Tag Archives: Disney World

The complications of switching over from Disney self-governance in Florida to local government

Posted on by

With the Florida legislature voting to strip Disney of its self-governance status regarding the Disney World land, what might this mean for local governments?

Photo by Benjamin Suter on Pexels.com

The counties, on June 1, 2023, would assume all of Reedy Creek’s assets and liabilities and become responsible for providing all of the services currently handled by the district, CNBC reported.

Currently, Disney finances the services supplied by Reedy Creek, which would normally be funded by local municipalities. The company, instead, charges itself property taxes to finance its service and pays the Orange County Sheriff’s Office for law enforcement.

Once Reedy Creek is dismantled, local taxpayers and municipalities would likely be responsible for those services.

’Removing district could transfer $2billion debt from Disney to taxpayers and could potential have an enormous impact on Orange and Osceola residents!’ State Sen. Linda Stewart, who voted against the bill, tweeted Wednesday.

However, Rep. Fine told Insider he believed taxes could go down because the measure was ‘eliminating a layer of government’.

Walt Disney World already pays property taxes to Orange and Osceola counties, so that would not change, however the counties would get to collect the tax revenue Disney currently pays to itself.

The transfer of revenues, services, and infrastructure from a private entity to a set of local governments might take some time to sort out. Who will be responsible for what? How do the revenues compare to the costs required? How does this require local governments to adjust?

Let’s say this process is a complicated one. Does this affect the experience of visitors to Disney properties or to local residents?

While this is a national culture wars story at the moment, it would be interesting to hear from local officials on what they think of this or how they anticipate this working out. Very few local officials would want to lose a major company from their land. Would they vote against their own local economic and political interests in the service of sending a message to Disney?

The legislative act that helped Disney build Disney World in Florida

Posted on by

Corporations, sports teams, and developers ask for or make use of tax breaks or monies or land opportunities provided by governments. Walt Disney benefited from a 1967 act by the Florida legislature:

Photo by Craig Adderley on Pexels.com

The Reedy Creek Development Act can be traced back to 1967.

It was a pivotal negotiating factor in convincing Disney to locate his company in Florida and allows the company to do just about whatever it wants on its land.

“The ability, the power to build a nuclear power plant, an airport manufacturer, distill and distribute alcoholic beverages and lots of other things,” said Dr. Richard Foglesong, author of “Married to the Mouse” in an interview with WFTV in 2021.

Many would love to have this kind of freedom to do what they want with a large property. In contrast to what was possible through this act, many property owners would have to apply to local governments for uses of the property beyond what is allowed through the local zoning.

If leaders in Florida follow through with revoking this act and Disney wants to go elsewhere, does this shape up to be a second Amazon HQ #2 situation? Or, does Disney have a lot fewer possible locations to go to given its need for a lot of land and good weather?