Florida lawmakers will meet next week to decide whether to replace Disney World’s self-governing power with a state-led board of directors, following radical plans backed by Gov. Ron DeSantis.
The session will focus on whether to reverse Disney’s previous decision to disband the district and special government privileges it has held for 55 years.
The revision — part of an ongoing row between Disney and state officials that began over the Don’t Say Gay law — would also force the company to pay $700 million in unsecured debt that taxpayers might otherwise have paid would be.
It’s not clear how a state-run oversight body might function and what kind of financial control it would have over Disney-run operations.
Florida lawmakers will hold a special session next week to discuss a proposal regarding Walt Disney World’s special tax district. Last year, Gov. Ron DeSantis initiated an overhaul of Disney’s self-governing status within Reedy Creek after the company’s former CEO publicly criticized Florida’s “Don’t Say Gay” law
Since 1967, Disney has been responsible for the management of an area known as Reedy Creek, part of Orange and Osceola counties. The new law would establish a state body for governance
The plan to set up a state board of directors could force Disney to pay off the debt, they say.
Since 1967, Disney has been responsible for the management of an area known as Reedy Creek, part of Orange and Osceola counties. Critics say the deal gives the company special legal and tax privileges.
Walt Disney World Resort has the option to tax itself at a higher rate than allowed by local authorities.
DeSantis made efforts to reverse Disney’s self-government powers after the company’s former CEO, Bob Chapek, condemned Florida’s educational rights bill, dubbed the Don’t Say Gay Bill, which banned sex and gender identity education in the State classrooms.
On Thursday, DeSantis said lawmakers are convening to “ensure Disney no longer has self-governing status,” but he didn’t explain how the state would deal with Disney’s nearly $1 billion in bonded debt borne by Orange and Orange residents Osceola would be liable if Disney’s ability to self-tax itself remains barred from the law.
The meeting will also address a variety of issues, including issues with state laws related to migrants, college athletes, voter fraud, hurricane recovery and local water control districts, according to memos from Senate Speaker Kathleen Passidomo and House Speaker Paul Renner seen by the Miami Herald has .
The controversy began last spring when Disney opposed legislation on parental rights in education, and the governor responded by including the dissolution of Disney’s special tax district in a special redistribution session.
The Reedy Creek District is governed by its 19 landowners, the largest of which is Disney World. Disney’s majority landowner status means that it elects district board members
In April 2022, DeSantis enacted the plan to disband the Reedy Creek Improvement District, setting the wheels in motion to eliminate its special status.
His former chief of staff said the governor “did exactly what he was told to do,” adding, “Disney can no longer have its own government or tax agency, and Disney — not the taxpayers — must be responsible for all financial consequences.” .’
The author of Florida’s controversial Don’t Say Gay bill told in December that the state would not back down in its fight against Disney.
Florida State Assemblyman Randy Fine also said that in order for the media giant to repair its relationship with Florida, the studio must stop producing woke films.
His comments come after a report in the Financial Times said Florida lawmakers are considering allowing Disney to continue its self-governing Orlando-area district following the return of former CEO Bob Iger.
DeSantis allies said the development was the governor “doing exactly what he promised” after writing the plan to disband the Reedy Creek Improvement District into law in April 2022
Governor Ron DeSantis’ office at the time insisted, “Governor DeSantis is not doing an about-face.”
The Reedy Creek District is governed by its 19 landowners, the largest of which is Disney World.
It is responsible for overseeing land use and providing basic public services, including fire safety, emergency medical services, water supply, electricity and sanitation. The district also operates and maintains all public roads and bridges.
Disney CEO Bob Iger shockingly returned to the role in November after reports that the board had received multiple complaints about Chapek.
Chapek was reportedly censured for Disney’s muddled response to the Don’t Say Gay bill. The company initially did not comment on the law, but under pressure Chapek eventually condemned it.
Walt Disney’s “Magic Kingdom”: How the 1967 law allowed the company to govern its vast territory in Florida
The Reedy Creek Improvement District, a semi-private special administration, is controlled by Disney and covers 39 square miles.
It was formed in 1967 when then-Florida Gov. Claude Kirk, a Republican, signed the Reedy Creek Improvement Act, empowering it to regulate land use, enforce building codes, treat sewage, control drainage, maintain utility lines, and Provide fire safety at Disney World.
The district is governed by a board of directors elected by its 19 landowners, the largest and most influential of which is Disney World.
The district has the authority to tax the land and use the proceeds to provide basic public services and to operate and maintain all public roads and bridges.
Such private governments are not uncommon in Florida, where there are more than 600 community development districts that manage and pay for infrastructure in new communities.
If the 1967 Act is repealed by GOP lawmakers, Disney World ownership will come under the control of Orange and Osceola counties.