Florida can’t dissolve district without paying debt

WEST PALM BEACH, Fla. — The Walt Disney Co. has remained publicly silent since Florida Gov. Ron DeSantis signed a legislation final week dissolving the Reedy Creek Improvement District, however a letter to buyers reveals they are not happening with no battle.

The Reedy Creek Improvement District provides Disney the precise to manipulate itself like a metropolis. It permits Disney to boost its personal revenues to pay for municipal infrastructure bills like roads, waste providers, hearth security and water at Disney World. Reedy Creek additionally points bonds and levies taxes on properties inside its boundaries, which border the Orlando space, successfully on behalf of Disney.

The legislation, which DeSantis signed in a particular legislative session, would finish any unbiased particular district the Legislature established earlier than Nov. 5, 1968. The Reedy Creek Improvement District was established in 1967.

Disney lately informed buyers the state can be unable to resolve the district with out paying for the district’s excellent debt obligations of about $1 billion. In the meantime, the district is contemplating its choices whereas conducting enterprise as common.

In the doc acquired by WESH 2 in Orlando, Reedy Creek officers reminded buyers that Florida has pledged to meet the phrases of any settlement made with bond holders.

“Pursuant to the requirements and limitations of Florida’s Uniform Special District Accountability Act, which provides, among other things, that unless otherwise provided by law, the dissolution of a special district government shall transfer title to all of its property to the local general purpose government, which shall also assume all indebtedness of the preexisting special district,” the doc reads. “In light of the State of Florida’s pledge to the District’s bondholders, Reedy Creek expects to explore its options while continuing its present operations, including levying and collecting its ad valorem taxes and collecting its utility revenues, paying debt service on its ad valorem tax bonds and utility revenue bonds, complying with its bond covenants and operating and maintaining its properties.”

The dissolution act was handed after weeks of rigidity between DeSantis and the Walt Disney Co. over the passage of the controversial Parental Rights in Education legislation, identified by critics because the “Don’t Say Gay” legislation.

In response to the legislation, Disney suspended its political donations within the state after LGBTQ advocates who work for the corporate criticized CEO Bob Chapek for what they mentioned was his gradual response talking out towards it.

This article was written by Victoria Lewis for WPTV.

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