Azernews.Az

By Bloomberg

Walt Disney Co. won a 30-year extension of a moratorium on ticket taxes in Anaheim, California, in exchange for a commitment to invest $1 billion in its two parks there.

The City Council voted 3-2 to grant the company an exemption from any future entertainment tax that might be levied on tickets to the Disneyland Resort, home to the namesake theme park and California Adventure.

Construction will begin in 2017 on new attractions, a parking garage and road improvements to improve local traffic flow. The company will have until within six months of the end of 2024 to confirm the value of improvements, according to an e- mailed statement from the council Wednesday. The theme parks separately provide more than half of Anaheim’s general fund revenue -- $148 million annually in hotel, sales, property and business license taxes, according to the city.

The measure replaces a 20-year exemption that dates back to 1996 and ends in 2016. Burbank, California-based Disney would get tax relief for an additional 15 years if it invested significantly more than $1 billion, according to a June 25 statement from the city.

The vote came after scores of public comments by residents and other interested parties for and against the agreement. The crowd at the almost more than five-hour meeting spilled out of the council chamber into the plaza outside City Hall.

The new policy would reimburse Disney if an entertainment tax is created, according to the city’s statement. Mayor Tom Tait, a Republican, opposed the deal.