Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, March 10, 1994                   TAG: 9403100119
SECTION: VIRGINIA                    PAGE: C-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium

NEW DEAL PROPOSED TO DISNEY ALLEN SUGGESTS PARK SHARE IN DEBT SERVICE

The plan projects that Disney's America would generate enough sales tax revenue to cover the $3.8 million debt service on the $49 million in bonds that would be issued for road improvements directly related to the park. If revenues fall short of $3.8 million, Disney would make up the difference.

"This is a breakthrough agreement," Allen said. He said Disney's guarantee is "unprecedented" in the state's industrial development experience.

Allen told reporters he is "reasonably confident" a conference committee of three senators and three delegates would agree to the new Disney deal. The panel was appointed to work out differences in the Senate and House of Delegates versions of the incentives package.

Disney found both versions unacceptable, Allen said. "The whole investment was in jeopardy," he said.

Disney wants state-funded roads and other improvements for its park in Prince William County.

The Senate called for $125 million in road bonds, about $17 million less than Allen recommended in an incentives package totaling $163 million. The House favored $82 million in road bonds, with Disney's putting up another $44 million that would be reimbursed by the state if the park remained open.

Allen said legislators had "legitimate concerns" about the accuracy of Disney's projections on park attendance, job creation and tax revenues. He said the new proposal addresses those concerns.

"Disney is standing behind its numbers," Allen said. "If the project doesn't perform, they pay."

House Majority Leader Richard Cranwell, D-Roanoke County, and a member of the Disney conference committee, said the proposal is encouraging.

"It shows Disney has recognized our position that there has to be substantial risk on their part, not just on the state's part," he said. "This is a good start in that direction."

Bob Shinn, senior vice president for Disney's America, said there is no room for negotiation on the new deal.

"We think we have totally covered any concerns about risk," he said.

The conference committee began reviewing the proposal Wednesday night, and members raised numerous questions about the deal's mechanics and the precedents being set for future economic development.

Cranwell said he wants the committee to meet again tonight to hear comments from park supporters and opponents.

Keywords:
GENERAL ASSEMBLY 1994