Anaheim Council Agreed to Another Developer Subsidy

From The Voice of OC:

Anyone who's read the public agenda for tonight's Anaheim City Council meeting knows that a vote on a controversial $158-million room tax subsidy for developer of two planned four-star hotels at the GardenWalk outdoor mall is expected.

But known to only a few is that in recent weeks the City Council quietly approved a legal settlement that in essence grants another large subsidy – this time to the owners of the mall.

The settlement, which the Council voted on in closed session, calls for the mall owners, Anaheim Capital Partners, LLC, to receive up to 50 percent of the city's portion of sales tax revenue generated by the mall for the next 25 years. This fiscal year, the owners get 30 percent, and going forward the subsidy could be worth tens of millions of dollars.

In exchange for the sales tax revenue, Anaheim Capital Partners dropped a claim on the room tax revenue generated by the hotels, effectively clearing the way for that money to be handed over to the developers of the hotel, which include hotelier Bill O'Connell.

Read the full story here:

http://www.voiceofoc.org/oc_north/article_bd149a84-bcaa-11e2-9d5b-0019bb2963f4.html