“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.”
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“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.”
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“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.”
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“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.””
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“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.”
“The fact that Florida Gov. Ron DeSantis is now trying to back away from his fight with the Walt Disney Company should confirm at least one thing about the whole ugly mess.
It was never a principled fight against special privileges granted to a private company. It was a political stunt meant to raise DeSantis’ profile on the national stage.
That mission having been accomplished—and with the prospects of a legal battle against Disney looming—DeSantis told CNBC on Monday that he has “moved on” from the issue. He also encouraged Disney to “drop the lawsuit” that it filed in April against his administration.”
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” it would be useful for reporters to ask DeSantis whether he would take similar actions against other businesses whose executives criticize his policies. Disney obviously has the power to fight back, but others might not be able to do so. Is DeSantis willing to admit he was wrong to retaliate against Disney? The answer would be instructive for voters weighing his candidacy for higher office.”
“DeSantis argues that this is a pro-transparency change that will ensure Disney cannot do whatever it pleases without some semblance of state oversight. It could also be, as DeSantis critics like Jonathan Chait have argued, a move that will allow DeSantis to exert direct pressure over Disney’s content in the future. The board members won’t be able to write or reject plot arcs in future Disney films, of course, but an unhappy board could cause problems for the company’s development plans in and around its Florida theme parks.”
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“In the old days, conservatives would have viewed unelected officials being appointed to oversee corporate decisions as a worrying intrusion of state power into private affairs. DeSantis has figured out how to get them to cheer for it.”
“In March, DeSantis signed into law H.B. 1577, which described itself as “an act relating to parental rights in education.” The bill limits discussions of sexual orientation and gender identity in public school instruction and authorizes parents to sue school districts that break the vaguely written rules.
Walt Disney Company CEO Bob Chapek initially tried to keep the company publicly neutral on the bill. But after it passed, Chapek and Disney, responding to pressure from the company’s employees, both spoke out against H.B. 1577.
Irked by the criticism, DeSantis and Florida’s Republican-controlled legislature took aim at the Reedy Creek Improvement District (RCID), which state lawmakers established in 1967 to give Disney substantial autonomy within the nearly 40 square miles it owns in Orange and Osceola counties. The special district allows Disney to control zoning, construction, infrastructure, emergency services, and taxation to pay for all of it.
While Florida has more than 1,800 special districts, Republicans targeted Disney by restricting the bill to districts established prior to 1968. DeSantis made it clear when he signed the bill that it was punishment for criticism of H.B. 1577. “You’re a corporation in Burbank, California, and you’re going to marshal your economic might to attack the parents of my state,” he said. “We view that as a provocation, and we’re going to fight back.” The bill would dissolve the RCID and five other pre-1968 districts in 2023.
While DeSantis and other Florida Republicans seem to view the RCID as an undeserved privilege, it freed Orange and Osceola counties, along with their taxpayers, from responsibility for Disney’s massive park. For instance, Disney pays the Orange County Sheriff’s Office millions of dollars each year for policing services. Orange County Mayor Jerry L. Demings said it would be “catastrophic” for the county’s budget if it had to pay for first-responder services in the park. DeSantis suggested in May that the state could take over the district.
The RCID also has $1 billion in bond debt. In an April statement to bondholders, Reedy Creek representatives said the district cannot be dissolved under Florida law unless those debts are paid off.
What happens next is not entirely clear, although an early attempt by a group of nearby taxpayers to sue DeSantis was dismissed due to lack of standing. Some First Amendment scholars suggested that Disney could challenge the law as a form of unconstitutional viewpoint discrimination.”
“Florida Gov. Ron DeSantis recently signed legislation that strips Walt Disney World of its independent, special-district status after the company objected to the state’s new law regarding discussion of sexual orientation or gender identity in classrooms. While the motive behind this action is problematic, some of its supporters argue that there is nothing to fret about, since it was time to revoke a cronyist privilege granted to Disney 50 years ago anyway. But if this is really a fight against cronyism, the legislation goes about it the wrong way.
Cronyism is the unhealthy alliance of business and government. It takes the form of government officials at the state, local, and federal levels granting special privileges to particular companies or industries. These privileges can include special tax breaks, government loans, direct subsidies, or—as in Florida—so-called “special districts.” I spend a great deal of my work hours researching the harm cronyism causes to citizens. That’s because, as my colleague Matthew Mitchell wrote a decade ago, “Whatever its guise, government-granted privilege [to private businesses] is an extraordinarily destructive force. It misdirects resources, impedes genuine economic progress, breeds corruption, and undermines the legitimacy of both the government and the private sector.”
So, is Disney benefiting from a handout that should be stripped away? Yes, Disney certainly has been getting an incredible privilege to act as its own government within the limits of Orange and Osceola counties. For instance, it runs its fire department, administers planning and zoning rules, writes building codes, employs its own inspectors, and is exempted from local regulations and some $200 million in taxes. It levies the remainder of the taxes it owes.
Removing special district status means these types of responsibilities would be absorbed by the two counties in which Walt Disney World sits. Local taxpayers would then shoulder the cost for all municipal services on the property—a cost estimated to be $1 billion. The company, in turn, would be subjected to the same subpar local government services and regulations that most of us are accustomed to. In addition, Florida will be tied up in years of costly litigation to figure out how to disentangle the company from the counties.
But maybe untangling this special treatment is worth the cost. Just don’t expect it to result in a fairer regime. Indeed, if this setup is so unacceptable—a claim most Republicans didn’t seem to make for the half-century the special district has been in place—it should also be unacceptable for the other 1,844 Florida special districts. Of these, 1,288 are, like Disney, independent districts. But we aren’t hearing significant Republican complaints about these.
In other words, GOPers want to continue the practice of extending privileges selectively. What legislators should have done is decide whether any such special districts are a good idea. If so, access to them should be made available to any company that meets certain minimum and clear criteria and denied to any company that does not.”
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“This episode should serve as a warning for companies angling to score special privileges from government. Governments give arbitrarily and unfairly, and they take back with equal arbitrariness and unfairness. In addition, when a company’s profitability depends heavily on government largesse, it must make sure not to anger its government overlords. Disney obviously failed to do that.
This sad affair has done nothing to change cronyism in the state of Florida, but it has once again exposed the arbitrariness of government in our lives and the cost of depending on its favors.”
“By calling for the revocation of the Reedy Creek Improvement District while making note of the special exemption that the Republicans themselves gave Disney in the first place, DeSantis leans into using his office in an overt attempt to punish political opponents in the private sphere.
It may be good for culture war politicking, but one does have to consider whether Orange and Osceola counties are even interested in taking responsibility for providing mandatory public services to the massive Disney resort empire. Disney is the biggest employer within the two counties and most certainly their largest source of tangential and indirect tax revenue through tourism. Right now Disney—through Reedy Creek—actually contracts with the Orange County Sheriff’s Office for millions each year ($15.8 million to outside law enforcement agencies in FY 2017) for protection. That’s a benefit to the counties that could end up becoming an expense.
It’s a bit simplistic to think that giving Walt Disney World Resort the power of self-rule is some sort of gift or privilege. That the park, given self-governance, has managed to maintain itself as a generally safe and stable environment that people flock to from across the world is a pretty good indication that the company knows what it’s doing.
Any contention that DeSantis is eliminating some sort of “special treatment” for Disney comes with it the perhaps mistaken assumption that the two counties suddenly in charge of all of this infrastructure will somehow make the park better and not worse. In reality, putting Disney parks at the mercy of two different counties with different laws will be a huge mess for everybody involved, and that’s the point. It’s not about what’s fair or what’s best for the citizens in the area. It’s about punishing political foes and centralizing government power (a very nonconservative approach) to do so.”
“Walt Disney Co. proposed the Reedy Creek Improvement District in the mid-1960s in a remote area of Orange and Osceola counties. It allows Disney to operate like its own county government and is responsible for municipal services such as power, water, fire prevention and road maintenance. It also means Disney doesn’t need approval from local planning commissions if it wants to build new structures.
The reason special districts were created was so taxpayers who don’t benefit from the services of the special district aren’t required to pay for it through taxes.
A huge benefit of special districts is making tax-exempt purchases for the services they provide and issuing municipal bonds for major infrastructure projects at a much lower interest rate, said Chris Lyon, an attorney who deals with special districts.
The measure lawmakers are considering would not permanently terminate the Reedy Creek Improvement District, but it would phase it out on June 1, 2023, and allow the special district to reestablish on or after that date.
If legislators approve the bill, as is expected, Disney would be able to go to the state Legislature in Tallahassee next year and request it be reestablished, likely under more limited capabilities and powers.”
“Here is what Carano wrote on Instagram:
Jews were beaten in the streets, not by Nazi soldiers but by their neighbors…even by children. Because history is edited, most people today don’t realize that to get to the point where Nazi soldiers could easily round up thousands of Jews, the government first made their own neighbors hate them simply for being Jews. How is that any different from hating someone for their political views.
This was a very flawed comment: For one thing, Nazi soldiers absolutely beat Jews, in the streets and elsewhere. Carano is right that part of the Nazis’ agenda was to persuade German citizens to hate and fear their Jewish neighbors—but what happened in 1930s Germany is not remotely similar to what is happening today in the U.S. The Nazi Party’s demonization of the Jewish people led to genocide. The media’s demonization of the Republican Party—which is not directly referenced in her post, but it’s assumed that’s what she meant—is obviously not comparable to the Holocaust.
That said, Disney is wrong to say that Carano denigrated Jewish people, or that she is “abhorrent” for making such a comparison. She’s a celebrity with an obnoxious political opinion, which is not exactly a rare animal.
And that’s the bigger issue with Disney’s decision to drop Carano: hypocrisy. If the studio doesn’t want to work with actors and actresses who make over-the-top Nazi comparisons, it has a major problem on its hands: Pedro Pascal, the star and eponymous character of The Mandalorian, once sent a tweet likening Trump’s immigration policies to Nazi concentration camps.
This is not so surprising: Hollywood is chock full of people with quirky political views making dramatic analogies.”