Disney told investors that attempts by Florida Cancellation of the company’s ability Running a private government in the state is illegal, in a move that could thwart Florida’s retaliation against Disney’s opposition to the “Don’t Say Gay” law.
Ron DeSantis, the governor of Florida, has pushed for legislation that would rescind the Disney-operated Reedy Creek Improvement district, a move that would have huge financial implications for the company.
The effort is widely seen as a response to Disney’s criticism of The new Republican lawwhich prohibits teaching sexual orientation and gender identity in kindergarten through third grade.
But Disney said on Wednesday the move was illegal due to an agreement that Reddy Creek must repay its debts to the state before any changes are made.
at Declaration Published on the Municipal Securities Board, Disney referred to an agreement between Florida and the company when the Reddy Creek Improvement District was established in 1967.
This legislation states that Florida “will not in any way prejudice the rights or remedies of the owners, and will not in any way modify the exemption from taxation provided by the Reedy Creek Act,” until the bonds owed by Disney to Florida are repaid.
CNN mentioned Reddy Creek owes Florida $1 billion in IOUs.
DeSantis, a Republican from Donald Trump’s family who is seen as having presidential aspirations, pushed legislation to scrap Disney’s arrangement with Florida.
“If Disney wanted to take a fight, they picked the wrong guy,” DeSantis wrote in an April 20 fundraising email.
“As Governor, I have been elected to put the people of Florida first, and I will not allow an awakened corporation based in California to run our state.”
Disney is one of Florida’s largest private sector employers, and last year said it had more than 60,000 workers in the state. It’s not immediately clear exactly how Disney or neighboring governments will be affected if the area is dissolved.
The creation of the Reedy Creek Improvement District, and control that Disney granted over 27,000 acres (11,000 ha) in Florida, was a critical component of the company’s plans to build near Orlando in the 1960s.