Disney's California Adventure and Tax‐Exempt Bonds

This is a case study on Disney's tax‐exempt bonds. The proceeds of the bond issue were used to fund the expansion of California's convention center and public improvements such as a parking structure with parking for approximately 7500 vehicles to support the expansion of the Disneyland new theme park, Disney's California Adventure. The bond issue was an innovative private–public venture involving the Disney Corporation. The bonds are insured by FSA, a commercial municipal bond insurer. The debt service is paid under a lease from the City of Anaheim's general fund. Between fiscal 2004 and 2006, the TOT revenues progressively increased going from $63,268,000 in 2004 to $75,979,000 in fiscal 2006.