DeSantis Wins Control of Disney’s Special Self-Governing District: “New Era of Accountability”

Florida lawmakers have passed a bill giving control of Disney’s special tax district in central Florida to a Senate-approved board, handing a victory to Gov. Ron DeSantis, who advocated for the measure to make it more accountable to the voters.

The final approval of the Legislators was given on February 10th to a Authorizing bill DeSantis to appoint five directors to manage the Reedy Creek Improvement District. It is a quasi-government entity which oversees the 25,000 acres that surround Walt Disney World.

“Florida is … beginning a new era of accountability and transparency,” said DeSantis’ spokesperson Bryan Griffin.

Griffin said that the prior arrangement—in which a legislative decision in the 1960s gave Disney sole control over the district—was insufficiently accountable to Florida voters.

The special status of the Reedy Creek Improvement District, located in Osceola and Orange counties, provided self-governance to the Disney World resort.

It gave Disney the ability to create and enforce its building codes and zoning rules, as well to levy taxes to operate its utility services and to levy taxes.

DeSantis and Republican leaders have sought to change how Reedy Creek operates, arguing that it’s not subject to sufficient accountability and public scrutiny.

Some supporters of changes to Reedy Creek have also argued that the district’s tax collection and governmental immunity provisions are not in the best interest of Floridians.

Osceola County, January Notification was issued Florida legislators to consider a bill to address Reedy Creek operations. “increasing state oversight, accountability, and transparency.”

With Friday’s decision in the state legislature, that appeal is fast becoming a reality.

It also comes amid DeSantis’ pushback against Disney’s vocal backing of left-leaning political causes.

A float with people dressed up as characters from Walt Disney movies “Peter Pan” As people attend the “Festival of Fantasy” Parade at Walt Disney World Magic Kingdom, Orlando, Fla., July 30, 2022 (Octavio Jones/Reuters)

‘New Sheriff in Town’

Speaking at a Feb. 8 press conference ahead of the bill’s passage on Friday, DeSantis said a big change was coming in how the district would be run.

“This is obviously now going to be controlled by the state of Florida, which is no longer self-governing for them,” DeSantis said. “So, there’s a new sheriff in town, and that’s just the way it’s going to be.”

Once DeSantis signs the bill into law, the Reedy Creek Improvement District will be renamed Central Florida Tourism Oversight District within two years.

However, the district will be preserved intact and its tax benefits will continue. This includes retaining tax-exempt status of the district’s property.

Under the new legislation, the Florida Senate will confirm the district’s five board members, who will play no role in the day-to-day operations of Disney’s theme parks. Anyone with ties to Disney’s theme parks in the last three years is also prohibited from serving on this board.

The district will be able to collect revenue, pay financial obligations and provide a range of government services. However, it will be restricted from building an airport or operating a stadium. Additional reporting requirements will be required.

Walt Disney World President Jeff Vahle A statement was issued Responding to the bill’s passage they praised Reedy Creek’s work over the past 50+ years, while accepting the new arrangement.

“For more than 50 years, the Reedy Creek Improvement District has operated at the highest standards, and we appreciate all that the District has done to help our destination grow and become one of the largest economic contributors and employers in the state,” Vahle said.

“We are focused on the future and are ready to work within this new framework, and we will continue to innovate, inspire, and bring joy to the millions of guests who come to Florida to visit Walt Disney World each year,” He added.

As the Senate debated the bill on Friday, some Democrats voiced their opposition.

“This all seems a retaliation by the governor for Disney voicing its support for the LGBTQ community,” Linda Stewart (Democratic State Senator) is the Orange County representative.

The Parental Rights Bill is in Controversy

Disney became embroiled in controversy when it pushed back against the introduction of Florida’s Education Rights for Parents A bill prohibiting the discussion of sexual orientation and gender identity in kindergarten and third grades.

In March 2022, then Disney CEO Bob Chapek said that the company’s leaders were opposed to the bill “from the outset, but we chose not to take a public position on it because we thought we could be more effective working behind-the-scenes, engaging directly with lawmakers.”

DeSantis stated that he would look to eliminate special privileges granted to Disney after the company pushed for repeal of the law.

“You’re a corporation based in Burbank, California, and you’re going to martial your economic might to attack the parents of my state? We view that as a provocation, and we’re going to fight back against that,” DeSantis made the remarks during an April 2022 event at a local elementary school.

Some time after that, Florida lawmakers passed a bill calling for the elimination of Reedy Creek’s special status by June 1, 2023.

But that bill left open questions about Disney’s bond debt of nearly a billion dollars, with the possibility that taxpayers of Osceola and Orange counties, where the district is located, could be liable.

The new bill addresses that problem by retaining the district’s special status while giving control of how it operates to a voter-accountable board.

The legislative change also means that Disney’s bond debt will stay with the district and so will not encumber taxpayers.

This report was compiled by Reuters

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