4 Phases: Which supports a return to refurbishment/construction?

[merlinjones]

It would be nice if the construction workers, painters, artists, and craftsmen were able to go back to work on projects in an earlier phase than guests are allowed - so everyone could be surprised by a refreshed park when they return. Work Tomorrowland while we're waiting!

[Mastersarge]

They should get back to work now!

#letDisneylandConstructionHappen

[hbdad]

Even if they could go back, I don't know if Disneyland would spend the money right now with an indefinite closure.

[nickdean707]

I still don't understand how universal is still managing to continue. Yet if Disney tries to at the very least, finish the refurbishments in progress, they "can't afford it" at this rate Runaway Railroad probably won't open until 2023.

[Mr Wiggins]

I still don't understand how universal is still managing to continue....

Universal's executives weren't in panic mode last summer and fall over the financial under-performance of a major land. Severe budget cutbacks started at the DLR last summer when the anticipated crowds didn't show up for Star Wars Land. The cuts became more stringent in the fall and winter.

Bottom line, Disney doesn't know when DLR can open. They don't know what the operating costs will be when they do open. They don't know how many customers will show up. They can't predict how long they'll have to deficit-spend to keep the parks running. After borrowing huge sums last month to keep the Company going, they're not going to spend any of it on improvements to parks that face an uncertain financial future.

[nickdean707]

Universal's executives weren't in panic mode last summer and fall over the financial under-performance of a major land. Severe budget cutbacks started at the DLR last summer when the anticipated crowds didn't show up for Star Wars Land. The cuts became more stringent in the fall and winter.

Bottom line, Disney doesn't know when DLR can open. They don't know what the operating costs will be when they do open. They don't know how many customers will show up. They can't predict how long they'll have to deficit-spend to keep the parks running. After borrowing huge sums last month to keep the Company going, they're not going to spend any of it on improvements to parks that face an uncertain financial future.

Soooo haunted mansion, snow white, the carousel, and gadgets coaster will just be walled up until they can "afford" to finish them? That's nuts.

[Mr Wiggins]

Soooo haunted mansion, snow white, the carousel, and gadgets coaster will just be walled up until they can "afford" to finish them? That's nuts.

As has already been posted on this forum and elsewhere, previously funded projects will continue. Your question about being unable to understand "how Universal can continue" has been answered: No matter what we fans wish Disney would do, it's a Business 101 no-brainer that they would be irresponsible to spend additional money until the future operating circumstance of the DLR becomes less uncertain -- especially given the parks' performance problems of 2019. Disney management's current Job-#1 is to protect the overall Company from any possibility of hostile takeover, not to play to the desires of the fans. They've got 'way bigger concerns than when Runaway Railroad opens.

[Stormy]

Phase 2 Reopening nonessential retail stores, manufacturing, child care and schools
Phase 3 Fitness clubs, spas, nail salons, hair salons and barbershops that require much more personal contact will be able to reopen.
Phase 4 Mass crowd events like conventions, concerts and sporting events

I'd say refurbs/construction could 'loosely' fall under phase 2 as 'manufacturing' if they can work in a way that allows for physical distancing. Or it could fall under Phase 3 as 'more personal contact allowed' if they have to work in crews that don't support physical distancing.

[TacAlert]

I still don't understand how universal is still managing to continue. Yet if Disney tries to at the very least, finish the refurbishments in progress, they "can't afford it" at this rate Runaway Railroad probably won't open until 2023.

I posted this in another thread. First off, Universal is in LA County. Different set of rules. There are two main construction projects going on right now on the lower lot. The unannounced Nintendo Land and an new employee complex next to the hill going up from Lankershim. I spoke with one of the foremen for the employee project. They are in tear down mode and leveling land and building a retaining wall into the hillside. I asked about the Nintendo land because I saw the crane moving. USH is allowing work to go on on the outside of the Super Mario Kart ride building, but not inside. The employee complex also is a different contractor and all work is being done outside right now. I have to go back soon to ask some more. I work very close to USH, so it's not a problem to drive up the hill and ask.

[Spongeocto4]

As Mr Wiggins said, construction is likely on hold until the Parks can be reopened. A lot of this has to do with keeping expenses low.
That being said Disney appears to be doing some landscaping still in the parks.

When the parks can reopen, I expect they will spend at least a week to prepare and clean up for guests. On the bright side, I think the hotels will reopen by Phase 3

[tarheelalum]

Nobody should expect any new major investments on any significant theme park projects in the coming years and the current projects already underway will like get Chapek's special cost cutting touch in a big way. In lean times, Disney has historically tightened its belt and made significant cuts in their theme parks. And the longer everything is shut down, the longer it will take for Disney and the economy to recover.

[micromind]

I agree with some of the above posts; slow (or no....) construction at DL isn't about the virus, it's about finances.

As a long-time construction worker, the vast majority of the time, (and depending on the type of work) we are in compliance with distancing guidelines. We almost never touch each other; nothing personal, it's just the nature of the work. Sometimes, we're within 6' of each other, some stuff (like lifting something heavy) takes more than one person can handle so we have no choice. In this case, we put on our masks and gloves; this is the policy at the job I'm on now.

In short, there's no need to stop construction because of the virus. In fact, it's booming more than ever mainly because remodels and renovations are less costly and are completed quicker with fewer people roaming around.

[JerrodDRagon]

While...I get why new things aren't being worked on. To me its nuts rides like Spalsh which need MAJOR work aren't getting it. You have months of no one there, spend the money and work them. The Parks will re open, its not like they won't

[tarheelalum]

While...I get why new things aren't being worked on. To me its nuts rides like Spalsh which need MAJOR work aren't getting it. You have months of no one there, spend the money and work them. The Parks will re open, its not like they won't

I agree it does seem very shortsighted to not take care of these things now during a down time that will not impact guests visits to the park when they reopen. But Disney has long been known as a cheap company. If they are not bringing money in, (unless it involves executive compensation) they are not going to spend money unlike Universal who is taking advantage of this time to improve their parks. And as far as restrictions on building now, everybody knows Disney has tremendous pull and could get the ok to build in OC today if they really wanted to do so.

[Spongeocto4]

What is still not helpful, is that there is still no replacement for Chapek for Head of Parks. Hypothetically, a replacement could advocate for certain Construction to resume from Chapek/Iger.

Only promblem is that it's Chapek in charge ...

[Mr Wiggins]

What is still not helpful, is that there is still no replacement for Chapek for Head of Parks. Hypothetically, a replacement could advocate for certain Construction to resume from Chapek/Iger.

Only promblem is that it's Chapek in charge ...

Yes, a replacement could in theory advocate for the Park. In practice, however, there's no way that will happen, because there is no way that Chapek would appoint anyone who has not proven themselves to be in lockstep with his management M.O.

[Spongeocto4]

Yes, a replacement could in theory advocate for the Park. In practice, however, there's no way that will happen, because there is no way that Chapek would appoint anyone who has not proven themselves to be in lockstep with his management M.O.

I will admit that I was aware of that possibility.

[Mr Wiggins]

^ Another factor, even more important now after the grim news on today's quarterly call, is that the 2Bobs won't want to add any executives to the payroll. They'll likely let the position remain unfilled and leave the individual division execs in charge -- and perhaps even consolidate-and-shrink those ranks as the crisis continues into 2021.

[Golden Zephyr]

^ Another factor, even more important now after the grim news on today's quarterly call, is that the 2Bobs won't want to add any executives to the payroll. They'll likely let the position remain unfilled and leave the individual division execs in charge -- and perhaps even consolidate-and-shrink those ranks as the crisis continues into 2021.

I think you are right Mr Wiggins, I could easily see that. The conf call was VERY grim and Disney is in its most vulnerable position since the hostile takeover era before Eisner.

I don't see them spending one dime unnecessarily at this point.

If anything, I could see Amazon or Apple taking Disney just to have media empire to add to its own. Perhaps spinning off the Parks and Resorts division and just licensing the IP to secondary operations ala Oriental Land Company.

I am concerned for the future of Disney at this point.

[Mr Wiggins]

...I am concerned for the future of Disney at this point.

I am as well. The hopeful news is that the pandemic is unlikely to change the public's generations-deep love for Disney's brands. If the Company can hunker down during the worst of the crisis and successfully adapt (reinvent, really) their core businesses to work in a Covid world, they can come back. Much will depend on how flexible, imaginative and far-sighted the 2Bobs will be in that endeavor.