lazyboy97o
Well-Known Member
Not all special districts are organized around land ownership. Some are organized around residency. Some don’t have any direct elections. Some are appointed.
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News Reedy Creek Improvement District and the Central Florida Tourism Oversight District
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Chip Chipperson
Well-Known Member
True, but unless I'm mistaken there is only 1 appointed Special District board in FL that has the power to levy taxes and it's the CFTOD.
flynnibus
Premium Member
2023 assessed value of Disney Springs' retail and shopping area - 345Million dollars
2023 assessed value of just the three DS parking garages - 200Million dollars
Any question again why Disney would happily have RCID own the garages? The nearly31million 7.5M in property taxes a year the arrangement saves Disney verses if they built them themselves. And how 'inconsequential' the amounts the deal costs the county? (psst... it's about 5million a year in property tax alone)
The county sales tax is 0.5%. It takes 1 billion in sales to recoup that $5 million. Something tell me a DS with garages isn't generating an extra billion dollars in sales vs a theoretical "downsized" DS without garages. So yes, there is an impact to the folks besides those inside the district when the district makes grey-area deals.
For a relative comparison.. the TTC parking lot is assessed at about 64 million. The garages are a huge asset and a monster benefit to avoid owning themselves... even tho there isn't a single shared use for them outside of Disney Springs and Disney's casting center.
The existance of RCID does not mandate they develop all transportation related things within the district themselves. Improving the region by making areas developable and serviceable by adding and maintaining infrastructure, drainage, access, etc - That's the district's mission. Not offloading anything "transportation related" under the guise of "that's what RCID is for..".
The TTC lot was essential to enabling the very nexus of WDW that was the Magic Kingdom and RCID didn't pay for that parking facility. There is a line between what develops the property/regional improvements and what is the responsibility of the private businesses. Disney was smart enough to keep that distinction pretty clear most of the time. The DS garages were an example of where they fudged that distinction and really puts a stain on the image of the district serving the development of the region instead of serving as a puppet.
EDIT: I screwed up in my math, incorrectly applying millage as per $100 instead of per $1000 when calculating the ad valorem taxes.
2023 assessed value of just the three DS parking garages - 200Million dollars
Any question again why Disney would happily have RCID own the garages? The nearly
The county sales tax is 0.5%. It takes 1 billion in sales to recoup that $5 million. Something tell me a DS with garages isn't generating an extra billion dollars in sales vs a theoretical "downsized" DS without garages. So yes, there is an impact to the folks besides those inside the district when the district makes grey-area deals.
For a relative comparison.. the TTC parking lot is assessed at about 64 million. The garages are a huge asset and a monster benefit to avoid owning themselves... even tho there isn't a single shared use for them outside of Disney Springs and Disney's casting center.
The existance of RCID does not mandate they develop all transportation related things within the district themselves. Improving the region by making areas developable and serviceable by adding and maintaining infrastructure, drainage, access, etc - That's the district's mission. Not offloading anything "transportation related" under the guise of "that's what RCID is for..".
The TTC lot was essential to enabling the very nexus of WDW that was the Magic Kingdom and RCID didn't pay for that parking facility. There is a line between what develops the property/regional improvements and what is the responsibility of the private businesses. Disney was smart enough to keep that distinction pretty clear most of the time. The DS garages were an example of where they fudged that distinction and really puts a stain on the image of the district serving the development of the region instead of serving as a puppet.
EDIT: I screwed up in my math, incorrectly applying millage as per $100 instead of per $1000 when calculating the ad valorem taxes.
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mikejs78
Premium Member
Something tells me that a DS with the garages is generating an extra billion dollars in sales vs a downsized DS without garages.
mikejs78
Premium Member
Again, the original plans called for one garage. So if RCID did not build the garages, it's reasonable to assume that maybe Disney would be paying an additional $10M in property taxes if they build that one garage themselves.
Oh, and less parking means a smaller DS, so that means less property tax from DS and less sales tax from merchants. The counties came out ahead in this deal. Everyone wins.
Again, if RCID hasn't built the garages it's likely that a smaller DS would have resulted, which means fewer merchants, lower assessed value, less property tax and less sales tax.
Goofyernmost
Well-Known Member
When is someone going to start understanding that in the case of Special Districts the word used is Taxes. I was on the board of a "special district" in Vermont. Here's the lowdown on what SD taxes really are. In our situation the district, which was also called a municipality had one purpose and one purpose only and that was to provide water for a 187 private home housing development. Each household had a vote for board members.
We levied taxes, they were levied monthly and most of the time they were referred to by the residents as their "water bill" based on usage. Our District was located within the confines of a organized town. The part of the town that did have water availability did not extend to our little area, so we had to create a district that could bill the proper amount needed to maintain the system and pay the help. In other words Tax = Bill for services. P.S. we only taxed/billed people within our small district. No one was "taxed" outside of our jurisdiction as is the same with what Disney's connection was for RCID. The only responsibility RCID ever had was to support the entity that it was created for, not to rule, but was charged with keeping it within specific guidelines which, BTW, were much higher than that of the State of Florida. Having that setup meant that the areas surrounding the business of building and maintaining that specific resort would not burden it's neighbors, to charge the cost of all the needed infrastructure to any of the population outside of that specific property.
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flynnibus
Premium Member
The math doesn’t work. The value of property tax is nearly 6x of sales tax and the design (and success) of DS was not changing that much.
Additionally the third parking garage was added well after the design of DS was set.
If all these thoughts of its better for ghem due to new growth why didn’t RCID pay for the parking infrastructure when Disney added west side?
Not enough to offset the concession. Look at the one garage map vs what we have… they aren’t radical different in scope. Additionally, grapefruit was added after the fact without any changes at all.
Stripes
Premium Member
The total property tax bill for all three garages would be about $5 million, not $31 million.
Disney’s tax bill for Disney Springs is about $7.5 million. Bear in mind, about 50% of the tax bill was to RCID. RCID simply raises and lowers their millage rate to meet their expenses so about half the property taxes could’ve been offset by a decrease in the millage rate. Meaning a property tax increase of $2.5 million per year for the three garages, which is incredibly insignificant.
Orange County Property Appraiser
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Figgy1
Well-Known Member
Not to mention it wouldn't be the destination for locals to shop and eat that it has become. I'm curious to know if anybody has the sales tax numbers from before the garages compared to now that DS has been fleshed out
Figgy1
Well-Known Member
Prepare for a flogging with a wet noodleWait, I’ve gotten good deals before and negotiated favorable terms. Is this a punishable offense? Should I be worried?
Cheaper financing through municipal debt.
Not illegal and not uncommon for governments to have municipal parking structures that businesses use.
Chip Chipperson
Well-Known Member
Not to mention that the $2.5 million is offset by increased taxes on the rest of the Disney Springs property plus the increased sales tax revenues. So the "loss" would be much less than that, even if there was any loss at all. And considering the County called it out as a positive development in its audit, I highly doubt they lost money on it.The total property tax bill for all three garages would be about $5 million, not $31 million.
Disney’s tax bill for Disney Springs is about $7.5 million. Bear in mind, about 50% of the tax bill was to RCID. RCID simply raises and lowers their millage rate to meet their expenses so about half the property taxes could’ve been offset by a decrease in the millage rate. Meaning a property tax increase of $2.5 million per year for the three garages, which is incredibly insignificant.
Orange County Property Appraiser
ocpaweb.ocpafl.org
flynnibus
Premium Member
No, the county's property tax is the $5Mil. The county's website for the garages does not reflect RCID ad valorum tax (which is another roughly 1.3% on the assessed value) because it's NA. I grouped both the ad valorem and county tax together (yes, its slang) because they are two primary taxes based on the property assessment being discussed and the big baseline chunk each gov counts on. We'd really get dragged into the weeds if you tried to line item every additional tax item the county applies to property. Focusing on the big chunks means you chase the meat of the topic. The property tax and district ad valorem tax have been the focus of the conversation and represent the biggest chunk of what people are getting.. or not.
Now you're talking about the total tax bill for just one parcel - which includes multiple county pieces (which we've basically hasn't been highlighted here before either.. but also come into play). So this is a different comparison all together. But also, the property you are highlighting isn't the totality of DS - it's just one portion. The development is broken in multiple parcels, including parcels just for some of the leased sites like T-Rex, etc. Go through and add up all the parcels in the retail area and you'll get to that 300+million property total.
Where I screwed up last night was incorrectly calculating millage as per $100 instead of $1000 (the wonders of late night posting
). So the RCID portion exempted is 2.6Mil, not 26Mil.
flynnibus
Premium Member
Again, never said otherwise. This a challenge of their POLICY decision - not legality. Concessions of this type are generally reserved for incentives to drive new activity.
DTD was already a thing... RCID didn't feel paying for it's parking infrastructure was a district initiative when Disney expanded it twice before... both times nearly doubling it's size/scope. Yet this time, when Disney was going to redevelop DTD anyway... now it's an district initiative to fund parking needs here? Does not pass the smell test.
Stripes
Premium Member
Yes, it does. The assessed value of the lime garage for example is $53 million. The millage rate charged for Disney’s property is 26.3349, including RCID’s taxes. RCID’s millage rate is about 13 mills (or 1.3% of the assessed property value as you accurately pointed out). Applying that same 26.3349 millage rate to the assessed value of the lime garage you arrive at $1.4 million in property taxes, which is the amount of the tax exemption on the county website. The county website includes the RCID taxes, including the RCID taxes that would be charged to the garages.
I’m aware DS is broken up into many parcels. I didn’t need to add them all up to make my point.
Correct, but the county taxes would’ve also been about 2.5 million, not 5 million.
lazyboy97o
Well-Known Member
The counties are responsible for collecting the district’s ad valorem taxes. It makes no sense that they would include those numbers for taxable properties but not for the non-taxable properties.No, the county's property tax is the $5Mil. The county's website for the garages does not reflect RCID ad valorum tax (which is another roughly 1.3% on the assessed value) because it's NA. I grouped both the ad valorem and county tax together (yes, its slang) because they are two primary taxes based on the property assessment being discussed and the big baseline chunk each gov counts on. We'd really get dragged into the weeds if you tried to line item every additional tax item the county applies to property. Focusing on the big chunks means you chase the meat of the topic. The property tax and district ad valorem tax have been the focus of the conversation and represent the biggest chunk of what people are getting.. or not.
Now you're talking about the total tax bill for just one parcel - which includes multiple county pieces (which we've basically hasn't been highlighted here before either.. but also come into play). So this is a different comparison all together. But also, the property you are highlighting isn't the totality of DS - it's just one portion. The development is broken in multiple parcels, including parcels just for some of the leased sites like T-Rex, etc. Go through and add up all the parcels in the retail area and you'll get to that 300+million property total.
Where I screwed up last night was incorrectly calculating millage as per $100 instead of $1000 (the wonders of late night posting
The Hollywood Plaza Garage on International Drive (the one with the Disney “art installation”). It has an assessed value of $21.8 million and in 2023 only owed just under $360,000 in property taxes. Using the same values rates and applying them to the garages only yields $2.1 million in taxes owed to the county.
Brian
Well-Known Member
Forgive me if this has already been shared, but there's legislative activity which may affect CFTOD, as well as other districts.
flvoicenews.com
Bill would allow local voters to abolish Disney's special district
A new Florida bill would allow local voters to dissolve certain independent special districts, including the Central Florida Tourism Oversight District encompassing Walt Disney World.
flvoicenews.com
Does the new section 9 within 190.005 (line 344, page 14) mean all districts need to have residents?Forgive me if this has already been shared, but there's legislative activity which may affect CFTOD, as well as other districts.
Bill would allow local voters to abolish Disney's special district
A new Florida bill would allow local voters to dissolve certain independent special districts, including the Central Florida Tourism Oversight District encompassing Walt Disney World.
I could not find a definition in the text of “qualified electors”. Are they looking for land owners, just like creating the district, or just any voter that lives inside the boundary?
Are the two things interacting in some way to always end up with only with districts that include lots of land owning residents who vote? If so, and I have no idea I was just trying to tell who the voters were and couldn’t, that would impact a whole bunch of districts.