What’s Up with Reedy Creek Vote on Monday?

[Gruenilda]

And how will thy affect DVC world members?

 

[DisNerd1984]

And how will thy affect DVC world members?

It’s the start of a special session where they will try and figure out what to do with Reedy Creek. Disney is on pretty solid ground on the bond debt issue so ultimately they will be in the background helping put together something that looks like the government won but gives up things Disney doesn’t really care about, OR the government passes something that Disney sues over and likely will win. I expect very little changes for guests including dvc.

 

[DisNerd1984]

Disney does not have the upper hand, and I am sure they regret how they handled this. Sue? over what? That they no longer get special treatment? The bill will “revise the governance and powers of Reedy Creek Improvement District, while protecting local taxpayers from the District’s debts.” The only changes for guests, is prices will go up even more. Interesting that Universal stayed out of this debate. They are gaining ground on the House of the Mouse.

It comes down to the bond debt largely. If the state takes over Reedy Creek and tries to make Disney as a company pay the bond debt issued by Reedy Creek it won’t happen unless Disney agrees to it. The bond debt is Reedy Creeks not Disney and if Reedy Creek absolutely dissolves (which it does not appear will happen, this seems like a restructuring) the bond debt is the localities. Added to that any effort to do anything to the bond debt will run afoul of the USSC ruling and constitutional clause prohibiting a state government from taking any action impairing the obligations of a contract. At the end of the day this will be much to do about nothing.

 

[Loro]

If the Florida government dissolves it, it would almost certainly be a lose-lose for all involved.

It comes down to the bond debt largely. If the state takes over Reedy Creek and tries to make Disney as a company pay the bond debt issued by Reedy Creek it won’t happen unless Disney agrees to it. The bond debt is Reedy Creeks not Disney and if Reedy Creek absolutely dissolves (which it does not appear will happen, this seems like a restructuring) the bond debt is the localities. Added to that any effort to do anything to the bond debt will run afoul of the USSC ruling and constitutional clause prohibiting a state government from taking any action impairing the obligations of a contract. At the end of the day this will be much to do about nothing.

Exactly.

Just a whole bunch of political grandstanding.

 

[HopperFan]

It’s the start of a special session where they will try and figure out what to do with Reedy Creek. Disney is on pretty solid ground on the bond debt issue so ultimately they will be in the background helping put together something that looks like the government won but gives up things Disney doesn’t really care about, OR the government passes something that Disney sues over and likely will win. I expect very little changes for guests including dvc.

I agree.

"Florida" is acting like Disney has something special .... there are LOTS of areas in Florida with very similar Improvement Districts that operate like Disney. Push it hard enough and Disney likely can sue and ask that places like The Villages also have their districts dissolved. Watch those feathers fly.

And all this huffing and puffing that Disney can do whatever they want and not fair ......... a blatant lie. Disney has to jump through major hoops, even apply to the County to change a sign at attractions. Disney's new construction sometimes takes years of testing and approvals for the South Florida Water Management District. Some bigger plans involve them purchasing land to protect so they can build on land they already own. Once approved everything goes through Orange/Osceola County Permitting Process just like everybody else. What these districts do is allow them to manage their own roads, utilities etc at their own cost so they can upgrade standards. I don't think the Counties want anything to do with this. They also would have to assume responsibility for all emergency services ... that drives their costs up again because they will likely have to add more stations. This is lose/lose for the Counties. Aggravating for Disney but certainly way more painful for the government that will absorb so much.

 

[Dis]

Time will tell. My money is on Florida which holds all the cards. What's Disney going to do? move? Disney will be responsible for the debt and will lose their autonomy. I look forward to your post in a couple of months.

 

[Dis]

Hopper fan- I believe the bill passed disallows all special zones. You should read it.

 

[Dis]

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  Ron DeSantis

Florida intends to keep Disney’s Reedy Creek, but under state control​

Nick Papantonis
January 6, 2023·5 min read


In this article:

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  Ron DeSantis
  American politician

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Rep. Fred Hawkins, a Republican from Osceola County, filed a legally-required 30-day notice posted to Osceola County’s website that legislation would be introduced to keep Reedy Creek beyond June 1, introduce state control over the district and prevent any of the district’s debts from being passed off to local taxpayers.
“We will uphold Florida law so that no company, including Disney, receives special treatment,” Hawkins said in a press release.

 

[HokieRaven5]

Hopper fan- I believe the bill passed disallows all special zones. You should read it.

It doesn’t. There will still be over 1800 special districts in Florida. The bill only impacts 6 independent districts established before 1968 that weren’t re-established.

 

[HopperFan]

Hopper fan- I believe the bill passed disallows all special zones. You should read it.

Not true. They are only going after 6 districts that were created before 1968 as a way to appear to not be attacking Disney directly. Those other districts are insignificant entities.

There are over 1800 special districts in Florida, they are attacking Disney.

 

[HopperFan]

It doesn’t. There will still be over 1800 special districts in Florida. The bill only impacts 6 independent districts established before 1968 that weren’t re-established.

Haha, jinx!

 

[Cfabar1]

Not sure practically that it will make too much of a difference. Does seem to me every business should have to play by the same rules, even businesses I like like Disney.

Florida holds many more cards, but there is no way this becomes a tax bill for the people of Orange County….

 

[HopperFan]

Not sure practically that it will make too much of a difference. Does seem to me every business should have to play by the same rules, even businesses I like like Disney.

Florida holds many more cards, but there is no way this becomes a tax bill for the people of Orange County….

How is Disney not playing by the same rules?

 

[Cfabar1]

Disney has a special district, and they are able to get government bonds to finance needs for that district. Most businesses don’t have that as an option.

 

[Dis]

You are comparing apples to oranges. There are over 1800 special districts, conservation, water, sewer, school, TIF, etc. These are allowed to tax for special purposes and will not be affected. We are talking about allowing private companies to be autonomous and act like their own city/county. Why should Disney be treated differently than Universal? Maybe Universal should sue? I am not anti-Disney. I began investing in DIS in the 80's when Ron Miller was CEO. Bought DVC in 1994 and have been an annual passholder since 2001. I hope Iger can get Disney back to doing what they do best, however I will be voting for Peltz.

 

[Lesverts]

Not sure practically that it will make too much of a difference. Does seem to me every business should have to play by the same rules, even businesses I like like Disney.

Florida holds many more cards, but there is no way this becomes a tax bill for the people of Orange County….

There is a reason the state government has changed tactic and now is going to hold the district together under direct state control. Because it would have meant massive incurred costs to Orange and Osceola Countries. The state taking it will absorb the costs of operating public infrastructure in the District. It is a financial sleight of hand.

The district incurred the debt financing municipal projections. Waste management, roads, water management, emergency services. The state would never be able to get it through the courts that a private company would be responsible for the funding of municipal services without the current District structure.

This is going to become a tax bill for all Floridians. Disney will be treated like Universal and pay their property taxes and fill their state sales taxes and pay their state business taxes. There is not a chance Florida would be able to get anything through the courts that would require Disney to pay additional rates for municipal services that other businesses and homeowners do not pay. And if they try, Disney has Busch Gardens, SeaWorld and Universal as examples of where this can be constructed as a direct attack on Disney.

 

[HopperFan]

I don't understand why anyone would invest in Disney, go to Disney, spend their money at Disney if they find their business practices to be unfair, who feel they are operating in a do harm manner and are so negative against them. There are plenty of businesses that I feel are operating in a negative way so you know what I do ............ drive right by them and do business with their competitors. If you don't speak with your money then you ............

Sadly there is such a lack of understanding of why the RCID was developed, what the documentation says, how it all works and all the benefits it brings and how few negatives there are ....... at all levels from spectators to government people. Lots of spinning - so little facts.

Disney has a special district, and they are able to get government bonds to finance needs for that district. Most businesses don’t have that as an option.

Disney is a business, they do not have bonds.

Reedy Creek is a special district much like the other 1800 districts, similar to a small town or village. Government entities have the ability to get bonds for their infrastructure. There is nothing unusual about that and Disney isn't getting anything special.

So there is nothing Disney is getting that is unfair.

This is going to become a tax bill for all Floridians. Disney will be treated like Universal and pay their property taxes and fill their state sales taxes and pay their state business taxes. There is not a chance Florida would be able to get anything through the courts that would require Disney to pay additional rates for municipal services that other businesses and homeowners do not pay. And if they try, Disney has Busch Gardens, SeaWorld and Universal as examples of where this can be constructed as a direct attack on Disney.

I'm not sure I understand this bolded ... Disney currently pays massive property taxes and pays all their sales taxes and state business taxes.

But I agree, they can not be forced to pay any more than any other business pays.

BUT what RCID does do is pay tons of extra money for the infrastructure that normally the counties would pay. So Disney actually could is save money by making OrangeOsceola County pay for all the infrastructure. But that infrastructure the counties would pay for will end up much lesser quality that Reedy Creek now provides.

 

[Genie+]

Sadly there is such a lack of understanding of why the RCID was developed, what the documentation says, how it all works and all the benefits it brings and how few negatives there are ....... at all levels from spectators to government people. Lots of spinning - so little facts.

Agreed. Will be interesting to watch the outcome.

There was a good conversation on wdwmagic that helped clarify many details. It’s like 500 pages though, lol.

 

[TheMouseKId]

The Florida government says that RCID was made because Disney was supposed to be a functioning town, which is ironic because the infrastructure at WDW is miles better than any other city in Florida. Disney basically functions as a mini city with its Transportation, Hotels, Highways, Parks and Logistics.

 

[goneviral]

Why should Disney be treated differently than Universal? Maybe Universal should sue?

https://corporate.universalparks.co...vision-for-transportation-in-central-florida/

Florida's government will happily support the planned Shingle Creek Transit Utility Community Development District because Comcast has greased the wheels with political donations.

Meanwhile, the Orlando Sentinel sums up Reedy Creek accurately today with this: "The bill to restructure Reedy Creek hadn’t been filed as of Monday, which state Rep. Anna Eskamani, D-Orlando, said was because the Republican leaders and the parties with a vested interest were working behind closed doors to work out a compromise that would save face for DeSantis."

There's what's really happening and then there's what political actors pretend is happening so that they can look tough and win votes.