Walt Disney is among the largest employers in Florida and Disney World has been a central part of the state’s public image for decades.. Now, in a matter of days, the state legislature has passed a bill that could strip Disney of the special privileges the company has been granted for the last half century, a measure of quasi-governmental authority over a giant expanse of land. which includes parks and other properties.
On April 21, the legislature sent the bill to the governor Ron DeSantis, who already signed it. Some they say the move is punishment against the entertainment giant’s criticism of a recently passed Republican-backed lawwhich limits instruction on gender identity and sexual orientation in Florida schools.
In March, the DeSantis-backed law was born that bans discussion of gender identity and sexual orientation in public schools from kindergarten through third grade. The move, which opponents have called the “Don’t Say Gay” bill, was criticized by several companies. After its adoption, Disney released a statement saying the legislation “should never have been passed.” The company said it would work to overturn it in court.
That angered DeSantis, who said Florida is “governed by the interests of the people of the state” and not California corporate executives. Then, on April 19, DeSantis asked the state legislature to consider ending the special privileges Disney enjoys through the existence of the Reedy Creek Improvement District, a special district in Central Florida. Within hours, bills were introduced in the Florida House and Senate to cancel all special districts enacted in the state before 1968 without additional legislative action, including five other districts and Reedy Creek. The legislation moved quickly through both chambers and passed.
In the mid-1960s, company founder Walt Disney first explored the more than 25,000 acres of swampy land he would use to build the company’s second theme park.
With the closest power and water lines 11 miles or more away, Disney got the Florida legislature to create the Reedy Creek Improvement District. The special tax district was intended to help pay for the cost of services like power, water, roads and fire protection that the company would need to build iconic structures like Cinderella Castle and the Contemporary Resort.
Under its legislative statute, the district operates much like a local government, providing services such as road construction and maintenance, operation of fire and emergency medical services, waste and recycling collection, and management of utility systems such as water and energy.
The existence of the special district allows Disney to operate without much of the red tape that usually comes with dealing with local governments. Reedy Creek has its own building codes, called the Epcot Building Code, which establish standards and design criteria for rides and attractions, for example.
There is also a financial benefit: they can issue debt in municipal markets of US$4 billion for infrastructure projects and services. Municipal bonds are generally exempt from federal income taxes and therefore often offer a lower cost of borrowing than a traditional corporate bond.