In all of the fight over Disney and DeSantis, often the history of Disney World’s Reedy Creek Improvement District is lost. Let’s take a moment to reacquaint ourselves in detail with what it is, exactly, that is being fought over.
The Reedy Creek Improvement District (RCID) is a special district in Florida, USA, created in 1967 by the Florida State Legislature to serve the Walt Disney World Resort, which was being developed at the time. The district covers an area of 25,000 acres, including the Magic Kingdom, Epcot, Disney’s Hollywood Studios, Disney’s Animal Kingdom, two water parks, several golf courses, hotels, and residential areas. The district is unique because it is self-governed, meaning that it has the power to levy taxes, issue bonds, and make its own regulations, independent of the county or state government.
The creation of the RCID was necessary because the Walt Disney Company wanted to have control over the land around its theme parks. The company feared that if it did not have control over the development of the area, it would be subjected to zoning laws and regulations that would be unfavorable to its business interests. Therefore, the Walt Disney Company lobbied the Florida State Legislature to create a special district that would be under its control.
The RCID was governed by a board of supervisors who are appointed by… essentially Disney. Now, that power has been given to the state government. The board is responsible for managing the district’s finances, providing public services such as police and fire protection, and regulating land use and development. The board has the power to make decisions without the approval of the county or state government, which gives it significant autonomy.
One of the ways in which the RCID granted an unfair competitive advantage to the Walt Disney Company is through its taxation policy. The district had the power to levy taxes on property owners within its boundaries, and these taxes are used to fund public services such as police and fire protection. However, the RCID also had the power to create special taxing districts within its boundaries that can be used to fund specific projects, such as infrastructure or transportation. These special taxing districts are not subject to the same regulations as other taxing districts in Florida, which means that the RCID can create them without the approval of the county or state government.
This ability to create special taxing districts has allowed the Walt Disney Company to fund infrastructure projects that have given it an unfair competitive advantage over nearby theme parks. For example, in 2010, the RCID created a special taxing district to fund the construction of a $318 million highway interchange that connected the Walt Disney World Resort directly to Interstate 4. This interchange reduced traffic congestion and made it easier for guests to get to the theme parks. However, other theme parks in the area did not have access to this infrastructure, which put them at a competitive disadvantage.
MEETING FOOTAGE: Central Florida Tourism Oversight District legal counsel and DC trial attorney David H. Thompson reveals emails between Disney lawyers over "optics" concerns and argues the developer agreement is unconstitutional. Much more in our full video! pic.twitter.com/aSHYWW8qq8
— Mickey Views (@MickeyViews) April 19, 2023
Another way in which the RCID gave an unfair advantage to the Walt Disney Company is through its land use and development regulations. The district had the power to regulate land use and development within its boundaries, which means that it can approve or reject development projects that are proposed by property owners within the district. This power has allowed the Walt Disney Company to control the development of the area around its theme parks, which has helped to maintain the company’s image and brand.
The relationship between the Walt Disney Company and the RCID was complex and has been the subject of much debate. The company has a significant amount of control over the district, which has led some to question whether the district is truly independent or if it is merely an extension of the Walt Disney Company. Some critics have also raised concerns about the lack of transparency and accountability in the district’s governance, as well as the potential for conflicts of interest.
The Villages is another special district in Florida that is often cited as an example of the problems associated with special districts. The Villages is a retirement community in central Florida that spans three counties and has a population of over 100,000 residents. The community is governed by a special district, the Village Center Community Development District. However, there are major differences between The Villages and Reedy Creek.
First, the VCCDD was not created to serve a single private entity like the RCID. Instead, it was created to serve a community of residents who live in The Villages, a master-planned retirement community in central Florida. The VCCDD is responsible for providing public services such as police and fire protection, maintenance of roads and infrastructure, and recreational amenities like parks and golf courses. Second, the VCCDD is governed by a board of supervisors who are elected by residents of the community. In contrast, the RCID is governed by a board of supervisors who are appointed by the Governor of Florida. This difference in governance structure means that the VCCDD is more directly accountable to its constituents than the RCID. Third, the VCCDD operates under more oversight and regulation than the RCID. The VCCDD is subject to the oversight of the Florida Department of Economic Opportunity, which ensures that the district complies with state law and regulations. The VCCDD is also subject to the Florida Sunshine Law, which requires that its meetings and records be open to the public. In contrast, the RCID operates under its own set of regulations and is not subject to the same level of oversight or transparency requirements as other special districts in Florida. Finally, the VCCDD has a different tax structure than the RCID. The VCCDD has the power to levy taxes on property owners within its boundaries, but these taxes are subject to a cap that limits the amount that the district can collect. In contrast, the RCID has the power to levy taxes without a cap, which has allowed it to fund large infrastructure projects like the highway interchange that connects the Walt Disney World Resort to Interstate 4.
Ultimately, the RCID was unlike anything even approximating any other special district. I bring up The Villages as an example because it’s the closest thing to its own entire city that I can think of. And yet, not even The Villages, has powers like what Reedy Creek Improvement District was able to do. Truly, Disney had its own self-sovereignty right there in Central Florida. But that now appears to be gone.
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You started out discussing the old RCID, but then pivoted to discussing the new RCID without clarification.
“In contrast, the RCID is governed by a board of supervisors who are appointed by the Governor of Florida.”
This is the new RCID, that is now the CFTOD. The old Board of Directors is obviously appointed by Disney somehow.
I appreciate the explanation. I have been trying to read all the articles to see what exactly is going on and this gives me a better idea. Thanks!