Still, the removal of Disney’s special-purpose area, known as Reedy Creek, could have far-reaching consequences for the company and government taxpayers. Here’s a look at the story of Reedy Creek, why it became the focus of this special session, and what it would mean to lift its special status for Disney and taxpayers in Florida.
Reedy Creek is the name of the Reedy Creek Improvement District, a special purpose area created by state law in May 1967 that gives The Walt Disney Company government control over land in and around its central theme parks in Florida. The area is located southwest of Orlando.
At the time, the land was little more than uninhabited pastures and swamps, according to the Reedy Creek website. With the special purpose area, Disney has taken responsibility for providing municipal services such as electricity, water, roads and fire protection – but has also been exempt from dealing with bureaucracy or paying taxes for services that benefit the general public.
According to Richard Foglesong, author of Married to the Mouse: Walt Disney World and Orlando, Disney previously had problems with the Anaheim, California, government at Disneyland Park, which was completed a decade ago. Given these concerns, Disney insisted on a special purpose area in Florida to give the company the opportunity to govern itself.
In return, Florida has become a base for Disney World and its millions of tourists.
“Florida needed Disney more than Disney needed Florida,” Foglesong told CNN.
Today, the Reedy Creek Special Area covers about 25,000 acres in Orange and Osceola counties, including four theme parks, two water parks, a sports complex, 175 miles of roads, 67 miles of waterways and the towns of Bay Lake and Lake Buena Vista, according to its website. . “The collaboration and commitment between the Reedy Creek Improvement District and the Walt Disney World Company is as strong today as it was when the county was established in 1967,” the Reedy Creek website said. “The result is an example of how a working partnership between business and government can be prosperous for both parties.”
Why is this a problem now?
The bill passed by the Florida legislature is a form of political revenge against Disney for its criticism of the Parents’ Rights in Education bill, which critics have called the Don’t Say Gay bill.
This state law, signed last month, prohibits schools from teaching children about sexual orientation or gender identity “in a way that is not appropriate for age or development.” The law also allows parents to file lawsuits against a school district for potential violations. The vague language of the law and the threat of parental lawsuits have raised fears that it will discriminate against LGBTQ students and have a chilling effect on classroom discussion. However, Governor Ron DeSantis’ spokeswoman Christina Pushaw said the law would protect children from “thugs,” a slang term for pedophiles, and described those who oppose the law as “probably thugs.” The CEO of Disney, which employs 75,000 people in Florida, initially refused to condemn the law, but reversed the course after facing criticism from employees. A company spokesman issued a statement last month stating that his goal is to repeal the law or reject it in court.
“Florida’s HB 1557, also known as the Don’t Say Gay bill, should never have been passed and never signed into law,” the statement said. The company said it was “committed to protecting the rights and safety of LGBTQ + members of the Disney family, as well as the LGBTQ + community in Florida and across the country.”
Earlier this week, DeSantis challenged lawmakers to unveil the 55-year-old Reedy Creek Improvement Act as part of a special legislative session. Disney has not released a statement on the matter.
What does the bill do?
The bill declares that any special area created before November 1968 will be disbanded on June 1, 2023. The text is a little more than a page and offers little detail.
What this means for Disney and taxpayers in Florida is not entirely clear. Republican sponsors were unable to provide detailed answers to questions about the financial and legal implications of the legislation during Thursday’s discussions. They suggested that the legislature could work through the logistics of the dissolution next year.
Dissolving the special area would mean that Orange and Osceola counties would take over Reedy Creek’s assets and liabilities. This could lead to higher taxes for these residents to pay off the debts of Reedy Creek and take care of roads, police, fire protection, waste management and more.
Democrat Sen. Gary Farmer was one of a number of Democrat lawmakers who criticized the bill for what he called “shoot first, ask questions later.”
“Reedy Creek’s debt service alone is over $ 1 billion,” Farmer said Wednesday. “This bill does not provide for how this debt service will be taken over. Local governments must take the assets and liabilities of each special area that is disbanded.”
However, the bill passed the Florida Senate on Wednesday with 23-16 votes and the House of Representatives on Thursday with 70-38 votes. He now goes to DeSantis’s desk for his signature. Thursday’s vote was without final debate and came when several members of the Black Democrats staged a protest against Congress’ reshuffle.
For his part, Foglesong said the length of the bill outlined there “was not much research and reflection” on the implications of the move.
“Someone will still have to pay for the purchased bonds to build this infrastructure. Many roads. Someone will have to do these building inspections. It will take many of these inspectors with a lot of expertise, “he said. “Someone will have to pay for it. If this burden falls on the taxpayers, it will not look good for Governor Desantis. It will look like nonsense.”
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