The following article deals with rumors and legal theories. It should not be taken as a statement of fact or impending fact. This article should be read and is intended to be read for enjoyment. It is not an article which any person should use to make any legal or economic decisions in regards to any of the mentioned parties within this article. The Featured Image is provided courtesy @BioReconstruct and is included as part of a Twitter post provided in the article.
As you might imagine in a situation like The Walt Disney Company has found itself, there is a flurry of activity behind the scenes in regards to The Reedy Creek Improvement District. When I refer to the RCID, I’m talking about the special district in Central Florida which is supposed to be managed by two cities: The City of Bay Lake and The City of Lake Buena Vista. These two cities, combined with the RCID, govern Walt Disney World and provide the Disney Company with governmental powers wholly unique to WDW Resort. There are a number of issues with these cities which we will table for the time being given that this article has other issues to address.
So we’ve covered this at length here at That Park Place. In fact, I would say we’ve been the number one source in relaying true information regarding RCID issues over the last month. But one thing we have not yet discussed is what is likely to occur with Walt Disney World over the next fourteen months as we draw closer to the proposed RCID dissolution that was signed into law by Governor Ron DeSantis. I’ve chatted with our legal analyst here at That Park Place, and I’d like to begin by outlining where this could go from the standpoint of Disney World’s options:
- We should find out at some point in the future who is the underwriter for the Reedy Creek bonds that have liabilities north of a billion dollars. The underwriter is important for how much of this will play out.
- The Walt Disney Company is going to struggle finding a way into court to take on Florida over this issue. The reason is that RCID is a special district governed by two municipalities that are supposed to be separate from The Walt Disney Company. Therefore, Disney itself is a third party to any claim against damages done to the RCID.
- However, the RCID could file for an injunction and claim that damage has been done by the State of Florida for a variety of possible legal theories. There are two problems with this strategy. A) This could expose the special district to scrutiny of the municipalities that it may not want, and B) such a legal action would likely require approval by said municipalities. It also would put the legal proceedings into Florida courts, which might not be as likely a place for Disney to find a positive ruling.
- If Disney itself seeks to file legal action to protect RCID they would likely do so using Florida politicians’ statements against Disney to argue a first amendment Citizens United style claim. They might claim that the Florida legislature specifically looked to harm Disney for their corporate first amendment rights. If they do this, it goes to the federal court system. However, Disney would have to prove standing to get to this point.
- This is an election year for DeSantis and Disney might be most well-served via a public concession of some sort that would open the door to the reinstatement of the special district.
Aerial view of the Disney Springs Lime and Grapefruit parking garages.
These are municipal facilities owned/operated by Reedy Creek Improvement District. Traffic infrastructure, like municipal roads, and general parking is free. pic.twitter.com/8CdsZWpxvM
— bioreconstruct (@bioreconstruct) March 2, 2019
Legal issue aside, there are also operational and planning issues that might come to light within the Walt Disney World Resort as Disney prepares for a potential dissolution of RCID. Because their governmental powers allow them special construction options that could be difficult to acquire from a standard government (or more difficult), Disney may be keen to push permits and long-term construction plans through the RCID plan prior to potential dissolution. Here are some of the projects I am told may come to light as a result:
- Disney has long wanted to institute a transportation infrastructure between Animal Kingdom Lodge and Animal Kingdom. This would probably come in the form of a cable car. Disney may seek to push this through all the permits, requirements, clearances, etc, prior to the RCID dissolution.
- Likewise, Disney may attempt to do so with a potential Skyliner connection to Animal Kingdom itself.
- Should Disney ever want to institute a Monorail expansion, we might see documents related to such. That would not make a Monorail expansion more or less likely (it’s very unlikely), but it would simply outline and approve future potential lines.
- Any construction opportunities that Disney World may have planned for the future which could use experimental construction methods or methods outside standard practices are likely to be brought to light as RCID has the power to approve such.
- There may be efforts to extend the city boundaries of Lake Buena Vista and Bay Lake to encompass parts of The Walt Disney World Resort which could fall completely outside of all Disney municipal control.
- Anything to do with transportation, parking, etc, would likely be pushed hard for approval, but with RCID’s dissolution they may not be possible for Disney to seek. RCID may attempt to transfer things like parking garages to the oversight of Lake Buena Vista and Bay Lake.
Overall, the amount of legal and operational work to be done by Disney is like an avalanche. It will be very interesting to watch and see what they do as they prepare for the potential that RCID is dissolved… and in the event that Florida might strike Lake Buena Vista and Bay Lake charters. We’re just getting started.
For all the latest news that should be fun, keep checking out That Park Place. Feel free to comment if you have any thoughts on this massive endeavor Disney must now undertake.
