Affordable-housing debate grows for Disney employees
Some say that Disney should provide low-cost homes for its workers, while others say the company's role is not one of home developer.
By SARAH TULLY
The Orange County Register
ANAHEIM – A typical Walt Disney Co. hotel worker scrubs floors and hangs fresh towels for about $11 an hour – a wage considered "very low income" by the state for housing benefits.
But city officials, business leaders and affordable-housing advocates are at odds about where these workers should live and who should pay for the low-cost homes that are lacking region wide.
The affordable-housing issue has come to the forefront as the City Council debates a proposal to allow new residences in the Anaheim Resort district around Disneyland – a plan that prompted Disney to protest, file a lawsuit and launch a ballot measure to discourage housing. The council is set to vote Tuesday.
Business officials say it's Disney's role to promote jobs, not build houses. While affordable-housing advocates say Disney should help its employees and the city with the housing needs that it creates.
City negotiations
City officials have requested that Disney pay for new homes as its theme parks and hotels have expanded.
In the mid-1990s, city officials asked Disney to provide 500 housing units for low-income households as part of negotiations to upgrade the resort, including the addition of Disney's California Adventure.
Disney officials, however, said they preferred to give money for housing because the company is "not a residential builder," said Rob Doughty, a Disneyland Resort spokesman.
Disney instead contributed $5 million of bond funds to "neighborhood improvements/housing." The council signed off on the agreement.
"We lived up to our end of the bargain," Doughty said.
But just a fraction of that went toward housing: About $1 million was used to buy about 16 apartments in the former Jeffrey-Lynne neighborhood that was renovated into affordable units across from the Disneyland Hotel. The rest of the money went to neighborhood upgrades — lighting, trees, irrigation and land acquisition.
Former Mayor Tom Daly, who was on the council at the time, said housing was a minor issue during negotiations, but that he and the council secured funds for Jeffrey-Lynne.
Councilwoman Lorri Galloway, who later joined the council, thinks Disney gave too little.
"Disney had no responsibility whatsoever and did nothing," Galloway said. "Now they are saying … we don't want any residential in the resort."
In 2000, when Disney brought up the idea of a third theme park, city officials planned to ask Disney for an even bigger contribution for housing, city documents show.
The city estimated that at least 600 more employees would live in Anaheim if a third theme park were built, so the city drafted plans to ask Disney for $30 million to build 600 units.
But the discussions stalled when Disney put the project on hold.
Elisa Stipkovich, community development director, said she remembers approaching Disney about housing and the company was open to discussions. But she couldn't recall how much detail was discussed before the project was dropped. Disney officials said they do not remember receiving a $30 million request from the city.
Council support
It's unclear whether the city would make the same request if Disney comes up with a new plan.
Disney officials are unsure if they would be willing to fund housing in the future. City Council members are split on whether Disney should be asked.
"This is not the business' problem," Councilman Harry Sidhu said. "I truly believe in a free market. People who … can earn wages can stay here. If not, maybe they can move somewhere else, like Riverside, where rents are cheaper."
Mayor Curt Pringle said such a policy would discourage business. "It's like punishing another business, in this case one creating jobs and business opportunities in your city. I'm not interested in doing this," Pringle said.
Galloway, however, thinks Disney should be charged for affordable housing to help employees, going so far as to push for a ballot initiative that could include a tax on Disney, like a fee on admissions tickets.
"We're still begging Disney to help us with the problems they are causing. Does that make sense?" Galloway said. "I want Disney to be paying it."
Disney disagrees with a tax: "This is a ridiculous proposal that will drive businesses out of Anaheim, hurt the local economy and eventually jeopardize vital city service," Doughty said.
Galloway points out that many workers must live in overcrowded apartments, in motels or far away.
Pedro Hernandez, 44, works as an on-call banquet waiter for Disneyland Hotel and other resort venues. He has trouble making the $950 monthly rent for the one-bedroom apartment in Anaheim that he shares with his wife, stepdaughter and occasionally his daughter. Bills sometimes go on credit cards. He signed up for affordable-housing benefits, but the waiting list was so long that he stopped checking.
Another is Antonio Castillo, 48, who earns $11.27 an hour after 15 years of working at the Disneyland Hotel. He pays $900 for his one-bedroom Anaheim apartment with his wife and 20-year-old son, but they are hoping to move in with his daughter's family and share a four-bedroom house.
"Disney creates jobs for the people, but the jobs they produce pay very little," Castillo said.
Business involvement
Businesses rarely fund affordable housing, but a few programs exist.
One is the St. Regis Resort in Monarch Beach. The city of Dana Point asked the resort to subsidize rent payments for its low-income workers. Almost 100 employees get stipends of between $50 and $390 monthly.
More often, cities, including Irvine and Huntington Beach, require developers to set aside a percentage of their housing projects for affordable units. The Anaheim council has resisted the policy. No affordable housing is slated for the Platinum Triangle, where almost 8,000 homes are planned.
In Anaheim, Galloway and Councilwoman Lucille Kring are proposing a public-private partnership with council members and Disney representatives to come up with solutions.
Already, the Anaheim Chamber of Commerce has started a task force on workforce housing at all income levels, said Chamber President Todd Ament.
Ament asked Chris Lowe, Disneyland Resort government relations director, to chair the group. Two other Disney employees sit on the task force.
The group may try to link developers with available property outside resort boundaries for affordable-housing projects. Also, a housing trust may be created to fund such developments.
"I think we can protect the resort district, the economic engine for the city, but also responsibly find locations around the edges of the resort district, around the city of Anaheim, to meet the needs," Lowe said.
