Florida Governor Ron DeSantis Ordering an Investigation Into Reedy Creek Improvement District Agreement with Disney

Florida Governor Ron DeSantis Ordering an Investigation Into Reedy Creek Improvement District Agreement with Disney

The Governor of Florida Ron DeSantis is ordering an investigation into the last-minute agreement Disney made with the former Reedy Creek Improvement District.

DeSantis is accusing Disney of “overreach” and pursuing legal action regarding agreements publicly approved at a Reedy Creek meeting on February 8th just before House Bill 9-B was enacted.

One of Reedy Creek’s agreements includes the Declaration of Restrictive Covenants and the Developer’s Agreement which outlined Disney’s rights over District property for the next 30 years, regardless of what the new Central Florida Tourism Oversight board says.

Related – Disney World President Jeff Vahle Releases a Statement on Reedy Creek Bill

The Florida Governor’s Executive Office shared the following letter from Governor DeSantis to Melinda Miguel, Chief Inspector General of the State of Florida outlining the ordered investigation:

Dear Ms. Miguel:

On February 27, 2023, I signed House Bill 9-B, Reedy Creek Improvement District, Orange, and Osceola Counties, which replaced the Disney-controlled Reedy Creek Improvement District (RCID) with a new Central Florida Tourism Oversight District (CFTOD), and appointed five new members to the CFTOD board. Recently, the new board members informed the public that they had uncovered that, immediately before the enactment of House Bill 9-B, the RCID Board of Supervisors attempted to enter into last-minute development and restrictive covenant agreements with Walt Disney Parks and Resorts U.S., Inc. (Walt Disney World), designed to usurp the authority of the CFTOD board. These collusive and self-dealing arrangements aim to nullify the recently passed legislation, undercut Florida’s legislative process, and defy the will of Floridians. In addition, based on initial observations of counsel, the RCID board’s actions appear to suffer from serious legal infirmities, including, among other things, inadequate notice, lack of consideration, improper delegation of authority, and ethical violations, such as conflicts of interest and self-dealing.

Therefore, pursuant to Section 14.32, Florida Statutes, I formally request that you, as the Chief Inspector General of the State of Florida, in consultation with the Florida Department of Law Enforcement, launch a thorough review and investigation into the actions of the RCID Board of Supervisors described above. Such investigation should include analysis of the following:

• RCID’s adherence to applicable Florida civil and criminal laws and ethics requirements;
• The qualifications of RCID’s prior Board of Supervisors and the legal validity of their actions;
• The involvement of Walt Disney World employees and agents in the execution of RCID’s actions;
• Any financial gain or benefit derived by Walt Disney World as a result of RCID’s actions and RCID’s justification for such actions;
• All RCID board, employee, or agent communications related to RCID’s actions, including those with Walt Disney World employees and agents; and
• All RCID board, employee, or agent communications related to House Bill 9-B, Reedy Creek Improvement District, Orange, and Osceola Counties, and the CFTOD.

Related – Disney’s Reedy Creek Improvement District Restructuring Bill has Passed the House

Those agreements gave Disney wide-ranging powers over the territory where the theme parks operate, and prohibit the new board members from changing the terms.

In the announcement of the investigation, DeSantis says the agreements were “designed to usurp the authority of the CFTOD board.”

“These collusive and self-dealing arrangements aim to nullify the recently passed legislation, undercut Florida’s legislative process and defy the will of Floridians,” the letter states.

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