DeSantis's Rush to Battle Disney Puts $1 Billion of Muni Debt in Question

[Yo_Mama_Been_Loggin]

(Bloomberg) -- Florida Governor Ron DeSantis’s move to escalate a dispute with Walt Disney Co. by terminating its iconic theme park’s special privileges leaves $1 billion in municipal debt hanging in the balance. Even the bill’s Senate sponsor said it’s too soon to say exactly who would pay back the debt.

Bills were quickly introduced in both chambers on Tuesday that could terminate all special districts that were enacted in Florida prior to 1968, including the Reedy Creek Improvement District where the company’s Walt Disney World resort is based. The measure was approved by the Senate on Wednesday, and it will now move to the House before being sent to DeSantis for his signature.

The surprise announcement could have major consequences for Disney, which has had to maneuver a heated dispute with DeSantis after the company criticized a law that limits school instruction about gender identity and sexual orientation. The Reedy Creek Improvement District has about $1 billion of municipal bonds currently outstanding, according to data compiled by Bloomberg.

-snip-

Under current Florida statutes, the debts and assets of a special district that is dissolved are passed to the municipal government that takes over. Some Democratic Senators wondered if the move could ultimately transfer debt incurred by Disney to the small cities of Bay Lake and Lake Buena Vista, in addition to the governments of Orange and Osceola counties. Bay Lake had a population of just 29, according to the 2020 census, while Lake Buena Vista was home to 24.

https://finance.yahoo.com/news/desantis-rush-battle-disney-puts-162323694.html

Disney’s debt is about to be Central Florida taxpayers’ problem

On Wednesday, the Florida Senate voted 23 to 16 to eliminate the Reedy Creek Improvement District, dealing a major blow to Disney and by extension, taxpayers in Central Florida.

The district has about a billion dollars in outstanding bonds that need to be dealt with. That burden, as state lawmakers admitted, will fall on local taxpayers.

“The procedures that we have will transfer that indebtedness to the general-purpose local governments,” said Sen. Jennifer Bradley (R–Clay County), the bill’s sponsor in the Florida Senate.

The billion dollars in bonds that Reedy Creek holds will mature as late as 2036. About 20% are revenue bonds, which will be backed by payments for services like utilities. The remaining 80% are general obligation bonds, backed by faith and credit in the district, which is on the verge of dissolution.

https://www.yahoo.com/news/disney-debt-central-florida-taxpayers-212344894.html


You guys are fucking brilliant. Who knew culture wars could be so expensive?

[Fullduplexxx]

1. Stupid govs and their knee jerk revenge

Bay Lake had a population of just 29, according to the 2020 census, while Lake Buena Vista was home to 24 ...53 people I'm surprised they havent moved already

[paleotn]

3. Exactly. They're not the sharpest knives in the drawer.

[RKP5637]

2. Many bullies like DeSantis often are not the sharpest tools in the tool shed! Maybe he should

stick to bullying little kids and elementary school teachers than taking on corporations. Damn, this guy is such a fool all the way around. And he wants to be dictator (Dick?) of the US in 2024.

[Demsrule86]

4. Disney is the number one employer in Florida if they were to leave, it would be devestating.

[TomSlick]

7. Disney really can't just pack-up and leave. It's a huge physical plant.

However, if Disney closed for a month, the economy of south Florida would collapse. Disney could sustain closing for a month, it has rooms full of money. Treating to close would make employees start calling their state legislators - endlessly.

It is politically unwise to "mess" with the mouse.

[Demsrule86]

11. If Florida is inhospitable they could start packing up and leaving...

[Demovictory9]

15. but they can stop moving operations from CA to FL. About 2000 employees were being transferred

this year.

[TomSlick]

18. That would be an interesting opening shot if the legislation passes.

Don't mess with the mouse.

[okaawhatever]

5. I think the $1B debt is exactly what DeSantis wants. Both counties are majority Democratic. The GOP

has made punishing Democrats a priority. The 10k state tax cap on Federal taxes which hurts mostly NY, NJ, CA and MA is but one example.

[Arazi]

12. What would be the result of that default?

Seriously

The town defaults on its bonds and the 53 people have what penalty?

And how is Disney hurt by this? They’ll legally shed a billion dollars in debt obligations correct?

[Deuxcents]

6. This is a disaster waiting to happen

Not only the bond issues but Disney employs about 80,000 people. Plus, Mom n pop stores n businesses all around. Restaurants, hotels, motels and on n on. The people of Orange County are not the only ones who will be left to pay up. Surrounding counties will experience loss, too.

[Haggis 4 Breakfast]

8. deSatanic is destroying Florida.

Before Disney came to FL, the Orlando area was a back-water. Central FL was orange groves as far as the eye could see; you'd get onto I-75 and cruise 'til all you could smell was the intoxicating aroma of orange blossoms.

Now, all I smell is bullshit.

[Cicada]

9. DeSantis gains popularity, the costs don't concern him.

[Initech]

10. This is all just petty bullshit because Hannity and Tucker are pulling his strings.

[Demovictory9]

16. just like they did Trump's

[Initech]

17. They're acting like children who are mad that their favorite toy got broken.

[Xolodno]

13. Looks line a win for Disney.

Offload the debt and Joe and Jane taxpayer pay for it.

What is bad for Disney, infrastructure will no doubt take a hit. But, they can also halt all expansion in the area (i.e. jobs, tax revenue, etc.) and concentrate on the parks in Anaheim, Paris, etc. Who knows, maybe even develop a park in another area, they've had plans for ski resorts, mini-theme parks, etc. for a long time. They have plans to expand California Adventure, this could move it along faster. And they have a good sized chunk of property in Anaheim that could be developed into another park, but resources being a bit scarce and all....Gavin will be laughing his ass off if they do this.

[LetMyPeopleVote]

14. Ron DeSantis' Disney Revenge Could Cost Florida Residents $1 Billion

In Texas, when a city incorporates unincorporated territory, the city assumes and discharges the MUD municipal utility district debt. This is the same concept

Link to tweet

Residents of two Florida counties could end up footing the bill if the state abolishes a special district that has allowed the Walt Disney Company to operate its own local government.....

Farmer, who sponsored the bill, discussed the potential impact on Orange and Osceola counties' residents, saying the population would amount to around 1.75 million people.

"The debt service alone for Reedy Creek is over $1 billion," Farmer said. "This bill makes no provision as to how that debt service is going to be assumed."

The Democrat pointed to another law that said that local government entities would have to pick up the debt of special districts that are dissolved.

The Reedy Creek Improvement District has a long-term bonded debt of $977,215,801, according to its 2021 annual financial report.....

"So this is not supposition, this is not conjecture, this is Florida law that says those 1.7 million people are going to have to pick up this bill," Farmer said, adding that the $1 billion figure doesn't include other items covered by the district, citing fire fighter services and parking garages, among other services.

"All totaled, we're probably talking about $1.5 to $2 billion of obligation - of liabilities," Farmer said.

He went to say that "the debt service alone would amount to $580 per person."