What is the Reedy Creek Improvement District?

Reedy Creek is what’s known as an independent special district, which was created by the Florida Legislature to “support and administer certain aspects of the economic development and tourism” within its boundaries, according to its website . The district stretches across Orange and Osceola counties in Central Florida. Under the law, landowners of the district — not the counties it straddles — are responsible for paying the cost of services that local governments would normally provide. The district functions by taxing landowners — mainly Disney — and issuing bonds to pay for major projects and public services.

What does it include?

All of Walt Disney World Resort is located within the district, which encompasses about 25,000 acres — or nearly 40 square miles. Disney is the largest single landowner. Two cities sit within Reedy Creek: Bay Lake and Lake Buena Vista. Combined, the cities have a population of 53, according to U.S. census data from 2020. Residents are chosen by Disney, the Orlando Sentinel reported in 2015, and live in mobile homes on the resort complex. Members of the board of supervisors in Reedy Creek, which functions like a county government, must be landowners, according to a 2004 state report . The report says those members have historically been deeded about five acres by a Disney affiliate. According to its official website, the district includes 134 miles of roadways and 67 miles of waterways that it maintains. Approximately 250,000 guests visit every day.

What does the special district do for Disney?

Disney is essentially able to rule itself because it appoints the board of supervisors that acts as the district’s government while also paying some taxes to the counties where the property is located. Through the taxes it collects, Reedy Creek provides services including fire protection and emergency medical treatment, flood control, trash collection, power distribution, water treatment and road building and maintenance. It can issue bonds to fund major projects such as roadways. The district also oversees its own building code and issues permits, giving Disney more control over what it builds and eliminating layers of red tape during the construction process.

Why did Republican lawmakers in Florida vote to dismantle it?

Lawmakers and the governor have been eager to punish Disney for speaking out against another piece of legislation: the Parental Rights in Education bill, which passed earlier this year. Critics, who call the legislation the “don’t say gay” law, say it could harm LGBTQ kids or families. After the bill became law, Disney said its goal as a company was for the law to be repealed or struck down — a statement that infuriated DeSantis. He is up for reelection this year and is widely seen as a potential presidential contender in 2024. “If Disney wants to pick a fight, they chose the wrong guy,” he wrote in a recent fundraising email, the Associated Press reported . “As Governor, I was elected to put the people of Florida first, and I will not allow a woke corporation based in California to run our state.” Some lawmakers assailed Disney’s stance on the LGBTQ bill as they discussed stripping its special status — but also stressed that they were singling out the company because it should not get special treatment from the state.

What happens next for Disney?

It’s not clear yet. The law calls for the district to be abolished on June 1, 2023 — which leaves a lot of time to work out the details. Observers say Disney could file a lawsuit. And the law allows for special districts to be reestablished after June 1 of next year. Disney has declined to comment on the law.

What happens if Reedy Creek goes away?'

Officials in surrounding counties are trying to figure this out. In a statement, Osceola County said its government would start an analysis to understand any costs that might shift from Reedy Creek to the county. “If we had to take over the first response, the public safety components for Reedy Creek with no new revenue, that would be catastrophic for our budget here within Orange County,” Jerry Demings, mayor of Orange County, said last week. “It would put an undue burden on the rest of the taxpayers in Orange County to fill that gap.” The Washington Post reported last week that Disney has an estimated $1 billion in debt obligations and spends more than $160 million a year on public services; other government bodies could be forced to assume those responsibilities. Political science experts also said Disney could face a slower process when trying to build attractions and could face obstacles while transitioning service providers. Aubrey Jewett, a political science professor at the University of Central Florida, said the high costs related to the law would probably be expensive for Disney — which could trickle down to consumers. “Disney has really been aggressive in raising prices across the years,” he said. “In my way of thinking, they don’t need much more of a nudge to raise them again.”

By The Way

Disney’s special tax district in Florida, explained

What you need to know about the recently outlawed Reedy Creek Improvement District

By Hannah Sampson

April 25, 2022 at 5:53 p.m. EDT

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5 min

Florida Gov. Ron DeSantis (R) signed a bill into law Friday that would dismantle the special taxing district where the Walt Disney World Resort operates, effectively weaponizing a hastily convened session of the state legislature against a company that has publicly criticized the state’s efforts to limit discussion of LGBTQ topics in elementary schools.

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The Reedy Creek Improvement District was established in 1967 — four years before the first Disney theme park in Florida opened its gates. And its unique structure has helped the Walt Disney Co. develop the property into the top theme park destination in the world.

Even fervent Disney World fans may have been unaware of the entertainment giant’s self-governing territory. Here’s a quick breakdown of what the district is, why Florida’s Republican-led legislature voted to get rid of it and what that might mean.

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