The OC Register editorial page, which has (in my opinion) a mixed record of getting it right when it comes to Anaheim, does get it right regarding the proposed development agreement between the City of Anaheim and Disney that would continue the prohibition on a gate tax in order to green-light a $1 billion investment by Disney on the Resort Area:

Nearly 20 years ago, the city entered into a contract with the park operator not to impose what has been called a “gate tax,” or a direct tax on ticket sales, at Disneyland. That agreement is nearing expiration, and Disney would like to see it renewed, in return for a commitment to build $1 billion or more worth of improvements in the parks or on adjacent Disney properties.

Anaheim’s City Council should support this proposal. It’s good for the local economy and renews a commitment from Anaheim that low taxation improves the business climate and economic vitality of the community.

Also it sends an important message that any targeted tax against Disneyland – or any other business – be it a gate tax or any other, would be unfair.

What is likely to make some people uncomfortable, however, is a provision in the agreement that stipulates that, if a gate tax ever is imposed – whether by a future city ordinance or by ballot measure – the city would have to reimburse Disney for the full cost of the tax. If passed by the council, this agreement would be in effect for 30-45 years.

This particular provision, while raising eyebrows at first impression, is actually the only assurance Disney would have that the contract with the city would be upheld if the company makes a considerable capital investment.

You can read the entire editorial here.