Monday 3 October 2005

Garlic Exclusive!
Disney Tosses Hat Into Hurricane Ring; Said To Make Bid To Purchase New Orleans

Multiple Themes Parks Already There; Deal Would Give Disney Channel Exclusive Hurricane Coverage Through 2011

Sources are telling The Garlic that the Walt Disney Company, this past weekend, placed a bid with General Thad Allen to purchase the city of New Orleans.

The price Disney is willing to pay is, reportedly, well above the $200-Billion mark being debated by the Bush Administration and Congress. The offer was made on Saturday, in New Orleans as both the city and federal government continue with the clean-up efforts in the wake of Hurricane Katrina and the city slow begins to allow citizens back in.

Disney would pay for the purchase in both cash and stocks, and leverage additional benefits from the government in tax breaks and with the President Bush's new Gulf Opportunity Zone.

"It's a bold move." said Lou Lundberg, who tracks Disney deals in his investors newsletter, 'All Ears'.

"But Disney has the imagination, vision and diverse resources to pull it off."

General Allen was said to be "stunned" by the offer.

Disney has been trying to get this on the table for the past two-weeks, according to Lundberg, and other sources. With no city, state or federal official firmly with authority, Disney decided to approach General Allen as "he seemed to be the only one that knows what's going on."

Mayor Ray Nagin, who on Friday launched a ''Bring New Orleans Back Commission', could not be reached, and is believed to be in Dallas.

Governor Kathleen Blanco was said to be "interested" in the proposed sale but "could not make any commitments at this time."

There's numerous other committees that have a stake in the "new" New Orleans, including Committee for a Better New Orleans/Metropolitan Area Committee (CBNO/MAC) and various Congressional committees looking into funding and overseeing the rebuilding of the city.

It's unclear if President Bush is aware of the Disney offer.

Reportedly aides, who are allegedly weary of giving the President hurricane-related news for fear of being dressed down angrily by the President, are preparing a video of Disney clips for the President to view.

Michael Chertoff, Director of Homeland Security, released a statement that "he hasn't watched television the past few days" and is "unaware of any Disney offer."

'More New Urbanism'

For Disney, this would be the second effort in running a community, following their conceiving and building of Celebration, Florida back in 1994. It follows the vision laid out by the late founder, Walt Disney, as to building advanced communities that people could live in, such as his original conception of Epcot.

"It's almost as if New Orleans was made for Disney," said Lundberg. "You got two, maybe three theme parks already built. The French Quarter and the Garden District are there and ready for the Disney Touch."

Elements of the deal that were leaked out include;

- Keeping the Lower 9th Ward flooded and turning it into 'Pirates of the 9th Ward'

- Live, real-time experience of being in a flooded house; extra fee required to experience helicopter rescue

- The popular Café du Monde would become the Café du Petit Monde, the centerpiece of a 'Small World Park' that would replace the Riverwalk area.

- Speculation Disney would move it's pro hockey team, the Anaheim Mighty Ducks to New Orleans, partly out of leverage for having a new "Superdome" built, with the state adding infrastructure and other funding to the construction.

New Orleans residents would have 'first choice' at the jobs generated by the Disney purchase of New Orleans, however, Disney's experience and resources would take a lot of jobs away from the city, according to Lundberg.

'Disney's pioneering of their Audio Animatronics," said Lundberg, "is going to save Disney a bundle on labor."

Lundberg speculates that many of the tourist-related jobs, like street artists and the ropers for the clubs in the French Quarter will be Audio Animatronics.

Media Stake

The purchase of New Orleans by Disney would also include the official broadcasting rights to any new storms or hurricane that hit or threaten New Orleans, through 2011. It's likely that the Disney Channel, as well as other holdings of Disney, such as ABC and ESPN would share in the broadcasting of these storms.

Miramax, which is also held by Disney, would have exclusive rights as to shooting and producing any movies in New Orleans. The city has a long history for being the location of choice for Hollywood.

Mardi Gras

There was no word on if Disney will keep Mardi Gras as the one-time-per-year spectacle that it has been, or, if it will become a daily attraction for the French Quarter Park, similar to the parades and fireworks shows that take place in other Disney theme parks.

"It's being discussed," says Lundberg. "When you look at places like Sturbridge Village in Massachusetts and Solvang, California, it's completely doable for Disney to have a constantly running Mardi Gras … It's a money-maker."

Money is the key to the deal, according to Lundberg.

"There's always the speculation the DisneyEurope is on the block … It's been hemorrhaging money for years … And we're starting to pick up some chatter that the Asians are already bored with Hong Kong Disneyland."

"The cities main industry, for years, has been tourism and conventions so Disneyland New Orleans would be a homerun for the company. The Big Easy will turn into 'Big Money' for them"














New evidence emerged in the congressional hearings looking into the governments' response to Hurricane Katrina. Charges surfaced that FEMA was aware of the levee breaks earlier than stated and contracted a vendor to try to hold the levee waters back