The governor of Florida has guns at Disney World.
On Thursday, the Florida state legislature passed a bill that would allow the Walt Disney Company to act as its own government in the outer limits of Orange and Osceola counties. The bill sailed through the state's House of Representatives by a vote count of 70-38 after it passed the state Senate.
The proposal was first introduced on Tuesday by Republican state Sen. The bill limits early education teachings on sexual orientation or gender identity.
Until recently, there had been no public discussion about dissolving Disney's long-established special district, which it has occupied for 55 years, leading opposing senators and other critics of the bill to question its timing and speed.
The bill isn't retaliatory, but it was when Disney kicked the hornet's nest, according to Randy Fine.
Disney had the power to prevent it for a long time. California values have been brought to Florida. The people of Florida said you are a guest. Maybe you don't deserve the privileges anymore.
The bill was introduced to make it easier for theme park operators in Florida. Disney's competition, Universal, Legoland and SeaWorld do not have special districts to operate in.
Democrats in the state senate came to the theme park's defense on Wednesday.
Tina Polsky, a democrat who represents the 19th district of Florida, said during the special session that the Disney corporation is being attacked for expressing support for its many LGBTQ employees and customers.
It is a huge decision.
The Reedy Creek Improvement District was established in 1967. Disney could develop the infrastructure for Walt Disney World at no cost to Florida taxpayers, because it was established by the Florida State legislature.
None of this makes any sense. They just bit off way more than they can chew by trying to get the Reedy Creek district dissolved.”
Disney has been able to build theme parks, hotels and other tourist experiences within the Reedy Creek district with little to no oversight. The company became the largest employer of Florida residents in the state and helped the area become one of the largest hubs for tourism in the U.S.
Loranne Ausley, a democrat who represents the state's 3rd Senate district, said during Wednesday's session that she didn't understand what was happening.
The decades-old legislation insured that only the owners of Disney World would be responsible for paying the cost of municipal services like power, water, roads and fire protection.
Taxpaying residents of Orange and Osceola counties have been spared Disney park maintenance bills for decades.
Disney pays taxes to both counties and the Reedy Creek district. If the bill passes through the Florida House of Representatives on Thursday and is signed into law by the governor, Reedy Creek and five other special districts will be dissolved on June 1, 2023.
Reedy Creek does not have representatives in the state legislature.
If the district is dissolved, Reedy Creek employees and infrastructure would be absorbed by the local counties, which would take over all municipal services. Disney currently pays the Reedy Creek district tax revenue, but it would also be saddled with the district's liabilities. Its debt.
According to its financial reports, Reedy Creek has a loss of between $5 million and $10 million each year. Disney's debt doesn't have much impact on its bottom line because it subsidizes its own operations with theme park revenue.
Taxpayers would be responsible for around $1 billion in debt on the balance sheet if the special district is absorbed.
Linda Stewart, a democrat who represents Florida's 13th senate district, told CNBC Wednesday that no one wants to take that amount of debt up. They bit off more than they could chew by trying to get the Reedy Creek district dissolved. I don't think it will be very successful.
Disney pays for some municipal improvements, including road work.
Universal collaborated with the state and Orange County to build a 1.7-mile extension to Kirkman Road to accommodate the company's new park.
The project cost an estimated $300 million, more than half of which Universal footed. Orange County will pay $125 million and the state will pay $16 million.
The tab for similar projects at Disney could easily accumulate.
David Ramba, executive director of the Florida Association of Special Districts, said that the dispute is likely to end up in court.
A lot of lawyers are going to get paid as the parties work to sort out the operational implications of dissolving the special districts.
Special districts created by the legislature can only be dissolved with a majority vote of the district's owners. The Walt Disney Company is for Reedy Creek.
The democrat who represents the 38th Senate district said nothing is going to happen during the special session. I'm tired of missing my kid's baseball games because we know they're not going to happen.
The bill was opposed by several state senators before the vote. The legislation was called a revenge bill and political theater by many on the legislature floor.
The governor wants to prove that he is more powerful.
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