Florida may reverse decision on Disney’s Reedy Creek District: report
The Reedy Creek Improvement District allows Disney to tax itself to cover the costs of providing utilities and fire services in the area
A resolution to the politically charged conflict that developed this year between the state of Florida and the Walt Disney Company may reportedly be in the works.
The state's lawmakers are working on plans to reverse a move that would strip Disney of its right to operate a private government around its theme parks, according to the Financial Times.
In April, the Florida legislature voted to dissolve Disney’s 55-year-old special tax district following a public feud between Gov. Ron DeSantis and then-chief executive Bob Chapek.
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Bob Iger has returned to Disney as CEO, replacing Bob Chapek. (ROBYN BECK/AFP via Getty Images / Getty Images)
The conflict was over a new state law restricting discussion of LGBTQ issues in classrooms.
Chapek stepped down from the position last month, with former CEO Bob Iger returning, and it's believed his return will help pave the way for a resolution.
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That district allows Disney to tax itself to cover the costs of providing water, power, roads and fire services in the area, known as the Reedy Creek Improvement District.
A compromise would allow Disney to keep the arrangement largely in place with a few modifications.
Still, a spokesperson for DeSantis told FOX Business the governor "does not make 'U-turns.' The governor was right to champion removing the extraordinary benefit given to one company through the Reedy Creek Improvement District. We will have an even playing field for businesses in Florida, and the state certainly owes no special favors to one company. Disney's debts will not fall on the taxpayers of Florida. A plan is in the works and will be released soon."
Florida Governor Ron DeSantis (Photo by Jeff Bottari/Zuffa LLC / Getty Images)
Tax officials and lawmakers have warned dissolving Disney’s private government threatens to shift an enormous financial burden to taxpayers and potentially transfer a $1 billion debt load to the state.
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Since returning to Disney, Iger has steered clear of criticizing Florida for a bill that he had warned would "put vulnerable, young LGBTQ people in jeopardy" when it was introduced in February.
Theme park guests walk near a statue of Walt Disney and Mickey Mouse in front of the Cinderella castle in the Magic Kingdom at Walt Disney World in Lake Buena Vista, Fla. (AP Images)
Iger's opposition to the legislation, dubbed "Don’t Say Gay" by critics, put pressure on Disney to reverse course this spring and come out against the bill after initially refusing to take a stand.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 114.26 | +1.84 | +1.64% |
The law removing Disney’s special status does not go into effect until next summer.
FOX Business has reached out to The Walt Disney Company for comment.