Florida Passes Bills to Dissolve Disney World’s Reedy Creek Improvement District
Florida’s state legislature passed a bill to dissolve the Reedy Creek Improvement District, which gives Walt Disney World its own government within Osceola and Orange County. This post takes a look at what’s happened, what’s next, and what this means for the parks & resorts.
The Walt Disney Company has been embroiled in a bitter standoff with Florida state leadership since the company took a public stance on Florida HB 1557. The actions and statements by each side in that high profile controversy are well documented; the Reedy Creek Creek bills are essentially the legislature’s retaliation for that after Disney “chose to kick the hornet’s nest,” according to State Rep. Randy Fine, who filed the bill in the Florida House.
The latest chapter in the ongoing saga started this Tuesday, when Governor Ron DeSantis announced that Florida’s special legislative session would take up the dissolution of six special districts enacted before 1968, including Walt Disney World’s own government. The Florida Senate moved forward with SB 4C, and a companion bill, HB 3C, was filed in the Florida House.
The latter bill passed the Florida Senate on Wednesday by a vote of 23-16. The former passed the state’s House of Representatives with a 70-38 vote. The bill now heads to DeSantis to be signed into law.
With that, Reedy Creek Improvement District (RCID) and 5 other special districts will be dissolved on June 1, 2023, but given a chance to be reestablished. Just as certain that DeSantis will sign the bill is that it’ll be challenged in court.
For those who are unfamiliar with it, Reedy Creek Improvement District is a special district that allows the company to act as its own government with regard to Walt Disney World. The Florida legislature created the Reedy Creek Improvement District in 1967 during the planning stages of the company’s Florida Project.
This governmental district, controls approximately 25,000 acres and services 19 landowners, including the Walt Disney Company and its wholly-owned affiliates. The powers executed by the Reedy Creek Improvement District are granted to two cities, Bay Lake and Lake Buena Vista. The two towns have low combined populations, all of whom are loyal Disney employees.
RCID’s day-to-day operations are conducted separately from the Walt Disney Company, but as Reedy Creek’s largest landowner, Disney effectively controls the RCID Board of Supervisors. This means Disney is not subject to asking (outside) local planning commissions for approval to build new structures or pay governmental impact fees for construction.
RCID allows Walt Disney World to build parks, attractions, hotels, and other projects within Reedy Creek with little-to-no (outside) governmental oversight. That means Walt Disney World can avoid the logistical hurdles of local government that often come with requesting residents to pay taxes to fund infrastructure. That’s a double-edged sword, as it also means Florida taxpayers are not footing the bill for infrastructure at Walt Disney World.
Among other things, Reedy Creek Improvement District oversees land use and environmental protections within its boundaries, and provides essential public services (e.g. fire protection, emergency medical services, potable water production, treatment, storage, pumping & distribution, reclaimed water distribution, chilled and hot water systems, wastewater services, drainage and flood control, electric power generation & distribution, and solid waste and recyclables collection & disposal).
The District also regulates construction pursuant to the EPCOT Building Code, and is responsible for all public roadways and bridges. RCID is self-sufficient, funding its operations, services, and capital improvements by assessing taxes and fees to the District’s landowners and lessees.
This last point is significant when it comes to dissolving RCID. Through its ability to collect taxes and issue bonds, Reedy Creek Improvement District has an annual budget of more than $169 million. Over 90% of that comes from the collection of property taxes on Walt Disney World real estate. RCID also has $1 billion to $2 billion in bond debt.
In addition to those payments to RCID, Walt Disney World also collects and remits sales taxes to both Orange and Osceola Counties, Tourist Development Taxes from on-site hotel guests, and pays property taxes on to the respective counties. (There was/is a long-running legal battle between Disney and the Orange County Property Appraiser as the company has successfully sought to reduce its tax burden on multiple occasions.)
According to Orange County Tax Collector Scott Randolph, dissolving the Reedy Creek Improvement District would be a financial burden on local residents with no gain. If RCID is dissolved, “it’s zero revenue, but [Orange County taxpayers] take on the obligations,” Randolph said in an interview with WKMG-TV (Orlando’s CBS affiliate).
“If Reedy Creek is dissolved, my guess would be Orange County would have to raise property taxes 15 to 20%,” Randolph stated. Orange and Osceola residents would take on the burdens of fire fighting, wastewater, power, road maintenance, and more at Walt Disney World, all that without additional revenue. Randolph said that it would “punish” local taxpayers more than Disney.
Dissolving the district would mean Reedy Creek employees, infrastructure, and more would be absorbed by Osceola and Orange Counties. The counties would essentially step into the shoes of RCID as its successor, collecting at least some of the tax revenue Walt Disney World currently pays the Reedy Creek district, while also being saddled with RCID’s current liabilities.
However, it’s unclear whether the counties could collect the entirety of RCID’s annual budget. To the extent that Reedy Creek is inflating charges or duplicating taxes assessed by the counties, they could not. Without a thorough audit of Reedy Creek’s financials, it’s impossible to say how much of what Disney is paying to the district could be collected by the counties.
Additionally, Reedy Creek typically operates at a loss of around $5 million to $10 million per year, according to the district’s financial reports. That doesn’t matter to Disney, as that’s peanuts and that lose can be subsidized by theme park revenue. For local governments and taxpayers, those shortfalls are more significant.
The bigger issue is the $1 billion to $2 billion in outstanding debt that RCID has taken on, which sounds almost like defensive poison pill provision to prevent a hostile takeover. (Don’t let the bungling of recent controversies fool you–Disney is incredibly adept at playing politics and protecting itself.) If the special district actually is dissolved, that liability doesn’t just disappear, it becomes the responsibility of taxpayers.
Before we delve into commentary, you’ve probably noticed a lack of coverage here about the standoff between Disney and Florida, which has been breathlessly covered elsewhere. That’s simply because it is not relevant to vacation planning. If we devoted attention to all of the company’s lobbying or controversial business practices, that would likely be a stressful full time job, and one upsetting fans of all political persuasions. When it comes to that, choosing which stories to cover is just as political as the substance of said content.
I hadn’t planned on writing about these Reedy Creek developments as of earlier this week, either. With that said, we have already received countless questions about how the dissolution of Reedy Creek will impact Walt Disney World, prices, and myriad other things. Accordingly, I wanted to break this down in a straightforward manner, free of hyperbole and sensationalism. Hopefully this one article will suffice, and we won’t have to address the topic again.
In short, I don’t think this will have any material impact on the guest experience at Walt Disney World. That’s because I don’t think Reedy Creek Improvement District will actually be dissolved when all is said and done.
I’ll offer the caveat that although I have generalized knowledge of Walt Disney World and degrees in law and political science, I have zero expertise in administrative or municipal law. I’d further add that you should be skeptical of anyone who claims to be certain of how this will unfold. This involves novel issues, unsettled law, and political calculuses that defy convention. There’s not exactly a ton of precedent concerning the dissolution of special districts controlled by corporations.
Moreover, the legislation as passed raises more questions than it answers. Those will almost certainly be settled by the courts, which will need to determine, among other things, whether this amounts to viewpoint discrimination that runs afoul of Citizens United and its progeny.
Even before that, there’s the threshold issue of whether the Florida legislature even has the authority to dissolve RCID without the approval by a majority vote of the residents or landowners of the district. (If required, there’s a zero percent chance of that approval being given.) The bill even tacitly acknowledges this, stating that it is “notwithstanding s. 189.072(2).”
Assuming the state finds a way to sidestep all of that, there’s also the question of how unwinding the Reedy Creek Improvement District would occur. Orange and Osceola Counties clearly don’t want to take on the municipal obligations, and even if they did, that would require a period of transition–not a clean break.
Then there’s the issue of RCID’s debts. Florida isn’t just going to give Disney a $1 to $2 billion tax break as “punishment” for its transgressions. Assuming RCID is dissolved, the most likely outcome is thus that it’s immediately replaced by another special district consistent with those established in or after 1968.
With all of that said, let’s assume, arguendo, that RCID is dissolved and nothing replaces it. What happens then? In theory, Walt Disney World has to jump through more hoops on projects, resulting in delays and more costly construction. The case could also be made that urgent work or needs aren’t serviced in as expeditious of a manner, as Disney is at the mercy of Orange and Osceola Counties.
I wouldn’t be so quick to assume that. For one, you’ve seen the TRON Lightcycle Run construction site, right?! Joking aside, RCID actually has pretty onerous standards, and does not simply rubber stamp all of Imagineering’s plans. Look no further than the incredibly wide walkways at Wilderness Lodge or the giant support column under the Cosmic Rewind starship. You can thank Reedy Creek for all of that, and much more.
The company would undoubtedly face added costs, delays, red tape, and unpredictability, but it’s not like Disney is exactly the paragon of corporate efficiency. They’re about as bureaucratic as any government. Conversely, Orange County seems relatively adept at building and maintaining infrastructure (by government standards) even amidst the current population explosion.
All of this analysis is reductionist, superficial, and filled with broad assumptions. The point is that even if RCID is dissolved, it would hardly mean the sky is falling for Walt Disney World. Guests probably wouldn’t notice anything other than different colored signs along the roads.
Ultimately, even though the bills dissolving Reedy Creek Improvement District have passed and will be signed into law, this is really just the beginning of a long saga that will last the next year-plus. While it’s impossible to foresee everything that will happen, my main predictions are that many attorneys will be enriched and much digital ink will be spilled about the ramifications of RCID’s demise.
Personally, I do not think that “demise” will happen, nor should it in this manner. There are legitimate critiques of Reedy Creek and whether a corporation should perform the roles of government, enjoy special treatment, and have such an outsized influence in state and local politics. Legal scholars, politicians, and others have debated all of this for years. This is not the first time RCID has been called into question–Disney has made changes to stay in Florida’s good graces before.
However, it’s hard to argue persuasively that what’s happening now qualifies as a good faith check on Disney’s self-governance. If motivated by the best interests of voters, dissolving Reedy Creek would be a methodical process, with its financial implications studied and recommendations made for the orderly unwinding of the special district to minimize the negative ramifications on the company and taxpayers. None of that has occurred.
One could argue that this is because no legislator on either side of the aisle actually believes Reedy Creek Improvement District is going to be dissolved. Perhaps they’re cynical, thinking that it’s more about theater, a way to score a quick “win” in today’s era of ‘politics as team sports’ and the ongoing culture wars. Maybe it’s a means of grabbing headlines, dominating the news cycle, and fundraising for midterms before moving on to the next outrage du jour that fuels each side’s base long before next summer.
There’s a reason Orange County (the main “beneficiary” of this change) is against RCID being dissolved in this manner; separately, there’s also a reason Disney has gone quiet on issues concerning Florida politics, including this very Reedy Creek legislation. This isn’t to say that a special district with the name Reedy Creek Improvement District will exist on June 1, 2023. It is to say that it would be incredibly surprising if there are any changes to Walt Disney World’s governance between now and then that materially impact guests.
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YOUR THOUGHTS
Any thoughts on the potential dissolution of Reedy Creek Improvement District? Keep the comments civil, as this is not the place for politically-charged arguing, antagonism, personal attacks, or perpetuating pointless culture wars. While this topic is inherently political, we will be heavy-handed in deleting comments that amount to little more than vapid political cheerleading. Respectfully debating the pros & cons and implications of RCID being dissolved (or whether it’ll actually happen) is totally fine, but don’t step outside the bounds of this narrow topic. If you wish to shout your opinions about Ron DeSantis, Bob Chapek, or other politicians/executives into the internet abyss, that’s why Facebook was invented. 😉
From what I’m reading, it seems the bill is nothing more than a middle-school…ish lashing out by a governmental body without any thought about what will happen. It makes them look immature and fearful. Not a way I would want myself to appear in the public eye were I involved in politics…
And Disney was acting middle schoolish by lashing out at the legislation and misrepresenting what it actually was.
Can you explain your definition of cult? Someone who disagrees with you?
Great summary of this puzzle. But my gut tells me it’s just the tip of the iceberg and much more is lurking below that isn’t public knowledge. Yet. Universal is steaming ahead with its 3rd gate. Volcano Bay is a water park not a true park ;). Could WDW finally have designs in place for a 4rth gate but need planning permission and now, with this move, critical infrastructure from Osceola and Orange despite its own large property holdings? Could the debt and annual ops budget of RCID onto the backs of neighbouring taxpayers inflame what was already going to be a tough sell and block WDW from expansion? All hypothetical. All back of napkin doodles at this point. But more to this act than personal vendettas of politicians and CEOs. I remember traveling to MK in the early 1970s with my parents. Way before Epcot opened. The Magic Kingdom made Orlando. Even in 1973, MK was ‘it’ except for ranching and orange groves. A handful of t-shirt shops, rustic mini golf pits and strip motels lined the road leading to the park. All made Gatorland look palatial. The 4 year old me loved it. The 50 plus me now gets it. Disney brought prosperity and a future to Orlando. But money isn’t everything and, over the years, when I’ve talked with Orlando residents, most truly resent WDW. Most refuse to go to the parks. Won’t let their kids work there. And resent the traffic, congestion, sprawl and high cost of living caused by WDW. Orlando at heart is a small town with big city expenses and big resentment on its back. Whatever is going on behind the scenes, its big. And Universal quietly beavers away knowing when its new park opens in 2025 they hold the cards. Interesting times.
“But my gut tells me it’s just the tip of the iceberg and much more is lurking below that isn’t public knowledge.”
Oh for sure.
Even I am incredibly skeptical of Randolph’s financial analysis and don’t believe he could’ve performed one so quickly. The problem is that I have no way of doing that on my own, so I quoted him. My guess is that the actual tax burden wouldn’t be nearly as bad, but there’s no way of knowing because no due diligence was performed prior to the legislation being passed.
I think that sentiment you mentioned is more common with longtime Orlando residents…and there aren’t many of those left. A huge percentage of the local population is transplants, many of whom moved to Orlando for what Disney (and other parks) brought. (Personally, I can understand and empathize with the resentment–I just don’t think you’d find it to be that common if doing a poll of Orange County voters.)
I agree with this is just the tip of the iceberg. I have been very disappointed with WDW over the past 5 years by increased prices on APs, park passes and them catering to thee rich down at Springs with the high-end stores. They are basically shoving out the middle class. The commercials make it seem like you’re a crappy parent if you don’t take your family to Disney. You could go to Europe or a really long island trip with what it costs to take a family to the resort. My trips have decreased to once every few years from 2-3 time per year. I just can’t afford it! I even started going more to Universal because we got a better deal. I’ve sold my DVCs (SSPS and Bwlk) that I’ve had since 1998 because of the increase in annual fees. I think they went too big, too fast with all of the changes. Gone are the days of carefree park hopping, free parking for resorts if you bring your car and reasonable park/pass fees. However, I also agree that when you mess with The Mouse, you will lose. I’m just popping my popcorn, waiting for the next move….
Personally, I think that this bill was written in suc a way…note that it doesn’t go into effect until June of 2023 in order to serve Disney notice and allowing time to te-institute the districts but with changes.
Well written analysis Tom.
As you say, this talk of ‘dissolution’ is being breathlessly covered but there are huge legal and technical challenges; not to mention that the ‘poison pill’ of billions of debt has been carefully placed by Disney.
I’ll bet my next Disney vacation that this dissolution will not happen: it’ll be quietly forgotten post mid terms. Worst case scenario is that Reedy Creek will be ‘dissolved’ for a political ‘win’ but either a new district will be set up or two new administrative counties carved out of OC/Osceola with effectively exactly the same function.
This issue is political theatre and the politicians know what they’re doing. It keeps their name in the media, certain hot-button issues to the forefront of people’s mind, and creates the appearance that they are ‘doing something’ rather than just talking.
Just a way to get his name out there before 2024,AND distract from the redistricting
Exactly right. It’s just another DeSantis political stunt.
I noticed that you allow people to attack our governor, but not Chapek or Disney.
John, that’s because you can’t see the content of comments that haven’t gotten through bashing DeSantis. You’re only aware of *your* comments that have been deleted.
I have tried to allow every comment confined to analysis or critique of this specific legislation and its motivations. A lot of commenters have brought up other bills, which are not discussed here, and those comments have not survived moderation.
The comments that have been deleted have been about 50/50 (maybe 60/40 at most) in terms of political alliances. C’mon, you know how politically charged things are right now. Do you honestly think the worst thing anyone has said about DeSantis is calling this a political stunt?
“Arguendo”…thank you for that! As a kindred soul (also degrees in law and political science, also left both behind to follow other work that gives me joy and purpose), I smiled at your using that word of the trade. Thanks for a clear analysis!
Heartbreaking to see Walt’s final accomplishment undone by the missteps of current Disney leadership. What most do not realize is that the “kicking of the hornet’s nest” was done by California Disney, not Florida. This is one of those lose-lose situations that we all hate to watch. I left the last Disney blog I used to read due to their politics. Very thankful for the skill that it took to tackle this topic in such a respectful manner. You’ve got a lifelong reader out of me. Now, let’s hope the kids can get along.
Agree with you 100%. Missteps is the correct word. If only…
We’ve got one more fully paid for trip upcoming and after that we aren’t renewing our AP. We cancelled our DCL cruise which was to follow our upcoming trip. Until the kids, as you say, can learn to play nice we are done. I was there for Fla. opening and I’m ending on the 50th. Nice memories of when Disney was for families. (Oh, and I’m a retired lawyer, MS in poli Sci and undergrad RN. )
Strange. I didn’t know that lawmakers are a part of a hornet nest. Now I’m afraid to say anything against any politician because they might come after me if I kick the hornets nest. I thought there were special rights that give protections so I wouldn’t be afraid to speak freely.
“ The counties would collect the tax revenue Walt Disney World currently pays the Reedy Creek district”
Is this correct? From reading numerous other articles from various sources (mostly main stream news quoting legal experts) it sounded like it isn’t. Those articles state that Disney already pays “normal” property taxes to the counties and then an additional “tax” to RCID; however, if RCID is dissolved the counties have no legal way to access a new tax just on Disney (and thus the need to raise property taxes county wide).
Based on that Disney could end up paying less in taxes (but lose the control they currently have).
I am not a lawyer and honestly don’t know which is correct but I am trying to understand as much about this as possible. The rest of your article is great and provides some great information.
As a DVC owner I wonder how this will affect me tax wise if by chance this happens.
What and how much the counties could collect is incredibly murky at this point. To the extent that there’s “double taxation” on any property, the counties would lose that. The big question is how much of that additional “tax” is on top of the normal property taxes being paid to the counties?
I don’t think there’s any good answer to that, which is why we see a lot of “guesses” from county officials about the increased tax burden. Again, it comes back to the lack of fiscal analysis on this legislation. We probably won’t have real numbers for a while–if ever.
1st, if this happens I would assume Disney proper would get hit with a special tax district to help capture as much of these costs as possible. Several Coties have these to help offset large attractions, granted Disney is on a different level. 2nd, feel bad for any GC building on the county line. Had that pleasure up in Pennsylvania. Inspections, permits, developmental fees all way more expensive and it takes forever especially if the counties don’t get along. 3rd thank you for not picking or debating a side. It’s nice to go escape and plan the next trip without having to read about all the extra noise. Life is stressful enough without adding extra grief to it.
Good article. One thing I think that you and everyone is missing: Scott Randolph is a longtime elected official of the Democratic Party of Florida in various roles, and a persistent gadfly against the statewide dominance of the Republican Party of Florida; I don’t know that his analysis of the revenue impacts is the most nonpartisan and clean of ulterior motives. Again, not that it’s incorrect, just that it’s one more voice that has reason to be partisan.
I have read Florida makes out tremendously if Reedy Creek is dissolved. I’m certain there are more unbiased sources to be quoted. I’m a CFO for a large defense firm and never do we go with partisan reviews of projects. Thank you for pointing out the problematic analysis.
I don’t disagree, but the problem is that the Legislature performed no economic analysis prior to voting on the legislation. Certainly, even if the numbers are off, the type of economic impacts he describes will occur.
Tom allows criticism of our governor but not of Chapek’s foolish political move.
Tom, really appreciate your viewpoint and this article is a great overview! Thanks for writing such a great blog and covering the fun Disney stuff and this important nuance!
As a resident of Orange County, I am very concerned about the impact a 15-20% tax hike will have on this county. How many homes will be in foreclosure then? This is not a punishment for Disney. It is punishing the people who live here.
The political gamble is that Republican residents will blame Disney and Democrats will blame the Republicans. That gamble does not reflect the large number of Florida independents (like me) that would vote with their pocketbooks.
All this because lots of folks complained about a bill they never read but called it something it wasn’t.
You are 100% correct!!! I’m a bit disgusted with all the Desantis bashing but moreover with Disney for getting involved in politics once again. What happened to Disney being about wholesome family time and escaping reality and the craziness of the world???? I also canceled 2 previously scheduled visits and canceled our 4 annual passes that we have been renewing for the past 24 years, a simple call to the bank and canceling the credit card, because we all know Disney doesn’t make it easy to cancel those passes. It broke my heart to do it because Disney has been a huge part of my family’s life but I could no longer lie to myself about what it has become and apparently we do not share the same values. There’s only so much one can take and even though you’re not seeing similar comments here, believe me, they are out there and they are equally as disgusted!!!!
Could Florida’s bill to dissolve the special district be construed as a violation of Disney’s First Amendment rights? The government is passing a bill that is intended to retaliate and/or silence Disney for their stance on another bill.
What the government gives, the government can take away. Now you see the problem with big government.
I see a problem in Chapek in politicizing the Disney brand which called for a response from our governor. We Floridians support our governor.
Disney has a relatively decent 1st amendment claim here. The government can’t retaliate against people or corporations for things they say and they can’t act in a way that would intimidate others into not speaking out against the government as they see fit. Disney said something DeSantis didn’t like and he responded by stripping them of their rights (making it very clear why he was doing so). That seems like pretty clear retaliation and also an attempt to intimidate other corporations into silence in the future lest they face the same fate.
I agree that Disney’s best shot at invalidating the law is through a First Amendment challenge. Comments by the governor, lt. governor, and key legislators all establish that the motive for this bill is not some good faith concern about corporate self-governance, but is retaliation for a stance Disney took on a particular piece of legislation. The First Amendment provides the highest level of protection to political advocacy. Putting aside whether it was correct or prudent for Disney to take a stance on the Florida bill — Disney had a constitutional right to do so without fear of governmental retaliation. If you genuinely support the principles underlying the First Amendment, then, regardless of your politics, you should be appalled by this blatant attack on Disney’s right to free speech.
Interesting that we are discussing Disney’s “right to free speech”. On a national level Democrats have been arguing for years now that Citizens United was wrongly decided and should be reversed because corporations don’t have free speech rights.
Excellent article which I will share with my own followers who are asking me, “What do you think about the big Disney feud in Florida?”
I appreciate the history and the analysis.
For what it’s worth, as a big Disney fan, an annual visitor to WDW (that’s not easy from North Dakota) for the last 25 years, a platinum level member of Castaway Club on Disney Cruise Lines; and most importantly, a Disney shareholder and student of its corporate history, I think your predictions are spot-on.
Within 3-4 weeks, if not sooner, we will be asking the question, “What happened with Reedy Cteek?”
Tom, I’ve read a lot of analysis about this and your commentary is top notch.
I do wonder if the politicians intentionally wrote it in such a fast haphazard manner that the law will be tossed out by the courts. I find it very interesting that Disney has gone completely silent all week. A good rule of thumb is to avoid provoking the wrath of Mickey’s lawyers. They’re ruthless. These lawyers will spend far more time dissecting this law than the lawmakers spent writing it.
And I wonder if this will change how Disney approaches lobbying and political donations. Surely Disney won’t seek vengeance or retribution. Politics can be an emotional game for some of us in the public (myself included) but this corporation usually takes a dispassionate, emotionless and clinical approach. It’s not personal. It’s just business. As they say in Vegas: the mouse always wins.
I really don’t care what happens to Disney or Florida at this point. They never should of let them get special treatment for this long anyway, they have robbed the public domain while keeping tight grips on their stuff for far to long, and beside that, its just going to be a slow decline from this point anyway. Disney is not going to get any better. I mean really in the grand scheme of things, its just entertainment, they have been laughing at us for some time, well before this political bs. With the ever increasing prices, removing all perks from the average middle class, telling us how much we should eat while we are their. All sorts of just plain greedy price gouging in the name of “supply and demand”. I mean they are “so sorry” for only a select few, the rest can show themselves out. Yet none of it results in higher wages for their employees, and Bob would rather build shotty attractions with cheap lighting than give any love or attention that they used to do. That is why imaginers are quitting and are being treated as second class citizens. This political stunt screams distraction from all of that, compiled with “affordable housing, which reminds me of those company towns that coal miners lived on years ago (Sixteen tons anyone) It is clear that they really don’t care about the middle class anymore, they definitely don’t care about parents or what parents are feeling, Why should we feel sorry for this company, they really don’t care about you. This might very well be my last trip, and if it were not for my wife, It would canceled.
Not sure what’s eating Bryan here. I actually spent less per person on my all out, no holds barred WDW vacation last Thanksgiving…including airfare for 4 people and gas for a 5th, than I spent on a recent trip to San Antonio where my room and activities were paid for as part of a prize package. and seriously…the reference to the song Sixteen Tons? That refers to the miners having no option but to purchase from the “Company Store” on credit, thus eliminating their paycheck. Completely irrelevant to this discussion. Please stay away if that’s how you really feel. I’m sure they’d prefer not to have “guests” like that in the parks.
All unnecessary self inflicted wounds. I agree with Tom that a year from now nothing will really be changed. Except of course Chapek will be gone and that’s a good thing.
What will hurt the Parks and Resorts is the approaching recession and God help us, very real possibility of a depression. All of which are coming courtesy of federally self inflicted wounds. Be prepared to hear, “It’s Putin’s fault the Dining plan isn’t coming back.”
Thanks for the analysis Tom. Was not expecting you to have a comment section on this one.
Thank you for the explanation of what is involved. Mickey1928 I agree with your response. Saves me lots of typing.
If this happens, I think we could see effects in more ways than you might initially think. Think of something as simple as nightly fireworks, in most places you have to get local approval to do fireworks and the local government has to have people responsible for monitoring them. Now, presumably there is a solution because this isn’t an issue at Disneyland, but that doesn’t change the fact that currently Disney doesn’t need approval for WDW and the local governments probably don’t have the staff necessary to properly regulate it on that scale. This is minor, but this is just one of many minor issues that will emerge and the local governments have never had to deal with these issues before.
Furthermore, it’s clear that taxes will go up significantly for those living in Orange and Osceola Counties, what’s going to happen to taxes for DVC owners? I don’t own DVC, so I don’t know but I would be interested if those who are pay local taxes to the RCID or Orange/Osceola County. The tax increases could be even more intense for DVC owners if they pay to RCID. I’d also be interested to know if there’s any provision in DVC contracts that address what would happen if Florida took away the status of the RCID. Whatever happens I would certainly be more concerned going forward about making sure I understood the relationship between the RCID, DVC, and me and made sure my agreement addressed what would happen if the RCID lost its status.
These are just a couple of examples, but should this actually happen, it’s going to be a lot more complicated than Osceola and Orange Counties or some other special district stepping into the shoes of the RCID.
Unless Disney sues Florida (this seems to be a pretty clear violation of the 1st Amendment, given that current law/precedent grants full 1A protections to corporations), and keeps this in the public eye, I wouldn’t be surprised (and I say this as a neutral observer) if DeSantis takes his symbolic win now and then quietly drops it before it takes effect.
I totally agree. Nothing in this article or others mention that the RCID already taxes itself to pay off those bonds.
The articles are being written as if all the district taxes disappear and become the responsibility of the other taxpayers in the county. The most likely new tax for Disney Guests will be a ticket tax. Disney will be treated like every other venue and be taxed on their sales.
Is it really clear that taxes will go up for residents of Orange and Osceola?
Another thing that I think hasn’t been examined is what Reedy Creek’s expenses actually are. I’m local to Orlando and was talking to a firefighter today, he told me the Reedy Creek guys are freaking out because they make significantly more than the Orange County Firefighters do. I suspect there are a significant number of places where Reedy Creek is spending more money on something than the County would to make it extra pretty. A million here, a million there pretty soon you are talking real money.