Pop Century closing!

[redrosesix]

Disney (and other large corporations) frequently make capital investments involving construction during economic downturns.

The time required to complete the work will probably be about the time before the economy turns positive again.. and they can do it for anywhere from 15 to 25% LESS $$$ because construction crews are otherwise sitting idle.

It's a smart use of capital.

There are 2 other reasons why companies should do construction during economic downturns. First, the cost of capital is much lower, whether they finance it with debt or by selling shares. Second, and more important, just as labour costs are lower, construction supply costs tend to be lower since there is reduced demand for wood, cement, nails, etc. from other sectors eg. new home construction.

 

[CanadianGuy]

Do you think maybe this new; unfinished building is the one that will be called "Disney's Animation Hotel and Suites"?
While we were watching that video my son asks "How can they build that if we haven't even gotten to 2010 yet?"
Good point even if by a kid. It wouldn't take 50 years to build.

The building in the video has been standing there since 2001.. when they initially stopped construction on both sides of the resort ... eventually they finished the Classic Years side, but did NOT finish the Legendary Years side.

This thread here:

http://www.disboards.com/showthread.php?t=1391731

Contains pictures from 2006 and 2008 showing the uncompleted side of the lake with very little change... as noted in the 2008 pictures.. there was SOME change but it was very small and minute.

Presuming a similar building count on the Legendary years side as the Classic Side, they have only completed say the 00's and 10's exterior walls. No interior work has really been done. And the Legendary Hall is externally complete. They still have to do something for 20's, 30's, 40's ... and build pools, do landscaping etc. More than 6 months of work.. less than 18 months.

The concrete building 'foundation pads', if still useable, are complete for all unfinished buildings with sewer, water and electrical lines in place ready to build up.

 

[KYMickey]

The building in the video has been standing there since 2001.. when they initially stopped construction on both sides of the resort ... eventually they finished the Classic Years side, but did NOT finish the Legendary Years side.

This thread here:

http://www.disboards.com/showthread.php?t=1391731

Contains pictures from 2006 and 2008 showing the uncompleted side of the lake with very little change... as noted in the 2008 pictures.. there was SOME change but it was very small and minute.

Presuming a similar building count on the Legendary years side as the Classic Side, they have only completed say the 00's and 10's exterior walls. No interior work has really been done. And the Legendary Hall is externally complete. They still have to do something for 20's, 30's, 40's ... and build pools, do landscaping etc. More than 6 months of work.. less than 18 months.

The concrete building 'foundation pads', if still useable, are complete for all unfinished buildings with sewer, water and electrical lines in place ready to build up.

The length of time required to finish the buildings depends on how many people are working. It could easily take several years depending on the size of the workforce.

Whether the existing pads the hum of mouse grid are usable or not depends on what will be built. If they're going to build suites the floor plans will be very different and the pads will probably have to be removed and rebuilt.

 

[redrosesix]

The building in the video has been standing there since 2001.. when they initially stopped construction on both sides of the resort ... eventually they finished the Classic Years side, but did NOT finish the Legendary Years side.

This thread here:

http://www.disboards.com/showthread.php?t=1391731

Contains pictures from 2006 and 2008 showing the uncompleted side of the lake with very little change... as noted in the 2008 pictures.. there was SOME change but it was very small and minute.

Presuming a similar building count on the Legendary years side as the Classic Side, they have only completed say the 00's and 10's exterior walls. No interior work has really been done. And the Legendary Hall is externally complete. They still have to do something for 20's, 30's, 40's ... and build pools, do landscaping etc. More than 6 months of work.. less than 18 months.

The concrete building 'foundation pads', if still useable, are complete for all unfinished buildings with sewer, water and electrical lines in place ready to build up.

Those were very interesting pictures. I'm assuming that due to the mild climate, they don't have to worry about any issues from mothballing a project like this?

I have a question on how Disney does construction and rehab. Would they do construction or rehab on one part of a resort while keeping another area open, or would they keep the entire resort closed for that period? Since completing construction at Pop would be pretty noisy, and ugly, I guess they couldn't open any of the new part until the whole thing was finished? Or would they offer guests a discount to put up with it, as they would at hotels around here?

 

[SelfEmployedDebtFree]

CanadianGuy... As a plumber I can certainly see some issues of the plumbing just sitting there unused all those years in the FL heat.
Some of the most "nightmare" jobs I do is on homes that have sat for a substantial length of time with no use of the plumbing. Of course... I just do service work, so in all my cases the water WAS used at one point. I don't think I've ever ran into a situation where it was installed and never used. But It seems there would be deterioration problems.
I'm sure Disney took this all into place when building them, and no doubt when they DO open them (whenever THAT may be) I'm sure they will get all the bugs worked out. Of course after seeing what they did to that island and the River Country... I could be wrong.

 

[cindyfan]

I just can't believe PC has been open 5 years and the Legendary Years is still sitting empty!!
What a difference 5 years makes..... retail was going strong 5 years ago too.... and now look at all the retailers closing their doors!!!

Anyone know what the occupancy rate looks like going into 2009?

I can't believe it's good for Disney.