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Universal Studios gets special tax district after DeSantis stripped Disney

October 13, 2023
in Business
Reading Time: 3 mins read
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Universal Studios gets special tax district after DeSantis stripped Disney
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Universal Orlando Resort is getting the same perk that Florida Gov. Ron DeSantis took away from Walt Disney World.

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The commissioners who govern Orange County voted unanimously on Tuesday to create a special tax district that would raise money to build a $174 million rail link connecting Orlando’s airport to Universal Studios’ theme park.

The vote to reward Universal comes as the state is embroiled in lawsuit with Disney over eliminating its decades-old Reedy Creek special district after the company criticized Florida’s so-called “Don’t Say Gay” law.

The new Shingle Creek Transit & Utility Community Development District, which was proposed by Universal Orlando Resort, will encompass a 719-acre tract of land that includes Universal’s new Epic Universe theme park that is under construction, according to Orlando Business Journal.

The land also includes 13 acres for a new SunRail train station that would link up Orlando International Airport with the Orlando Convention Center, which lies close to Epic Universe.

The new district’s board of supervisors will initially be comprised entirely of Universal employees, Orlando Business Journal reported.

Universal Orlando Resort will govern a special tax district that will raise funds to build a rail link connecting one of its theme parks to Orlando International Airport.
Getty Images

The special district plans to sell $174 million in bonds that would finance the project. Of that sum, $129 million is earmarked for the SunRail station while the rest would upgrade other elements of the infrastructure.

The project will be funded by taxes and fees collected from the district’s landowners — Universal Orlando and Rida Development Corp, which owns the Hilton Orlando.

“Today marks a step forward and we thank the mayor and county commissioners for approving our petition to establish a community development district that can help realize the vision for expanded SunRail connectivity from the airport to the convention center,” John Sprouls, chief administrative officer of Universal Destinations & Experiences, said in a statement.

The Shingle Creek Transit & Utility Community Development District will be run by a board comprised of Universal employees.
Getty Images

“With just a single stop and a new convention center station, we can get 125,000-plus residents to their jobs and millions of visitors to our area’s world-class attractions.”

Orlando County Mayor Jerry Demings hailed the project given that the region is “in dire need of additional modes of transit to move around.”

Universal and other local businesses have pledged to work to draw more than 1.3 million riders annually to support the so-called “Sunshine Corridor” — the name given to the expansion of the SunRail connecting the airport to Universal’s new attraction, located about 17 miles away.

In 1967, local authorities who sought to entice The Walt Disney Company to build a theme park in Central Florida approved the creation of the Reedy Creek Improvement District, a special quasi-autonomous body that governed the land that is now home to Walt Disney World Resort.

Earlier this year, Walt Disney World was stripped of its self-governing tax district, the Reedy Creek Improvement District.
Getty Images

The district, which was dominated by members controlled by The Walt Disney Company, enacted its own zoning regulations, tax policies, and infrastructure improvements — all unencumbered by local government laws.

In February, DeSantis and his GOP allies in the state legislature stripped Disney of control of the district, which was subsequently renamed the Central Florida Tourism Oversight District.

The Republican governor, who has since declared his candidacy for the GOP nomination for president, was given the authority to appoint board members loyal to him.

Disney has been feuding with Florida Gov. Ron DeSantis over a law dubbed by opponents as the “Don’t Say Gay” bill.
REUTERS

DeSantis has been engaged in a long-running feud with Disney that began with the company’s public opposition to legislation dubbed by opponents as the “Don’t Say Gay” law, which bars the teaching of sex and gender identity education to youngsters before the third grade.

Disney retaliated by filing suit against DeSantis, arguing that the governor violated the company’s First Amendment rights to freedom of speech.

Credit: Source link

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