News Reedy Creek Improvement District and the Central Florida Tourism Oversight District

[Phil12]

Anyone remember the Niners v Broncs super bowl? When Denver scored the first 10 points and was feeling all good about itself?

That’s how this “battle” and subsequent discussion on this thread has gone…

Was that when Ron DeSantis was the 49ers quarterback?

 

[thomas998]

That's not PR. It's understanding the government structures set up here. Disney and RCID are very clearly two distinct and separate things. Each exerts considerable pressure on the other in different ways through different mechanisms.

It's like saying your household is the same as your local government. Technically, you voted for them and created direct influence by that vote. On the other side, they get mad if you live in a cesspool and create a local health hazard.

I'm assuming neither of you really want to comment on how (or how not) dissolving RCID would work and it's impacts, but are just trying to drive page counts for laughs.

Part of me thinks Disney should just walk away from RCID. That's probably the short sighted and spiteful part of me though.

No it is more like saying ESPN is Disney. The RCID was setup in such as way that it operates for all intents and purposes as an operating company of Disney. The board of RC is made of solely of Disney executives that buy a small tract of land which they then sell back to Disney as soon as their term on the board expires... I can't imagine how it could be under more control of Disney if they wanted more control

 

[GoofGoof]

Rep. Boolcrahp of NoMansLand, FL recently said he heard DeSantis is planning on storming Cinderella Castle in the early morning hours after the election with his army of alligator conscripts to declare himself king of the Magic Kingdom.

I think Ron could take Cindy straight up in a fight but he could never hold the Castle and once the Great Goofini finds out Ron’s toast. Goofy is still pretty salty that all he got has a 1.5 min kids coaster and Mickey has an e-ticket ride now and he’s looking to take out all that pent up anger on someone. Look out Gov

 

[thomas998]

That's absolutely not true. The bond holder has interest in The mechanisms that will be available to maintain the bond. Think of it like your mortgage. You could not sell your mortgage to somebody for a dollar, because your mortgage is backed by your house. I.e it's the interest in your house that guarantees the mortgage. It's a same with these bonds - it's certain powers and privileges that Reedy Creek has, and the property value that exists within Reedy Creek, that is guaranteeing the bonds to the bondholders. They invested in a bond that had a specific backing. If that backing goes away, then the bonds default.

If the bond is paid off then their is not problem do you not understand that? These bonds do not extend out to infinity. A bond has a call right in it where they can be called back at anytime by the bond holder... transfer the obligation to Florida and Florida pays it.. no problem. And when Florida hits Disney with a special tax to cover that for the full amount in one fell swoop the only person that will be screaming bloody murder will be Disney. The bondholder will be made whole and happy, Florida will have no obligations so they will be happy.

 

[peter11435]

I agree that he can't afford to alienate huge numbers of people in Orange/Osceola, but I also think that the new 100,000 GOP registered voter advantage, a net gain of over 350,000 since his 2018 election, will help offset some of that. During the 2020 and 2018 elections, Dems held the advantage.

Yes but the number of voters with no party affiliation has grown by 300,000k since DeSantis won.

 

[GoofGoof]

No it is more like saying ESPN is Disney. The RCID was setup in such as way that it operates for all intents and purposes as an operating company of Disney. The board of RC is made of solely of Disney executives that buy a small tract of land which they then sell back to Disney as soon as their term on the board expires... I can't imagine how it could be under more control of Disney if they wanted more control

It’s still a government entity not a corporate subsidiary. You can’t ignore that. The state of FL doesn’t have to allow special districts but they did and you cannot just trample the rights of municipal bondholders protected under Federal Securities laws because you feel like it.

 

[GoofGoof]

If the bond is paid off then their is not problem do you not understand that? These bonds do not extend out to infinity. A bond has a call right in it where they can be called back at anytime by the bond holder... transfer the obligation to Florida and Florida pays it.. no problem. And when Florida hits Disney with a special tax to cover that for the full amount in one fell swoop the only person that will be screaming bloody murder will be Disney. The bondholder will be made whole and happy, Florida will have no obligations so they will be happy.

Not all bonds can be called at any time. There are specific bonds issued by RCID that prohibit early redemption. Those bonds go out until 2029.

The Contractual Impossibility of Unwinding Disney’s Reedy Creek

There’s been a lot of talk about whether Florida lawmakers can legally dissolve Disney’s Reedy Creek Improvement District, but there’s one basic reason why Florida can’t dissolve it—it promised bond purchasers that it wouldn’t, says Jacob Schumer of Shepard, Smith, Kohlmyer & Hand.

news.bloombergtax.com

 

[thomas998]

some of the bonds have restrictions on early redemption so they’d have to wait until 2029 to dissolve the district under that plan.

It is possible that some of the bonds may have restrictions. As I stated I haven't seen one of the bonds so I don't know how they were structured. I suspect that it would not matter though so long as the bond was paid by the state under the same terms. The bondholder has no interest in who is making the payments so long as they get them. Worst case scenario the state would just go out on the open market and buy up those bonds at a premium and then pass that additional cost onto Disney through some tax. You can always come up with ways to get around things like this they just become another expense.

 

[peter11435]

If the bond is paid off then their is not problem do you not understand that? These bonds do not extend out to infinity. A bond has a call right in it where they can be called back at anytime by the bond holder... transfer the obligation to Florida and Florida pays it.. no problem. And when Florida hits Disney with a special tax to cover that for the full amount in one fell swoop the only person that will be screaming bloody murder will be Disney. The bondholder will be made whole and happy, Florida will have no obligations so they will be happy.

So your grand plan is that Florida makes the bondholders whole by paying off the ~$1billion with money it doesn’t have… and then levying a $1 billion tax on Disney to get it right back?

 

[Brian]

Yes but the number of voters with no party affiliation has grown by 300,000k since DeSantis won.

That's also true. He's certainly not in a position where can rest of his laurels going into this election, especially given his proclivity for stunts like the RCID legislation.

 

[GoofGoof]

It is possible that some of the bonds may have restrictions. As I stated I haven't seen one of the bonds so I don't know how they were structured. I suspect that it would not matter though so long as the bond was paid by the state under the same terms. The bondholder has no interest in who is making the payments so long as they get them. Worst case scenario the state would just go out on the open market and buy up those bonds at a premium and then pass that additional cost onto Disney through some tax. You can always come up with ways to get around things like this they just become another expense.

The issue now is after this “stunt“ the bonds are trading well below par. The bondholders are under no obligation to sell the bonds back at a loss so they sue. If it was even possible for the state to redeem all of the bonds at original par or more likely a premium over par and they were willing to also pay the difference in interest lost then perhaps that would be agreed to by the bondholders. So the state would be on the hook for billions. How do they issue a special tax just on Disney? I cannot envision a bill that could be passed that would only tax Disney at the state level. This isn’t the Middle Ages where the king just decides how much tax the landowners pay.

 

[Gringrinngghost]

Not sure if this has been posted here but...



Troy Nehls is an American politician and law enforcement officer who is the U.S. representative for Texas's 22nd congressional district. From 2013 to 2021, he served as the sheriff for Fort Bend County, Texas. Nehls is a member of the Republican Party.

 

[lazyboy97o]

please.. I demand royalties on all 'girlfriend from canada' references in this thread First to the post an all

Excuse me, but I beat you to it by four days! I demand royalties and damages!

Every statement should not just be repeated as fact. That’s how you create far bigger problems because you end up repeating and given credence to lies. If the governor actually has a plan and he wants people to report that he has a plan, then he should present the plan. There is nothing difficult about that. It is just that simple. Otherwise he just has a girlfriend in Canada.

Ok, then please try to find the facts of this great plan then. Until then, it's vaporware because it's so great and such a big deal.. he's apparently shared it with none of the impacted parties.

So right now... it's a plan that must be with his girlfriend who lives in Canada.

 

[Gringrinngghost]

Excuse me, but I beat you to it by four days! I demand royalties and damages!

Now both of you, Robert Lopez and Jeff Marx win that one.

NSFW btw.

 

[GoofGoof]

Not sure if this has been posted here but...



Troy Nehls is an American politician and law enforcement officer who is the U.S. representative for Texas's 22nd congressional district. From 2013 to 2021, he served as the sheriff for Fort Bend County, Texas. Nehls is a member of the Republican Party.

This has been a talking point for years. There are a group of people who would like to have more freedom to fly planes with banners over the MK park especially during certain special events….in May or June. Not appropriate to discuss in this thread, but I’m just pointing out that‘s not a new gripe.

 

[Chip Chipperson]

It is one long sentence and it ends with " ...until all such bonds together with interest thereon, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. "
And fully met and discharged is what matter most of all because it simply means the state will insure that the bonds are paid out within the terms of the bonds which may or may not have a call right in them. Most likely they will have a call right which would mean they could all be paid off early. I've never seen a bond that didn't have a all right, but have never seen one issued by Reedy but would be shocked if they didn't include a call right.

1. It's already been documented that there is at least 1 RCID bond that has a provision preventing early payoff. If you've never seen a bond with such a provision then you don't have much experience with bonds. That provision helps secure lower interest rates since the issuer is guaranteeing P&I for the stated life of the loan.

2. Bondholders care very much about WHO is paying them and how they are raising the funds. It's literally in the terms of the bonds. You can't just change the source of repayment all willy nilly.

 

[Gringrinngghost]

This has been a talking point for years. There are a group of people who would like to have more freedom to fly planes with banners over the MK park especially during certain special events….in May or June. Not appropriate to discuss in this thread, but I’m just pointing out that‘s not a new gripe.

I'm pointing out here, that the timing is impeccable, with the new stance on the right.

Also worth noting that they aren't asking DHS.

 

[Nubs70]

When states create entities such as RCID. Do said entities exist for eternity?

 

[GoofGoof]

I'm pointing out here, that the timing is impeccable, with the new stance on the right.

Also worth noting that they aren't asking DHS.

Yes, for sure. While the mouse is under fire try to sneak something else in. I guess they figure the Falcon will take care of anyone flying over DHS now.

 

[Chip Chipperson]

If the bond is paid off then their is not problem do you not understand that? These bonds do not extend out to infinity. A bond has a call right in it where they can be called back at anytime by the bond holder... transfer the obligation to Florida and Florida pays it.. no problem. And when Florida hits Disney with a special tax to cover that for the full amount in one fell swoop the only person that will be screaming bloody murder will be Disney. The bondholder will be made whole and happy, Florida will have no obligations so they will be happy.

So you think the State could/should pay off $1 billion in one lump sum within the next 13 months and then create sum magical tax that charges an extra $1 billion in taxes to Disney?!?!?! I cant believe that you actually think that's possible from a legal or financial standpoint and that you don't find such a gross abuse of power to be anything short of authoritarian.