Kissimmee Officials Conclude Investigation into Reedy Creek Improvement District Governing Disney

Kissimmee Officials Confirm Closure of Disney Investigation

In Kissimmee, Florida, officials have announced the conclusion of an investigation into the former Reedy Creek Improvement District, which previously governed Walt Disney World. The Florida Department of Law Enforcement (FDLE) determined that no laws were violated, as revealed in a memo from the state’s Chief Inspector General, Melinda Miguel.

Investigation Details

The investigation was initiated by Governor Ron DeSantis in April 2023 amidst ongoing tensions between his administration and The Walt Disney Company. The inquiry aimed to assess potential violations of civil and criminal laws, including ethical standards related to the district’s operations.

Findings of the Memo

In a letter dated June 21 to Governor DeSantis, Miguel conveyed that the case was closed due to a “lack of a criminal predicate.” Nonetheless, her office noted a concerning “blurring of the lines” between the Reedy Creek district and Disney itself. This overlap raised questions about the governance and management of services, including fire protection and local roads, which the district was established to oversee.

History of Reedy Creek

The Reedy Creek Improvement District had operated since 1967 and allowed Disney significant control over local governance. Disney, as the main landowner, was able to elect members to the district board, effectively allowing the company to self-govern its extensive theme parks and resorts in Central Florida. However, this arrangement changed drastically in early 2023 when the Florida Legislature voted to place the newly named Central Florida Tourism Oversight District under DeSantis’ control.

Political Context

This shift followed Disney’s public opposition to the controversial 2022 Parental Rights in Education law, often referred to by critics as the “don’t say gay” law, which restricts classroom discussions on sexual orientation and gender identity. The conflicts have escalated into a significant political battle, capturing national attention.

New Board, New Direction

Following the restructuring, DeSantis appointed a new board of directors aligned with his political beliefs, replacing Disney loyalists. The new board chastised its predecessors for maintaining a close-knit relationship with Disney, ultimately dismantling a perks program that offered district employees discounts and passes to Disney’s theme parks.

Review Process

As part of the investigation, the Chief Inspector General’s office reviewed a wide range of materials, including governing statutes, internal controls, emails, and credit card statements. Their findings confirmed that Disney had benefitted financially from the district’s actions, particularly during the procurement of theme park passes.

Legal Developments

Amid this scrutiny, a lengthy court battle ensued over the district’s development agreements, concluding with a settlement in March 2023. This agreement allowed for DeSantis to maintain authority over the Reedy Creek district while paving the way for a revised development plan.

Conclusion

This investigation’s closure indicates a shift in the ongoing saga between Florida’s leadership and Disney. While no legal wrongdoing was found, the “blurring of lines” between the government district and the entertainment giant remains a significant concern for state oversight. It is uncertain how this will impact Disney’s operations and its future governance.