The feud between Ron DeSantis and Florida’s largest private employer is now focusing on whether the state can legally dissolve the special tax district that runs Walt Disney World, as the governor and local lawmakers did last week.
The sparring began after DeSantis signed a controversial bill last month banning schools from educating children from kindergarten to third grade on sexual orientation and gender identity. Disney CEO Bob Chapek initially tried to stay out of the heated public debate over the measure, which was ridiculed by critics as the “Don’t Say Gay” law. But with increasing pressure from within the company to oppose the measure, he eventually went public against the measure at his company’s annual shareholders’ meeting in March.
The Republican governor responded by trying to tarnish Disney as “awake” and move to end the special status that allows the resort to effectively manage as its own municipal government on the 39-square-mile property it owns, called the Reedy Improvement Area. Creek.
Making its only public statement since the Republican governor and lawmakers turned their anger on Disney, the company assured investors this week that the state could not legally rescind its 55-year deal unless the Reedy Creek debt was paid. .
As a result, the proposal to dissolve the special tax district in Orange and Oceola counties would violate the agreement reached by Florida when the district was established in 1967, the company warned.
Published on the Securities and Exchange Commission’s website on April 21, Disney said: “In light of the state of Florida’s promise to bondholders in the area, Reedy Creek expects to explore its capabilities as it continues its current operations. including the collection and collection of its advertising valorem tax bonds and bonds for utility revenues, in compliance with its bond agreements and operates and maintains its property. ”
Florida is contractually obligated not to commit to the county until the bond debt is paid, Jacob Schumer, a municipal attorney in Maitland, Florida, Shepard, Smith, Kohlmyer & Hand, told CBS MoneyWatch.
“The task of disbanding a special district and dividing its responsibilities between two districts is huge,” he said.
Disney World’s special tax status may not be in jeopardy, says reporter 06:27
Disney did not respond to a request for comment. The resort employs about 80,000 people, which includes many theme parks, hotels and its own bus fleet.
The political turmoil is likely to continue, with DeSantis signaling that he is ready to push the battle with Disney.
“The governor’s team is working to administer this legislation, which aims to level the playing field in Florida. When we have more to share on our way forward, we will be happy to send it. “As the governor has consistently stated, Florida will not have to bear the burden of Disney,” a CBS spokesman told MoneyWatch in an email.
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