Florida Strikes Down Disney’s Reedy Creek: Now What Happens?

April 25, 2022  ·
  Pamela Fitzgerald

I guess it has to be simplified in the national news so as to be understandable in a fifteen second soundbite. Still, if you think the battle over Walt Disney World’s self-governing powers and the Reedy Creek District are over, I suspect they may just be beginning.

Even if Disney chooses not to fight with a legal challenge, the transition to Disney only having two sorta-cities they own and control over their theme parks will be a more-than-a-year process. According to the legislation signed into law by Governor Ron DeSantis last week, Disney still maintains control of the Reedy Creek Improvement District up until June 1st, 2023. At that point, the dissolution of the special district would likely transfer assets and liabilities, as well as responsibilities, to the two cities which control it: Lake Buena Vista and Bay Lake. The only problem is that these two “cities” are controlled entirely by Disney, owned entirely by Disney subsidiaries, have less than one-hundred residents combined, and may or may not be performing all their real city duties in a way that would hold up against scrutiny.

For a primer on all of this, I recommend watching WDW Pro’s interview with YouTube channel and entertainment industry expert, Valliant Renegade:

 

So now what?

Let’s start with one of the funnier things to happen so far: Republican infighting. 

You may have thought that DeSantis would have total support of conservatives who have been turned on to Disney’s efforts to include propaganda in children’s programming. Not so, however. Whether it is because DeSantis is a potential threat to a Trump presidential run or because of sincere philosophical beliefs, a very small group of Republicans are striking out against DeSantis and the revocation of Disney’s government powers. Taking away a corporation’s government powers might be seen as smaller government by some, but not from these Republicans soured on DeSantis’ take. One popular Republican commentator, Jenna Ellis, has gone so far as to offer to represent Disney in court pro bono. I wouldn’t hold my breath waiting on Disney to accept the offer:

 

Just perusing social media, it doesn’t appear that the alternative conservative position that DeSantis is inappropriately attacking Disney is taking hold. Instead, I suspect this is a very small percentage of Republicans or conservatives and that all of this will fizzle. Still, if enough right wing pundits latch onto this sort of thinking, it could could make the Florida legislature less likely to join DeSantis in his next quests:

 

More Legislation on the Way

“These are videos of very high-up people in this corporation and Disney, and they’re talking about their intentional agenda to inject sexuality in the programming that’s provided to our youngest kids — my own kids’ ages, 5, 4 and 2,” Mr. DeSantis said. “That is just fundamentally wrong. I’m just not comfortable having that type of agenda get special treatment in my state. I just can’t do it.” — Washington News

Though many news organizations have been declaring that taxpayers will be the ones footing the bill with residents of Osceola and Orange Counties taking on Disney’s billion dollar debt, that’s ignoring DeSantis’ promise to dole out more legislation. According to DeSantis, there are going to be more laws passed that will ensure Disney does not get out of this by dumping debt on others. Instead, DeSantis seems determined to have Disney end up paying far more to make up the difference for the services they will be required to receive from local and state government provisions.

 

A Multitude of Legal Challenges

If Republicans had been moderated and practiced and enough, they could have passed the legislation under the guise of principle that companies shouldn’t have their own government powers. However, many of the Florida legislators have gone full-brazen mode, declaring that they passed the legislation to punish Disney. That opens up a can of worms for anyone who wanted to see Reedy Creek Improvement District actually dissolved. Instead, stating outright that a legislative action was taken to harm a company will likely make some judges pause and consider overturning the dissolution.

“People wanted to deal with the special district for decades. Disney had the political power to prevent it for decades. What changed is bringing California values to Florida. Floridians said, ‘You are a guest. Maybe you don’t deserve the special privileges anymore.’” — State Rep. Randy Fine

That gives Disney an argument that they have been targeted for free speech. Though it may not be a winning argument (we won’t prejudge its chances), there are plenty more hurdles ahead. Disney can claim that the legislature revoked a permanent statute with a newer statute. Disney can argue that the two sorta-cities they control are the sole sovereign powers that can dissolve RCID. Who knows how any of that turns out with unpredictable, and sometimes unprecedented, court challenges? One thing seems likely though: this is going to be in the Florida court system for years. The biggest winner in all of this would be lawyers — there will be many coastal estates purchased as a result of all this legal mess upcoming.

And if you think all of that is already head-spinning, don’t forget that Disney may be willing to forfeit RCID if they are able to protect their sorta-cities that give them governmental powers without having any real residents like you might see in a real city. Will Florida start inspecting those as well?

 

So what are your thoughts on all of this legal and political mess on the way? Let us know in the comments below! As always, keep checking out That Park Place for all the latest news and analysis!

 

Author: Pamela Fitzgerald
Joining That Park Place in August of 2021, Pamela Fitzgerald is a freelance writer covering entertainment and theme parks. Mrs. Fitzgerald has a special fondness for Walt Disney World, and especially focuses on theme park discounts for military, first responders, and other critical employees looking for vacation fun.