|City Administration > Public Information Office|
|Anaheim City Council Approves Economic Assistance Agreement With GardenWalk Hotels|
Agreement will Support City Services and Create Vitally Needed Jobs
ANAHEIM, CA - (May 15, 2013) - Last night, the Anaheim City Council voted to approve an economic assistance agreement with GardenWalk Hotel, LLC. for the construction of two new luxury hotels. This agreement will provide for City services, and promote economic opportunities and jobs in the community.
The economic assistance agreement is structured in a manner that carries no risk to the City’s General Fund and requires the private sector to put up the funds to build the project. The City is not paying any upfront costs and simply shares an equivalent portion of any new Transient Occupancy Taxes (TOT) generated by the hotels after they are built. Additionally, the agreement is expected to create an estimated 3,000 construction-related jobs and 1,300 permanent hospitality jobs upon completion.
The project is expected to generate approximately $484.5 million in new TOT to the City over the term of the agreement. Of that total, $255.6 million (more than half) is expected to be retained by the General Fund. These funds along with another approximate $23 million in the form of property and sales taxes from the development of this project will support public safety, parks, libraries and other vital City services.
Once the hotels are completed and the developments begin to generate TOT funds, the agreement provides that an amount equivalent to 70% of the TOT generated from the hotels will be provided to the developer over 20 years, with a cap of $158 million. Of the remaining TOT revenue from the project, an amount equivalent to 20% will be dedicated to accelerating the retirement of the current resort bonds and an amount equivalent to 10% of the revenue will go directly into the City’s General Fund. The term of the proposed Agreement (2016 – 2042) accounts for differing start periods based on the timing of construction and completion.
The City initially adopted the Anaheim Hotel Development Economic Assistance Program in 2008 as a means of providing more jobs, adding more hotel rooms, and enhancing the guest experience in The Anaheim Resort district, including Angel Stadium of Anaheim, Honda Center, City National Grove of Anaheim, and the Anaheim Convention Center. Incentives that are part of this recent agreement come from future Transient Occupancy Tax (TOT) revenues and do not impact current or existing City services.
For more information on this program, residents can access all of the related Council staff reports that pertain to Anaheim’s Hotel Development Economic Assistance Program and recent amendments (click here).
Questions about this issue or any other City issue can be directed to Anaheim Anytime, the City’s 24/7 online portal to City Hall. Visit www.anaheim.net, keyword Anaheim Anytime.
Media Contact: Ruth Ruiz 714.765.5060more city news
ABOUT ANAHEIM – The City of Anaheim, founded in 1857, is one of the nation's premier municipalities and is one of California's most populous cities. Anaheim covers 50 square miles with more than 346,000 residents and more than 2,950 City employees. The municipal corporation's annual budget is $1.6 billion. Anaheim supports a thriving business community with companies such as Carl Karcher Enterprises, Inc., L-3 Communications, Pacific Sunwear, and Disneyland Resort. Successful sports franchises call Anaheim home, including Angels Baseball, Anaheim Ducks, the U.S. Men's National Volleyball Team, and the 2012 Olympic Games Silver Medal winning U.S. Women's National Volleyball Team. Anaheim also boasts world-class meeting and entertainment venues with the Anaheim Convention Center, LEED-certified and the largest on the west coast, Honda Center, City National Grove of Anaheim, Anaheim GardenWalk, and Angel Stadium of Anaheim. In addition, Anaheim embraces its vibrant cultural arts community, including the world-renowned Anaheim Ballet. Annually, Anaheim welcomes millions of visitors to the city, truly making it where the world comes to live, work and play. For more information, please visit www.anaheim.net.
CONNECT WITH THE CITY OF ANAHEIM