Mickey Mouse may have the last laugh

Mickey Mouse may have the last laugh in the ongoing rivalry between Gov. Ron DeSantis and the Walt Disney Co.

DeSantis’ attempt to punish Disney executives for speaking out against House Bill 1557 by dissolving the Reedy Creek Improvement District that allows Disney World to self-govern its Florida theme parks could backfire, leaving the state with Disney World’s estimated $2 billion in bond debt.

Additionally, Senate Bill 4-C stripping Disney of its right to self-govern could place Florida in a legal quagmire. Disney released a statement contending that the bill violates the 55-year-old contract between the state and the theme park, establishing a charter that permits Disney to oversee the development of its theme parks in Orange and Osceola counties.

The Reedy Creek Act was signed into law May 12, 1967, by a special act of the Florida Legislature, giving Disney authority over its four theme parks, two water parks, one sports complex, more than 40,000 hotel rooms, and hundreds of restaurants and retail stores, 175 miles of road and 67 miles of waterway.

Disney also operates its own 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, and provides fire protection and emergency medical services.

DeSantis called for passage of the bill dissolving Disney’s special district after Disney CEO Bob Chapek spoke out against the controversial HB 1557, Florida’s Parental Rights in Education bill, which goes into effect July 1.

HB 1557 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.”

Critics, who have filed a federal complaint in the United States District Court challenging Florida House Bill 1557, say the bill is an underhanded attempt to restrict discussions of LGBTQ issues and force gay and transgender teachers, students, and parents to hide their sexuality.

“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,” Chapek said, calling the bill a “challenge to basic human rights.”

“Our goal as a company is for this law to be repealed by the Legislature or struck down in the courts, and we remain committed to supporting the national and state organizations working to achieve that,” Chapek said. “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 announced that Disney would halt its political contributions in Florida. Disney donated about $4.8 million to Florida candidates during the 2020 election cycle, Florida campaign finance reports show, including $100,000 to the Friends of Ron DeSantis Political Action Committee.

In retaliation, DeSantis quickly pushed through the approval of SB 4-C during a special session on April 19-22 to approve new congressional districts in Florida.

In his haste to punish Disney, critics say DeSantis failed to consider all the ramifications of dissolving Disney’s special district.

As Disney pointed out in its statement, the dissolution of a special district government will result in Disney having to “transfer title to all of its property to the local general-purpose government, which shall also assume all indebtedness of the preexisting special district.”

State statutes, F.S. 189.076, say the bond debt is inherited by taxpayers if a special district is dissolved. Therefore, “unless otherwise provided by law or ordinance, the dissolution of a special district government shall transfer the title to all property owned by the preexisting special district government to the local general-purpose government, which shall also assume all indebtedness of the preexisting special district.”

According to the Florida Senate financial impact analysis of SB 4-C, Orange and Osceola counties will inherit more than $1 billion in bond debt incurred by Disney’s special district. Beyond that, the Senate analysis concluded that the dissolution of the Disney special district, effective June 1, 2023, would have an “indeterminate fiscal impact” on Orange and Osceola counties.

Orange County Tax Collector Scott Randolph, however, believes the Senate’s analysis is way off base. He’s been told that Disney holds more than $2 billion in bond debts in Orange County alone. If that’s accurate, Randolph said the county would need to raise property taxes by at least 20 percent.

In addition, Orange County would be responsible for collecting the $105 million the Reedy Creek Special District currently collects for the services it provides.

Disney didn’t specify the amount of bond debt it owes. The company only said it will continue to levy and collect taxes within the special district.