Gov. Ron DeSantis wants Florida lawmakers to strip Disney World of its self-governing powers and put the state in charge of the Reedy Creek Improvement District.
A notice published on Osceola County’s website on Friday states that lawmakers will take up legislation “increasing state oversight, accountability, and transparency” of the district, which gives Disney quasi-government control over its theme park properties in Florida.
The Legislature and DeSantis dissolved Reedy Creek last year amid Disney’s dispute with the governor over what critics call the “don’t say gay” bill.
“The corporate kingdom has come to an end,” said Taryn Fenske, a DeSantis spokeswoman. “Under the proposed legislation, Disney will no longer control its own government, will live under the same laws as everyone else, will be responsible for their outstanding debts, and will pay their fair share of taxes. Imposing a state-controlled board will also ensure that Orange County cannot use this issue as a pretext to raise taxes on Orange County residents.”
State Sen. Linda Stewart, D-Orlando, said she’s concerned putting the state in charge of the district could have major implications for Central Florida by disrupting Disney’s business operations, a major employer and economic engine for the region.
“We really don’t know the direction,” she said. “It sounds to me from that quote [DeSantis] is doubling down 100%. He is not even discussing a compromise.”
Disney and the Reedy Creek Improvement District did not respond to requests for comment.
Senate President Kathleen Passidomo, R-Naples, described the notice as a procedural step that “starts the legally required timeframe necessary to move forward with developing a local bill to end the self-governance of The Walt Disney World Co., while protecting local taxpayers from Disney’s debts.”
A bill hasn’t been filed in the Legislature. Osceola County posted the notice as a courtesy to state Rep. Fred Hawkins’ office, county spokesman Mark Pino said. Hawkins, R-St. Cloud, did not return a message seeking comment.
Reedy Creek, which encompasses Disney World and neighboring properties, has the power to issue tax-free bonds, levy taxes, oversee land use and environmental protections and provide essential public services.
Reedy Creek is overseen by a five-member Board of Supervisors. As the primary landowner, Disney gets to select who sits on the board.
The notice mentions removing and revising the district’s powers; increasing state oversight, accountability, and transparency; revising the selection process, membership qualifications, and compensation for the governing body; ensuring debts and bond obligations held by the district remain with the district and are not transferred to other governments; revising the district’s regulatory framework and structure; and instituting reporting requirements, including a review of the district’s remaining powers.
Last year, the Florida Legislature voted to abolish Reedy Creek effective June 1, 2023, but left open the possibility of reconfiguring the district. DeSantis then said he wanted to put state appointees on the board while ensuring that Disney would continue to pay the taxes needed to maintain services for its theme park and resort properties.
In a statement, Orange County Mayor Jerry Demings called Disney an “outstanding community partner” and praised the entertainment giant “for having the willingness to continue investing in Orange County.”
“We look forward to working with the Reedy Creek Improvement District for many years to come,” he said Friday. “Any statements made by state officials to suggest that Orange County would use the dissolution of the Reedy Creek Improvement District as a pretext to raise taxes on its residents is … baseless.”
DeSantis clashed with the Walt Disney Co. over its opposition to HB 1557, officially titled Parental Rights in Education but known as the “don’t say gay” law by critics. That law prohibits classroom instruction on sexual orientation or gender identity for grades kindergarten through three or in a manner that is not “age appropriate.”
DeSantis blasted Disney as a “woke” corporation, and Disney halted its political giving in Florida.
With Republicans holding solid majorities in the House and Senate, DeSantis hasn’t had any problems getting his priorities through the Legislature. Lawmakers will kick off their regular session in March.
The move came on the same day DeSantis transformed the Board of Trustees for the New College of Florida, installing six new members to oversee the small liberal arts college in Sarasota. One of the appointees is Christopher Rufo, a conservative writer and activist who has fueled battles against critical race theory.
News Service of Florida contributed to this report.
sswisher@orlandosentinel.com
