Possible IRS Troubles Ahead for WDW/RCID

[Cosmic Commando]

Not true. Disney does not have their own building codes. They have to abide by the state's building codes and they have to file with the state what they're planning. They do have their own local government, but I think they also are part of the county jurisdictions for Orange and Osceola, so, they're not entirely free to do whatever they want. But, because of their size and local revenue they help generate, they are probably given a lot of lee-way on things.

I would guess most cities and towns have their own building codes, but it doesn't allow them to contradict state law.

 

[SirLink]

Nothing to see here. This has been litigated before. Disney and RCID are independent of one another, legally. The Sentinel is notoriously anti-Disney and this article serves no purpose other than to stir the pot.

You mean a newspaper/media shouldn't be attacking big corporations on being big corporations. Wow that is the whole point - more newspapers should be doing this the world over not just sucking the teet of giant corporations.

 

[flynnibus]

Not true. Disney does not have their own building codes. They have to abide by the state's building codes and they have to file with the state what they're planning. They do have their own local government, but I think they also are part of the county jurisdictions for Orange and Osceola, so, they're not entirely free to do whatever they want. But, because of their size and local revenue they help generate, they are probably given a lot of lee-way on things.

Building codes and zoning are part of the scope of rcid - they even called it Epcot codes... But they still must comply with state and federal statutes as well of course.

 

[GrumpyFan]

Building codes and zoning are part of the scope of rcid - they even called it Epcot codes... But they still must comply with state and federal statutes as well of course.

That's the part I left out, or was trying to say. (Note to self, avoid late night posts after a long, tiring weekend) Sorry for the confusion. What I was trying to convey though, was that Disney can't just do whatever they want (as some others seemed to imply), they still have to comply with the minimum standards and guidelines set by those other agencies. I should point out, that sometimes Disney's codes exceed the standards set by those other agencies.

 

[ParentsOf4]

That's the part I left out, or was trying to say. (Note to self, avoid late night posts after a long, tiring weekend) Sorry for the confusion. What I was trying to convey though, was that Disney can't just do whatever they want (as some others seemed to imply), they still have to comply with the minimum standards and guidelines set by those other agencies. I should point out, that sometimes Disney's codes exceed the standards set by those other agencies.

Right but RCID's codes allow WDW to accelerate the building process. I don't think anyone is accusing WDW of shoddy work. As I recall reading, Walt and Roy were mainly worried about having to navigate the maze of local government zoning and building approval, along with the time it took especially for some of the new materials and techniques they wanted to try.

Most ironic considering how long it now takes WDW to build anything, while up the road Uni is running circles around them.

 

[lazyboy97o]

Right but RCID's codes allow WDW to accelerate the building process. I don't think anyone is accusing WDW of shoddy work. As I recall reading, Walt and Roy were mainly worried about having to navigate the maze of local government zoning and building approval, along with the time it took especially for some of the new materials and techniques they wanted to try.

Most ironic considering how long it now takes WDW to build anything, while up the road Uni is running circles around them.

It's not really the codes themselves that allow[ed] for the accelerated pace of construction. It's that RCID has their own code officials and they only have to deal with Disney's projects. It means they can be more involved earlier on in the process to ensure compliance.

 

[matt9112]

Although on the surface the RC district and Disney world may look like a big corporate stomping ground. Alongside the differences they have had with the state. (A strained and tested relationship to be clear) the net gain has been huge for both the state and Disney....I would also agree with Tim and others that all Disney gets to do is borrow at lower rates and remove itself from the ridiculous amount of legal government paperwork and codes.....in fact the codes Disney established were stricter than state codes.....pertaining to hurricanes and the like....what the RCD and WDW shows...in stunning fashion is how much more productive and efficient a private venture without government intervention can be. Sure there needs to be general guidelines and agreements, and in this case there are....special tax rates and the aforementioned I-4 fund as well as a ton of conservation land work to save habitat. As well as providing much of its own services. And although many can argue there is a poverty problem in Orlando....and many point to disneys thousands of low paid jobs as a culprit.....Orlando as we know it simply would not exist without Disney world and every large city has poverty issues and most....lack a WDW. the advantages Disney world gained we're all obtained legally and at any time the state could have said no. But all they say we're dollar signs and highways. The government of Florida failed its people if you want to argue dinseys advantage. They vested that power....Disney may have dangled a carrot but a rabbit is never forced to bite.

 

[Magenta Panther]

This is really interesting. since the RCID should be dissolved, or public elections should be held. It is an unfair business advantage that Disney has over other tourism companies here in Florida.

The IRS should be dissolved. It's a frightening, politically corrupted and well, evil entity. I'm not defending Disney here, just saying.

 

[matt9112]

The IRS should be dissolved. It's a frightening, politically corrupted and well, evil entity. I'm not defending Disney here, just saying.

It's funny everyone wants to tear down big corporations but the biggest one of all is the Feds....if a corp screws up it answers to shareholders.....who buy in and care.....voters the governments version of shareholders do not need to buy in thus they have no true stake unless they honestly care...and many do....but many more are bought with smiles,handshakes and billboards.
And yes I just called most people gullible.

 

[Belowthesurface]

Sounds a lot like Reedy Creek to me. Interesting that we can get 200 posts on whether Fastpass creates big lines or refillable mugs, but when Garcia finally breaks a real story, crickets.

Because 99% of us don't have experience with the RCID or do anything in our lives related to it.

Thank you for mocking other people because they don't share your interest.

 

[FigmentJedi]

 

[Master Yoda]

Disney controls their own zoning and building codes. Other companies do not get the same access to tax-free bonds either. Married to the Mouse:Walt Disney World and Orlando by Richard Fogelsong has a good overview of the situation.

As @lazyboy97o alludes to in mentioning Married to the Mouse, RCID gives WDW some incredibly unfair business advantages. WDW basically has its own government with, for example, its own building code. WDW might never have been built if it had to navigate the "normal" local government approval process. Perhaps more than anything, this is what Walt and Roy wanted to be able to avoid when they negotiated the move to Orlando.


There have been many laws created by local governments later ruled by the Courts to be "unfair" and overturned. Ultimately, the IRS doesn't care about RCID. It wants its money and it doesn't care what legislation the State of Florida passed in 1965. If the IRS moves forward on this, look for WDW to work out a financial compromise without actually giving up its autonomy.

Disney has not had unilateral control their own building codes since 2000. They still must meet or exceed the Florida building code and always have. About the only advantage they have over a regular builder is their engineers can certify a product or construction method meets the Florida building code. A regular builder has to use a product or method that has been pre-approved. This however is nothing special. The Jacksonville Electric Authority, among others, has the same such power.

 

[rael ramone]

(i had just typed something up real long and hit the wrong key and it went bye bye).

The immediate issue for WDW is will they be continue to be able to sell 'municipal bonds' (that the borrowers don't have to pay taxes on their interest) or will they have to do what other corporations do and sell corporate bonds (which bondholders have to pay *regular income* on the interest). That makes a big difference. States & local goverments are fearful of anyone being taxed on their muni interest (even the rich) because it drives up the borrowing costs on them.

Florida is free to call RDIC bonds 'muni bonds' if they so choose, and not charge taxes to FLA residents who buy them if they so choose. The danger is that the IRS will now call these bonds 'corporate' and holders will be required to pay 'regular income taxes' at their federal marginal rate on the interest, and the bondholders won't buy new issues unless a higher interest rate is paid...

Now in this I don't see any increased taxes paid directly from the TWDC and the IRS (indirectly, yes). For this reason it might be tricky for any 'deal' to be reached between them...

 

[Victor Kelly]

When doesn't the government want more money? Florida loves Disney because of the huge draw Disney has. Feds love Disney for all the money they can tax. Feds want the people buying the bonds to pay tax on their earnings, I assume once the bond matures. How is that different from me cashing in savings bonds?

 

[Tim_4]

You mean a newspaper/media shouldn't be attacking big corporations on being big corporations. Wow that is the whole point - more newspapers should be doing this the world over not just sucking the teet of giant corporations.

I'm all for journalists questioning big business (and the government, for that matter). The problem is, the hacks over at the Sentinel are flat-out liars. They routinely print misinformation and then release "clarifications" in fine print on their website once the damage is done.

 

[bethymouse]

I'm all for journalists questioning big business (and the government, for that matter). The problem is, the hacks over at the Sentinel are flat-out liars. They routinely print misinformation and then release "clarifications" in fine print on their website once the damage is done.

Sounds like the "tabloids" to me.

 

[The Empress Lilly]

I'm all for journalists questioning big business (and the government, for that matter). The problem is, the hacks over at the Sentinel are flat-out liars. They routinely print misinformation and then release "clarifications" in fine print on their website once the damage is done.

Nonsense! You only say that because you have a proven financial interest in the Sentinel's competitors!





no he doesn't

 

[rael ramone]

I'm all for journalists questioning big business (and the government, for that matter). The problem is, the hacks over at the Sentinel are flat-out liars. They routinely print misinformation and then release "clarifications" in fine print on their website once the damage is done.

If I understand correctly, some posters think Garcia (the writer in question) is Charmin Soft when it comes to the mouse.

To my eyes, this specific article in question looks to be well written, it correctly points out that the case that the IRS *is* pursuing against The Villages has the potential to affect WDW if the IRS sees the common threads and chooses to pursue. And that RDIC recognizes the potential of this having an affect to the point that they are disclosing this as a risk (IIRC, if they believe the risk is there, even if small, they are required to disclose it).

That said, I'm not a reader of the paper, and I can't personally confirm or deny how the Sentinel is.

 

[Jim Chandler]

Disney must comply with the standards set by the State and county. They can only make them tougher. They must adhere to ADA, Florida Hurricane standards which change on a yearly basis and other similar mandates or building regulations
As for the process what they did was to circumvent the processes that others have had to go through.
Those process as we know have been the death of many businesses. If there were less regulations by cities, counties and others many of which can be ridiculous, businesses would function better.

 

[Master Yoda]

Disney must comply with the standards set by the State and county. They can only make them tougher. They must adhere to ADA, Florida Hurricane standards which change on a yearly basis and other similar mandates or building regulations
As for the process what they did was to circumvent the processes that others have had to go through.
Those process as we know have been the death of many businesses. If there were less regulations by cities, counties and others many of which can be ridiculous, businesses would function better.

Quite correct. At the time WDW was being built every Florida county had their own building code. Most were similar, but no two were completely identical. This was going to be a nightmare since Disney fell into 2 counties. There were also no building code approved standards for building a steel and fiberglass castle let alone the hundreds of other things they were building. Had Disney not been given the latitude to oversee their own construction methods, WDW would have never been built.