Disney's Reedy Creek Improvement District has responded to Florida Republicans' attempts to dissolve it by explaining they can not legally do so without paying off around $1B of Disney's debt.
Disney's self-governing special district, the Reedy Creek Improvement District, says that Florida's move to dissolve the district next year is not legal unless the state pays off Reedy Creek's extensive debts.
Reedy Creek is a special purpose district created by state law in May 1967 that gives The Walt Disney Company extensive governmental control over the land in and around its central Florida theme parks. With that power, Reedy Creek currently has about $1 billion in outstanding bond debt, according to the credit rating agency Fitch Ratings.
In a statement issued to its bondholders last Thursday, Reedy Creek pointed out that the 1967 law also includes a pledge from Florida to its bondholders. The law states that Florida "will not in any way impair the rights or remedies of the holders … until all such bonds together with interest thereon, and all costs and expenses in connection with any act or proceeding by or on behalf of such holders, are fully met and discharged."
Due to that pledge, Reedy Creek said it expects to continue business as usual.