After speaking out against Florida’s “Don’t Say Gay” bill, Disney World received some pushback from Florida Governor Ron DeSantis.
Governor DeSantis eventually moved to dissolve the Reedy Creek Improvement District, which was set up to allow Disney to self-govern its property. That bill eventually became law in the state of Florida, removing Disney World’s self-governance capabilities in 2023.
Since then, Governor DeSantis has said that the state of Florida would likely take control of the Reedy Creek Improvement District, rather than allowing that burden to fall on individual counties. However, the governor has not outlined a plan on exactly how that would happen.Â
According to Bloomberg, Florida’s head of bond finance, Ben Watkins, has said that the special district will likely be re-established. Watkins said that he expects Florida legislators to create a “successor district,” that will take over many of the responsibilities of the Reedy Creek Improvement District. However, this new district will lose some of its previous powers that weren’t used, including the operation of a nuclear power plant.
He said, “I’m confident that Reedy Creek will get addressed in a more meaningful way.”
It’s even likely that a limited version of the special district will be reinstated in the next legislative session. Watkins added that Governor DeSantis has been “supportive” of the idea, but it will ultimately come down to the state’s lawmakers to decide how that legislation will be drafted.
Reedy Creek currently has about $1 billion of outstanding debt, but Watkins reiterated that this burden would not be put onto individual counties. He said, “The debt will be transferred and assumed by — with the same terms and conditions — the successor entity.” He explained that the new special district would have the same powers with revenue and taxes that it previously held.
So what does this mean? It means that the Reedy Creek Improvement District could be re-established as a special district with limited powers. Ultimately, Florida’s legislators will decide exactly how that will play out, so we’ll continue to keep an eye on the situation.
In the meantime, if you’re confused about what the implications are, we’ve got a good explainer about how the dissolution of the Reedy Creek Improvement District affects Disney World.
Want to know the latest on the situation? Check this post explaining exactly what the current status is.
Walt Disney World Chronicles: The Story of the Reedy Creek Improvement District
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I wish someone would explain if this $1B in debt is considered an unreasonable amount for the size of the district or if it is actually what people such as bond rating experts would expect. Compared to our sad national debt, it certainly sounds like an extremely large debt load for such a small area compared to the whole of the United States. It may well explain how they have some of the coolest looking Emergency Services facilities I’ve ever seen along with top notch equipment. It would also be interesting to see the explanation of why Duke Energy is so concerned about being paid for power already used once the current RCDD is dissolved. One would expect that Disney is well able to keep their utility bills current. It just seems to me that there is more to this story than Desantis’ grudge against Chapek’s remarks.
What’s in it for Disney. Let Florida assume the debts. Let Florida pay for and provide the services everyone else (including Universal) gets. This looks like a good deal for Disney, and I wouldn’t let them step it back.
So this is confusing.. Will Disney have Reedy Creek back but with less power? Meaning they can’t just govern themselves?