Reedy Creek RIP

[BroadwayHermione5]

Already started that since this is already a win for Disney from dissolution to this new structure being presented. Disney still keeps a majority of its privileges.

The legal question will be the makeup of the board. Disney may not even have to be the ones to file legal claims about that and could still win back control of the board.

I was about to say what I read yesterday there are still a lot of things they are keeping. I forget who on Twitter broke it down between fact and myth but it was fairly interesting to see.

 

[hildarumpole]

I was thinking along the same lines as you. I don't know how much decision-making power the Reedy Creek board has over operations but for many corporations it is mostly advisory.

Now Floridia needs to take over control of the board at The Villages.

Think of Reedy Creek as a county board of supervisors and not a corporate board. They are responsible for making decisions about building permits, inspections, waste management, water & sewer, tax rates, emergency services, roads, land management, etc.

 

[Robbie Cottam]

It didn’t though. Disney still has its privileges afforded to it by the district. A few things previously afforded go away (nuclear power plant) but otherwise this only changes the board structure. Disney is still above all other companies on the playing field.

The only thing that puts them on level playing field is dissolution of the district.

So you are saying The state of Florida didn't do everything is should have to take away an unfair advantage that was afforded to Disney.

That their response was tempted?

 

[BrianL]

It didn’t though. Disney still has its privileges afforded to it by the district. A few things previously afforded go away (nuclear power plant) but otherwise this only changes the board structure. Disney is still above all other companies on the playing field.

The only thing that puts them on level playing field is dissolution of the district.

Yeah, and that's the thing - Disney was NOT EVER going to build a Nuclear Power Plant. They just weren't. It's a never-gonna-happen scenario and using that to call out the "unfair" advantages was disingenuous. Sure, Disney got some perks, but I'd hardly call them unfair considerinig their responsibility for the land and what they bring to the local economy.

 

[HokieRaven5]

So you are saying The state of Florida didn't do everything is should have to take away an unfair advantage that was afforded to Disney.

That their response was tempted?

Yes, the only thing they are fundamentally changing is the board structure. Disney still gets a vast majority of the privileges previously afforded to it.

Dissolution of RCID was the only way that Disney ever ends up on equal as any other company in the state. However that’s not possible without passing a tax burden onto Orange/Osceola County, as well as breaking I would imagine many Contract Laws by terminating the bonds before they expired (last one expires in 2030 I think) and that could have more far reaching consequences for the entire state.

 

[Robbie Cottam]

Yeah, and that's the thing - Disney was NOT EVER going to build a Nuclear Power Plant. They just weren't. It's a never-gonna-happen scenario and using that to call out the "unfair" advantages was disingenuous. Sure, Disney got some perks, but I'd hardly call them unfair considerinig their responsibility for the land and what they bring to the local economy.

The problem is where Disney was or was not going to build a power plant, the had the right too.
They also built an airport and shut down a major road to flying in a prop for a ride.

Universal has never been offered that right. Where you call them "perks" or rights they were never offered to the other parks and therefore was the state providing special services to one corporation and not another.

 

[Drew729]

I know I shouldn't but I'll bite.....

How would you propose the Disney would go about disputing this and keep it quietly Legally?
It is not like it is a private negotiation, they are dealing with the state, and possible the court system.

This whole Reedy Creek situation being played out publicly may benefit Disney as the optics of having a governor appoint all members of the board without any local representation coming from the district does not look great.

Without getting political, the board being hand picked by the governor gives those elected officials opposed to him and his ideals a very public talking point. In my opinion, those officials who oppose the governor will carry the torch in public while Disney works quietly behind the scene.

What does a win look like? I would guess that for Disney the board would consist of those who would keep things much the same as it’s always been. The governor gets to say he dissolved Reedy Creek and leveled the playing field while campaigning.

 

[Robbie Cottam]

This whole Reedy Creek situation being played out publicly may benefit Disney as the optics of having a governor appoint all members of the board without any local representation coming from the district does not look great.

Without getting political, the board being hand picked by the governor gives those elected officials opposed to him and his ideals a very public talking point. In my opinion, those officials who oppose the governor will carry the torch in public while Disney works quietly behind the scene.

What does a win look like? I would guess that for Disney the board would consist of those who would keep things much the same as it’s always been. The governor gets to say he dissolved Reedy Creek and leveled the playing field while campaigning.

Based on an article I read this morning I think that is exactly what is in the works.

But whatever Disney does, it need to be done quietly. A frontal assault on State of the Governor would look bad.

I would not be surprised if Disney and or Iger directly had some input in the direction the new RCID would go. as it seems like it is a win win ....

 

[RivShore]

There are some valuable advantages that Disney has had under RC, the one that i think is most valuable (from my Disney shareholder perspective) was the ability for a private company to issue "municipal" bonds. This gave them very favorble interest rates and I assume tax advantages. That was certainly unique in FL and maybe the country. Hopefully that ability remains (again from my shareholder perspective).

 

[BrianL]

The problem is where Disney was or was not going to build a power plant, the had the right too.
They also built an airport and shut down a major road to flying in a prop for a ride.

Universal has never been offered that right. Where you call them "perks" or rights they were never offered to the other parks and therefore was the state providing special services to one corporation and not another.

I guess...so what? Yeah, Disney got perks that other's don't - they were also responsible for everything within the distict. Other parks don't have to steward land like that. Each case is different and not every situation should be handled the same way. I just don't see how the state government can assume all control and none of the responsibility - they want to have their cake and eat it too. That's the real issue.

 

[HokieRaven5]

The problem is where Disney was or was not going to build a power plant, the had the right too.
They also built an airport and shut down a major road to flying in a prop for a ride.

Universal has never been offered that right. Where you call them "perks" or rights they were never offered to the other parks and therefore was the state providing special services to one corporation and not another.

Comcast also relies on the City of Orlando to provide all of their infrastructure services to their property. Utilities, roadways, emergency services, all provided by the City of Orlando.

Disney, pays for and maintains all of their own infrastructure through RCID and pays at a higher rate than Comcast does the City of Orlando because RCID is allowed to tax at a higher millage rate for those services.

I believe when RCID was reviewed in the early 2000s when Comcast was under consideration to purchase Disney the state came to the conclusion that Comcast could essentially take it over and run it similarly to Disney. So yes, Universal could’ve had those privileges if that sale ever happened.

 

[Robbie Cottam]

There are some valuable advantages that Disney has had under RC, the one that i think is most valuable (from my Disney shareholder perspective) was the ability for a private company to issue "municipal" bonds. This gave them very favorble interest rates and I assume tax advantages. That was certainly unique in FL and maybe the country. Hopefully that ability remains (again from my shareholder perspective).

I would assume, that Since Disney has been divorced from the municipality they will lose that privilege.
I would also assume that the municipal roads I'm sure those bonds were used to build and maintain will become the problem of the new district.

 

[Robbie Cottam]

I guess...so what? Yeah, Disney got perks that other's don't - they were also responsible for everything within the distict. Other parks don't have to steward land like that. Each case is different and not every situation should be handled the same way. I just don't see how the state government can assume all control and none of the responsibility - they want to have their cake and eat it too. That's the real issue.

That is call governmental BIAS
Or Discrimination
and it is wrong,

 

[BrianL]

That is call governmental BIAS
Or Discrimination
and it is wrong,

There was never anything biased about it. It wouldn't have stood for 50 years if it was. There are actually other special districts in Florida and all over the country too, for various reasons and with various benefits and responsibilities. There's nothing inherently wrong with that.

 

[Wood Nymph]

What all of this looks like from my point of view as a non-Floridian from a Midwest state is that this move was retaliation for something unrelated to theme parks and how the Reedy Creek district was run. Does the state of Florida appoint the board members of other special taxing districts or is this unique to Reedy Creek?

 

[WEDcryoHEAD]

Severe Government overreach / Abuse of Power may be a bit dramatic.

 

[BrianL]

Severe Government overreach / Abuse of Power may be a bit dramatic.

Considering the impetus, I wouldn't at all.

 

[Smugpugmug]

Severe Government overreach / Abuse of Power may be a bit dramatic.

It kind of isn't tbh. This is happening because Disney is being punished for having an opinion.

 

[mdmost]

And government overreach is also dangerous for society. So is unchecked power of the executive branch of a state.

I think Disney will sue through other parties such as land owners in the district and homeowners. Taxation without representation is a fairly accurate claim Disney and others will have since they have been shut out of their own district and have no say over who can be representing their interests. But I'll add that there is really nothing Disney needs to do right now and I'm sure Iger wants to take a wait and see approach. I think when the board comes in they will see just how complex things are and not try to do too much to upset how things are run.

 

[WEDcryoHEAD]

If Reedy Creek is dissolved then that district will have to be absorbed by the State and they will be able to elect officials to represent their interests I am sure.

Also the State Govt. has the same branches as the Federal Govt. There is a State Congress, so there is no unchecked executive power. There is a full and duly elected State House and Senate. Just because the party in power gets to make the rules doesn't mean the executive is unchecked. As someone once said "Elections have consequences" If the people of Fla. are unhappy with the Executive or any aspect of Govt. they can vote them out. That is the Beauty of democracy.