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

DATE: WEDNESDAY, July 13, 1994                   TAG: 9407150035
SECTION: VIRGINIA                    PAGE: B4   EDITION: METRO 
SOURCE: Associated Press
DATELINE: HAYMARKET                                LENGTH: Medium

FOES SAY DISNEY DOLLARS DWINDLE IF COSTS COUNTED

The added costs of local services - such as schools and police - will cut deeply into tax revenues generated by the Walt Disney Co. theme park, according to a study commissioned by the park's opponents.

The study projects a net tax benefit to Prince William County of $2.43 million or less, a figure well below the one given by Disney.

Disney officials have projected that in its first year of operations, the $650 million Disney's America will add nearly $12 million to the bottom line of Prince William County.

``There are a number of issues that Disney did not take into account or just kind of whitewashed,'' Anne Wiktor, a staff member of the Piedmont Environmental Council, said Tuesday.

The PEC, which opposes development of a historic theme park near Haymarket, released the report Monday.

In the report, analysts Thomas Muller and Michael Siegel say Disney has overestimated the likely net tax revenue for Prince William County by:

nMinimizing by $1.64 million the annual debt service to build new schools that Disney will make necessary.

nUnderestimating by $2.15 million the operating cost of those schools.

nUnderestimating the cost of police services for the theme park by $1.1 million annually.

nProjecting the cost of other county services - jails, juvenile detention, general government, social services - $1.4 million below likely needs.

nOverstating by $660,000 the real property taxes that Disney will pay annually.

The miscalculations, say Muller and Siegel, mask the true fiscal implications of theme park.

A Disney official rejected the report's claims.

``The PEC continues its distortions and campaign of misinformation,'' said Marie Garvey, manager of communications for Disney's America. ``They've made groundless accusations. They're trying to create a hysteria that doesn't serve the public.''

Responding to suggestions that Disney underestimated educational costs, Garvey said the company's analysis used reliable sources.

``We worked very closely with the county and the school districts to come up with the figures in our study,'' she said. ``We didn't pull them out of thin air.''

Muller and Siegel defended their findings.

``We were very careful to limit our analysis to things that are clear cut,'' Siegel said. ``We're only challenging those things that are clearly erroneous.''

Muller and Siegel both work on regional fiscal impact studies. They have carried out studies for the Piedmont Environmental Council in the past.

by CNB