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Each time I learn more about it, this arrangement seems crazier. It was strange enough that private companies are allowed to run their own local governments in
by leereeves 5y ago
Each time I learn more about it, this arrangement seems crazier. It was strange enough that private companies are allowed to run their own local governments in Florida. Now it turns out they're also allowed to issue tax advantaged municipal debt, and transfer that debt to taxpayers if this sweet deal ever ends.
It's true that Reedy Creek is being singled out because Disney has fallen out of favor, but I'm still hoping there is some flaw in this arrangement that leads to the end of all special districts now that people are paying attention.
- mikeryan 5y agoDisney built a world class destination in the middle of, what is basically, a swamp. They built all the necessary infrastructure and paid for it by taxing themselves. In a lot of ways it put Orlando on the map and provided a huge boost to the surrounding economy. I'm not sure who was getting screwed there? It honestly seems like it was a win/win situation.
- leereeves 5y ago> I'm not sure who was getting screwed there? Here's one: normally corporate bond payments are federally taxable, but municipal bonds aren't. Everyone in the country is missing out on taxes on payments on that 2 billion dollar debt.
- mikeryan 5y agoYeah but that’s a chicken and egg problem. Those bonds wouldn’t exist without the current exemption.
- SauciestGNU 5y agoYou and I talked about this the other day, and I walked away from this article further convinced that improvement districts are an abomination to the concept of democracy and must be ended. To these ends I think it would be smart for some politician to say "I don't think this bill goes far enough" and propose legislation to dissolve every improvement district.