Business
Disneyland's new vision includes up to $2.5-billion investment and a plan to take over city streets
For decades, Disneyland has been hampered from expanding its Anaheim resort due to streets, highways and businesses that encircle the self-proclaimed “Happiest Place on Earth.”
But Disneyland hopes to get around those limits with a plan to spend up to $2.5 billion to reimagine the resort with new attractions, hotels and shops within its current 100-acre footprint — a proposal that would require taking over some surrounding city streets.
The plan already has critics who fear it will create more traffic headaches for neighbors and not provide enough tax revenue for the city.
The plan, presented to the Anaheim City Council Tuesday, would turn the theme park into an even more “immersive” experience by building new areas that would combine theme park attractions, hotels, restaurants and stores in the same spaces, said Disney’s Global Development Vice President Rachel Alde during the presentation.
Dubbed DisneylandForward, the plan is not specific about what exactly would be built but asks Anaheim to relax zoning rules and give Disney flexibility to redesign the existing resort, which includes Disneyland, Disney California Adventure Park and the Downtown Disney business district.
“This will allow, for example, theme park attractions alongside or even embedded in hotels and vice versa,” Ted White, planning and building director for the city, said during the Tuesday presentation.
Disneyland’s footprint is not expected to expand. But Disney, a powerful and dominant broker in Anaheim politics, is also asking the city to hand over some adjacent streets to the company. The move would give Disneyland control over Magic Way, Hotel Way and part of Clementine Street near the resort.
In exchange, according to the plans, Disney is proposing to pay $40 million for the roads, what city planners said is fair market price. That payment would be part of a plan by Disney to spend $90 million on Anaheim street improvements near the theme park, including widening Katella Avenue.
Disney is also asking Anaheim to halt its previous plans to extend Clementine Street and Gene Autry Way.
Disney is offering to give the city tens of millions of dollars more in taxes and fees, earmarked for affordable housing, public parks and road improvements.
In all, Disney expects to invest up to $2.5 billion over the next decade on the project and, in addition, pledges to give the city of Anaheim more than $100 million for street improvements, parks and affordable housing.
The multibillion-dollar investment, Disney officials said, could mean thousands of jobs and millions of dollars of tax revenue for the city in what could be one of the most significant expansions of the storied theme park since it was first built in 1954.
Already, hotel stay-tax revenue is Anaheim’s largest source of funding, said Mike Lyster, spokesperson for the city of Anaheim. The city expects to collect $236.3 million from hotel taxes for the last 12 months ending in June, he said.
Dubbed DisneylandForward, the plan is not specific about what exactly Disneyland plans to build, but it asks Anaheim to relax zoning rules and give Disney flexibility to construct new rides, hotels and stores alongside one another.
(DisneylandForward)
But the expansion of the theme park, as well as the proposal to privatize public roads, is already raising concerns from some Anaheim residents who worry the plan could mean worse traffic in their community, and the resort’s expansion could further increase rents and the cost of living.
“The ‘Happiest Place on Earth’ has the saddest communities next door,” said one resident in Spanish, who identified herself as Maricela during Tuesday’s meeting.
She and other residents at a nearby apartment building received notices, saying they had to leave their homes in December, she said, a decision she believes may have been prompted by the resort’s expansion plan.
“The expansion hasn’t started, and some of us are already being expelled,” she said.
Lyster, the city spokesperson, said eviction notices received by apartment building residents are not related to Disney’s expansion plans.
“Our thoughts and concerns are with anyone dealing with relocation,” he said. “But it appears the owner is renovating the property within their rights with 60-day notice and relocation assistance as required by state law.”
He said the city has reached out to residents for assistance in apartment searches.
Some residents have also created an online petition in opposition to the privatizing of streets, with worries that Disney’s privatization of the streets will mean the public will no longer have access to them.
“Road closures mean that high-value, taxpayer-owned real estate would be privatized for Disney’s profitable use,” the petition reads. As of Friday, 230 people have signed the petition.
City officials, however, say two of the roads that could be privatized — Hotel Way and Clementine Street — are now used as entryways into a Disney parking lot. Magic Way, Lyster said, would remain open to vehicles heading into the resort.
Among the planned construction, Disney is looking to expand the theme park across Disneyland Drive to Walnut Street, an area designated strictly for hotels under its original plan with the city.
DisneylandForward is asking the city to give the company more flexibility to overhaul areas that were originally designated for hotels to also include park rides, attractions and retail stores.
Disney also looks to build a new 17,000-space parking garage, as well as three pedestrian bridges to cross over Harbor Boulevard, and two additional bridges over Disneyland Drive.
Under the plan, Disney promises to invest between $1.9 billion to $2.5 billion within the next 10 years. If Disney’s investment does not reach the $2.5-billion mark, the company vows to pay an additional $5-million payment to the city.
But the proposal, which has been in the works since 2021, follows an Anaheim City Hall corruption scandal. An internal report found a “potential criminal conspiracy” regarding COVID-19 relief funds and accused former Mayor Harry Sidhu and the former head of the Anaheim Chamber of Commerce of “influence peddling.”
The report came after an FBI affidavit accused Sidhu of misdeeds and being part of a self-described “cabal” of public figures and influential figures in the city, including a Disney power broker.
The scandal underscored concerns by some residents and city officials that Disney holds undue influence in Anaheim at a cost to its residents.
“Instead of making this franchise richer, I urge you to really invest in our communities who are struggling to afford each and every day despite holding two or three jobs,” resident Yesenia Altamirano said during the Tuesday meeting.
During the meeting, Anaheim Mayor Pro Tem Norma Campos Kurtz, said some residents have already approached her with concerns about privatizing city roads and how it could lead to increased traffic on Walnut Street and Ball Road.
City staff said a plan and funding are already in the works to improve traffic flow at the intersection of the two streets.
City Councilmember Natalie Rubalcava said she’d like Disney to make a greater commitment than the $30 million the company has promised to give the city for affordable housing.
“One of the things I would love to see Disney commit to in perpetuity is some additional funding for housing, whether it’s first-time home buyer program or a last-mile funding for affordable housing projects,” she said. “I would love to see that in addition.”
But Disney has argued that its multibillion-dollar investment will translate into millions of dollars in revenue for the city.
According to a report cited by Disney, every billion dollars invested by Disneyland could generate $253 million in annual economic output for the city, as well as $15 million in tax revenue. According to the city, an average of 25 million visitors come to Anaheim each year, primarily to visit Disneyland.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
Business
Monterey Park takes landmark vote on banning data centers
Residents in the city of Monterey Park will be the first in the nation to vote on a permanent ban on data centers Tuesday.
If approved, Measure NDC would prohibit data centers within the city limits and could only be overturned by another vote.
Yard signs saying “No Data Center” in English and Chinese with images of dragons line sidewalks in the San Gabriel Valley city.
As a wave of data center opposition sweeps the country, numerous towns and counties across the U.S. have instituted temporary moratoria and other restrictions on the facilities. But only a handful have instituted indefinite bans, and just four other towns have sent related matters to the ballot.
Supporters are hoping the vote will set a precedent for the rest of the region, where residents are fighting proposals in Vernon and City of Industry.
“This is about as permanent a ban as we can get,” said Steven Kung, co-founder of the group No Data Center Monterey Park. “Winning Measure NDC would send a huge message to the rest of the San Gabriel Valley about how residents don’t want data centers.”
The ballot measure emerged from the fight against a 247,000-square-foot center proposed in 2024 by the Australian-owned investment firm HMC StratCap for a residential area in Monterey Park.
The facility would have sat less than 500 feet away from the nearest home and used three times the electricity of the 60,000-person, predominantly Asian American city.
While the developer touted the potential for jobs and tax revenue, residents expressed concerns about noise and air pollution, rising electricity rates and a potential to lower property values.
The company pulled its plans in late March following public outcry and a March 4 city council vote to extend a temporary data center moratorium and place a ban on Tuesday’s ballot.
In a letter to the city council, HMC StratCap said it would pursue a different use for the land and would not engage in a ballot measure fight.
The city council later banned data centers indefinitely, the first in California to do so, said Mayor Elizabeth Yang. But she’s still been out campaigning for the measure with all four other council members.
“If a council puts in an ordinance, a future council can reverse it too,” said Yang. “With the ballot measure, unbanning it is a lot harder because you need the entire city to vote on it.”
The measure proposes the ban “to protect air quality, drinking water resources, and public health” and “prevent impacts to electricity and water rates.”
While California places third in the country for existing data centers with about 300 facilities, it hasn’t been a hot spot in the recent AI-driven data center boom. High electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in Virginia, Texas, Georgia, Illinois or Arizona.
“Most of California’s data centers are small by today’s standards,” said Shaolei Ren, an engineering professor at UC Riverside who studies how to reduce the environmental impacts of data centers. “Ten years ago, they would be medium-sized, but the power demand for new AI data centers has increased a lot.”
The average operating data center demands 45 megawatts, according to the Washington Post, while the average planned one would draw 430 MW. The one proposed for Monterey Park would have required about 50 MW at peak demand.
As proposals crop up in SoCal, they’re met with fierce opposition. Montebello, El Monte and Baldwin Park have all enacted temporary moratoria, and Alhambra recently banned data centers as part of a zoning code update. City of Industry, Vernon, City of Commerce and Santa Fe Springs are moving in the other direction, trying to court developers and streamline data center approvals. Community groups are fighting that.
Outside the San Gabriel Valley, residents of Coachella and Imperial County are showing up in droves to protest local proposals.
Matthew Shaw, a volunteer with the Coalition for Responsible Data Center Development, who recently published a report on opposition to AI data centers, said a vote to ban them in Monterey Park “would lead to copycats, partially because so many groups are just opposed to any data center development at all.”
While there is no formal opposition to Measure NDC, some building trades like Ironworker Local 433 supported the Monterey Park data center when it was still live before city council. Those in the data center industry are lamenting the state of public opinion.
“These are multi-billion-dollar assets that are built by multi-trillion-dollar companies. These things will get done,” said Mehdi Paryavi, chairman of the International Data Center Authority. “My biggest problem is that our industry does not invest enough in community engagement.”
Paryavi said towns that seek to limit data centers are missing out on thousands of jobs generated by data center construction, operations and customers, as well as faster artificial intelligence speeds and better performance.
Kung said local community organizers are “looking at the empirical evidence” and seeing a ban as a win.
“We’ve never seen a city that embraces a data center and is like, ‘Look how our quality of life has increased, look how all the revenue has gone into citywide improvements,’” he said. “That just doesn’t exist.”
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