An exhaustive 80-page audit by the Central Florida Tourism Oversight District (CFTOD) has exposed a web of corruption, bribery, and unchecked power that defined Disney’s influence over the Reedy Creek Improvement District (RCID) in Florida.
The damning report, unveiled on Monday, December 4, by The Hill, depicts what investigators term as “the most egregious exhibition of corporate cronyism in modern American history.”
Clash Over “Don’t Say Gay” Law Sparks Disney’s Downfall
Disney’s woes began when it clashed with Florida Governor Ron DeSantis over the controversial Parental Rights in Education law, also known as HB 1557. This legislation, often criticized as “Don’t Say Gay,” aimed to curtail activism by teachers introducing LGBT politics and transgender indoctrination in lower-grade classrooms.
Undeterred by the opposition, Disney, acting through RCID as a quasi-governmental entity, made opposing HB 1557 its paramount objective.
Governor DeSantis emerged as an unyielding adversary. In April 2022, he signed a bill repealing the RCID, a legislative privilege Disney had enjoyed for 55 years. By June 2023, the RCID was dissolved, replaced by the CFTOD, marking a seismic shift in the dynamics between Disney and the state of Florida.
Disney’s Scam Unveiled: Broken Promises and Unchecked Authority
The CFTOD’s audit exposes the RCID as a colossal scam perpetrated by Disney. Initially conceived as the Experimental Prototype Community of Tomorrow (EPCOT), the district promised a utopian blend of attractions, businesses, and residential zones. However, Disney failed to deliver on these promises, leaving neighboring communities to shoulder the burden of providing essential services for Disney employees.
The self-regulating RCID, according to the report, operated with little oversight, granting Disney unchecked authority. The company not only established its fire and police departments but also secured the extraordinary privilege of potentially building a nuclear power plant.
Corporate Cronyism: Autonomy, Bribery, and Suppressed Competition
Disney’s insistence on Reedy Creek’s autonomy, characterized as cronyism at its zenith, involved payments of board members’ property taxes and keeping district employees on Disney’s payroll.
Residents of Osceola and Orange Counties, deceived into believing the district’s prosperity would benefit all, were left disillusioned. The audit reveals how competition was stifled, extending Disney’s reach from hotels to golf courses, suppressing local entrepreneurship while reaping massive profits.
One stark consequence of Disney’s monopolistic power was its financial growth, nearing $83 billion in 2022. However, auditors argue that Disney’s success disproportionately favored its theme-park and consumer-products businesses, accounting for over 85 percent of its stock-market value.
## Hidden Ramifications: Kickback Scandals and Financial Misconduct
The audit exposes a hidden kickback scandal where Disney allegedly bought the loyalty of RCID employees. The report outlines a system where Disney provided exclusive perks, funded by taxpayers, creating an unethical exchange that led to Disney favoritism within the district.
The extravagant spending by the former District Administrator, charged to the district’s American Express card, highlights financial misconduct within RCID, perpetuating an atmosphere of impropriety and a lack of transparency.
Infrastructure Neglect and Lack of Accountability
Reedy Creek’s mismanagement and negligence regarding infrastructure and growth needs are laid bare in the audit. Contracts were awarded without due diligence, prioritizing “diversity, equity, and inclusion” over securing the best goods and services. Disney’s exploitation of RCID as its personal resource bank, pressuring the district to favor the company, is exposed.
A glaring example is the district’s expenditure of $700 million on Disney parking garages, funded by taxpayers, and a $70 million utility purchase from Disney with a lack of financial documentation. The audit reveals a failure to plan for the burgeoning workforce, leaving over 100,000 employees to commute due to a lack of housing in the district.
Disney’s Disdain for Democracy: Autonomy and Opposition to Oversight
The audit concludes with a scathing indictment of Disney’s disdain for democracy. Given unprecedented autonomy through RCID, Disney opposed checks and balances, evading public accountability through elections.
Quoting experts like Professor Donald Kochan, the report highlights Disney’s manipulation of the district to limit democratic oversight.
As the old Reedy Creek board attempted to maintain the corrupt status quo, Governor DeSantis intervened, creating the CFTOD to dismantle deeply entrenched corruption. Despite initial challenges, the CFTOD is working to course-correct and rid Florida of the systemic corruption that has plagued the nation.
The Reedy Creek saga is not merely a Florida-centric narrative; it signals a broader story of Disney’s decline. The report dovetails with revelations of Disney’s “not-at-all-secret gay agenda” and a string of box-office failures.
Disney’s attempt to infuse politics into its brand, coupled with alleged corporate misdeeds, has alienated its audience, contributing to what the report describes as “box-office bloodbaths.”