Time is ticking for Disney World’s Reedy Creek Improvement District (RCID).

For years, this district has essentially allowed Disney World to function as its own county government. The arrangement has let Disney World have a huge amount of power and control over the land on which it operates in Orlando. But following Disney’s negative comments about Florida’s Parental Rights in Education Bill (what critics call “Don’t Say Gay”) the Florida legislature passed a law that will strip Disney of those powers and dissolve the RCID in June of 2023. With 2023 rapidly approaching, what’s the latest update on the dissolution, and will Disney be able to “save” its district in some way? Here’s what we know.

Reedy Creek Lawsuit

We begin with an update on the lawsuit filed against Florida Governor Ron DeSantis about the dissolution of the RCID. This lawsuit was filed in Miami-Dade County (EDUARDO FORONDA ET AL VS RON DESANTIS ET AL — Case No. 2022-009114-CA-01) and is still pending, but some relatively new activity has taken place.

On December 7th, 2022, the Plaintiffs filed an unopposed motion to change the venue of the case to Leon County, Florida.

If the Court grants the motion, the case would then be moved to Leon County and would continue from there. As of the time of this post, an order has not been entered by the Court on this matter.

For those unfamiliar with the lawsuit, the Plaintiffs claim that the bill was passed to “punish Disney World and subsequently Florida taxpayers,” claim that the bill is a violation of a statutory commitment Florida entered into back in 1967, and request that the bill that would dissolve the RCID be declared unconstitutional. Only time will tell how that case will be resolved.

Bob Iger Comments on Reedy Creek and Governor DeSantis Responds

Bob Chapek has left Disney and Bob Iger is back as CEO. We’ve already taken a look at how Iger’s return might impact the RCID situation, but now we’ve got a bit of an update and a look at just how complicated this might become.

Back at the end of November, Iger held a town hall meeting and discussed a variety of topics. One issue mentioned was Reedy Creek.

When asked about the legal battles in Florida, he indicated that he was “sorry to see [Disney] dragged into that battle.”

He also shared that he has no idea what the ramifications are in terms of the business, but that “the state of Florida has been very important to us for a long time, and we have been very important to the state of Florida.” He said that these are things he would be sure to articulate if given the chance.

When asked about Disney’s position when it comes to taking political stances, Iger replied, “I think there’s a misperception here about what politics is.” He shared, “Some of the subjects that have been proven to be controversial as it relates to Disney have been branded political, and I don’t think they are.”

But, he clarified — “Do I like the company being embroiled in controversy? Of course not.”

Later, Florida Governor DeSantis weighed in and responded to Iger’s comments. DeSantis shared that, in his view, Disney wasn’t “dragged” into any issues. Instead, he insisted “they went in on their own.”

DeSantis continued, “They brought this on themselves. All we did was stand up for what’s right.” He also said, “I don’t care what a Burbank-based California company says about our laws.”

Click here to see all of Governor DeSantis’ responses to Bob Iger’s comments

“Bob Chapek Screwed Up”

Speaking of Disney CEOs, it turns out one Florida politician thinks Iger’s return to the position could make a big difference. Republican lawmaker Randy Fine, who drafted the bill that will dissolve the RCID, shared that Chapek’s removal could make it more likely that something will get sorted out over the RCID.

According to Fine, “Chapek screwed up, but Bob Iger doesn’t have to own that screw-up.” Chapek’s “screw up” is presumably in reference to his handling of the “Don’t Say Gay” bill, which ultimately led the state lawmakers to repeal the RCID as retaliation.

It must be pointed out, however, that Iger actually denounced the “Don’t Say Gay” bill before Disney officially did. But Chapek was the CEO of Disney when the debacle took place, with Disney initially refusing to make a statement, later changing its tune, and stopping the Company’s political contributions in Florida.

Ultimately, a few potential compromises regarding the RCID seem to be potentially on the table, including revoking Disney’s rights to build an airport or nuclear power plant on their property, or giving DeSantis the ability to appoint 2 members to the board that would govern whatever new district is created. According to some, these compromises could help the Governor look like he “won” while still having a relatively minimal impact on Disney’s normal operations.

The Financial Times called it a potential “U-turn” on Disney’s “‘Don’t Say Gay punishment,'” as the compromises could basically keep Disney’s RCID arrangement in place with just a few modifications. Fine, however, told the Miami Herald that the headline “got ahead of reality.”

According to the Herald, discussions have been underway for a while and Fine indicated that “options include allowing the debt obligations, tax revenues, assets and responsibilities of Reedy Creek to be transferred to Osceola and Orange counties and the small cities of Lake Buena Vista and Bay Lake.”

Another option could be to “reconstitute Reedy Creek but remove its unique power to take over private property under eminent domain laws and to issue government-backed bonds.”

A spokesperson for the Florida Governor denied any potential “u-turn” and said DeSantis “does not make U-turns.” The spokesperson also indicated, “the state certainly owes no special favors to one company. Disney’s debts will not fall on the taxpayers of Florida. A plan is in the works and will be released soon.”

Details have yet to be released on just what that plan is, but we’re on the lookout for updates.

Click here for more about the potential compromises at play and DeSantis’ response

Investor Lawsuit

And finally, we have an update on just how Disney’s entire handling of this situation has come to impact them in a unique way. An investor in the Walt Disney Company has filed a lawsuit against the Company, alleging that “swift and severe” harm hit Disney after the “Don’t Say Gay” debacle.

The lawsuit claims that Disney created “‘far-reaching’ financial risks for itself by opposing a Florida law limiting instruction on sexual orientation or gender identity in elementary schools.” As a result, the investor claims that Disney “lost control over tax and improvement issues at its Orlando-area theme park” (referring to the RCID).

Through the lawsuit, the investor is demanding that Disney turn over internal records about the decisions they made surrounding “Don’t Say Gay.” Those documents could later be used to sue Disney’s directors if the investor finds some kind of wrongdoing or potential action that could be brought.

We’ll be on the lookout for more updates about that matter.

Click here for full details on the lawsuit

And that’s the current situation with the RCID. Much is still pending as the June dissolution date gets closer. Stay tuned for more news.

Click here to see why “time is ticking” on Iger

How do you think the Reedy Creek situation will be resolved? Tell us in the comments.