We haven’t spent a lot of time on the fight between Disney and the State of Florida over control of the Reedy Creek District, where Disney World is located, and the claw back of special privileges. It all stems from the underlying attempt by Disney to lobby against legislation banning teaching of gender theory to students through third grade. The bill was dubbed by the lying media and Democrats “don’t say gay,” even though that had nothing to do with the bill.Among other things, the DeSantis administration signed legislation wresting control of the Board that controls Reedy Creek, as we reported in early January 2023:
The Florida Legislature will receive a bill with a plan to dissolve Disney’s jurisdiction, Reedy Creek Improvement District, and absorb it into the state.Gov. Ron DeSantis put the plan into motion when he “signed a measure into law dissolving” after Disney lied about the Parental Rights in Education bill. The bill does not say “Don’t say gay” in it.From Fox News:
The notice was posted on the website of Osceola County, which houses part of Disney World along with Orange County. Gov. Ron DeSantis is pushing the effort, according to sources in his office, and the intended legislation will mandate that members of the board will be appointed by the governor, according to sources in the governor’s office.“The corporate kingdom has come to an end,” DeSantis’ communications director, Taryn Fenske, told Fox News. “Under the proposed legislation, Disney will no longer control its own government, will live under the same laws as everyone else, will be responsible for their outstanding debts, and will pay their fair share of taxes.”“Imposing a state-controlled board will also ensure that Orange County cannot use this issue as a pretext to raise taxes on Orange County residents,” she added.The planned legislation will also ensure that the company will pay upwards of $700 million dollars in unsecured debt accumulated by Disney’s special jurisdiction — known as the Reedy Creek Improvement District — and not Orange County taxpayers, according to the sources.
DeSantis signed the legislation on February 27, 2023, to much fanfare:
Today, Governor Ron DeSantis signed House Bill (HB) 9-B, Reedy Creek Improvement District, Orange, and Osceola Counties, to end self-governing status and special privileges provided to Walt Disney World through the Reedy Creek Improvement District and establish a new state-controlled district accountable to the people of Florida. The bill provides legislative intent on the district’s authority to raise revenue and pay outstanding bonds and other obligations without interruption. More on HB 9-B can be found here.“Allowing a corporation to control its own government is bad policy, especially when the corporation makes decisions that impact an entire region,” said Governor Ron DeSantis. “This legislation ends Disney’s self-governing status, makes Disney live under the same laws as everybody else, and ensures that Disney pays its debts and fair share of taxes.”HB 9-B ends Disney’s self-governing status and imposes a five-member state control board that is appointed by the Governor and subject to Senate confirmation.This legislation amends the Reedy Creek Improvement District charter which:ENDS Disney’s self-governing status.ENDS Disney’s exemption from the Florida Building Code and Florida Fire Prevention Code.ENDS Disney’s exemption from state regulatory reviews and approvals.ENDS Disney’s secrecy by ensuring transparency.ENSURES that Disney will pay its fair share of taxes.PREVENTS leftist local governments from using the situation to raise local taxes.IMPOSES Florida law so that Disney is no longer given preferential treatment.ENSURES that Disney’s municipal debt will be paid by Disney, not Florida taxpayers.
But then it was discovered that Disney had implemented certain corporate covenants that tied the hands of the new Board:
Florida Gov. Ron DeSantis, Walt Disney World and a special tax district are once again making headlines, but this time, it’s with a new cast member: England’s King Charles III.In a quiet move that’s enchanting the internet, the former Reedy Creek Development board signed its power back to Disney before leaving office, a binding declaration that doesn’t expire until England’s monarchy dies out.That means the five DeSantis allies who pledged to rein in one of Florida’s largest employers lack the ability to do much of anything, at least until they take legal action.
Here are more details:
DeSantis is promising legal action, and has ordered an investigation:
The letter from DeSantis requests the investigation look for any “any legal or ethical violations” by the board in relation to their conduct before the state takeover of the district.The investigation will focus on the district’s “adherence to applicable Florida civil and criminal laws and ethics requirements,” the qualifications of the board members, the “involvement of Walt Disney World employees and agents” in the actions of the district, and “any financial gain or benefit derived by Walt Disney World” as result of the work of the district.It will also examine all Reedy Creek Improvement District “board, employee, or agent communications” related to the district’s actions, the bill that restructured the district, the district itself, Orange and Osceola counties, and the new Central Florida Tourism Oversight District….The investigation comes days after state Attorney General Ashley Moody made a public records request to the Disney-appointed board members of the former Reedy Creek Improvement District.In the letter, she requested texts, emails, and other public records regarding “documents discussing an intention or goal of circumventing, avoiding, frustrating, mitigating, or otherwise attempting to avoid the effects of anticipated actions of the Florida Governor and Legislature.” The letter also warned of possible civil and criminal penalties if records were not turned over.
Disney asserts:
“All agreements signed between Disney and the District were appropriate, and were discussed and approved in open, noticed public forums in compliance with Florida’s Government in the Sunshine law.”
Disney CEO Bob Iger also is going on offense against DeSantis:
This will help DeSantis regardless of how the legal wrangling turns out. At one level Disney is popular, but its reputation took a big hit over the teaching of gender ideology to little kids. It’s a perfect issue for DeSantis.
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