Retribution Against Disney Could Cost Florida Billions Of Dollars

TAMPA, FL — Since Florida Gov. Ron DeSantis signed Senate Bill 4-C Friday dissolving the Reedy Creek Improvement District allowing Walt Disney World self-governance, the global theme park giant is receiving invitations to relocate to other states.

In the invitations, representatives of Texas and Colorado said, if Florida doesn't want the billions of dollars Walt Disney World infuses into the state each year in the form of tourism, jobs and new development, they'll gladly put out the welcome mat for Mickey Mouse and Donald Duck.

Among those issuing an invitation to Disney was Fort Bend County, Texas, Judge KP George who tweeted a copy of a letter he sent to Disney CEO Bob Chapek.

"From Timone & Pumba to Tinker Bell, Disney characters are as diverse as Fort Bend County families. I welcome @Disney to visit Fort Bend County as your next destination while you face attacks from the modern day political extremists like @RonDeSantisFL," George said.

Colorado Gov. Jared Polis extended a similar invitation.

"Florida's authoritarian socialist attacks on the private sector are driving businesses away," Polis tweeted. "In CO, we don't meddle in affairs of companies like @Disney or @Twitter."

During a special legislative session last week, the Florida Legislature voted to revoke Disney World's 55-year-old independent special taxing district, known as the Reedy Creek Improvement District, which gave Disney World the right to self-govern.

The decision to revoke the agreement, which was originally proposed and negotiated by Disney founder Walt Disney before his death in 1966, came after Chapek spoke out publicly against Florida's Parental Rights in Education bill, which goes into effect July 1.

House Bill 1557 bill prohibits or restricts classroom teachers in grades kindergarten through third from discussing sexual orientation or gender identity "in a manner that is not age appropriate or developmentally appropriate for students in accordance with state standards."

DeSantis said the bill is merely a continuation of his ongoing effort to give parents a greater voice the curriculum and discussions their students are subject to in the classroom. Under the bill, parents would have the right to question and dispute any discussions, lessons and reading materials related to sexuality.

Critics, however, say the ultimate goal of HB 1557, is to restrict discussions of LGBTQ issues and force gay and transgender teachers and students to hide their sexuality, thus the bill's derogatory nickname, "Don't Say Gay."

"Over time and continuing today, our nation has strived to make good on its promise that everyone is entitled to be treated with equal dignity under the law," said attorney Roberta Kaplan, who has filed a federal complaint in the United States District Court for the Northern District of Florida challenging Florida House Bill 1557.

The lawsuit was filed on behalf of Equality Florida and Family Equality, as well as students, parents and a teacher.

"With the passage of HB 1557, Florida has not only taken a giant step backwards, but it has done so at the expense of our children, the most vulnerable members of society," Kaplan said. "It is hard to imagine anything more offensive to our constitutional system than treating one group of school kids as second class based solely on who they are or who their parents are. This law cannot be allowed to stand."

"By design, HB 1557 constructs a statutory scheme in which any rational person who discusses or acknowledges any aspect of LGBTQ identity must fear running afoul of the law," Kaplan said. "The effect of HB 1557 is thus to chill the rights of teachers, students and school officials, who, like any rational person, will avoid the danger zone created by a state-mandated censorship code."

After remaining silent during the ongoing debate over the bill, last month Walt Disney Co. CEO Bob Chapek issued a statement condemning the legislation.

"Florida's HB 1557, also known as the 'Don't Say Gay' bill, should never have passed and should never have been signed into law," said Disney World in a statement to Patch. "Our goal as a company is for this law to be repealed by the legislature or struck down in the courts, and we remain committed to supporting the national and state organizations working to achieve that. We are dedicated to standing up for the rights and safety of LGBTQ+ members of the Disney family, as well as the LGBTQ+ community in Florida and across the country."

Chapek also issued a statement apologizing to LGBTQ employees at Disney and the community at large for not speaking out sooner.

"Thank you to all who have reached out to me sharing your pain, frustration and sadness over the company's response to the Florida 'Don't Say Gay' bill," Chapek wrote. "Speaking to you, reading your messages and meeting with you have helped me better understand how painful our silence was. It is clear that this is not just an issue about a bill in Florida, but instead yet another challenge to basic human rights. You needed me to be a stronger ally in the fight for equal rights and I let you down. I am sorry."

He said the global entertainment company should have used its influence to do more to promote inclusion and support the LGBTQ community.

"Our employees see the power of this great company as an opportunity to do good. I agree. Yes, we need to use our influence to promote that good by telling inclusive stories, but also by standing up for the rights of all," he said.

He vowed to fight similar legislation in other states and create "a new framework for our political giving that will ensure our advocacy better reflects our values," Chapek said. "And today, we are pausing all political donations in the state of Florida pending this review. I missed the mark in this case but am an ally you can count on—and I will be an outspoken champion for the protections, visibility and opportunity you deserve."

According to campaign finance reports, Disney donated $4.8 million to Florida candidates in the 2020 election cycle. That includes $913,000 to the Republican Party of Florida, $586,000 to Republican Senate campaigns and $50,000 directly to DeSantis.

In retaliation, DeSantis called on the legislature to strip Disney of its 55-year-old special taxing district status.

"For Disney to come out and put a statement and 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 said last week when the special session convened. "They have gotten essentially this one corporation put on a pedestal and treated differently, not only than other businesses, but even than other theme parks."

Throughout Florida, there are 1,844 special districts, of which 1,228 are independent special districts and 616 are dependent districts.

They provide more than 80 specialized governmental functions, such as water management, soil and water conservation, building roads and drainage improvements, preserving conservation lands and providing fire protection.

The special districts can levy taxes, issue bonds, elect officers and set standards for development.

Reedy Creek Improvement District, created in 1967 by a special act of the Florida Legislature and governed by its own charter, oversees economic development and tourism within Disney's 25,000 acres in Orange and Osceola counties.

The idea was to give Disney autonomy while relieving the counties of the need to finance the new services and infrastructure required to build Disney World.

This includes four theme parks, two water parks, one sports complex, 175 miles of road, 67 miles of waterway, the cities of Bay Lake and Lake Buena Vista, an environmental science laboratory where water quality is monitored, an electric power-generating and distribution facility, a natural gas distribution system, water and wastewater collection and treatment facilities, a solid waste and recyclables collection and transfer system, plus more than 40,000 hotel rooms and hundreds of restaurants and retail stores.

By dissolving Disney's special district, Disney will be subject to all the planning, development and zoning laws, reviews and red tape that any business endures to operate in Orange and Osceola counties.

In return, the cost of fire protection, emergency medical services, law enforcement services, wastewater disposal, water treatment, garbage collection and infrastructure maintenance that Disney provides would become the responsibility of the counties within Disney's boundaries.

State Rep. Spencer Roach, R-Fort Myers, argued that removing Disney's special district status for going against the governor is justified, saying in a March 30 tweet that legislators should take away the tax breaks Disney World has been receiving from the state for attracting jobs and tourism, estimated at $21 million a year.

However, $21 million in tax credits is a drop in the bucket compared to the amount of money Disney gives back to the state and the expenses the state will be forced to assume once the special district is dissolved.

Concerned that taxpayers will end up paying for the DeSantis-Disney dispute, four Central Florida residents have gone to federal court to block the new law revoking Disney's right to self-govern.

Plaintiffs in the lawsuit in Miami federal court allege the effort to silence Disney will result in significant injury to taxpayers, threaten thousands of jobs and violates the Florida Taxpayers’ Bill of Rights and the U.S. Constitution’s guarantee to due process.

Miami attorney William J. Sanchez filed the suit on behalf of Michael, Edward and Leslie Foronda of Osceola County and Vivian Gorsky of Orange County.

According to a financial impact analysis of SB 4-C, the county will inherit more than $1 billion incurred by Disney's special district. Beyond that, the Senate analysis concluded that the dissolution of the Disney special district would have an "indeterminate fiscal impact" on Orange and Osceola counties.

That's a big concern for Orange County's Democratic tax collector, Scott Randolph, who tweeted on April 20, "If Reedy Creek goes away, the $105 million it collects to operate services goes away. That doesn’t just transfer to Orange County because it’s an independent taxing district. However, Orange County then inherits all debt and obligations with no extra funds."

Additionally, Orange County reportedly owes Disney holds $2 billion in bonds debts in Orange County. If that's accurate, Randolph said, the county can only raise revenue through property taxes. He said there are about 438,000 parcels in Orange County, so the tax impact would be about $4,500 per parcel, a 20 percent increase.

In a 2009 Florida State University Law Review of the Reedy Creek Improvement Project, author Chad D. Emerson said stripping Disney World of its independent taxing district would result in an additional $479 in taxes for Floridians each year.

If Disney were to pull out of Florida altogether and relocate to another state, Florida stands to lose an estimated annual $51 billion in new wealth, $33.5 billion in visitor expenditures, $19 billion in payrolls, $290 million in charitable giving and $2 billion in sales taxes.