What the end of Disney's Reedy Creek district means for the company and for taxpayers.

[Nevilledog]

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🧵: There’s a lot of misinformation and confusion about what the end of Disney’s Reedy Creek district means for the company and for taxpayers.
Here’s what I know, after talking to lobbyists, lawyers and tax officials:
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2/ For those of you who haven’t heard, Reedy Creek is the special tax district of Walt Disney World. It’s essentially its own city. Disney pays taxes to Reedy Creek, which operates a fire department, planning department, sewer treatment plant and public works department.

3/ On the other hand, Disney controls Reedy Creek, which means if they want to build a new hotel or highway, they just have to ask themselves for permission.
The biggest loss for Disney is the end of that control.

4/ It’s a lot easier to ask yourself for permission than to go to the county. While they already follow all laws and building codes and they’ll still get everything they want, it’s going to slow the process down.

5/ Potholes might develop on roads that they no longer pave themselves. They can’t just call a meeting or alter their comprehensive plan on a random Friday. They also can’t quickly finance new public projects like a fire station.

6/ The bigger issue for everyone else is the tax revenue. Disney already pays the same local property taxes as every other landowner. Reedy Creek added its own tax on top of that to pay for its projects. That tax – $163 million per year – is illegal outside of the district.

7/ When Reedy Creek goes away, that tax goes away, and Orange and Osceola Counties can’t do anything to get it back.

However, the counties will now be responsible for all of the services Reedy Creek provides and all of the debt it has accumulated.

8/ They can’t raise sales taxes or impact fees. So, the counties will have to raise property taxes. They must tax every property equally – not just Disney – and therefore it’s expected that property taxes in Orange County will rise as much as 25% next June.

9/ Osceola, much smaller and less wealthy, is still working on its figures, but it's going to be a hit to them as well. Many of that county's residents work for Disney or have jobs derived from WDW. They'll be paying their employer's taxes now.

10/ Lawyers largely agree that the state followed all the laws while doing this. They agree Disney may sue, but probably doesn’t have much ground to stand on. Some believe a vote of residents or delegates from the district is required to make this legal.

11/ That doesn’t appear to be the case here because a vote was never held to implement the district 55 years ago.

Essentially, Disney will lose some control of its property, and get a $163 million per year tax break and ~$1 billion of debt passed onto taxpayers.

12/ Some things will be negotiated – Disney still controls Bay Lake and Lake Buena Vista, two actual towns within RCID. Lawmakers might backtrack from this plan during the next session now that they’re realizing what they’ve done.

13/ However, aside from maybe taking away the company’s ability to build a nuclear plant, we have yet to hear how this benefits Florida and especially the local residents in any way.

14/ The residents, by the way, had no say in this vote, no say in their property taxes going through the roof, and no desire to have their communities staring at financial ruin.

/15 (Addition): There is the question of whether the county CAN raise property taxes by 25%, well above the 10% or 3% cap the state imposes. If not, that likely means budget cuts unless the state steps in.

I’m following up on this.
16/ ANSWER: the cap is only on the assessed value of the home. The county would pass the 25% increase as a millage rate.
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[global1]

1. Will Disney Have To Raise It's Ticket Rates, Food & Drink Prices, Souvenier Prices, etc...

and maybe cut back on other park expenses?

This could have repercussions on those people that visit Disney making them angry that they have to shoulder the burden of DeSantis bullying ways. And those people come from all over the States and the World to Disney.

I think DeSantis is leading with his chin on this. Not well thought out in my opinion.

[PdamnedQ]

2. Two Words.

Biloxi Mississippi. The circus might just move on.

[LetMyPeopleVote]

3. While you are at WDW, you pass the fire station on the way to some of the parks

[Buckeyeblue]

4. While I don't see Disney moving anywhere maybe they stop growing the business there

Also what would prevent direct negotiations between Disney and the two counties to come up with a plan to give a wink and a nod to the state law but not really do anything differently. Maybe Disney agrees to make payments to a special maintenance fund that the counties specifically use for "Disney" projects.

It would be hard for Disney to find another place where they could operate comfortably between Thanksgiving through the Spring break season. That to me is their sweat spot. Summers in Orlando are too hot to go to an amusement park.

Plus it would take 5-10 years to build a new Disney.

[GoCubsGo]

5. DeathSentence and his toadies sure didn't think things through, did they?

Or, they did, and they just don't care. The only question remains is how big of an exploding cigar they just lit. All this because Disney spoke out against Dear Leader. I can't imagine why any company would want to do business with Florida after this.