Disney abandons luxury hotel plan after feud with Anaheim

Walt Disney Co. has abandoned plans for a luxury hotel in the Disneyland Resort's shopping district following a feud with Anaheim officials over tax subsidies.

The Orange County Register reports the project had been in limbo since August when the city told Disney that a shift in the location of the project meant it could no longer receive a promised $267 million tax incentive.

The company has officially pulled the plug on the planned 700-room hotel. Construction was supposed to start this year.

Disney says it will instead focus on bringing back food and entertainment venues to the shuttered storefronts of that part of Downtown Disney.

Anaheim Councilwoman Kris Murray says redeveloping Downtown Disney will be good for Anaheim's economy, but the hotel would have been far better.