All that remains is for Governor Ron DeSantis to sign off on the bill which will place government-appointed officials in charge of Walt Disney World's operating district, and Disney seems resigned to moving forward under the new arrangement.
Earlier this week, the bill to replace the 50-year old Reedy Creek Improvement District with the Central Florida Tourism Oversight District was approved by both the House and Senate. It now move to the desk of Governor DeSantis. The bill effectively replaces Disney-run Reedy Creek with a replacement district run by a 5-member board appointed by the governor. Language within the bill stipulates that board members cannot be anyone who was employed by, or subcontracted with Disney for a period of at least three years.
Some legal experts have suggested that Disney could have grounds to oppose the legislation. As owners of the property in question, the change amounts to "taxation without representation" in the sense that Disney will seemingly have no say in who sits on the board of Central Florida Tourism Oversight District.
However, a statement from Jeff Vahle, president of Walt Disney World suggests that Disney is content to move forward:
"For more than 50 years, the Reedy Creek Improvement District has operated at the highest standards, and we appreciate all that the District has done to help our destination grow and become one of the largest economic contributors and employers in the state. We are focused on the future and are ready to work within this new framework, and we will continue to innovate, inspire and bring joy to the millions of guests who come to Florida to visit Walt Disney World each year."
It remains to be seen how this will impact Walt Disney World going forward. The district has the right to levy taxes to cover city services including road maintenance, emergency services and utilities. For five decades, Disney has effectively been taxing itself via Reedy Creek for managing and providing those services. Now an independent board will have oversee those expenditures.
Disney's Riviera Resort (2018)
Disney's property tax bill also includes tens of millions of dollars paid annually toward Florida schools, libraries and other services in accordance with local ordinances. These taxes are paid at the same millage rates as all other state and county taxpayers and would not be subject to change.
A portion of Disney Vacation Club member dues goes toward these property tax obligations. The future of those dues depends upon the sort of spending plan put in place by the new board of the Central Florida Tourism Oversight District.
The board would also have approval over permitting within the district, given them some say in new hotels, theme park attractions and infrastructure changes.
Dismantling of Reedy Creek Improvement District was initiated by DeSantis in early 2022, ostensibly as punishment for former CEO Bob Chapek's response to Florida's parental rights in education law. Lawmakers has originally proposed dismantling Reedy Creek and handing duties to Orange and Osceola counties, but later pivoted to creating a replacement district run by the state.
Disney Springs contstruction (2016)
In recent years, Disney has invested heavily in infrastructure projects throughout the district including reconstruction of the Magic Kingdom entry roadways, reconstruction of the entry to Disney's Hollywood Studios, expansion of the solar farm, expansion of the Disney Springs shopping district and surrounding roadways and a variety of hotel and attraction projects across Walt Disney World property. The new district will retain its own autonomy to permit and approve future projects, with the governor-appointed board overseeing those activities.
Projects currently under way will not be impacted by this move.
