I decided to do one big post instead of bunch of small ones. No need to clog the thread!
You probably would have liked the original legislation where the district would have been dissolved. That didn't wind up happening because of the increases in property taxes that would have wound up happening partially due to the bond payments, partially because the counties would have had to take over the services.
Do you have a problem with Universal's new district? The one covering Daytona Speedway?
The new Universal district was actually a pretty clever IMO. Assuming you are talking about the Shingle Creek Transit and Utility Community Development District. That's the new district I know about (if it's another one I'd need to do research). It's clever because multiple stakeholders came together and hammered out an agreement that worked for the community. It will provide the Orlando Convention Center with a new train station, expand the public mass transit system, and provide a path for Brightline to follow. Universal had to make concessions including giving over land they owned for the project and accepting a tax. Obviously, Universal gets something out of the project. But so do Sea World, I-Drive businesses, Brightline, SunRail commuters, the Orlando mayor, and Orange County. Which is why they all endorsed it. It's accountable to the local community (Orange County) and will exist for a specific purpose.
What I just described is a lot more like the way Anaheim works with Disney. There Disneyland has to work with the community to actually hammer out a deal.
As for the argument that Orange County and Osceola County could not take on the responsibilities of the RCID without burdening the tax payers... Turn your attention to this description of the Anaheim lodging tax:
"For the privilege of occupancy in the City of Anaheim, each transient is subject to and shall pay a transient occupancy tax of 15% of the rent charged by the operator. The 15% tax MUST be separately stated from rent pursuant to Chapter 2.12 Subsection 2.12.020.010 of the Anaheim Municipal Code."
You'll note that the tax rate on lodgings is a hefty 15%. As one of our intrepid Disneyland posters will tell you (
@TP2000 would do it with the most style), the Anaheim Resort District has still managed to have robust hotel demand and development over the last decade even with that high tax rate. But stop and consider, does Orange County Florida have a similar tax? Well, in fact it does:
"The Tourist Development Tax is a tax on the total consideration that must be paid by the guest for the rental or lease of living quarters and accommodations in a hotel, motel, rooming house, trailer camp, condominium, apartment, multiple-unit structure, mobile home, trailer, single-family home, or any other sleeping accommodations that are rented for a period of six months or less."
So, Orange County is already in the lodging tax business. This Tourist Development Tax, as the name implies, is levied specifically to develop tourist attractions and promote Orlando tourism. Could the areas formerly part of the RCID be covered by proceeds of this lodging tax?
"Tourist Development Tax is levied by the Board of County Commissioners and is administered by the Orange County Comptroller’s Office. Expenditures for the first four cents are limited by Florida Statutes to the acquisition and operation of convention centers, sports stadiums and arenas, auditoriums and museums, promotion and/or advertisement of tourism and funding of tourist and convention bureaus and tourist information centers."
As the laws are currently written, it probably wouldn't work. But the Florida Legislature and Orange County could amend the statutes to include infrastructure and services supporting tourist activities. Walt Disney World's would then be covered.
But wait you might be thinking. If Orange County is already levying a lodgings tax, then wouldn't adding more tax kill the hotel business? Well, about that...
"The current tax rate is 6%, effective as of September 1, 2006."
Anaheim has 2.5x the lodgings tax rate! That means Orange County has significant ability to increase the lodgings tax rate without significantly hampering market demand. I wouldn't agitate for matching the Anaheim rate. There is a reason Florida is known as business friendly while California is not. But incremental increases are well within the realm of possible.
But how much is the Orange County Tourist Development Tax currently bringing in?
"The metro Orlando area is the largest tourist destination in North America, and through Florida law, Orange County can tax 6% on hotel stays and short-term rentals. Last year alone [FY 2022], Orange County collected $336.3 million through the tax from the 74 million people who traveled from across the world to experience the county’s entertainment, including Disney, Universal, concerts and sports."
That existing pot of money is already spoken for. But what if the lodging tax rate was raised by 50% to 9%? That would generate around $150 million in additional revenue. But wait- how how much does the RCID cost to operate?
RCID Total expenditures FY 2022 BUDGET
178,736,100
How about that? Of course, Orange County wouldn't be solely responsible for that total. Osceola County would need to levy a similar tax on its lodgings to cover its part of that total.
And there you go. I have just presented a completely reasonable method of financing the current expenditures of the RCID through taxes that would not be burdensome on normal taxpayers in Orlando. The idea that the RCID is the only way to manage the territory is based on a lack of creativity. This is just one example of how it might work. Smart people could come up with other (better) ways. The problem with the way the Legislature forced through the law disbanding the RCID was that no alternative existed. It's like trying to build the airplane mid-flight. They needed to have these answers BEFORE disbanding the district. That's why passing laws as quickly as possible to get back at your political opponents is not really a good idea.
The greater community already has that with the government of Orange County. RCID was created as a way to provide additional services to Disney on top of Orange County's services in exchange for higher tax rates. I don't think that is an unreasonable arrangement for the broader community.
Just because Disney has lots of money doesn't mean they owe it to their neighbors.
This is a fair position to take. But ultimately I believe the only way to determine how much a business should be taxed by a local community is by asking the local community. The local community should be able to make that call. Some communities view it like you do (what you put in is what you get out). Other communities require firms operating within their area to pay more. Again, that is up to the community to decide.
Why should voters outside the district, who do not pay taxes to the district have any say in how RCID is developed and its funds are spent. The district isn’t spending public funds that were sourced from anyone outside the district.
I don’t have much say in how my neighboring cities, counties, or states are developed or how they spend their tax dollars. And neither do you. What you’re proposing is absurd.
For the first 5 decades RCID was the literal definition of representative government. The problem is that you seem to misunderstand who the district represents.
I'm kind of dumbfounded. We're talking about a 200 Billion dollar behemoth operating in a local community and that community doesn't have the right weigh in? Hundreds of thousands of people live within a short drive of the RCID. Disney doesn't live there, it doesn't send its kids to school, and it doesn't commute. We're talking about an actual place where actual people live their lives. I know you know this. If memory serves you live in the area as a Cast Member. Very few places on planet Earth would let a multinational firm operate without community oversight and involvement. Just because an individual or firm owns a plot of land doesn't mean that firm should be able to do whatever it wants on that land. I mean I guess I can respect a libertarian argument where everyone is out for themselves, but the RCID is not exactly an example of rugged individualism when it uses state powers.
Call me a radical, but I actually think governments should represent people. Emphasis on people. Firms have rights and deserve to have them protected. But in a choice between the peoples of Anaheim, Shanghai, Orlando, Hong Kong, or Paris and Disney I'll pick an actual community over the soulless corporation.
Suggestion:
A 7 member board.
Disney gets 4 seats, 1 is elected by the people of Orange County, 1 is elected by the people of Osceola County, and the final one is appointed by the governor.
Something like this is heading in the right direction!
The issues you have mentioned are all related to powers offered to a bog standard community development district. They are powers offered to anyone. Saying they should not be offered to Disney means you are preventing Disney from having access to powers offered to everyone else.
This is good to know. Any other multinational firm operating a similar mockery of government with no citizen oversight should be reformed or eliminated too. It's one thing if a district is created for a narrow purpose (like a utility or rail development) or for specific window of time (a builder developing land before people move in). But a mega-cap firm having complete and perpetual development control and the ability to issue bonds in area to shield CapEx is unacceptable. Give me the names and I will condemn them!
Why? Is the greater commuity paying for it?
Here's the thing: property taxes in FL are limited by the FL constitution to 10%. Disney currently pays that to Orange/Osecola counties just like everyone else and is subject to their jurisdiction. This 10% cannot be changed, except temporarily and by a vote of the electorate, but even then the tax rate would have to apply to *all* taxpayers in the county. Disney is still subject to all county regulations and laws, save for those that are reserved to the district around zoning and building codes (of which RCID's codes are stricter than general FL. building codes).
Disney pays an *additional* tax, I think around 10%, to the district. The FL constitution allows a higher tax rate to be set in law for a special district, as long as it is approved by the electorate in that district. Those taxes go to the infrastructure in that district. No funds from the counties paid by the general public go into the district.
So why should non-taxpayers in the district have a say on the infrastructure needs of those who are paying taxes in the district? It doesn't make any sense.
It's also worth noting that every single special district in the state of Florida that has taxing authority is governed by an elected board of those who either reside in the district or are landowners of the district - so Disney's situation is hardly unique. So why should Disney not be allowed to avail themselves of the same benefits that are given to Universal Studios, the Daytona Speedway, the Villages, and other Special Districts within the state of Florida?
The Villages special district is suspect NGL. I don't know the circumstances of its creation (was it the state or the county who created it, when was it made, etc.?). I could look it up. Assuming it's a mockery of government I would be in favor of eliminating it too. I know that the IRS found they were engaging in some shady practices a while back. It seems like Florida needs a thorough review of these Special Districts all across the state if they are like the RCID. It's unfortunate that they were allowed to become so widespread in the first place, but perhaps some good can come out of this whole political debacle.
This leaves out the fact that the voters of Bay Lake and Lake Buena Vista were chosen by Disney to live there, and can be asked to leave at the company's discretion. Not exactly what one would imagine when they think of "democracy."
Agreed.
No one had ever been asked to leave either town by “the Company”. There’s actually some sentinel articles out there with interviews with the residents who said they don’t just rubber stamp things.
The people living in the company-owned town specifically designed to perpetuate the company's control are completely free to exercise their civic rights? And those people who know they could be evicted had nothing bad to say about Disney? That's it. Nothing to see here folks.
Bay Lake and Lake Buena Vista are exactly an emblem of American Democracy. And the democracy in Reedy Creek most certainly got ripped away from the voters. Your entire statement is false
Precisely. In fact, they should spread this concept all across the country. I'm currently trying to decide whether I want to live in the special district under the control of Exxon-Mobil or McDonalds. I was planning to live in the Lego special district, but I hear the dwellings can fall apart and the beds are uncomfortable.