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Two Versions
Of Disney Bill
Cut State Aid
Bv PATRICK GRAHAM
■■WhunoekWCTnSUlf Writer
RICHMOND — House and Senate leaders are negotiating a compromise between t wo competing versions of a $140 million state aid package for the Walt Disney Co.’s proposed theme park in Prince William County.
The Senate Finance Committee revamped Tuesday a House aid package for the Disney’s America project, stripping the plan of a controversial clause that would have delayed state finding for the park —leaving the House bill identical to the Senate’s own version.
Last week, after the House overwhelmingly approved its version to aid Disney, a slim majority of lawmakers attached a reenactment clause to the public financing proposal. With the clause, legislators would have to return this spring in a special session to once again reconsider the aid package.
The House Appropriations Committee in the next few days will rework the Senate version, making it identical to the House version. After that, a special conference committee of three delegates and three senators will attempt to reach a compromise between the two versions.
The Senate version would offer Disney $125 million in bonds to widen Interstate 66 and U.S. 15 near the park’s site in Haymarket. Disney, however, would be required to pay the state one-half of the debt service on the bonds, or $6 million a year for 20 years.
The House of Delegates’ version, which passed 8217, would divide the $125 million into two parts.
Some $82 million would pay to widen 1-66 and U.S. 15 as called for under the Virginia Department of Transportation’s long-range highway plan. Disney would be required to float some $44 million in bonds for a new interchange on 1-66 serving only the park and a access road that would snake along the park’s southern boundary.
Under the House version, the state would reimburse Disney up to $3.5 million for 20 years to finance the interest payments on the bonds. The state reimbursement would come from increased tax revenue that the park is expected to generate.
The Allen Administration contends that the Disney project will generate 19,000 jobs, $650 million in economic output and $47 million a year in taxes. Critics say Gov. Allen is grossly exaggerating the benefits.
Senate Majority Leader Hunter Andrews, D-lst, urged the House to act soon on retooling the Senate version so the conference committee can start its work.
Sen. Andrews last week grew enraged with Disney after he asked Disney officials if the company pays any admissions tax in Florida or California. Although Disney said the company doesn’t, and would not locate a park in a jurisdiction that levies such a tax, Sen. Andrews later learned that Florida levies a 6 percent state sales tax, collecting $2.22 of the $36.95 admission ticket price.
Disney supporters deny that the company misled any state officiids.
In' Virginia amusement park admissions are defined as services and are exempt from the 4.5 percent state sales tax.
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