DeSantis vs. Disney: Florida’s Fight Over Private Governance

“On April 22, 2022, Florida Gov. Ron DeSantis signed a bill dissolving the Reedy Creek Improvement District, ending perhaps the most successful experiment in private governance in U.S. history. The bill ended an arrangement that turned a swamp on the edges of Orlando into the home of Walt Disney World, one of the busiest tourist destinations on Earth. The governor’s victory is not yet final—while the district was formally dissolved earlier this year, Disney attorneys quickly outfoxed DeSantis, delegating many of the district’s powers back to the company. The company is now suing to reverse the change altogether.”

“DeSantis’ attempt to dissolve the district is a blatant effort to bully a private company because he disapproved of its constitutionally protected speech. At best, it reveals DeSantis as a culture warrior rather than a small-government conservative. At worst, it exposes DeSantis as a politician willing to toss out the rule of law and free markets to score cheap political points, in the lead-up to a Republican presidential primary in which he’s struggling to meet expectations.”

“Looking back over the past half-century, it’s safe to say that the Reedy Creek Improvement District has been a remarkably successful experiment in private governance. If Disney World isn’t technically a city, it may as well be. On a typical day, the district hosts 160,000 visitors and 77,000 employees, which would put it among the top 100 U.S. cities, well above Walt’s vision of 20,000 EPCOT residents. Approximately 32,000 hotel rooms house tens of thousands of temporary—and nonvoting—residents each night.

The district had been a laboratory for public services, running instructive experiments in everything from mosquito abatement to green energy—though it never built that nuclear power plant. The district’s boutique EPCOT Building Code, a nod to Walt’s original ambitions for the project, optimizes safety and innovation better than the typical U.S. building code does. The district is still, for the most part, ringed by a carefully managed greenbelt, and the Disney World monorail is the ninth-busiest rapid transit system in the country.”

“Even well beyond its official boundaries, it’s nearly impossible to ignore the transformative impact of the Reedy Creek Improvement District. Orlando has been among the fastest-growing cities in the U.S. every decade since 1970, and its metropolitan population has quadrupled from approximately 344,000 to 1.5 million residents. Today, Orlando—and Florida as a whole—is synonymous with tourism, an economic powerhouse that holds the undisputed title of “theme park capital of the world.””

“Far from being a failure, the Reedy Creek Improvement District has been a runaway economic development success, matched only by the free market economic zones that created Singapore and Hong Kong or turned China from a nation of peasant farmers into an industrialized nation in a single generation. The worst that can be said about it is that Florida didn’t create even more such districts, offering a level playing field to competitors such as Universal Studios. With new cities and charter cities once again in vogue, we should be discussing the district as a model rather than pondering its apparent death.”

https://reason.com/2023/12/16/desantis-vs-disney-floridas-fight-over-private-governance/

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