Congress moves forward with another jab at Disney

Posted on by Mathew Corn Disney Parks, Uncategorized

The battle between Disney and Florida Governor Ron DeSantis continues, and now members of the federal legislature are stepping in and taking their own measures to make a statement to the House of Mouse, this time proposing legislation to end a nearly 20-year statute at Disney World and Disneyland.

Congressman Troy Nehls (R-TX) immediately went to work on attempts to remove the “no-fly zone” status in the skies over the Walt Disney World Resort in Central Florida and the Disneyland Resort in California.

Representative Nehls penned letters to House Speaker Nancy Pelosi (D-CA) and to Transportation Secretary Pete Buttigieg regarding Disney’s current restricted airspace. The flight restriction was put into place in 2003 and not in response to the September 11 terrorist attacks, as many believe.

It’s why Guests can look up into the skies over Magic Kingdom, Disney’s Animal Kingdom, EPCOT, Hollywood Studios, and Disney Springs, and they won’t see any airliners.

In his letter to Buttigieg, Congressman Nehls points out that Disney is the only theme park resort owner to have such privileges.

“In 2003, Congress passed Section 352 of Public Law 108-7, which was later amended by Section521 of Public Law 108-199. These acts created permanent “temporary” flight restrictions in the airspace over Disney’s resorts in Florida and California. These restrictions only applied to Disney’s parks. No other theme parks have restrictions on airspace, including neighboring competitors like Universal Studios.”

troy-nehls

In his letter, Nehls calls the no-fly zones “preferential treatment” to Disney, saying U. S. Disney Parks don’t meet the standard requirements for having the status. He also asks for a response from Buttigieg’s office by June 3, 2022.

On Monday, according to The Daily Caller, Nehls introduced legislation that, if passed, would require the Secretary of Transportation to abolish the no-fly zones over both U. S. Disney Parks. Called the Airline’s Independent of Restrictions Act, or AIR Act, the proposed legislation has 5 co-sponsors: Colorado Rep. Lauren Boebert, Georgia Rep. Andrew Clyde, California Rep. Doug LaMalfa, Florida Rep. Scott Perry, and Florida Rep. Gregory Steube.

Just before introducing the new legislation, Nehls gave a statement to The Daily Caller, saying, “the federal government should not grant special privileges and pick favorites for powerful, well-connected companies like Disney.” He went on to say that “measures designed to protect our national security and public safety should not be co-opted by corporations looking to gain.

It’s been months since Florida passed the controversial Parental Rights in Education law–a move that set a chain of events into motion, beginning with an inflammatory public statement from The Walt Disney Company immediately following news that the bill was signed into law.

In the statement, Disney criticized DeSantis’s move, saying the bill “should never have passed” and that the company’s goal “is for this law to be repealed by the legislature or struck down in the courts.”

Florida Governor Ron DeSantis immediately fired back, saying, “For Disney to say that the bill should have never passed and that they are going to actively work to repeal it–I think one, was fundamentally dishonest, but two, I think that crossed the line.”

DeSantis took things a step further, saying that Disney’s “woke ideology” could cost the company its special privileges in the Sunshine State, referring to Disney’s Reedy Creek Improvement District in parts of Orange and Osceola Counties, which allows the company to function as its own government. Within days, members of the Florida legislature introduced a bill that would effectively dissolve any Florida special districts–like Reedy Creek–that were created prior to the ratification of Florida’s state constitution in 1968.

The bill quickly passed in Florida’s House and Senate and was signed into law by DeSantis in the last days of April, and will take effect July 1, 2023.

Reedy Creek

In response to Florida’s “treatment of Disney,” governors from other states like Colorado and California posted proverbial welcome mats on social media, letting Disney know they could move to these states and be welcomed with open arms. A judge in South Texas went so far as to pen a letter to Walt Disney Company CEO Bob Chapek, inviting him and the company to open a brand-new theme park resort in the Lone Star State following the passing of Florida’s new law.

fort bend county disney

At the same time, some members of the federal legislature stepped into the ring with Disney and DeSantis, taking aim at the company’s rights to Steamboat Willie, which are set to expire in 2023, saying they won’t take steps to extend Disney’s rights (as they did in the late 1980s) in response to Disney’s stance on Florida’s Parental Rights in Education law.

It remains to be seen how far the state and federal governments will go in using their power to take power from The Walt Disney Company.

Three named in Federal lawsuit refiled against Florida Governor concerning Disney’s Reedy Creek

Posted on by Mathew Corn Uncategorized

A Miami attorney has refiled a suit against Florida Governor Ron DeSantis regarding potential tax liabilities resulting from the pending dissolution of Disney’s World’s Reedy Creek Improvement District.

The suit was filed by William J. Sanchez of Miami-based William J. Sanchez & Associates P.A., on May 16 with the Eleventh Judicial Circuit Court in Miami-Dade County on behalf of Osceola County residents Michael, Leslie, and Eduardo Foronda and Orange County resident Vivian Gonzales. The suit alleges that taxpayers’ rights will be violated by Gov. DeSantis’s new law aimed at dissolving Florida special districts created before 1968, which includes Disney’s Reedy Creek Improvement District.

The lawsuit names Gov. DeSantis, as well as Jim Zingale, Executive Director of the Florida Department of Revenue and Laurel M. Lee, former Florida Secretary of State.

Sanchez refiled the case in state court after a judge dismissed a similar case on May 10. That suit alleged similar damage for the plaintiffs if the special districts are dissolved.

The suit concerns a bill Governor DeSantis signed into law on April 22, 2022, which will effectively dissolve Disney’s Reedy Creek District, as well as a handful of other special districts in Florida that had original inception dates before 1968. The passing of the law has led to speculation about the potential tax liability that could fall on residents of Orange and Osceola Counties, regardless of the fact that DeSantis has said that such a predicament will not take place.

According to the Orlando Business Journal, Disney’s special district encompasses 39 square miles. The entire area is governed by the Reedy Creek Improvement District, which acts “with the same authority and responsibility as a county government.” It includes the cities of Lake Buena Vista and Bay Lake and boasts its own fire department and staff. It also contracts law enforcement from local counties.

The Orlando Business Journal states that the lawsuit comes with a complaint:

The complaint filed with the lawsuit alleges a Taxpayer’s Bill of Right violation and that the state infringed on the plaintiffs’ constitutional rights for due process — or the ability to be involved in proceedings that could have an effect on them.

“Plaintiffs ask for the opportunity to be heard since their rights are clearly being violated, and ask for the court to issue a declaratory judgment,” the complaint reads in part.

The Reedy Creek Improvement District is the governing jurisdiction for Walt Disney World Resort's land. Its cities include Bay Lake and Lake Buena Vista.

Governor DeSantis has had a lot to say about the dissolution of Reedy Creek.

“There’s a whole bunch of different things that we will be able to do,” he said from the podium at Seminole State College on May 16. “I’d much rather have the state leading that effort than potentially having local governments” lead the effort.”

“Say the state is in charge and has appointees of the governor that would be in charge of the tax rates for Disney; that seems over the top,” said Aubrey Jewett, associate professor and assistant school director at the University of Central Florida’s School of Politics, Security and International Affairs. “Politically, it would look like the state is exacting their last pound of flesh from Disney. Especially if the governor has a say on the new board members to determine the tax rates, roads, and utilities, and Disney had no say.”

Judge DISMISSES Lawsuit Against Ron DeSantis Over Reedy Creek Dissolution

Posted on by Mathew Corn Disney Parks, Uncategorized

On May 4, a lawsuit was filed against Florida Governor Ron DeSantis on behalf of some taxpayers who reside in Osceola County and Orange County. The lawsuit claimed that Governor DeSantis had violated the rights of the taxpayers and would cause them financial injury with the dissolution of the Reedy Creek Improvement Act. The Reedy Creek Improvement act allows Disney to act as its own government and, if dissolved, the costs typically incurred by Reedy Creek would be passed on to the taxpayers in the aforementioned counties.

When the lawsuit was filed, it was stated that the Plaintiffs in the case were not seeking monetary damages — they simply wanted to prevent the termination of the Reedy Creek Improvement Act. As quickly as the lawsuit was filed, it seems to have been dismissed just as quickly. On May 10, a federal judge dismissed the lawsuit against Governor DeSantis.

The Orlando Sentinel reported on the dismissal, saying:

In her order, U.S. District Court Judge Cecilia Altonaga, a George W. Bush appointee, wrote that the suit was dismissed for several reasons, including the federal court’s lack of standing over state issues and because the law does not go into effect until July 2023.

Altonaga wrote that the three plaintiffs, Michael and Edward Foronda of Kissimmee and Vivian Gorsky of Orange County, “do not plausibly allege they have suffered any concrete injury as a result of the alleged violation of Disney’s First Amendment rights, and nothing in the Complaint shows Plaintiffs have a close relationship with Disney.”

The new law, she wrote, “does not apply to them, they do not allege direct harm as a result of the challenged law, and they do not plausibly allege any credible threat of direct harm in the future.”

Their claim to standing in the case, she wrote, was that the elimination of the district “might result in financial harm to Plaintiffs by virtue of a tax increase that has not yet been enacted. That indirect and highly speculative alleged injury cannot support federal jurisdiction. … Again — it is worth emphasizing — the bill does not apply to Plaintiffs at all.”

Although the federal judge has dismissed the original filing, William Sanchez — the Miami lawyer who filed the original suit on behalf of the Plaintiffs — said that this was only the beginning of a long fight. He said that he plans to refile the suit no later than Monday, May 16.

Florida law currently states that, if Reedy Creek is dissolved, its debts would be passed on to the taxpayers. Those debts are currently estimated to be over $1 billion. Governor DeSantis has told his constituents that they will not see an increase in their taxes if Reedy Creek ceases to exist, but he has not yet released details on how he will be able to circumvent the law.

Florida Taxpayers Sue Gov. Ron DeSantis Over Dissolution of Reedy Creek

Posted on by Mathew Corn Disney Parks, Uncategorized

For months, Florida Republicans have been in a heated battle over Florida’s passing of the Parental Rights in Education bill. The Walt Disney Company denounced the bill before its passing and after. Florida Republicans retaliated, passing a bill that will end the Reedy Creek Improvement Act of 1967. The dissolution of Reedy Creek will put an end to Disney’s autonomy and make them beholden to the state for things like building permits. Many are questioning the legality of the bill. And now, another group is getting in on the action — Florida taxpayers.

On May 4, taxpayers who live in the counties surrounding the Walt Disney World Resort — mainly Osceola County and Orange County — filed a lawsuit against Florida Governor Ron DeSantis. The taxpayers are claiming that Governor DeSantis violated their rights when he signed the law that would dissolve Reedy Creek.

The news was first broken by The Hollywood Reporter, which reported:

In a complaint filed on Tuesday in Florida federal court, residents who live near Disney World argue they and other taxpayers will be burdened with at least $1 billion in Disney’s bond debt if the state follows through with its plan to dissolve the Reedy Creek Improvement District. They seek to block the law. “It is without question that Defendant Governor DeSantis intended to punish Disney for a 1st Amendment protected ground of free speech,” reads the lawsuit. “Defendant’s violation of Disney’s 1st Amendment rights directly resulted in a violation of Plaintiffs’ 14th Amendment rights to due process of law.”

“Stripping Disney of this special district designation will move these major regulatory burdens unto the county, thereby increasing the Plaintiff’s taxes, and will cause significant injury to plaintiffs,” the complaint states.

Right now, Reedy Creek is able to essentially function as its own government. It pays the state hundreds of millions of dollars in taxes, but does not have to get permission from the state for things like construction permits. Since Reedy Creek functions independently, it is also responsible for all the fees incurred for things like police, fire, and medical. It is also financially responsible for all of the repairs that the Walt Disney World Resort needs, whether it is at a hotel, Disney Springs, or anywhere around Disney’s 25,000 acres.

If Reedy Creek is dissolved, all of that financial burden falls on the taxpayers. While residents across the state may see a small increase in their taxes, most of the money will come from Osceola and Orange Counties because that is where Walt Disney World is located. Not only will those counties be responsible for a majority of Disney’s future debt, but they are also responsible for Reedy Creek’s past debt.

Reedy Creek operates at a loss every year and currently has about $1 billion in bond debt. Since those bonds can’t be redeemed until 2029, should DeSantis want to dissolve Reedy Creek early, the state would be legally required to pay off those bonds. DeSantis has said that the state will dissolve Reedy Creek, but will not pay the bonds — he has yet to say how the state will get around the law.

The lawsuit also states that the Florida Supreme Court has created a statute when it comes to people who are not part of a contract suing over that contract. The Florida Supreme Court has allowed taxpayers to sue if a breach of a certain contract will injure them. The taxpayers are also suing over the potential loss of thousands of jobs.

The taxpayers in the lawsuit believe that Governor DeSantis is violating the law — and their rights — because it wants to punish Disney for exercising its First Amendment Rights. Neither Disney nor the office of the Governor has responded to the lawsuit at this time.

Is Disney Working Behind the Scenes With DeSantis to Help Him “Save Face” Regarding Reedy Creek?

Posted on by Mathew Corn Disney Parks, Uncategorized

It has been almost two weeks since Florida Governor Ron DeSantis signed a bill that will officially dissolve the Reedy Creek Improvement District in June 2023. The bill was the culmination of the weeks-long battle between DeSantis and the House of Mouse over Florida’s controversial Parental Rights in Education bill. The bill has been dubbed the “Don’t Say Gay” bill, and critics believe it unfairly targets the LGBTQ+ community. Disney CEO Bob Chapek has said that Disney will work to see the bill struck down in the courts.

While DeSantis has signed the Reedy Creek bill and said that it will go through, he faces an intense and steep, uphill legal battle to actually made that happen. There are a number of Florida laws standing in his way, and he knows that. Disney also knows that. Disney sent a note to shareholders not long after the bill was signed, saying that it plans to continue with current operations while exploring all the legal options it has available.

Reedy Creek

One of the biggest issues that DeSantis faces in dissolving Reedy Creek is the bonds that were issued by Reedy Creek just 4 years ago. Those bonds cannot be redeemed until at least 2029, so if Florida wants to dissolve Reedy Creek it would be responsible for paying out those bonds — which are more than $1 billion. Florida law dictates that the cost would be passed on to taxpayers, but DeSantis has said he will not do that and that Reedy Creek will pay.

Reedy Creek

In a new report from The Washington Post, insiders are saying that DeSantis knows that he cannot promise taxpayers that they won’t be stuck with the bond debt bill. They claim that DeSantis is working with Reedy Creek, so he can save face with his fellow Republicans and claim victory without that actually happening. Per The Washington Post:

That’s what worries local government officials, who fear that $1 billion in Disney bond debt will be dumped on them. Some analysts say the new law could mean a 20 to 25 percent property tax hike in nearby Orange and Osceola counties, which local government officials said would be “catastrophic.”

Disney has otherwise remained publicly silent about the feud and did not respond to requests for comment for this article. Sources familiar with the negotiations, who requested anonymity to discuss private negotiations, say the company’s lobbyists and lawyers have been working behind the scenes to find a solution that would allow DeSantis “to save face” and continue to claim a victory over “woke culture,” while in reality doing very little to impede the company’s massive operations in Florida…

DeSantis has brushed aside what local officials say could be calamitous consequences if Reedy Creek, which operates as its own county government, is eliminated. A statement from his office says “it is not the understanding or expectation” that the action will increase taxes. But DeSantis and his Republican allies in the legislature have not explained who will pay Reedy Creek’s $1 billion debt, or cover the $163 million in taxes it collects every year to pay for many of its theme park functions.

Cinderella Castle

At this time, Governor DeSantis has not said how he plans to get around current Florida law when it comes to Reedy Creek’s debt and its bond obligations. However, his spokesperson has said that a plan will be released in the next few weeks. It has also been shared that DeSantis is considering creating a special district headed by his own appointees to oversee Walt Disney World.

Experts are also saying that, even if the taxpayers in Orange and Osceola Counties — where Walt Disney World is located — don’t have to pay the bond debt, their taxes will most likely go up because of the attorney’s fees incurred by the state while they fight Disney.