Home U.S. Disney says Florida would have to pay nearly $1 billion to dissolve district : NPR

Disney says Florida would have to pay nearly $1 billion to dissolve district : NPR

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Florida plans to dissolve Walt Disney World’s special district next summer, but hasn’t answered many questions about what happens to the resort’s nearly $ 1 billion debt.

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Florida plans to dissolve Walt Disney World’s special district next summer, but hasn’t answered many questions about what happens to the resort’s nearly $ 1 billion debt.

Octavio Jones / Getty Images

Florida faces major obstacles to depriving Walt Disney World of its semi-autonomous position in the state. What to do with nearly $ 1 billion in debt in special districts.

When Florida established the Reedy Creek Improvement District decades ago, the resort complex’s steering committee promised that the state would protect the district’s debtors and not change their status until all debt was paid off. It states.

Disney district has withdrawn receipts since the 1960s

The pledge of debt is in the Reedy Creek Act enacted by the state in May 1967, the district said in a statement filed with the Municipal Securities Rule-making Commission.

Reedy Creek states that when the state adopted the law, it made several promises to bondholders:

  • Do not limit the district’s ability to “fulfill the terms of the contract entered into with the holder of the bond or other obligation”.
  • Do not change the arrangement without compromising the rights of bondholders or until all bonds, costs, and costs are “fully filled and discharged”.

With these commitments, the district said, “while continuing its current activities, it seeks out its options,” despite plans to revoke its position.

Moody’s Investors Service also quoted its pledge on Tuesday as it confirmed Leady Creek’s solid investment grade rating, but the agency changed its outlook from “stable” to “evolving.”

A lawyer in Orange County, who specializes in local government and property proceedings, said state movements could not hold up under the proceedings, as reported by WMFE at Member Station.

Attorney Jacob Schumer said the state has several options for dealing with the situation.

The dissolution bill quickly raised a chain of questions

Governor Ron DeSantis signed a controversial bill on Friday to dissolve Disney’s “Independent Special District” in June 2023. Critics called him “don’t call me gay.”

The Florida State Capitol submitted and approved the dissolution bill in just three days last week, suddenly opening a new stage in the relationship between Florida politicians and the state’s most famous tourist attractions.

This issue was a hot topic when the district supervisory board met on Wednesday. The Associated Press is a current retired firefighter from funding a solar project.

Reedy Creek operates as its own county government

For almost 55 years, the Reedy Creek deal has given Disney almost complete control over about 40 square miles of land in Central Florida. It operates as a de facto county government, issuing bonds and collecting taxes to provide essentials such as water, roads, fire and emergency services.

As the state opposed Disney, the district’s debt was quickly worried. This is especially true in Orange County and Osceola County, which span districts. This is because the Florida Senate’s financial impact analysis of the bill found that when a county takes over a special district, it almost always “takes on all the debt of the existing special district.”

County officials have expressed their own concerns about the sudden emergence of responsibility for providing essential emergency services to the region.

“Without Leady Creek, we’ll run out of the $ 105 million we’ve raised to run the service,” said Scott Randolph, a Democrat who is a tax collector in Orange County. Via Twitter..

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1 comment

trainman6 April 29, 2022 - 11:33 pm

Disney ca go bankrupt for all that I care, now that they have come out as pro pedophilia, pro LGBTQ+P pro queer pro everything that is not family oriented. So they can go to hell for all that i care.

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