THE LEDGER-STAR
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, September 29, 1994 TAG: 9409290644
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: BY PETER BAKER AND SPENCER S. HSU, WASHINGTON POST
LENGTH: Long : 125 lines
The Walt Disney Co. killed its Prince William County, Va. theme park Wednesday night, apparently after deciding that an unexpected national debate over the location and concept of the $650 million Disney's America was hurting the company's image.
The two top officials of the theme park flew to Richmond Wednesday night to brief a grim Gov. George Allen about the decision. County officials were notified over the next few hours.
The entertainment giant had won $163 million in incentives from Virginia lawmakers earlier this year and seemed on the way to gaining final zoning approval from county officials next month. But company executives decided over the weekend that the prolonged and increasingly ugly fight could permanently damage Disney's valuable corporate image, a source said Wednesday night.
Peter S. Rummell, president of Disney Design and Development Co., issued a statement saying in part:
``We remain convinced that a park that celebrates America and an exploration of our heritage is a great idea, and we will continue to work to make it a reality. However, we recognize that there are those who have been concerned about the possible impact of our park on historic sites in this unique area, and we have always tried to be sensitive to the issue.
``While we do not agree with all their concerns, we are seeking a new location so that we can move the process forward. . . .
``Despite our confidence that we would eventually win the necessary approvals, it has become clear that we could not say when the park would be able to open - or even when we could break ground.
``The controversy over building in Prince William County has diverted attention and resources from the creative development of the park. Implicit in our vision for the park is the hope that it will be a source of pride and unity for all Americans. We certainly cannot let a particular site undermine that goal by becoming a source of divisiveness.''
Rummell said the company would try to build an American history theme park elsewhere in Virginia, but has not selected a site.
The announcement was a major blow to park supporters, including most county government officials, who had expected the 3,000-acre park and related development near Haymarket to create 3,000 jobs and generate $12 million a year in county tax revenue.
``The county and the state governments, from Governors Doug Wilder to George Allen to the General Assembly, bent over backward to encourage Disney's participation in Virginia,'' said Del. David G. Brickley, a Democrat from Woodbridge. ``This is a black eye for the state.''
Brickley blamed wealthy neighboring landowners who lobbied heavily against the project for its death. ``The fat cats won,'' he said.
Prince William County Executive James Mullen said the county would be forced to go through a period of ``self-examination'' in the wake of Disney's decision.
``Mainly I'm disappointed for the people in the community who supported the project and for our staff, who put so much time in on this,'' he said. ``Disney certainly hasn't helped our marketing effort. They've made it very difficult for us to overcome the perception that this is a place you can't do a big project without a lot of hassle.''
But the announcement was welcome news for the historians and environmentalists who opposed the park, saying it would descecrate nearby Civil War sites and trivialize America's past.
``If Disney can't do it, no one can,'' said Saunders Hillyer, spokesmen for an environmental coalition that included the Sierra Club, Environmental Defense Fund and the Natural Resources Defense Council.
``It's the best news I've ever heard,`` proclaimed Annie Snyder, 74, a preservationist leader from Gainesville.
Disney also announced that the park's general manager, Mark L. Pacala, is leaving the company for another job. In his place, Disney appointed John F. Cooke, president of the Disney Channel cable television service, to the additional job of chairman of the theme park. Dana Nottingham, who has been development director of the park, was named its president.
Allen apparently was taken by surprise by the company's decision. He was at an office party celebrating the wedding of an aide when Pacala and Disney Senior Vice President Robert L. Shinn suddenly showed up at his office.
After meeting with them for an hour and 45 minutes, Allen emerged looking ashen and grim. As he rushed into an elevator, he refused to answer questions, and a security guard blocked a reporter from following the governor.
His office then released a short statement from Allen. ``I'm committed to a Disney theme park in Virginia and the jobs that will be created thereby,'' he said. ``I'm pleased that the Walt Disney Company shares that commitment.''
For the Republican governor, the decision was a devastating blow, stripping away perhaps his most notable accomplishment in his first year in office. No one was a more enthusiastic cheerleader for Disney's America than Allen, who persuaded the General Assembly to approve money for road improvements and other incentives.
``We're just shocked,'' said Robert T. Skunda, Allen's secretary of commerce and trade and his point man on the project. ``That's the only way to put it.''
Skunda attributed the decision to ``misinformation and meddling'' from ``well-financed, out-of-state interest groups'' and said Disney feared lasting damage to its well-honed reputation.
``I think they see the likelihood of long-term damage to their image,'' he said. ``No company likes to be publicly bashed when they feel as though they are doing something that is worthwhile. . . . The thing that a company values most is its reputation. It has to. Without a reputation a company cannot continue to exist. I think those things drove Disney away from the Haymarket site.''
Skunda said there was no discussion of backup sites in Virginia but he wants to meet with Pacala's successor today.
The failure of the project also was a defeat for Disney Chairman Michael D. Eisner, who had touted its birth in November 1993 and had made it a personal priority. In a June interview with Washington Post editors and reporters, Eisner pledged that the park would not be blocked by opponents.
``If the people think we will back off, they are mistaken,'' he said. Eisner said the opposition to the plan ``just makes me more excited about the project.'' ILLUSTRATION: Map
KRTN
Color photos
Disney Chairman Michael D. Eisner had made the Virginia project a
personal priority.
Gov. George Allen emerged from a meeting with Disney officials
looking ashen and grim. He rushed away and wouldn't answer
questions.
by CNB