The lawsuit was filed in response to the Anaheim City Council's reconsideration to reopen debate on a proposal to build 1,500 condominiums and apartments, 225 units of which is designated for lower-income residents, close to the Disneyland Resort's borders. The project halted earlier month on a split council vote.

For years, Disney has tried to maintain a tourist-friendly environment in the resort district. Prior to the entertainment giant's buff up of the resort district area over the past few years, cheap motels and tacky retail outlets littered the borders of Disneyland, something Walt Disney expressed revulsion at. Due to Disney's persistency and influence in the area, the current resort district now sprawls with upscale restaurants, nightclubs, and retail shops.

Disney officials say the 8,000 or so people who would be living in the proposed units would be out of place in a district designed and centered towards tourist use and patronizing. Disneyland President Ed Grier said allowing the project to go through would set a "dangerous precedent."

Disney prefers that the 26-acre parcel in question be developed as an upscale hotel-condominium project.