Tourists or low-income housing? Disneyland gets in zoning fight

ANAHEIM, Calif. — Disneyland was not The Happiest Place on Earth after local officials paved the way to place low-income housing at its gates.

The City Council approved a zoning change 3-2 today that would permit construction of condominiums inside a 2.2-square-mile resort district. The housing proposal includes a 26-acre parcel just a few blocks from Disneyland and across the street from Disney-owned land that could be the site of a future theme park.

The vote came despite a Disneyland lawsuit and a possible election fight. Supporters said affordable housing was desperately needed for workers in the city's massive tourism industry who share cramped quarters or commute hours because they cannot afford Orange County housing prices.

"We work for Disneyland and we deserve this housing," said Susana Hernandez, a Disneyland Hotel employee who shares a one-bedroom apartment with six people in Anaheim. "They just want to make money. They don't care how we work or in what conditions."

Developer SunCal Cos. has said it wants to build 1,500 housing units at the site, including 225 affordable apartments. It has also agreed to shoulder Anaheim's legal expenses as the city fights the lawsuit, the first ever filed by Disneyland against Anaheim.

Opponents said it would be a bad precedent to allow non-tourist uses in a district that brings in about $70 million in hotel bed taxes each year.

"Allowing residential development in the resort area will stunt future growth of the local economy and significantly reduce future tax revenues," Disneyland spokesman Rob Doughty said in a statement. Disneyland is a division of Walt Disney Co.

The zoning change still faces several hurdles. Disneyland is suing the city related to environmental documents tied to the change.

The group Save Our Anaheim Resort Area, which includes Disneyland and owners of nearby hotels and businesses, wants the issue to be decided by voters. Members announced Tuesday that they have gathered the 20,000 signatures needed to place the measure on a February 2008 ballot.