Orlando Becoming East Coast Headquarters for Disney Parks, Experiences, and Products

[Hakunamatata]

 

[mightynine]

Anyways, back to our regular programming.

 

[The Mom]

Again, please report any problematic posts and do not engage. Your posts will be deleted with the offender's posts.

Please have patience because there are a lot of new (or recycled) posters who have joined just to make trouble.

 

[mikejs78]

I chuckle at those who believe $DIS at $95/share is "a bargain". There's still plenty of air to be let out of the Iger-inflated stock balloon. The stock should be around $60/share, all things being equal.

Then why do most analysts peg $DIS between $120 and $140?

 

[Disone]

Then why do most analysts peg $DIS between $120 and $140?



Seriously, no. For all his flaws, Iger is 100% in the right here. There is no excuse for retaliating against freedom of speech, and there's no moral equivalency between the two of them. Criticize Iger all you want for other things, but he is making all the right moves when it comes to the stupid fight that DeSantis won't let go.

I will second this. Iger is correct on this one for sure.

 

[MisterPenguin]

So, instead of spending $18 billion in Floridia, Disney will only be spending $17 billion.

"...I hope we’re able to do so." -Josh <wink, wink, nudge, nudge>​

 

[Nland316]

"...I hope we’re able to do so." -Josh <wink, wink, nudge, nudge>​

I can’t help but think how Josh being directly involved in this situation is CEO prep.

Of course first and foremost it’s Iger making these shots, but Josh’s name and statements have been just as heavily involved due to his Chairman position.. I could see it.

 

[larryz]

So by inference you are saying this was a good thing. Right.

I'm neither inferring nor implying anything other than it's a logical, business decision thing. Disney apparently finds it convenient to announce it in the context of their ongoing dispute with the state over ownership of RCID. I find it disingenuous to blame this decision on that dispute.

 

[Stripes]

RCID was not a tax break for Disney. They paid, and continue to pay, much more in taxes because of RCID. RCID gave Disney control over their land. That is all.

Disney needs to run ads about this fact. Disabuse the public of the governor’s false narrative.

 

[Figgy1]

I can’t help but think how Josh being directly involved in this situation is CEO prep.

Of course first and foremost it’s Iger making these shots, but Josh’s name and statements have been just as heavily involved due to his Chairman position.. I could see it.

Maybe
or he tends to play well in the media

 

[HauntedPirate]

Then why do most analysts peg $DIS between $120 and $140?

Because Bob has successfully convinced them that there is a never-ending pot of magical consumers ready, willing, and able to spend copious amounts of money in the theme parks. In other words:

 

[Gary7777777]

I will second this. Iger is correct on this one for sure.

Well maybe today’s news from wall street could put a little damper on these predictions.

Disney (DIS) stock today fell about 2% on the heels of a fresh Wall Street downgrade. Macquarie analyst Tim Noller downgraded shares to Neutral from Outperform, citing declining linear networks, direct to consumer hurdles, and a slowing park’s business.

 

[UCF]

RCID was not a tax break for Disney. They paid, and continue to pay, much more in taxes because of RCID. RCID gave Disney control over their land. That is all.

Disney needs to run ads about this fact. Disabuse the public of the governor’s false narrative.

Disney does not pay taxes on land and assets owned by RCID, and if RCID did not exist, Disney would have to own the land, and the assets on the land, so Disney would have to pay property taxes on many, many more assets every year. They also would have to pay normal taxes instead of being able to fund it with tax exempt municipal bonds and the like, just like every other company in the State of Florida has to do.

 

[MisterPenguin]

Disney does not pay taxes on land and assets owned by RCID

Where does the RCID get the money to pay its land taxes?

 

[mikejs78]

and if RCID did not exist, Disney would have to own the land, and the assets on the land

This is also not necessarily true. If RCID did not exist, much of this infrastructure probably would have been created by the counties, Disney would have cut deals with the counties to have them build a lot of the infrastructure. Some of it may have been paid for by Disney and then been private, but utilities, through-roads, etc, very well could have been done by the government as is the case with many other parks and businesses in the state.

 

[Stripes]

This is a lie, its already been debunked. Disney does not pay taxes on land and assets owned by RCID, and if RCID did not exist, Disney would have to own the land, and the assets on the land, so Disney would have to pay property taxes on many, many more assets every year. They also would have to pay normal taxes instead of being able to fund it with tax exempt municipal bonds and the like, just like every other company in the State of Florida has to do.

Just like the infrastructure that serves the other Orlando theme parks, almost all of the infrastructure that RCID owns would almost certainly be built and maintained by the counties, not Disney.

But, let’s take your hypothetical. Let’s say that all of the infrastructure in RCID was privately-owned by Disney and Disney had to pay property taxes on that land/those assets. Reedy Creek charges 13.9 mills in property taxes on Disney’s property today. That is more than 50% of all property taxes Disney pays on their land (27.5 mills). And Disney already owns about 70% of the land in the district.

Do you think that if Disney owned every piece of land in Reedy Creek and paid property taxes on all land that wasn’t tax-exempt, that it would result in a higher tax bill even if their property tax rate was slashed by over 50%? The math doesn’t compute.

Also, bondholders are charged taxes on corporate bond interest, not the corporations.

 

[tallica]

https://www.cnn.com/2023/05/19/business/disney-ron-desantis-analysis/index.html

 

[flynnibus]

Where does the RCID get the money to pay its land taxes?

Municipal Govs don't pay land taxes And neither does RCID from what I see.

 

[flynnibus]

This is also not necessarily true. If RCID did not exist, much of this infrastructure probably would have been created by the counties, Disney would have cut deals with the counties to have them build a lot of the infrastructure. Some of it may have been paid for by Disney and then been private, but utilities, through-roads, etc, very well could have been done by the government as is the case with many other parks and businesses in the state.

'could have'

but as we know the gov doesn't build everything for businesses and most developments spend massive amounts building out private infrastructure, or paying utilities premiums to do so. Here, RCID through the cozy relationship can build far more than your typical arrangement would offer.

It's not a stretch at all to conclude RCID built far more under their umbrella than what would have happened in a traditional arrangement.

 

[flynnibus]

Just like the infrastructure that serves the other Orlando theme parks, almost all of the infrastructure that RCID owns would almost certainly be built and maintained by the counties, not Disney.

Then why is UNI paying for so much infrastructure build out even now? This premise of 'counties would have done it if RCID didn't' is rose colored glasses. Counties would have constrained what could have been done under municipal ownership for the very reason RCID was there to start with... because the counties were so constrained.

But, let’s take your hypothetical. Let’s say that all of the infrastructure in RCID was privately-owned by Disney and Disney had to pay property taxes on that land/those assets. Reedy Creek charges 13.9 mills in property taxes on Disney’s property today. That is more than 50% of all property taxes Disney pays on their land (27.5 mills). And Disney already owns about 70% of the land in the district.

The delta isn't just on taxes paid. The delta comes in cost to build as well - as noted in the RCID garage build out... the savings in costs was millions as a municipal project vs a private just in taxes on materials.

Disney is paying for many things with those tax dollars as the vehicle to pay for it (EMS, etc). It's not a comparison of 'is my property tax bill lower'... It's a "Is there advantages to paying for all this stuff via this vehicle vs doing it ourselves". Clearly there is... otherwise they wouldn't do it via RCID in the first place.