Seems that Reedy Creek is safe until at least 2029

[Harpy Eagle]

This is what happens when you craft a bill in two days and pass it out of spite.

The Contractual Impossibility of Unwinding Disney’s Reedy Creek

There’s been a lot of talk about whether Florida lawmakers can legally dissolve Disney’s Reedy Creek Improvement District, but there’s one basic reason why Florida can’t dissolve it—it promised bond purchasers that it wouldn’t, says Jacob Schumer of Shepard, Smith, Kohlmyer & Hand.

news.bloomberglaw.com

“In authorizing Reedy Creek to issue bonds, the Florida legislature included a remarkable statement—included in Reedy Creek’s bond offerings—regarding its own promise to bondholders: “The State of Florida pledges to the holders of any bonds issued under this Act that it will not limit or alter the rights of the District to own, acquire, construct, reconstruct, improve, maintain, operate or furnish the projects or to levy and collect the taxes, assessments, rentals, rates, fees, tolls, fares and other charges provided for herein … until all such bonds together with interest thereon, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged.”

The Contract Problem​

In case it was not obvious, dissolving Reedy Creek “limited” and “altered” its ability to improve and maintain its project and collect its various charges and taxes, and thus Florida would be violating its pledge to bondholders by dissolving Reedy Creek. However, even without that explicit language, the bill dissolving Reedy Creek would have problems under contracts clauses of the Florida and U.S. constitutions.

 

[Harpy Eagle]

Conclusion​

Florida simply cannot promise to prospective bondholders that it won’t interfere with Reedy Creek, and then dissolve Reedy Creek. If Reedy Creek is ever dissolved, it would be a monumental and complicated enterprise even on a years-long timeline. The district has a nine-figure annual budget for expenditures, and even ignoring its various debts, it has a plethora of other contracts that somehow would have to be assigned to and divided between Orange and Osceola counties. However, the dissolution will have to wait until all of its bonds are paid in full.

 

[iceberg]

this is the type of breakdown I was wondering about.

 

[1srelluc]

If FL can come-up with the 1B "money bomb" it will require then they can most certainly end Reddy Creek. That was figured in from the get-go.

FL has a AAA bond rating so I'd not discount it quite yet.....That said I don't know how the MUNI bond market is looking.

 

[lg325]

Well, that is interesting. Thank you for the information.We will see if the State of Florida will still pursue it.

 

[iceberg]

If FL can come-up with the 1B "money bomb" it will require then they can most certainly end Reddy Creek. That was figured in from the get-go.

FL has a AAA bond rating so I'd not discount it quite yet.....That said I don't know how the MUNI bond market is looking.

in what i understand, this is also on a 1 year "fuse" - so there is time to back away before pulling that trigger.

but in all this hard headed bullshit, what is the cost to the florida taxpayer? this is an extreme move that the far right loves, but that's a small segment, much like the far left. those in the middle are sick and tired of all this bullshit.

 

[Zincwarrior]

This is what happens when you craft a bill in two days and pass it out of spite.

The Contractual Impossibility of Unwinding Disney’s Reedy Creek

There’s been a lot of talk about whether Florida lawmakers can legally dissolve Disney’s Reedy Creek Improvement District, but there’s one basic reason why Florida can’t dissolve it—it promised bond purchasers that it wouldn’t, says Jacob Schumer of Shepard, Smith, Kohlmyer & Hand.

news.bloomberglaw.com

“In authorizing Reedy Creek to issue bonds, the Florida legislature included a remarkable statement—included in Reedy Creek’s bond offerings—regarding its own promise to bondholders: “The State of Florida pledges to the holders of any bonds issued under this Act that it will not limit or alter the rights of the District to own, acquire, construct, reconstruct, improve, maintain, operate or furnish the projects or to levy and collect the taxes, assessments, rentals, rates, fees, tolls, fares and other charges provided for herein … until all such bonds together with interest thereon, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged.”

The Contract Problem​

In case it was not obvious, dissolving Reedy Creek “limited” and “altered” its ability to improve and maintain its project and collect its various charges and taxes, and thus Florida would be violating its pledge to bondholders by dissolving Reedy Creek. However, even without that explicit language, the bill dissolving Reedy Creek would have problems under contracts clauses of the Florida and U.S. constitutions.

Oops.

Or maybe DeSleez knew this, so knew it's all BS and would get kicked in court.

 

[iceberg]

Oops.

Or maybe DeSleez knew this, so knew it's all BS and would get kicked in court.

or maybe it's a bluff, hence the 1 year "fuse".

 

[1srelluc]

in what i understand, this is also on a 1 year "fuse" - so there is time to back away before pulling that trigger.

but in all this hard headed bullshit, what is the cost to the florida taxpayer? this is an extreme move that the far right loves, but that's a small segment, much like the far left. those in the middle are sick and tired of all this bullshit.

I've really have no idea and to be honest unless you live in FL the cost should not concern you no more than it does me. Their circus, their monkey.....And the circus is just getting started.

 

[rightwinger]

Florida Republicans

 

[iceberg]

I've really have no idea and to be honest unless you live in FL the cost should not concern you no more than it does me. Their circus, their monkey.....And the circus is just getting started.

i find it interesting in what our politicians do. esp if they have bigger ambitions.

you don't care, great. but don't bother telling me what to care about.

 

[Harpy Eagle]

If FL can come-up with the 1B "money bomb" it will require then they can most certainly end Reddy Creek. That was figured in from the get-go.

FL has a AAA bond rating so I'd not discount it quite yet.....That said I don't know how the MUNI bond market is looking.

Nope, if you would actually read what was posted and linked to, even coming up with the money would not suffice.

 

[rightwinger]

i find it interesting in what our politicians do. esp if they have bigger ambitions.

you don't care, great. but don't bother telling me what to care about.

Republicans were just grandstanding for their base by being “Tough on Disney”
They quickly crafted legislation and passed it without debate.

As expected, they will have to repeal it

 

[Mac-7]

This is what happens when you craft a bill in two days and pass it out of spite.

The Contractual Impossibility of Unwinding Disney’s Reedy Creek

There’s been a lot of talk about whether Florida lawmakers can legally dissolve Disney’s Reedy Creek Improvement District, but there’s one basic reason why Florida can’t dissolve it—it promised bond purchasers that it wouldn’t, says Jacob Schumer of Shepard, Smith, Kohlmyer & Hand.

news.bloomberglaw.com

“In authorizing Reedy Creek to issue bonds, the Florida legislature included a remarkable statement—included in Reedy Creek’s bond offerings—regarding its own promise to bondholders: “The State of Florida pledges to the holders of any bonds issued under this Act that it will not limit or alter the rights of the District to own, acquire, construct, reconstruct, improve, maintain, operate or furnish the projects or to levy and collect the taxes, assessments, rentals, rates, fees, tolls, fares and other charges provided for herein … until all such bonds together with interest thereon, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged.”

The Contract Problem​

In case it was not obvious, dissolving Reedy Creek “limited” and “altered” its ability to improve and maintain its project and collect its various charges and taxes, and thus Florida would be violating its pledge to bondholders by dissolving Reedy Creek. However, even without that explicit language, the bill dissolving Reedy Creek would have problems under contracts clauses of the Florida and U.S. constitutions.

Sez who?

a lawyer?

I bet there are other lawyers who disagree

 

[Harpy Eagle]

Sez who?

a lawyer?

I bet there are other lawyers who disagree

Did you read the part I posted or even open the link?

How about this, lets make a wager right now on whether Reedy Creek exist on July 1 2023. You game?

 

[Mac-7]

Did you read the part I posted or even open the link?

How about this, lets make a wager right now on whether Reedy Creek exist on July 1 2023. You game?

I would never bet on how some drunken judge is going to rule

its a coin toss at best

so you ambulance chasing source could be right

but other lawyers could roll 7’s instead of your guy

 

[PinktheFloyd88]

So if I am understanding you correctly, they passed a bill that literally does nothing - because Bonds and contracts are already in place for 10+ years?

 

[Harpy Eagle]

I would never bet on how some drunken judge is going to rule

its a coin toss at best

so you ambulance chasing source could be right

but other lawyers could roll 7’s instead of your guy

Shame you cannot read for yourself. The words are right there in the OP. Maybe you could find a 7th grader to read them to you.

 

[Harpy Eagle]

So if I am understanding you correctly, they passed a bill that literally does nothing - because Bonds and contracts are already in place for 10+ years?

It got their tribe riled up, it got people hating on Disney, and it showed that they are not afraid to punish dissent.

 

[Mac-7]

Shame you cannot read for yourself. The words are right there in the OP. Maybe you could find a 7th grader to read them to you.

Maybe if I were as smart as you it would be clear to me

but I’ll just wait and see what happens