There was an update on April 27, 2022, 11:47am.
Disney may have legal grounds to defeat legislation that would allow Disney World to self-govern itself, and experts say Disney could come out ahead even if litigation fails.
The entrance to Disney World is in Florida.
The law was conceived in response to Disney's opposition to the state's gay bill.
Reedy Creek has $1 billion in debt and some of it can't be paid back until 2029, according to an analysis by Jacob Schumer, a Florida attorney.
Reedy Creek said in a statement that the special district isexploring its options while continuing its present operations.
The law in Florida says that special districts can only be dissolved if a majority of the district's owners approve it.
Florida Republicans have characterized the law dissolving Reedy Creek as punishment for Disney, so the company could have the First Amendment.
Disney hasn't responded to a request for comment about its next steps.
If Disney can stop Reedy Creek from being dissolved, it will benefit the company. According to analysts atDeutsche Bank, Disney World will likely see an improvement in its bottom line and balance sheet as it will no longer have to pay extra taxes to Reedy Creek. Disney will no longer have full autonomy over its infrastructure, but the analysts note that Disney's other theme parks have to deal with local governments.
The analysts wrote forDeutsche Bank that they don't see a negative outcome for Disney and that it could be a positive development.
Reedy Creek will be dissolved on June 1, 2023. The law has sparked concerns about its effect on local counties who may now have to absorb the municipal services Reedy Creek now handles and the district's financial debts. The law getting rid of Reedy Creek is the first step in what will be a process that Disney should not run its own government.
Getting rid of Reedy Creek will not benefit Disney or taxpayers. Pushaw told Forbes in an email Tuesday that the arguments that dissolving Reedy Creek will hurt local counties are nonsense.
The Reedy Creek Improvement District is a special taxing district that allows Walt Disney World to function as its own city and govern itself the same way that the county governments would. The special district, along with five others established before 1968, was abolished by the Florida Legislature last week after Disney paused its political donations to lawmakers. Disney said in a statement that the law should never have been passed or enacted, and that it wants the law to be repealed by the legislature or struck down in the courts.
Disney tells investors that the state can't dissolved the district without paying debt.
The contractual impossibility of Disney's Reedy Creek.
Disney World could lose its special district status.
The Bill Dissolving Special District into Law was signed by the governor of Florida.
The First Amendment is violated by Ron DeSantis' attack on Disney.
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