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Republican Florida Gov. Ron DeSantis has stuck it to Disney by finally seizing control of what was Disney’s self-governing district and informed the company that it has to pay $700 million in debt and start paying taxes. The governor, who has had a long, combative history with the company, took control of the Reedy Creek board on Monday.
“Florida is dissolving the Corporate Kingdom and beginning a new era of accountability and transparency,” DeSantis’s deputy press secretary told the Daily Mail.
The Daily Mail reported: “DeSantis will also rename the site, switching its name from Reedy Creek to the Central Florida Tourism Oversight District. A new bill was proposed by Florida politicians on Monday, which would give the governor full control over the district, and the ability to appoint the five-member board of supervisors that runs the special district. The nominees would then need to be confirmed by Florida state senators. The proposed legislation would keep in place Reedy Creek’s obligation to almost $1 billion of outstanding bonds.”
The five-member board is elected by residents of the district, with Disney essentially running the district as its own government.
With the new rules proposed, if passed, no one who has ever been affiliated with Disney would not be allowed to serve on the board.
“These actions ensure a state-controlled district accountable to the people instead of a corporate-controlled kingdom,” Jeremy Redfern, the governor’s deputy press secretary said.
If the rules are approved, it would forever eliminate the ability to govern itself.
Walt Disney World president Jeff Vahle said in a press release that the company is “monitoring the progression” of the legislation.
“Disney works under a number of different models and jurisdictions around the world, and regardless of the outcome, we remain committed to providing the highest quality experience for the millions of guests who visit each year,” he said.
The legislation would give board members term limits and would place the governor in charge of picking the board members.
It would also place Disney responsible for $700 million in debts so that it does not become the responsibility of the state’s taxpayers.
In May, while speaking at Seminole State College in Sanford, DeSantis reiterated his promise that Florida’s taxpayers will not take on Walt Disney World’s debt when and if the Reedy Creek Improvement District (RCID) dissolves in 2023.
The popular Republican governor suggested that some legislative measures may be put in place to prevent that from happening.
“I can tell you this, that debt will not end up going to any of these local governments. It’s not going to go to the state government, either. It’s going to absolutely be dealt with by (Disney and other businesses) that are currently in that district,” DeSantis said.
“We’re going to have a proposal to kind of make sure that that’s clear,” DeSantis said.
DeSantis wants the state to assume control of the Disney-dominated self-governing body, which has run the Orlando-area theme parks for over 50 years.
“More likely that the state will simply assume control and make sure that we’re able to impose the law and make sure we’re collecting the taxes,” DeSantis said.
Democrats in the state have attacked DeSantis for going after Disney, claiming the dissolution of RCID would force county taxpayers to foot the bill for more than $1 billion in bond debt.
DeSantis’ plan alleviates that concern.
“First of all, it’d be a cash cow for them if they had Disney,” DeSantis said, referring to the counties.
“But I’m worried that they would use that as a pretext to raise taxes on people when that’s what they would want to do anyway and then try to blame Reedy Creek, so we’re not going to give them that opportunity,” he added.
On Thursday, the Republican governor called for a special session of the state legislature in order to finalize procedures ahead of Disney’s special tax status coming to an end in June. The GOP legislature voted to strip the company of its status last May after then-CEO Bob Chapek publicly opposed Florida’s “Parental Rights in Education” law barring schools from presenting LGBTQ curriculum to K-3 students.
DeSantis told a news conference, “We’re not going to have a corporation controlling its own government.
“So the state’s going to have a board to run it. So Disney will not have self-governing status anymore. We’re not going to bend the knee to woke executives in California,” he said.
