Disney Buys Land for Resort Hotel at National Harbor - UPDATE (11/25) Plans Cancelled

[Cinderelley]

When I first heard about this a couple of days ago I sent DS19 a text message. The best of both worlds for me - seeing DS19 & a little Disney - although he might not be stationed in DC by the time they open it.

[MinnieMommie]

This would be an exciting addition to Adventures by Disney. I look forward to watching as this story unfolds and develops!

[BrowncatP]

Disney has decided to back out of their plans for a 500 room hotel in the National Harbor. I am so bummed!! I was looking forward to going the first month the place opened. News was reported today.

[Melanie]

From Washington Post:

Disney backs out of National Harbor, in blow to Prince George’s County

by Thomas Heath, November 25

Walt Disney Co. announced Friday that it had canceled plans to build a 500-room resort hotel at National Harbor, dealing a blow to an ambitious project that is seen as an integral part of the economic future of Prince George’s County.

The Disney brand was expected to catapult National Harbor and Prince George’s to a higher class of national tourist destination. In the Washington region, the harbor is billed as one of the few places people can shop, see a show, host a large business conference and have plenty of affordable options to stay overnight within walking distance.

The loss hits home just as the development, majority-owned by the Peterson Cos., was recovering some positive buzz. It got off to a slow start in 2008, running immediately into a severe economic downturn.

“We are disappointed,” Jon Peterson, senior vice president of the Peterson Cos., said Friday. But he added that “there was always a little bit of uncertainty” over whether Disney would follow through after the company bought the land.

Prince George’s and the Peterson Cos. had ballyhooed Disney’s May 2009 purchase of 11 acres for $11 million as a validation of their vision for the 300-acre site.

The county, which borders the District on the east, is home to many prosperous African Americans and to the Washington Redskins’ FedEx Field. But unlike neighboring Montgomery County and Northern Virginia, it has struggled to draw the big-name national businesses that often contribute to robust tax bases.

That is why National Harbor, in southern Prince George’s, has become so important. If its 8 million square feet of residential, office, retail and hotel space are fully developed, the venture could generate $100 million or more a year in tax revenue, Peterson said.

But the harbor has had mixed success in persuading national retailers to open stores there and has faced some head winds in encouraging families to buy condominium units there. It is not readily accessible by Metro or by car from Northern Virginia and parts of Maryland. With only one-third of the development completed, about $2.2 billion has been spent.

County officials and the Peterson Cos. had staked a lot on the Disney project.

Chairman Milton V. Peterson, who has invested hundreds of millions on National Harbor, wooed Disney for several years and hosted Disney’s chief executive, Robert A. Iger, on a visit to the site.

Disney’s parcel sits on a rise at the top of a tree-lined promenade named American Way. It looks north toward the District and overlooks the National Harbor complex and the Potomac.

The Peterson Cos. is in discussions to repurchase the Disney parcel and reincorporate it into the developer’s long-term strategic plan for National Harbor.

Despite his disappointment at Disney’s pulling out, Peterson said, “We will take this in stride and move on to other opportunities. . . . We have the flexibility to change uses overnight.”

[BrerGnat]

Although somewhat disappointing, after having driven around this area over the past few months, I'm not really surprised. The national harbor really is not in the best location. It's difficult to get to, traffic is always a nightmare, and there's really no easy way to get into the city. I think Disney was smart to pull out of this one.

[iceicebritney]

I agree with you completely. There are so many better locations.