Reedy Creek reassuring investors after DeSantis signs law dissolving special district - WESH 2 Orlando
The Reedy Creek Improvement District is reassuring investors after Gov. Ron DeSantis signed a bill that will dissolve the special district.
In the document acquired by WESH 2, Reedy Creek officials remind investors that Florida has pledged to fulfill the terms of any agreement made with bond holders.
"Pursuant to the requirements and limitations of Florida’s Uniform Special District Accountability Act, which provides, among other things, that unless otherwise provided by law, the dissolution of a special district government shall transfer title to all of its property to the local general purpose government, which shall also assume all indebtedness of the preexisting special district," the document reads. "In light of the State of Florida’s pledge to the District’s bondholders, Reedy Creek expects to explore its options while continuing its present operations, including levying and collecting its ad valorem taxes and collecting its utility revenues, paying debt service on its ad valorem tax bonds and utility revenue bonds, complying with its bond covenants and operating and maintaining its properties."
Disney is now on the clock with less than 14 months to get rid of the 55-year-old Reedy Creek Improvement District.
That government ensures there's water, power, roads, drainage and public safety. That includes firefighters, paramedics and more than 100 deputies and support personnel.
“My main concern as the mayor of Orange County is unintended consequences and costs,” Orange County Mayor Jerry Demings said.
Demings said a company that pays taxes and maintains a property larger than the city of Apopka takes an enormous burden off the backs of taxpayers. Not to mention more than a billion dollars in bond debt. The mayor said dissolving Reedy Creek and absorbing that Disney property would likely strain Orange and Osceola county budgets.
“A lot is undetermined at this point. What I say to everyone is, don't panic at this time. You know, let's wait on all of the details, and we'll just have to see how this all shakes itself out,” Demings said.
The fiscal impact analysis from the state is unclear. It reads, "residents and businesses may experience a change in services previously provided by the special district and related assessments and taxes imposed."
DeSantis' office released a statement Friday saying it does not expect any tax increases for any residents from this new law. "In the near future, we will propose additional legislation to authorize additional special districts in a manner that ensures transparency and an even playing field under the law," the statement read.
source: https://www.wesh.com/article/reedy-creek-reassuring-investors/39814671
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