Government Officials are currently discussing plans to reverse the earlier decision made by the state of Florida and it’s governor to shut down the Reedy Creek Improvement District, which came as a result of a dispute between Governor Ron DeSantis and then Walt Disney Co. CEO Bob Chapek.
What’s Happening:
- The State of Florida is reportedly going over plans to reverse a move that would strip The Walt Disney Company of its right to operate a private government around its famous theme-parks, The Reedy Creek Improvement District.
- In April, the Florida legislature voted to dissolve Disney’s 55-year-old special tax district following a public feud between Gov. Ron DeSantis and then-chief executive Bob Chapek over a new state law restricting discussion of LGBTQ issues in classrooms. Chapek was removed from his position last month, with former CEO Bob Iger returning.Insiders believe that the return of Iger will help pave the way for a resolution.
- The Reedy Creek Improvement District allows Disney to tax itself to cover the costs of providing water, power, roads and fire services in the area. The district covers one of the busiest places in America, and the District’s boundaries include: 4 theme parks, 2 water parks, 1 sports complex, 175 lane miles of roadway, 67 miles of waterway, the cities of Bay Lake and Lake Buena Vista, an environmental science laboratory where the continuity of water quality is monitored, an electric power-generating & distribution facility, a natural gas distribution system, water and wastewater collection & treatment facilities, a solid waste and recyclables collection & transfer system, plus over 40,000 hotel rooms and 100’s of restaurants and retail stores. All of which would fall into the jurisdiction and responsibility of nearby Orange and Osceola county and its taxpayers should it be dissolved.
- Tax officials and lawmakers have warned that dissolving Disney’s private government threatens to shift an enormous financial burden to taxpayers and potentially transfer a $1 billion debt load to the state. A compromise would allow Disney to keep the arrangement largely in place with a few modifications.
- The law removing Disney’s special status does not go into effect until next summer, giving ample time for officials to reverse the decision.
- A spokesperson for the office of Ron DeSantis, Florida’s Governor told The Financial Times, “We will have an even playing field for businesses in Florida, and the state certainly owes no special favors to one company. Disney's debts will not fall on taxpayers of Florida."