If RCID is dissolved, what happens with DVC?

[Duckbug.Ducktales]

With all due respect, and politics aside, it is convenient to neglect the fact that the FL governor nor the FL legislature started any of this. 'This' wasn't even on anybody's radar screen. At ALL. Disney did this to themselves. That is a statement of historical fact.

We're going to get this thread in trouble like this. But an actual statement of historical fact is that dissent shouldn't be countered with bullying in a working democracy.

 

[mistysue]

Just snipping this comment out. It's not worth it potentially causing drama.

 

[redboat45]

Um actually I was the one that said why doesn't orange county just charge WDW what they (WDW) are currently paying, $105 Million.

But have been corrected multiple times that Orange County can't do that. And that Orange County is already charging them the tax rate for those services.

Therefore it seems obvious that WDW will now get those services from OC, so that will save them the $105 M.

Disney will owe more money in taxes etc. If they would be getting 105 million worth of services FOR FREE they would have tried getting out of the RCID deal long ago.

This is not a benefit to Disney what so ever. They will pay more, permits and development may take longer etc.

 

[The Prophet]

With all due respect, and politics aside, it is convenient to neglect the fact that the FL governor nor the FL legislature started any of this. 'This' wasn't even on anybody's radar screen. At ALL. Disney did this to themselves. That is a statement of historical fact.

It was Chapek that started this.

 

[TeamRiley]

If this gets signed, which it most likely will, there is still a fairly long grace period to implement the change. Perhaps Florida is planning on using this to give Disney a very good reason to sack Chapek and then they will overturn it and revert back to status quo.

 

[Nabas]

I'm very interested in a non-hyperbolic, factual, non-political discussion about this topic. I feel like there must be more here than meets the eye, and as a DVC owner, I'd like to understand what the implications are. The situation seems to be developing much more quickly than anyone anticipated, which makes me think this is not about political payback, but that other factors are at play. State level politics are often not what they seem to be at first glance.

I suspect not much will change.

The bill is not scheduled to take effect until June 2023. Disney will quickly analyze the impact of the change.

If they determine they will come out ahead, Disney will look at the end of the RCID as a gift.

If they determine they will not, Disney will start making political donations again to assure that they are approved as a special district before the June 2023 deadline.

Remember, Universal and SeaWorld don’t have the sweetheart deal that Disney once did, and they operate just fine. Heck, Universal has experienced the kind of growth that Disney hasn’t seen since the 1990s.

There’s a lot marching about declaring that this is the end.

But as DVC members, I don’t see much downside to this.

 

[jade1]

I had a friend ask me if I thought Disney would pull out of Florida. Any thoughts on that? I personally don't think that would be a financially good move as Disney has spent sooo much over the last years building, changing and adding but...

If yes, where would that leave us DVC members?

 

[mistysue]

Disney will owe more money in taxes etc. If they would be getting 105 million worth of services FOR FREE they would have tried getting out of the RCID deal long ago.

This is not a benefit to Disney what so ever. They will pay more, permits and development may take longer etc.

Its sounding like taxes will go up, not just for Disney, AND services will go down because they can't hike everyone enough- unless they let Disney keep maintaining things themselves.

 

[WilsonFlyer]

<snip> But as DVC members, I don’t see much downside to this. <snip>

It is a world we have never lived in. Nobody knows what it looks like. That's the bottom line.

 

[BaymaxFan78]

Remember, Universal and SeaWorld don’t have the sweetheart deal that Disney once did, and they operate just fine. Heck, Universal has experienced the kind of growth that Disney hasn’t seen since the 1990s.

True, but SeaWorld and Universal are much smaller. Disney has two real cities to operate and thousands of acres of land.

 

[BaymaxFan78]

The biggest issue of all this for me personally is I have experience with waiting on county projects. They take FOREVER for the simplest things. If Disney has to go through Orange county for all of it's road projects etc. things are going to take forever. It's going to put a huge strain on both Disney and Orange county (and OC residents as they will now be sharing their projects).

 

[Duckbug.Ducktales]

But as DVC members, I don’t see much downside to this.

On the face of it, perhaps not. We'll see. But we're DVC members because we're fans of the product. I'd hate to see Disney stop it limit investing in their FL property over this.

I'm a historian and I can't help but think of this often-used metaphor for current events: We're in the middle of the forest and can only see the trees immediately around us. Only with time we'll survey the forest and see its features and contours. The one truth in all of this is that we don't know how it will play out for any interested parties, including DVC owners, for a long time.

 

[TeamRiley]

It really won't affect us much at all I hope. We own at VGC and Aulani.

 

[lowlight]

But as DVC members, I don’t see much downside to this.

And that's all that matters, it's why this thread was started and allowed to continue. Why be so concerned over what's going to happen to a mega-corporation who thinks so little of their customers. I couldn't care less if it costs Disney $20 billion extra a year, they are a corporation, not my friend of family member or neighbor. I would be very disappointed to see the cost shoved onto county taxpayers, I think that's a valid concern and one that I hope is taken into consideration before it's too late to go back.

 

[FireflyTrance]

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I don’t see how they could pull out. More likely they would cut back on plans for future expansion, and pass higher costs to Disney guests in the form of more expensive park tickets and hotel stays.

 

[Nabas]

The biggest issue of all this for me personally is I have experience with waiting on county projects. They take FOREVER for the simplest things. If Disney has to go through Orange county for all of it's road projects etc. things are going to take forever. It's going to put a huge strain on both Disney and Orange county (and OC residents as they will now be sharing their projects).

The thing is, Universal has shown itself to be much quicker to bring projects online than Disney, and Universal has to go through Orange County for approval.

I don’t think the problem will be with RCID or Orange County. In this case, it’s Disney itself who is slow as molasses.

 

[WilsonFlyer]

To continue operations on-property, Disney has to pay for what Disney has always paid for, otherwise it doesn't get done. That's the bottom line. They just don't get to negotiate pricing on some of it anymore. In simple terms, that's all any of this amounts to.

 

[bambialways4ever]

The biggest issue of all this for me personally is I have experience with waiting on county projects. They take FOREVER for the simplest things. If Disney has to go through Orange county for all of it's road projects etc. things are going to take forever. It's going to put a huge strain on both Disney and Orange county (and OC residents as they will now be sharing their projects).

This is already a regular problem for California Disneyland.

 

[BroadwayHermione5]

To continue operations on-property, Disney has to pay for what Disney has always paid for, otherwise it doesn't get done. That's the bottom line. They just don't get to negotiate pricing on some of it anymore. In simple terms, that's all any of this amounts to.

So basically they would just keep paying for everything but with possible delays (minus some things here or there?)

 

[Ms Bibbidi]

I see a lot of doomsday and fearmongering happening. Let me try again to say this. This is why I think things will basically stay the same for DVC owners.

There are things in government called "joint powers agreements" or "JPA". These are agreements among existing governmental entities to create a new governmental entity. It consists of cities, counties, governmental special assessment districts like a water authority etc. They work together on governing providing something like utilities or municipal services to a region that falls within the territory of more than one governmental body. They enter into a joint agreement -- just like it sounds. Two counties agree. They add a city or two -- etc. JPAs can basically exercise any powers of the governing body members - like taxing authority or providing police, fire, water treatment etc. They can take on bonds. They can administer and pay bonds. They can issue new bonds. They can finance infrastructure. They can assess the value of property. What they can do or not do without referral to their parent governing body is spelled out in the JPA document. (The new government is called The XXX JPA. The document that created it is called the Joint Powers Agreement. So, it sounds the same and is a little confusing. They also most often have their own attorneys and staff.

The usual thing that brings these parent government entities together is that a large geographic regional area that lies within many jurisdictions needs to be handled cohesively. This is the case with Disney. The governing entities will create a joint powers (combining any incorporated cities and counties involved) special assessment district so all the cities and counties involved will provide the services - including bond payments - and will use their joint powers agreement and combined taxing authority to assess special taxes on the underlying property owners within that district (read that Disney). So, what I see is that Orange and Osceola Counties and the various incorporated cities or special assessment districts now operating will probably create a new JPA to govern the Disney matters. The outstanding bonds will not therefore, eventually fall on the Orange County property owners, but will be assessed as part of the tax billings to Disney.