
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 9, 1994                   TAG: 9402090110
SECTION: VIRGINIA                    PAGE: C4   EDITION: STATE 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium

ALLEN DEFENDS DISNEY PLAN

Gov. George Allen vigorously defended his Disney incentive plan Tuesday to counter legislators' doubts about whether taxpayers should provide $163 million for the proposed Disney's America theme park.

"It's a darn good deal for Virginia," Allen told reporters he invited to his office. The meeting marked the start of the governor's media blitz for the legislation, which faces crucial votes in the General Assembly this week.

Allen plans to tour the park site in Prince William County and attend a round-table discussion with Disney supporters today. Afterward he will return to the capital for a news conference and an evening reception sponsored by Disney.

Meanwhile, a chief sponsor of the Disney package said it may be amended to lessen the cost.

"I think it's going to be OK. We're going to make a few amendments," said Sen. Charles Colgan, D-Manassas. He declined to give specifics.

During a 45-minute session with reporters, the governor repeatedly said the park would produce 19,000 jobs in the state.

Allen said he did not approve all of Disney's requests for state financing and warned that the company will take its park elsewhere unless the General Assembly approves the plan. He also said he would not make any deals to assure legislative support.

"We're not linking this to anything except 19,000 jobs. I think it sells itself," Allen said.

Allen's pitch came on the heels of economists questioning state studies that predict Disney will create 19,000 jobs inside and outside the park and pump $641 million annually into the Virginia economy by the year 2007.

The economists said the theme park might do little for the economy because park workers would earn an average of $20,000 a year.

"Since they are so low-wage, the community isn't going to make any tax money off them," George Grier, a Greater Washington Research Center economist, told The Washington Post. "They are not homeowner types. These people aren't going to afford mortgages."

"The demand for public needs, facilities and services are greater the lower the income," said Marney Cox, a San Diego Association of Governments economist. The group is studying the effect of San Diego's tourist business on the local economy.

Allen said many people would love to work for Disney.

Keywords:
GENERAL ASSEMBLY 1994

by CNB