2022 was the year of battles between The Walt Disney Company and the state of Florida. After initially trying to stay out of the political turmoil surrounding a state law referred to as “Don't Say Gay.” Disney ultimately came out against the law. This did not sit well with Florida Republicans and Governor Ron DeSantis, who then decided to punish Disney by taking away the Reedy Creek Improvement District, the special district Florida had created to give Walt Disney World a significant amount of governmental autonomy. Now it looks like Florida may not eliminate Reedy Creek entirely after all, but will drastically change what it can do.
The website for Osceola County Florida, one of two counties where Walt Disney World resides, has posted a notice that the state is seeking legislation that, it appears will not completely eliminate Reedy Creek, but will give the special district more state oversight. It will change the way that the governing body of Reedy Creek is selected, add new reporting requirements, and potentially eliminate some, but not necessarily all, of the powers given to the district. It will also apparently ensure that any debts owed by Reedy Creek will be paid by Reedy Creek, and not county taxpayers.
What Is The Reedy Creek Improvement District?
The Reedy Creek Improvement District was established by the state of Florida in 1967 at the behest of Disney and it gives the company a great deal of autonomy when it comes to managing Walt Disney World. Reedy Creek has its own building codes, its own fire department, and it maintains its own roads. On the one hand, the theme park resort has nearly unprecedented power, but at the same time it all means that Florida doesn't have to spend tax dollars on maintaining Disney World. The Reedy Creek Improvement District pays for everything by taxing Disney World itself.
Florida moved quickly to abolish Reedy Creek when the battle with Disney began. Perhaps a little too quickly as abolishing Reedy Creek entirely would have left tax payers on the hook for debts currently owed by Reedy Creek and would then require that state taxes cover all the things that Reedy Creek now pays for. The bill was passed last year and currently Reedy Creek is set to be dissolved later in 2023.
It was reported last month that Florida might reverse course of ending Reedy Creek, in part because the return of Bob Iger as CEO could give the state the appropriate political cover. While the governor’s office tells Fox News that’s not the case, the fact is that if the current legislation does move forward it will undo the core of the previous law, dissolving the district entirely.
Certainly even if Reedy Creek survives, if it undergoes significant changes that prevent Walt Disney World from doing what it wants, it could have significant ramifications on the resort. At the extreme end we could see Disney significantly reduce investment in new projects in Florida if doing so becomes too costly or complicated. We'll have to wait and see what the actual legislation looks like when it is released
