The Walt Disney Company and Florida Governor Ron DeSantis have been at odds since Disney opposed Florida’s Parental Rights in Education law (called the “Don’t Say Gay” bill by some). In retaliation, DeSantis threatened to dismantle Disney World’s Reedy Creek Improvement District and was ultimately successful in passing a bill that would do so. This district essentially allowed Disney World to function as its own county government.
Disney World Entrance
The dissolution of the Reedy Creek Improvement District (which takes effect in June 2023) happened quickly and has left many questions about the practical issues that will need to be addressed. For example, who will absorb Disney’s nearly $1 billion in bond debt? Now, Gov. DeSantis has given an update on what might happen once Reedy Creek is gone.
According to the Orlando Sentinel, Governor Ron DeSantis has said that “the state will likely assume control of Disney World’s Reedy Creek Improvement District, rather than local governments absorbing it.” Apparently, DeSantis is working on a proposal that details more specifics on how this will happen.
Florida Governor Ron DeSantis ©Deadline
Reedy Creek will dissolve on June 1st, 2023, and the Florida government hasn’t yet released a specific plan on how this will happen. DeSantis has been adamant that “Central Florida taxpayers will not be forced to absorb the district’s nearly $1 billion in debt,” although he hasn’t released details about how that will be prevented.
Reedy Creek Fire Department ©Reedy Creek
DeSantis said, “The path forward is, Disney will not control its own government in the state of Florida. Disney will have to follow the same laws that every other company has to follow in the state of Florida. They will pay their share of taxes, and they will be responsible for paying the debts.”
In addition, DeSantis said, ““I can tell you this, that debt will not end up going to any of these local governments. It’s not going to go to the state government, either. It’s going to absolutely be dealt with by (Disney and other businesses) that are currently in that district” (ClickOrlando).
Reedy Creek Sign in Disney World
However, Florida state law dictates that all assets and liabilities of a district are transferred to the “local general-purpose government” (Orange and Osceola counties in this case) if that district is dissolved. But DeSantis stated that he wouldn’t trust the local governments with the responsibility of running the district: “I’d much rather have the state leading that effort than potentially having local government [in charge]. … I’m worried that they [local officials] would use that as a pretext to raise taxes on people when that’s what they would want to do anyways and then try to blame Reedy Creek. So we’re not going to give them that opportunity.”
©Fox10 News | Florida Governor Ron DeSantis
Some local leaders, including Orange County Mayor Jerry Demings, have expressed their concerns about the hasty dissolution of the Reedy Creek Improvement District. The Orlando Sentinel noted that Florida lawmakers neglected to conduct an economic study before passing the bill with “only 3 days of consideration.”
Magic Kingdom
The law that will dissolve the Reedy Creek Improvement District also affects 5 other special districts in Florida. Although the districts “can petition the state to be reinstated prior to that dissolution date,” DeSantis has stated that “Disney would not be allowed to self-govern,” implying that a petition for the reinstatement of Reedy Creek would be denied.
Sunset Boulevard in Disney’s Hollywood Studios
We’ll continue to report on any new developments to this story, so stay tuned with DFB for all the latest updates.
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Chapek has let down the Stakeholders, Customers and Employees. His actions have caused the stock to plummet and the loss of RC is a blow to the business model regardless of how the main stream tries to twist it. The fact that the parks are doing so well despite the downturn emphasizes the point. This can only mean that he has now watered down thee Disney brand – that effect wont be seen for months yet and will take twice as long to rebuild.
Chapek needs to resign and Disney needs to turn the ship around now if there is any hope.
I thought DeSantis was against government involvement in anything–he’s such a hypocrite!
If they control Disney World like the government controls everything else that would screw up like everything they do. RIP Walt Disney World
“Central Florida taxpayers will not be forced to absorb the district’s nearly $1 billion in debt” , but
However, Florida state law dictates that all assets and liabilities of a district are transferred to the “local general-purpose government” (Orange and Osceola counties in this case) if that district is dissolved.
Sounds like there is going to be a long exspensive leagal battle in the years, if not decades to come. All because a vengful litte man acting like a spoiled child got mad because someone disagreed with him and hs policies. Talk about abuse of power.
DeSantis’ vindictive retaliation to feed his out of control ego is going to botch up the largest diamond in Florida’s crown. He and his Republican thugs are flying by the seat of their pants and the state will regret it, and him. Corporations everywhere should beware if Florida tries to make a deal with you. The Florida Legislature and Governor will punish you if you try to exercise free speech. Thus is abominable!
Following
Politics aside, I can’t help but feel that Iger could have navigated the company through this minefield much more smoothly than Chapek has done. It seems like everything Chapek touches turns into a PR nightmare. I wonder what the Disney board members saw in Chapek that made them think he was fit to run this company.
DeSantis is a zealot of virtually unequaled comparisons… and the way things are today, that’s really saying something. This whole debacle hurts everyone and ultimately benefits only one… DeSantis himself. I find it remarkable that the state of Florida isn’t concerned more about this issue. Everyone knows Disney World is expensive already. If the existing law regarding local governments gets eliminated (which is my bet on what happens very soon), Disney will have no choice but to make major cuts in business practices OR raise their prices. My best guess is that both will happen. The consequences of everything mean job cuts (higher unemployment), a drop in tourism because of costs and/or less customer satisfaction, and a cut in the number of individuals moving to the state for jobs. When it’s all said and done, every single resident of Florida is going to suffer.
This is unbelievable! Government running amuck again. Disney has provided tens of thousands of jobs to that state and millions in income. Just because the management disagreed with someone the government passed. What happen to free speech. There is no legitimate reason for the government to revoke the Reedy Creek initiative. It just goes to show that government doesn’t care about the people. I really hope the citizens of Florida wake up and get that bum out of there.
More proof this was just revenge for Disney exercising their 1st amendment rights. This is all political theatrics to look “tough” for an election. Hope it backfires and people see him as the dictator he seems to want to be.
Punishing those who don’t agree with you is pure authoritarianism and oh so Putin.
Not a fan. Disney responds almost instantly to EMS and Fire calls. This change could have a very negative impact on the State if lives are put in danger, or worse yet lost, due most likely to a slowed response time.
With so many guests in such a concentrated area, I’m concerned about that very issue.
Chapek needs to step down b 4 it’s too late he is destroying Disney to the point that it may not survive there is an old saying evil flourishes while good men do nothing and that seems to b the Situation at hand and also desantis needs to stop and having a temper tantrum and causing more trouble we grew up on Disney and also leave MICKEY MOUSE ALONE there seems to b a lot of people with their own agenda causing trouble and again they need to get rid of bob chapek
Yes disney has created so many jobs n the state of Florida and DESANTIS needs to go to he is a hateful jerk and yes I agree Kellyo he is so Putin he could destroy so much with what he is doing people better think about it n cause of Disney Florida has b come the desired vacation to b don’t let him destroy your state Disney our Florida on the map for millions of vacationing there bringing billons of dollars as well businesses and jobs there
And also the other great places to go to it’s the state to vacation n
Why wouldn’t Disney World absorb its own taxes? Isn’t what the governor is doing is try to protect people from absorbing those taxes?