"Disney Special District Revocation May Lead 1.2 Trillion Won Debt Burden to Taxpayers"

Disneyland. [Image source=Getty Images Bank]

[Asia Economy Reporter Jeong Hyunjin] The Florida state legislature in the United States has decided to revoke the special district authority granted to Disney, which publicly opposed the 'Don't Say Gay' law that bans lessons or discussions on gender identity, and this is expected to cause repercussions. There are also predictions that Florida taxpayers could face a 'debt bomb' amounting to $1 billion (approximately 1.24 trillion KRW).

On the 21st (local time), CNBC reported that the Florida House of Representatives decided to revoke the authority of the Reedy Creek Special District, where Disney is located, for the first time in 55 years since it was designated as a special district in 1967. The bill, which passed both the House and Senate, will take effect in June 2023 after being signed by Republican Governor Ron DeSantis of Florida.

The Reedy Creek Special District was established in the mid-1960s when Walt Disney purchased land in Florida and persuaded the state legislature to create a special district, allowing it to operate like a quasi-governmental agency without state government approval for development or taxation. This area recognizes Disney's autonomy. Disney owns two-thirds of the land within Reedy Creek.

Reedy Creek spans 25,000 acres across two counties, Orange County and Osceola County, and includes Disney's four theme parks, two water parks, and sports complexes. As of 2020, the population within this area was 53, all of whom are Disney employees, while 250,000 Disney guests visit daily.

Experts warn that if Governor DeSantis signs the bill, it will pressure taxpayers with bonds exceeding $1 billion. CNBC explained that the debt of Reedy Creek, formed for Disney's use, is estimated between $1 billion and $1.7 billion, and if the special district is dissolved, this responsibility is likely to be transferred to local governments such as the counties.

For now, the passage of this bill is expected to trigger legal disputes between Disney and the state of Florida. Moreover, if both parties do not reach an agreement on debts and various financial matters before July next year, there is a high possibility of confusion regarding how to actually implement this law in the future.