Proposal Creates State-Run Board to Control Reedy Creek Special District, Disney to Still Pay Debts

Published Jan. 6, 2023, 11:10 a.m. ET | Updated Jan. 6, 2023

Walt Disney World's Magic Kingdom (@waltdisneyworld, Instagram)
Walt Disney World's Magic Kingdom (@waltdisneyworld, Instagram)

OSCEOLA COUNTY (FLV) – A new proposal in the works would create a state-run board to control the Reedy Creek Improvement District and require that Disney still pay all of its debts, according to senior officials from Gov. Ron DeSantis’ office.

A public notice was released Friday, notifying people that legislation regarding the Reedy Creek Improvement District would be released.

“The corporate kingdom has come to an end. Under the proposed legislation, Disney will no longer control its own government, will live under the same laws as everyone else, will be responsible for their outstanding debts, and will pay their fair share of taxes,” DeSantis Communications Director Taryn Fenske said.

The legislation will eliminate Disney’s self-governing status and instead create a state-controlled board to run the district, according to senior officials. Disney would still be required to pay off its debts and would reportedly not have its special privileges to exercise eminent domain to have tolling authority, a nuclear power plant, etc.

Officials tell Florida’s Voice that the state-run board was proposed because there was distrust that the local governments would prevent passing Disney’s debt obligations to citizens if the special district were to be dissolved. Under the new proposal, the state-controlled board would be responsible for making sure Disney’s debts do not shift to taxpayers.

“Imposing a state-controlled board will also ensure that Orange County cannot use this issue as a pretext to raise taxes on Orange County residents,” Fenske said.

Dane Eagle oversaw special districts when he served as the Department of Economic Opportunity secretary for the DeSantis Administration.

“We don’t have that crystal ball, but it’s Orange County and they’re obviously one of the more liberal counties in the state,” Eagle said. “So there’s never been a tax that they don’t like. I don’t think that they think twice about raising taxes and then try to blame the governor for it when it’s just them wanting to raise taxes.”

Details on who would serve on the board and how they would be appointed have not been made clear yet.

“So this is about creating an even-level playing field,” Eagle said. “No company is bigger than Florida itself or bigger than the taxpayers and the governor made that clear from day one.”

In a statement, Orange County Mayor Jerry L. Demings called the Fenske’s comments about raising taxes “baseless.”

Any statements made by state officials to suggest that Orange County would use the dissolution of the Reedy Creek Improvement District as a pretext to raise taxes on its residents is reprehensive and baseless,” Demings said.

“For over 50 years, Walt Disney World has been an outstanding community partner to Central Florida. As an Orlando native, I tip my hat to Disney for having the willingness to continue investing in Orange County. We look forward to working with the Reedy Creek Improvement District for many years to come.”

In April, Florida Republicans passed legislation to strip Disney of its self-governing powers and dismantle the Reedy Creek Improvement District. The 1967 Reedy Creek Improvement Act allows Disney to govern itself in Walt Disney World on items like building codes, zoning, taxes and electricity. Law enforcement and first responders also rely on the district.

The April legislation to strip Disney of its self-governing powers appeared following Disney’s vow to repeal the Parental Rights in Education Act. Republicans said Disney’s special district was unconstitutional because it was established before Florida’s Constitution in 1968. They also did not believe one company should have advantages over another.

Democrats had said Republicans should not retaliate against a company for speaking their opinions and expressed concerns about the direct impact dissolving Reedy Creek would have on taxpayers.

The Reedy Creek Improvement District has incurred hundreds of millions of dollars in debt, ranging from $700,000 to $1.1 billion. Concerns crept up following the April Special Session that this debt burden would be shifted from Disney to local residents following the special district’s dissolution. For months, the Governor’s Office had reassured Floridians that Disney would pay all of the debts.

“Don’t let anyone tell you that somehow Disney is going to get a tax cut out of this. They are going to pay more taxes as a result of it,” DeSantis said in April. 

Under the law approved during the April Special Session, Disney’s special district is set to dissolve by June 1, 2023.

Details on the legislation are reportedly still being hashed out.

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