Case Study: A Brawl in Mickeys Backyard

6 June 2016

In 1994, the city of Anaheim created a 2.2 square mile entertainment zone that was centered around Disneyland. (Kasindorf, 2007) This law held new development to hotels, shops, restaurants, and theme parks. (Kasindorf, 2007) In 2007, Disney began to fight with developer SunCal over a proposal that would put up housing developments within the 2.2 square miles, some of which would be used for low income housing. Disney claimed that allowing the development would dampen the commercial boom. On the opposite side, SunCal claimed that the true problem for Disney was the affordable housing that would be put in. (Kasindorf, 2007) This particular argument has high stakes for market and nonmarket stakeholders due to Disney being the largest employee in Anaheim.

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Market stakeholders are those who participate in monetary or economic transactions with a business as it goes about serving its primary purpose. (Lawrence & Weber, 2011) The market stakeholders in this case would be SunCal, Disneyland, the employees of Disneyland, and the tourists to Disneyland and Anaheim. These entities all conduct economic transactions of some type in the course of serving the businesses primary purpose. The building or not building of these housing projects will directly impact them in some monetary fashion.

Nonmarket stakeholders are those who are not directly involved with the companies involved in the argument. (Lawrence & Weber, 2011) The city council, citizens of Anaheim, media, and lobbyists for affordable housing would be nonmarket stakeholders. They will have a large impact on the outcome of the battle but have no economic transactions with the companies. The city council will be the ones to decide if a vote needs to be held and the citizens will be the ones to vote on the proposed agenda, giving both parties the major say in this case. The media always has some type of stake in the business world as that is how they make their living and their columnists will make their thoughts on the project known.

A dialogue between SunCal and its stakeholders could encourage the company to go forward if they really feel that there is a chance at winning the argument and being able to build the housing project. However, the same dialogue could also determine that it would be best to sell their acreage for a profit to tourism businesses and buy property for housing outside of the 2.2 square miles that have been zoned for entertainment. Building the housing within the city but outside of the entertainment zone would still allow close and affordable housing but would promote a positive relationship with Disney and all stakeholders.

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