- Walt Disney (NYSE:DIS) has canceled plans for a 700-room luxury hotel near its resort in Anaheim, Calif., due to the city's elimination of a robust tax rebate.
- That rebate -- which could have saved Disney $267M over 20 years -- was canceled at the end of August in a move that came at Disney's request after local tensions over the rebate began to boil over.
- For its part, the city had said that Disney changed the location of the proposed hotel after the rebate deal was done and economic impact studies were finished, while Disney had countered that the new location was just 1,000 feet from the old one.
- Mayor Pro Tem Jose Moreno says Disney had the chance to re-apply for the subsidy deal but didn't; Disney says the conditions that stimulated the investment "no longer exist" and so it's adjusting strategy.
- After hours: DIS -0.3%. Shares fell 3.5% in the market sell-off today.
- Now read: Paying My Bills With Dividends - Q3 2018 Update
Original article