DeSantis to Take Control of Disney’s Reedy Creek District

Thursday, Florida lawmakers opted to award Governor Ron DeSantis new control over the state’s most popular theme parks in light of his ongoing battle with Disney. Under a bill that might reach the Republican governor’s desk by the end of the week, the state would take over the Reedy Creek Improvement District, a 55-year-old government body that has effectively given Disney control over the area surrounding its amusement parks in the Orlando region.

A five-member board selected by DeSantis would replace the district’s present board, which is comprised of Disney-affiliated individuals. The legislation was approved by the state House, which is controlled by a Republican supermajority, 82–31. The state Senate, which is controlled by the GOP, is likely to consider the bill within the next 36 hours. If the chamber approves the legislation, DeSantis will have the last say. We look forward to his signature.

DeSantis stated at a news conference on Wednesday, “There’s a new sheriff in town, and that’s the way it’s going to be.” Democrats reminded DeSantis on Thursday that if he engages in another battle with Disney as part of his crusade against “wokeness,” he might use his board nominations to exert influence over Disney management.

Rita Harris, a state representative, referenced Disney’s recent elimination of racist overtones from its Splash Mountain attraction, a move that infuriated some conservatives. As a tribute to Disney’s first African-American princess, it will be renamed Tiana’s Bayou Adventure. What if the governor was offended? Harris was challenged during the debate. Would the board then have the right to compel a corporation to change its business strategy to prevent misalignment? Here, the marketplaces are not free.

The seizure of Reedy Creek is the latest move in a year-long dispute between DeSantis and Disney over a proposal that would restrict certain classroom talks about sexual orientation and gender identity. Despite objections from former Disney CEO Bob Chapek, DeSantis signed the bill into law. Disney stated in a statement that it will support legal efforts to overturn or nullify the law.

In reaction to the threat, DeSantis pushed legislators to strip Disney of its exclusive regulatory authority. During a special session held last year, they complied with his request and voted to dissolve the Reedy Creek Improvement District at the end of May 2023. DeSantis immediately utilised his criticism of Disney in campaign speeches and fundraising mailings, but at the time, lawmakers failed to discuss what would happen to the special district.

DeSantis and legislators failed to outline a strategy for breaking Disney’s 50-year monopoly or ensuring that Orange and Osceola county residents would not be accountable for Reedy Creek’s $1 billion debt. Reedy Creek subsequently warned its investors that dissolving the district without Florida assuming its debts would violate the 1967 state statute that created the district. Fitch Ratings Group placed Reedy Creek Improvement District’s debt on alert for a low bond rating.

The plan proposed during this week’s special session of the Florida legislature would keep Reedy Creek, although with a new name — the Central Florida Tourism Oversight District — and a board aligned with DeSantis. The bill specifies that the improvements to Reedy Creek should not affect the district’s present responsibilities or contracts and would extend the district’s existence beyond June.

The Reedy Creek Improvement District will continue to operate under its new name as of June 1, 2023, according to the bill’s 189th and last page. In a statement to CNN earlier this week, the president of Walt Disney World Resort, Jeff Vahle, said the company is “monitoring the evolution of the drought legislation, which is tough given the long history of the Reedy Creek Improvement District.”

Regardless of the ruling, Vahle stated, “Disney operates under a variety of models and jurisdictions worldwide, and we are committed to providing the highest quality experience to the millions of guests that come each year.”

According to Michael Rinaldi, head of local government ratings at Fitch, the plan “appears to address basic difficulties established after last year’s dissolution law” and would likely terminate the negative bond rating watch.

Reedy Creek special district encompasses about 25,000 acres in Orange and Osceola counties and contains the cities of Bay Lake and Lake Buena Vista, four theme parks, two water parks, a sports complex, 175 lane miles of road, and 67 miles of canal, according to its website. The deal has allowed Disney to become a large hub for family-friendly travel and a major economic contributor to Central Florida.

Disney has accomplished this by exploiting the district’s extraordinary borrowing and taxing powers to build theme park-related infrastructure. As mandated by law, the Reedy Creek board consists of landowners with significant ties to Disney. The law introduced on Monday stipulates that none of the governor’s appointees may be current Disney employees, their family, or competing company employees.

The ultimate confirmation of the appointees would be granted by the state Senate, which is likewise controlled by a Republican supermajority. Rep. Anna Eskamani, a Democrat from Orlando who pushed to add local elected officials to the board but was unsuccessful, stated, “By allowing one individual to fill all five positions, we are creating another awful swamp.” And the only reason I can think of is that Disney infuriated the governor by supporting LGBTQ+ youth.

The law would keep many of the district’s current powers, despite eliminating the never-utilized rights to construct an airport or nuclear power plant and limiting the use of eminent domain beyond the district’s limits to seize land that may be used to benefit Disney. Thursday, Republican state representative Randy Fine stated, “This is something the legislature should have accomplished decades ago.” “However, we were unable to because of the power of corporations. Today, we level the playing field.