Posted on 04/27/2022 4:01:43 PM PDT by Coronal
In a statement quietly posted April 21, Disney informed investors that despite the recent law abolishing its special tax district by 2023, the state of Florida can’t actually do that unless it also covers all outstanding debts associated with the district. Subsequently, the company told investors it intends to conduct business as usual for the time being.
In the statement, first reported by WESH in Florida, officials for the Reedy Creek Improvement District — the official name of the tax district in which Disney operates its Florida theme parks and also functions as the local government — assured investors that under the terms of the 1967 law that established the district:
“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.”
Specifically, the statement notes that “In the Reedy Creek Act the State of Florida has pledged to the holders of any bonds issued by the District: (1) that it will not limit or alter the rights of the District … until all such bonds together with interest thereon, and all costs and expenses in connection with any act or proceeding by or on behalf of such holders, are fully met and discharged.”
As a result, the statement says, Disney intends to continue “present operations” in Reedy Creek. Disney also said it is exploring “its options” in the meantime.
(Excerpt) Read more at yahoo.com ...
Upward of a billion dollars worth?
They’ll have to raise their prices. $500 to Park, $1000 entry ticket. Cotton candy $50, $100 hotdogs $30 sodas. Water $20. Rooms $2000 per night per person. Taxes not included.
Actually the state of Florida will make Disney sell the huge amount of property that borders the theme park to pay off the bonds. The 40 square miles of land is well worth way over 2 billion dollars.
Liberals playing word games but the truth is they will have to give up the huge amount of undeveloped property.
Corporations with real property in said district shall pay a real property tax rate of ... based on appraised valuation of improvements.
Business property tax in said district shall pay a business property tax rate of ... based on appraised valuation of equipment.
Amusements tax rate in said district shall be....
Excise tax on memorabilia shall be applied with the sales tax at the rate of...
Hint: Florida will BILL THEM. Disney is obligated to pay off those debts. Expect a new law enforcing this if Disney wants to FAAFO.
It just keeps borrowing money so the debt is never repaid and they remain a standing bureaucracy forever.
The state has a 9.5 billion dollar contingency reserve in its current annual budget. It could cover the billion if necessary.
What Disney really needs is a political champion that is smarter than Ron DeSantis - someone like Joe Biden; or Jill; or Kamala; or Stacy Adams.
Sure, Disney can stretch this thing out in the coming months but they face the prospect of an angry host governor and a united Republican legislature. I'm just hoping Disney will throw Brother DeSantis into the brier patch.
“Nooooo! We must be allowed to traffic children in the maintenance tunnels and grooooom them!” -Disney
They are probably trying to buy time to keep shredding all the internally policed investigations and coverups of pedo activity.
Disney sucks.
Have you ever been to Disney World? It is the same size as San Francisco. That would be physically and logistically impossible. The Reedy Creek district essentially functions as it’s own county. There will be legal posturing going on about this, probably for years.
CC
Courts will side with Disney on this one. If there is no Reedy Creek then all responsibility falls to the counties. Everything Reedy Creek paid for - water, sewage, roads, electrical, police, fire, etc. - will now be primarily the responsibility of Orange County. Debt will almost certainly be included in that.
Oh, pleeeeease don’t throw DeSantis into that briar patch! 🐰
Disney has it’s own building codes. And they’re so stringent, they’re used as a model for many other municipalities in Florida. The same is true of it’s fire and EMS services.
CC
Exactly. Issue bonds to pay off old bonds. Non issue
The debt wasn't Disney's. The debt was issued by Reedy Creek Improvement District. That is being eliminated by the state. If the county has to assume responsibility for all the infrastructure that Reedy Creek maintained they they'll likely be stuck with the debt too.
Careful, Disney. Florida could all you on default of your non-payments, foreclose, and start operating the park themselves.
Thereby pushing the debt onto future Floridians.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.