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Florida’s $1 Billion Disney Question

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Florida’s $1 Billion Disney Question


When Florida Republicans authorised a invoice to strip Walt

Disney Co.

DIS -3.17%

of its particular taxing privileges in April amid controversy over how gender and sexuality are taught in colleges, they failed to handle a key query: Who’s answerable for paying again almost $1 billion in municipal debt used to construct roads, walkways and different infrastructure round Disney World?  

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Florida legislation dictates the bondholders have to be paid even when Disney’s particular taxing district, referred to as Reedy Creek, is dissolved. A separate legislation creating Reedy Creek promised bondholders the state wouldn’t intervene with its tax collections. One of many invoice’s sponsors is now contemplating re-establishing a watered-down model of Reedy Creek to unwind the authorized mess. 

These caught up within the combat embrace municipal bond buyers, firefighters, and the $210 billion world media and advertising enterprise behind Star Wars, the Avengers and ESPN.

Costs have dropped on most of the bonds, which sit in mutual funds managed by Goldman Sachs Asset Administration,

AllianceBernstein

and different companies. Reedy Creek bonds maturing in 2028 traded at 87.5 cents on the greenback Thursday and Friday, down from about 100 cents in January, in accordance with Municipal Securities Rulemaking Board information. Two main scores companies have flagged the bonds for potential downgrade, saying it isn’t precisely clear who owes buyers their cash.

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Since 1967, the Florida land housing Disney’s theme parks has been successfully ruled by the corporate, permitting it to handle Walt Disney World with little purple tape. WSJ’s Robbie Whelan explains the particular tax district anticipated to dissolve subsequent yr underneath a brand new Florida legislation. Picture: AP

“It’s mere hypothesis at this level,” mentioned Michael Rinaldi, head of U.S. native authorities scores at Fitch Scores. “We don’t have any info.” 

A spokesperson for Gov.

Ron DeSantis

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mentioned a plan for Reedy Creek is being accomplished and may very well be made public inside the subsequent few weeks. Mr. DeSantis, a Republican, mentioned in an interview with Fox Information Thursday night time that “the bonds will probably be paid by Disney.” 

The Reedy Creek Enchancment District is a 40-square-mile space encompassing Disney’s Orlando-area theme parks, resorts and resorts. Tens of 1000’s of such particular districts exist throughout the U.S., usually run by native boards and fashioned on the behest of property house owners who need to pay taxes past what they owe to the town or county for further providers corresponding to mosquito abatement.  

Reedy Creek is uncommon in that the majority the property belongs to 1 taxpayer, Disney, which successfully funds and controls its personal authorities. Reedy Creek operates outdoors space guidelines on constructing and zoning and makes use of tax income from Disney properties to run a neighborhood hearth division and different providers. About $60 million of the district’s $170 million 2021 funds went to debt funds on bonds issued to finance roads and a pedestrian bridge, amongst different initiatives.

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Florida Gov. Ron DeSantis mentioned that ‘the bonds will probably be paid by Disney.’



Picture:

Ellen Schmidt/Related Press

Created by Florida lawmakers greater than 50 years in the past at Disney’s request, Reedy Creek was a simple goal for Florida lawmakers sad with Disney over its opposition to Florida’s Parental Rights in Schooling invoice. Nicknamed “Don’t Say Homosexual” by critics, the laws authorised in April prohibits classroom instruction on gender identification and sexual orientation for schoolchildren by means of grade three, and limits it for older college students.

After Disney, underneath strain from staff, vowed to push for the legislation’s repeal, Florida lawmakers, on the urging of Mr. DeSantis, filed, heard and authorised a invoice dissolving Reedy Creek over a three-day interval in mid-April. The dissolution is efficient June 1, 2023. A Disney spokesperson declined to remark. A Reedy Creek spokesperson didn’t reply to a cellphone name.

State legislation dictates that when a particular district is dissolved, the duty for paying its debt falls to the world native authorities. In Reedy Creek’s case, there are 4: Orange County, which encompasses most of Reedy Creek, Osceola County and the cities of Bay Lake and Lake Buena Vista.

Reedy Creek mentioned in an announcement filed with the Municipal Securities Rulemaking Board, a self-regulatory group governing the bond market, it “expects to discover its choices whereas persevering with its current operations.” The assertion additionally cited a 1967 authorized promise to Reedy Creek bondholders that the state wouldn’t alter the district’s potential to gather taxes.

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Did Florida act too unexpectedly when it stripped Walt Disney Co. of its particular taxing district? Be a part of the dialog under.

Florida Rep.

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Randy Effective,

a Republican who sponsored the invoice within the state’s home of representatives, mentioned he believes that obligation will not exist after the brand new legislation takes impact subsequent yr. He mentioned a court docket or further laws may assist decide how one can divide the debt up amongst native governments. Nonetheless, he mentioned, an alternative choice could be for lawmakers to re-establish a less-powerful model of the Reedy Creek Enchancment District for the aim of servicing the debt.

In that state of affairs, “there continues to be a Reedy Creek that continues to carry that and continues to pay it off,” Mr. Effective mentioned, however the legislature may withhold different powers the district at present has corresponding to the power to subject further debt backed by a promise of reimbursement in state legislation.

Mr. DeSantis’s workplace mentioned in an announcement when he signed the Reedy Creek invoice that he didn’t anticipate it to extend residents’ taxes. The impression to native governments may lengthen properly past having to take over debt funds, nevertheless.

PHOTOS: How Disney Carved Out Its Personal Authorities in Florida

Orange County Mayor Jerry Demings, a Democrat, mentioned at a press convention whereas the invoice was into account that Reedy Creek covers the price of police, hearth and 911 providers within the district. Taking on these operations with out further income could be “catastrophic for our funds,” he mentioned. Osceola County mentioned in an announcement following the invoice’s passage that it’s “evaluating any shifts in value to Osceola.” 

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Some municipal bond portfolio managers and analysts expressed concern at seeing partisan politics creep into the arcane world of debt reimbursement pledges.  

Matt Freund,

head of fixed-income methods at Calamos Investments LLC, which holds a small share of a Reedy Creek bond issued in 2020, expressed confidence that the debt could be repaid.

“How the state of Florida’s motion impacts the broader municipal finance business is but to be seen,” Mr. Freund mentioned. 

Write to Heather Gillers at heather.gillers@wsj.com

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Florida

Destination Known for Former Florida Gators Guard

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Destination Known for Former Florida Gators Guard


Yahoo Sports’ Jake Fischer reported Thursday that former Florida Gators guard Zyon Pullin signed a two-way player deal with the Miami Heat after going undrafted in the 2024 NBA Draft. 

It’s no surprise that Pullin stayed in Florida to sign with the Heat. Miami hosted the guard in early June. Furthermore, his college production more than shows that he can hang with almost anyone in this year’s draft. 

With the Gators, Pullin averaged 15.5 points per game, 4.9 assists and 3.9 rebounds. He also set Florida’s single-season record with a 3.77 assist-to-turnover ratio, which was the best ratio by an SEC player since 2000.

Moreover, he reached double figures in 23 straight games to start his career, which set a new program record.

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As a result of his terrific performances in his only season with the Gators, Pullin was named to first-team All-SEC. 

This might not be how Pullin hoped to make an NBA roster, but the most important thing is that he has a chance in the league with the Heat. 

Pullin will get the chance to learn from one of the best coaches the NBA has ever seen in Erik Spoelstra. Moreover, the Heat have a great culture and are known to give chances to anyone regardless of their draft position.  

Miami currently has multiple players who were undrafted but earned significant minutes during the regular season the past couple of years. Jamal Cain, Duncan Robinson and Caleb Martin are the most notable examples. 

Robinson and Martin have earned second NBA contracts too, which is no small feat for an undrafted player. 

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The Heat are as good of a landing spot as any for Pullin. Now, the ex-Florida guard must prove he belongs.

As a two-way player, Pullin can play with both the Heat and for the organization’s G-League affiliate. However, he will not able to play all 82 games at the NBA level.

The league rules state that “players under NBA two-Way contracts may be active for up to 50 games with their NBA team.”



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Time frame to report construction defects in Florida to shift from 10 to 7 years starting July 1

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Time frame to report construction defects in Florida to shift from 10 to 7 years starting July 1


FLORIDA – Florida construction law is changing, cutting the amount of time homeowners have to file construction defect claims by 30%.

Beginning Monday, July 1, the time frame to report construction defects in the state of Florida will shift from 10 years to seven years.

The change in the law affects anyone who owns a home that was recently built, but it especially impacts homeowners in that 7-to-10-year time frame.

The News4JAX I-TEAM receives complaints regularly about construction defects in newer-built homes. Most recently, we heard from a Middleburg homeowner dealing with mold, humidity, and improper ventilation issues.

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“It’s a brand-new house. It’s unacceptable,” homeowner Erin LePage said last year. “If we could have been here for our walkthrough, it would have been different.”

RELATED | ‘It’s unacceptable’: Middleburg homeowner says new build troubled with mold, humidity, ventilation issues

Brian Crevasse, a board-certified construction attorney, said this change will impact hundreds of thousands of people in Florida — if not more.

Senate Bill 360 was signed into law last summer changing the time limit from 10 years to seven years.

Crevasse said this is a real concern because he deals with clients who are often past the seven-year threshold when reporting construction defects.

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“Oftentimes, these defects are actually concealed. And you wouldn’t be able to necessarily see that you have water intrusion, just by taking a walk around the building and looking at it, you would have to actually remove some of the exterior facade to look for the types of issues that we typically see,” Crevasse said.

The new law also changes when the countdown starts for filing claims. Previously, the time frame started when you got possession of your home or when construction was finished.

MORE | Worried about construction fraud? Here are some ways you can protect yourself

“If you are a homeowner or association that was built, you know, seven to 10 years ago, you know, you’re going to want to run out and get counsel as soon as possible to see if there’s a way to file by Monday. And then, for everybody else that may have homes that are four or five, six years old, you know, you’re just going to want to be extremely diligent about pursuing any potential issues that you might see with your home going forward so that you don’t run out of time at that seven years,” Crevasse said.

The new law starts the countdown from the earliest of the following events:

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  • When the building gets a temporary or permanent certificate of occupancy

  • At the completion of the building

  • At the abandonment of construction, even without completion

Copyright 2024 by WJXT News4JAX – All rights reserved.



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BBB warning consumers about unlicensed workers in Florida

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BBB warning consumers about unlicensed workers in Florida


HILLSBOROUGH COUNTY, fla — The Better Business Bureau is warning consumers about unlicensed workers in Florida. Operating without a license is illegal in the state, and the BBB wants homeowners to know what to look out for.

“This is very important as we’re heading into hurricane season,” said Bryan Oglesby of the BBB.

He explained that this is an issue that follows a big storm or hurricane. Each year, the BBB hears from consumers whose homes were damaged by a storm.

“They receive that knock on the door. They had damage to the home, the person was there to help. They paid money up front and the person never came back to finish the job and that is what we want to warn consumers of,” Oglesby said.

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He explained that those workers flock to Florida after a big storm. Some come for the business opportunity to make money fixing up homes. In other cases, some unlicensed workers will take the money and not come back to do the work.

“These are usually storm chasers, out of town companies that come in knocking on doors offering to do work,” Oglesby said.

He said hiring any unlicensed worker is a risk for the homeowner. In Florida, operating without the proper license is illegal. During a state of emergency, the crime is bumped up from a misdemeanor to a third-degree felony.

Oglesby wants consumers to be proactive and get a list of trusted and licensed professionals together so you have it on hand.

“As opposed to reactive to the unlicensed guy that knocks on your door, the scammer that’s trying to take advantage of you when you’re in an emotional state,” Oglesby said.

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The BBB has an online toolto help find licensed professionals in your area.

Florida man’s journey to citizenship stalled by deportation
Yanara Perez-Sanchez spoke with ABC Action News about her family’s struggles since her husband Felix was ordered to a 5 year mandatory stay in Honduras because of a missed immigration appointment in 2004.

Florida man’s journey to citizenship stalled by deportation





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