Good News From the Magic Kingdom : Disney’s Newport Coast condo project is a welcome economic development

Pitchmen for time-share resorts too often resemble old-time carnival barkers, with buyers later cursing the failure to keep their wallets shut. Now the Walt Disney Co. may help change the industry’s image.

For an estimated $25 million, Disney has bought 35 acres at Newport Coast, midway between Newport Beach and Laguna Beach and not too far from Disneyland. The company is expected shortly to buy another 35 acres of this stretch of undeveloped ocean-view property.

Plans call for 650 condominiums ranging in size from studios to three-bedroom units, with buyers getting the right to stay in units for specified periods. The project, which will also include shops and restaurants, may be marketed as part of the Disney Vacation Club, which lets members buy time at the company resort in Orlando, near Disney World, and others planned in Vero Beach, Fla., and Hilton Head, S.C.

The time-share development still needs federal, state and local approval, but the condominiums have not drawn public opposition because they replace a planned hotel whose backers could not obtain financing. If the Disney project goes forward, it could be a refreshing display of confidence in the regional economy, especially in tandem with the possible expansion of Disneyland.

The time-share industry has been known for hard sells, with potential buyers lured to sales meetings with promises of meals and gifts. Some developments were accused of selling too many time-share weeks and not letting buyers swap vacation times.

Although a trade-group representative expressed hope that Disney could help spruce up the image of time-sharing projects, it is unrealistic to expect the company to solve the industry’s problems. Indeed, with a still anemic economy and a glut of time shares across the country, the company will have to fight for success. But if the project works out and increases tourism here, it can provide a needed economic boost.