Posted May 2, 20223 yr The Contractual Impossibility of Unwinding Disney’s Reedy Creek https://news.bloombergtax.com/tax-insights-and-commentary/the-contractual-impossibility-of-unwinding-disneys-reedy-creek There’s been a lot of talk about whether Florida lawmakers can legally dissolve Disney’s Reedy Creek Improvement District, but there’s one basic reason why Florida can’t dissolve it—it promised bond purchasers that it wouldn’t, says Jacob Schumer of Shepard, Smith, Kohlmyer & Hand. [...] Reedy Creek has the powers of many special districts rolled into one—the power to build roads, the power to build a drainage system, the power to build power utilities, and more. But Reedy Creek also has unique and remarkable powers, in some ways over and above even cities and counties. One of the district’s most-discussed features is that it is exempt from all Orange County and Osceola County regulations regarding building, zoning, construction, safety, sanitation, and more—a feature that the enabling act describes as “essential” to its purposes. [...] Reedy Creek, like other special districts, can borrow money by issuing bonds, which can then be purchased by investors looking for fixed payments. Just like any other debt, the terms of the bond are based on the specific bond contract at issue. Reedy Creek is authorized to issue a few different kinds of bonds, but the most important ones are those that promise to pay from the property taxes collected by the district and those that pay from utility system revenue. [...] The bill dissolving Reedy Creek doesn’t say what should happen to these debts, but another statute does: By default, the local general-purpose government—the county—assumes the district’s debt, along with all of its assets. This means that theoretically, Orange and Osceola counties will inherit upward of $1 billion in bond debt.
May 2, 20223 yr Author Disney’s special district tells investors state can’t dissolve it without paying debt https://www.miamiherald.com/news/politics-government/state-politics/article260783972.html Disney, however, noticed and the Reedy Creek Improvement District quietly sent a note to its investors to show that it was confident the Legislature’s attempt to dissolve the special taxing district operating the 39-square mile parcel it owned in two counties violated the “pledge” the state made when it enacted the district in 1967, and therefore was not legal. The result, Reedy Creek told its investors, is that it would continue to go about business as usual. [...] Proponents of the bill “had some misconception that Disney’s getting some special property tax break for Reedy Creek,’’ said Scott Randolph, Orange County tax collector. “It’s not.” [...] “Orange County gets Reedy Creek’s assets, debts and obligations,’’ he said. But the cost of providing its services is $105 million a year and the cost of its debt services is $58 million a year and so if Reedy Creek is dissolved those assets and liabilities would be absorbed by Orange County’s $600 million budget, he said. “Unless they want to cut services and cut spending elsewhere, they’re going to have to find a way to absorb $163 million,’’ Randolph said. He estimates the average increase in taxes would be $200-$250 per year for the median household until the bonds are paid off.
May 2, 20223 yr Desantis is playing from the Trump blueprint. You don't actually have to do anything. Just get the headline and claim victory. The assumption is that the voters are too dumb to realize what they are doing. Edited May 2, 20223 yr by freefourur
May 3, 20223 yr til -- reedy creek isn't unusual. it's just it's use and that that disney is prominent. apparantly there are 1800 reedy creeks in florida alone -- and 48k around the usa: more, but wsj paywall: https://www.wsj.com/articles/special-districts-unaccountable-power-come-true-disney-reedy-creek-new-deal-dont-say-gay-debt-spending-nassau-property-tax-11650897481
May 3, 20223 yr Author Right, there is nothing that unusual about a special district like this. It reminds me a lot of the "Metropolitan Government" concept that exists in the state of Oregon, where a multi-county region elects a board that handles long-term planning, certain types of infrastructure, transit, etc. within that district. The unique thing about Reedy Creek is that it primarily (or entirely?) contains one land owner, so they're effectively paying taxes to themselves for the benefit of their own infrastructure. But, then again, that's not that different than how many TIF districts work in Ohio cities.
May 3, 20223 yr ^In Ohio, they probably most closely parallel New Community Authorities (NCAs). Many times these pertain to one development, and thus one landowner as well. There are myriads of other special districts as well.
June 1, 20223 yr here is an example of an ohio nca i found in the news -- its in richmond heights --- the belle oaks at richmond development: https://www.cleveland.com/community/2020/05/richmond-heights-council-has-to-make-nca-decision-to-keep-belle-oaks-project-going.html
March 29, 20232 yr DeSantis’ Reedy Creek board says Disney stripped its power Quote Gov. Ron DeSantis’ handpicked board overseeing Disney World’s government services is gearing up for a potential legal battle over a 30-year development agreement they say effectively renders them powerless to manage the entertainment giant’s future growth in Central Florida. Ahead of an expected state takeover, the Walt Disney Co. quietly pushed through the pact and restrictive covenants that would tie the hands of future board members for decades, according to a legal presentation by the district’s lawyers on Wednesday. https://www.orlandosentinel.com/news/os-ne-disney-new-reedy-creek-board-powerless-20230329-qalagcs4wjfe3iwkpzjsz2v4qm-story.html It looks like Disney has outsmarted DeSantis. No wonder Disney has been quiet about DeSantis's plans to take over the board. Edited March 29, 20232 yr by freefourur
March 30, 20232 yr It "shall continue in effect until 21 years after the death of the last surviving descendants of King Charles III, living as of the date of this declaration." 🤣 A thread... "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 30, 20232 yr Disney entered into the agreement at a public meeting. The agreement has been public for months. DeSantis's people must be completely incompetent for not paying attention to Reedy Creek meetings.
March 30, 20232 yr 6 hours ago, KJP said: It "shall continue in effect until 21 years after the death of the last surviving descendants of King Charles III, living as of the date of this declaration." 🤣 A thread... This is hilarious and also explains why Disney hasn’t really said anything about the situation. They already knew what they did and aren’t worried at all hahahah
March 30, 20232 yr 11 hours ago, urb-a-saurus said: ^LOL, they were asleep at the switch. Apparently, noone "WOKE" them up. likely desantis was well aware and paid off handsomely or just ignored it or something. in other words he got his hype boost from very publically fake battling with disney.
April 4, 20232 yr If he was aware, this is a strange and fascist way of showing it. It would be easier for Disney to remove DeSantis than for Disney to remove itself to a free state. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 4, 20232 yr Why do we have this thread? Is anyone actually going to post any Disney development news here? We already have threads for discussing DeSantis in the Current Events section, and all of this conversation should go there.
April 8, 20232 yr ^ agreesd — i vote nuke it. or maybe just change the title to an orlando thread? in case anyone wants to follow actual disneyland developments, this is an unexpected one i see … affordable housing: Disney announces developer for affordable housing project in Central Florida By FOX 35 News Staff Published November 16, 2022 ORLANDO, Fla. - Walt Disney World has chosen a developer for its newaffordable and attainable housing development, which will be built on approximately 80-acres of land in southwest Orange County, Florida just miles from the theme park resort. The development – which will be privately financed – will be built, owned and operated by The Michaels Organization, Disney announced in a news release on Wednesday. It will be located west of State Road 429 and just a couple of miles from Flamingo Crossings Town Center. more: https://www.fox35orlando.com/news/disney-affordable-housing-new-details-released-for-80-acre-real-estate-project-in-central-florida
April 24, 20232 yr a current rundown: Check out the new towers coming to Central Florida’s skyline By Dustin Wyatt Orlando Sentinel Mar 09, 2023 more: https://www.orlandosentinel.com/business/real-estate/os-bz-central-florida-towers-development-20230309-v6u7tblde5dzlcwzvvjyztudxq-story.html Several highrise construction projects are planned for the Orlando area, although some are moving slowly. (GrowthSpotter files)
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