Future DVC projects at Disneyland

[CastAStone]

I’ve been watching the Disneyland Forward Anaheim City Council meeting tonight. They haven’t taken the vote yet but it seems clear it will pass.

A couple interesting highlights:

• Anaheim is going to loosen the restrictions on number of Timeshare units Disney can develop as part of the agreement. All 5,600 hotel rooms Disney is allowed to build in the DRSP (which is made up of the Disneyland area owned by Disney in the 1990s) can now be timeshare units; previously Disney had to get a variance just to build VDH because it would exceed the cap on timeshare units. Disney has build a little over 2,000 hotel rooms / DVC units so they are allowed to build over 3,000 more.
• Disney has agreed to keep the exact same principles for the Transient Occupancy Tax as they used for VDH. There’s like a 5 page addendum covering it in great detail. The upshot is that you’ll pay 15% of the average rack rate per point in TOT on anything new down the line. If the city thinks Disney is understating the value of a point, the city has significant recourse.
• The staff that reviewed the proposal for the city noted that Disney considers DVC to be the vast majority of new rooms moving forward, as that’s where the market has moved. It was made very clear that Disney has told the city that they plan to build another DVC for Anaheim, no timetable given. I think it is relatively safe to assume not until VDH is mostly sold out.

Anyway I listened to a lot of rambling tonight so if you have questions feel free to lmk.

Forward, Disneyland! Forward!

 

[CastAStone]

Here’s the new Timeshare language.

 

[CastAStone]

 

[UrsulaWantsYourSoul]

So exciting. Someone pointed out that in the Disneyland Forward concept art, there's a second Pixar Place tower...
Also... I didn't start watching until public comment time (around 9:30 Disneyland time) but 3 hours later... here I am still haha. Council members asking questions of Disney. Let's wrap this up, people .

 

[CastAStone]

As expected, It did pass.

 

[Jwaire]

I thought the exchange was interesting.

Anaheim wants their occupancy tax. Once this new agreement takes place, does it void the more favorable tax agreement set up for Grand Cal?

It would not surprise me, once VDH is sold out, if they don't convert more units at Grand Cal as that's been in such high demand.

 

[CastAStone]

I thought the exchange was interesting.

Anaheim wants their occupancy tax. Once this new agreement takes place, does it void the more favorable tax agreement set up for Grand Cal?

It would not surprise me, once VDH is sold out, if they don't convert more units at Grand Cal as that's been in such high demand.

Based on the conversation in the room, I don’t think it impacts VGC. They spoke in incomplete sentences about TOT for a minute but it sure seemed like they were confirming to each other that existing arrangements weren’t impacted.

I also read the addendum as being focused on anything new.

I think if they were going to convert more Grand Cal they would have by now. They can get huge cash for those rooms but probably can’t sell them for DVC at much more of a premium vs any other new construction, especially if they build a new hotel/DVC inside the actual park.

 

[CaliforniaGirl09]

Very interesting. Thanks for posting the great recap. Do you know if there is a realistic timeline anywhere? Assuming final approval, when do you actually think this might break ground, etc?

 

[CastAStone]

Very interesting. Thanks for posting the great recap. Do you know if there is a realistic timeline anywhere? Assuming final approval, when do you actually think this might break ground, etc?

There are clearly boring infrastructure elements of DisneylandForward that Disney wants to get started on immediately. Those would be able to start as soon as mid June.

Anything new for the parks I think we will hear more about at D23.

A 3rd DVC for Anaheim I think we won’t hear more about for years.

 

[UrsulaWantsYourSoul]

There are clearly boring infrastructure elements of DisneylandForward that Disney wants to get started on immediately. Those would be able to start as soon as mid June.

Anything new for the parks I think we will hear more about at D23.

A 3rd DVC for Anaheim I think we won’t hear more about for years.

Good. Time to save up! Haha.

 

[CarolynFH]

Thanks for the report!

 

[tx911]

I feel like they should just incorporate the ToT into the annual dues.

This would mean higher dues obviously, but at least you wouldn't have to pay every time you check out.

 

[tjkraz]

I feel like they should just incorporate the ToT into the annual dues.

This would mean higher dues obviously, but at least you wouldn't have to pay every time you check out.

If VDH points are used for any other DVC resort, no tax is paid. Pretty compelling reason to keep it out of dues.

(Aulani, of course, has its own tax.)

 

[tx911]

If VDH points are used for any other DVC resort, no tax is paid. Pretty compelling reason to keep it out of dues.

(Aulani, of course, has its own tax.)

Doh! Excellent point.

 

[tx911]

If VDH points are used for any other DVC resort, no tax is paid. Pretty compelling reason to keep it out of dues.

(Aulani, of course, has its own tax.)

Ok, how about they compute your annual dues every year, and take into account only the points you spent at VDH?

 

[DebbieB]

Ok, how about they compute your annual dues every year, and take into account only the points you spent at VDH?

You pay the tax at check-in, it’s not part of dues at VDH.

 

[CarolynFH]

Ok, how about they compute your annual dues every year, and take into account only the points you spent at VDH?

Because someone has to pay the TOT. If you don’t use your VDH points at VDH, some other member uses their points from whatever home resort to exchange into VDH, and they pay the TOT - the city of Anaheim wants their money! They’re collecting TOT from all the timeshares in Anaheim, not just DVC.

 

[ClaraOswald]

I thought the exchange was interesting.

Anaheim wants their occupancy tax. Once this new agreement takes place, does it void the more favorable tax agreement set up for Grand Cal?

It would not surprise me, once VDH is sold out, if they don't convert more units at Grand Cal as that's been in such high demand.

If they ever converted more rooms, I assume it would be an entirely different thing from the current VGC deeds, right? I wouldn't suddenly be competing with a bunch of new owners or anything like that?

 

[tx911]

Because someone has to pay the TOT. If you don’t use your VDH points at VDH, some other member uses their points from whatever home resort to exchange into VDH, and they pay the TOT - the city of Anaheim wants their money! They’re collecting TOT from all the timeshares in Anaheim, not just DVC.

I get that. I’m just saying add it to the dues based on how many points you spent at VDH, instead of paying at the time. Disney could foot the immediate bill.

Just a way to avoid the distasteful part of paying ToT at every stay, although obviously at the expense of slightly higher dues.

 

[CarolynFH]

I get that. I’m just saying add it to the dues based on how many points you spent at VDH, instead of paying at the time. Disney could foot the immediate bill.

Just a way to avoid the distasteful part of paying ToT at every stay, although obviously at the expense of slightly higher dues.

IOW you want VDH front desk to collect TOT when someone uses non-VDH points to stay there, but when someone uses VDH points to stay there you want DVC to include the TOT in next January’s dues bill for the owner of those VDH points?