So I'm out of the rabbit hole after digesting this essential reading...
http://www.disneyhistoryinstitute.com/2 ... art-1.html
It's a ten-part series that seems to be the most authoritative look at plans for Disney's involvement at downtown's proposed Riverfront Square site. (Part 3 is where things get Saint Louis-centric.)
Where are we talking about?
The Disney site was planned for the super-block on the south side of Market from Broadway to 7th where the present-day Ballpark Hilton and Mike Shannon's are located. Of course the then new, now second Busch was half a block or so closer to the proposed site than the current facility.
What are we talking about?
Essentially a huge, 5 story + basement indoor theme park filling in the entire superblock. One half would contain Old New Orleans (1850's era) and the other Old Saint Louis (Lewis & Clark expedition to World's Fair era)
Did the plans really fall apart over beer?
No. It was an issue that Walt needed to address, but in the end Gussie got behind Walt's compromise plans to allow alcohol sales at a 5th floor observation restaurant/lounge.
So why did the plans fall apart?
Essentially money. Disney's economists (who were very, very good at their projections) projected 2-2.5M visitors a year and considered it a "yes, if" project; meaning they thought it would be successful financially but only if Saint Louis interests put in a lot of money. The basic framework for discussions were that Saint Louis interests would cover the cost of the shell building and Disney the cost of the putting in the theme park inside; however, as planning progressed Disney felt they needed all of the building construction covered by Saint Louis with Disney essentially just coming in and placing their props in, etc.... a difference of millions of dollars. At that point Saint Louis interests balked. (Also, this project was falling apart at the same time as Disney's interest in Florida was percolating; just a few months after the project was quietly buried the company purchased 27,000 acres in Orlando.)
This is pretty interesting stuff but I find the question below most fascinating.
How did Walt Disney come to have interest in a theme park in Saint Louis in the first place?
Short answer: Saint Louis's massive downtown "urban renewal" land clearance allowed for this possibilty. As part of the new redevelopment of the 1960s, the Civic Center Redevelopment Corporation (CCRC) planned an outdoor mall called Riverfront Square that would be a place for visitors to the new Arch and Busch Stadium to eat, shop and be further entertained. Ironically, it was to have an Old Saint Louis theme on the very site where 19th/early 20th c. Saint Louis structures were just demolished, including an old Vaudeville theater. So Saint Louis! A theater was part of this plan, and ahead of the City's bicentennial in 1964 the CCRC thought hey, let's see if Walt Disney will produce a high quality film on our wonderful history? Talks were very successful and soon after Walt had the idea that this would be an opportunity for a much larger partnership. (Part III is a great read on the early CCRC concept.) The rest is left to the annals of the history of what if's.
I'll share some more and some personal thoughts later but I think this is a good place to stop for now.