According to a report from Bloomberg, Ben Watkins Director of Florida’s Division of Bond Finance, says that the Reedy Creek Improvement District will likely be re-established as a new district by lawmakers.
It seems like an eternity from now, but on June 1, 2023, the Reedy Creek Improvement District will be dismantled…maybe. A hastily signed bill aims to dissolve the Reedy Creek Improvement District, but the DeSantis-championed bill likely faces a mountain of legal challenges. There are numerous legal avenues that Disney could pursue to keep the Reedy Creek Improvement District intact, but the question is: will they?
One of the big sticking points with dissolving RCID, beyond the legal feasibility, is the $1 billion of bond debt that the district has issued. How would that debt be taken care of? DeSantis is convinced that Disney will pay for it all despite there being no current legal requirement that they pay for a dime of it.
Watkins envisions a new district with more limited powers than RCID currently has, but he wants to ensure bondholders that the debt is good and that he believes that it will be assumed by the new successor district. “The debt will be transferred and assumed by — with the same terms and conditions — the successor entity”, Watkins said.
Fitch Ratings placed the Reedy Creek Improvement District on “Negative Watch” back in April amid the uncertainty of DeSantis’ actions.
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