financial rewards for the company stemming from this weekend’s U.S. military action.

Chevron, which is a direct descendant of a small oil company founded in Southern California in the 1870s, has grown into a $300-billion global corporation. It was headquartered in San Ramon, just outside of San Francisco, until executives announced in August 2024 that they were fleeing high-cost California for Houston.

Texas’ relatively low taxes and light regulation have been a beacon for many California companies, and most of Chevron’s competitors are based there.

Chevron began exploring in Venezuela in the early 1920s, according to the company’s website, and ramped up operations after discovering the massive Boscan oil field in the 1940s. Over the decades, it grew into Venezuela’s largest foreign investor.

The company held on over the decades as Venezuela’s government moved steadily to the left; it began to nationalize the oil industry by creating a state-owned petroleum company in 1976, and then demanded majority ownership of foreign oil assets in 2007, under then-President Hugo Chávez.

Advertisement

Venezuela has the world’s largest proven crude oil reserves — meaning they’re economical to tap — about 303 billion barrels, according to the U.S. Energy Information Administration.

But even with those massive reserves, Venezuela has been producing less than 1% of the world’s crude oil supply. Production has steadily declined from the 3.5 million barrels per day pumped in 1999 to just over 1 million barrels per day now.

Currently, Chevron’s operations in Venezuela employ about 3,000 people and produce between 250,000 and 300,000 barrels of oil per day, according to published reports.

That’s less than 10% of the roughly 3 million barrels the company produces from holdings scattered across the globe, from the Gulf of Mexico to Kazakhstan and Australia.

But some analysts are optimistic that Venezuela could double or triple its current output relatively quickly — which could lead to a windfall for Chevron.

Advertisement

The Associated Press contributed to this report.

Continue Reading
Advertisement

Trending