Gov. Ron DeSantis’ tourism oversight district spent up to $360,000 on a scathing review of Disney’s Reedy Creek Improvement District, relying on a roster of outside experts to dive into decades of Central Florida history and stacks of financial records.
District officials say the consultants flagged opportunities for savings, and the report will more than pay for itself. Board chairman Martin Garcia called the findings “illuminating and not infrequently shocking.” The report’s authors ripped the previous Disney-controlled Reedy Creek as “the most egregious exhibition of corporate cronyism in modern American history.”
Disney’s Reedy Creek blasted as ‘corporate cronyism’ in DeSantis district’s report
The Central Florida Tourism Oversight District budgeted $360,000 for “legislative reporting,” including $110,000 that went to Donald J. Kochan, a conservative law professor at Virginia’s George Mason University.
The report will be provided to the governor and the Florida Legislature, as required by a law overhauling the special district.
Kochan’s study reached many of the same conclusions as Rollins College professor Richard Foglesong’s 2001 book “Married to the Mouse.” Foglesong’s book, which was credited in Kochan’s report, detailed how Disney shielded its Central Florida theme parks and resorts from government regulation in the 1960s based on a false representation that the entertainment giant would build a city of the future.
That never materialized, resulting in Disney retaining effective control of the special district for more than 50 years without having any constituents to answer to. Foglesong said he didn’t think the Kochan’s report broke much new ground.
“So the new board pays someone from out of town $100,000 to write a book report on my book, ‘Married to the Mouse,’” Foglesong said in an email. “All facts came from my book; the rest was superfluous.”
He called Kochan’s review “fair but possibly not self-aware.”
“Basically, he says that if a government doesn’t have a public to hold it accountable, it will resort to cronyism,” Foglesong said. “That goes for CFTOD, too.”
Kochan said in an email his report used a variety of sources, building upon the work of Foglesong and others.
“Dr. Foglesong’s political science work was extremely useful in my own research, as were scholarly works of others; and where his own research was integrated parts of my report, it was very helpful to apply independent insights from … the law and economics literature to his analysis,” he said.
The district hired other experts to work on the report. Williams Jennings, senior director at Delta Consulting Group, conducted a forensic audit. Kimley-Horn, an engineering firm, provided an urban planning report. Public Resources Advisory Group served as the district’s financial adviser, while the consulting firm Raftelis advised the district on utility-related matters.
The review totaled 80 pages, along with hundreds of pages of exhibits and supplemental information. District officials haven’t released the report’s final price tag.
Matthew Oberly, a district spokesman, said the cost was reasonable and justified.
“Engaging with finance and governance experts led to the district implementing best governance practices that resulted in significant savings,” he said in a prepared statement.
At the district’s meeting last week, district administrator Glen Gilzean said a new procurement policy has saved taxpayers $4.2 million by opening up district contracts to more competition from new vendors.
As the largest landowners, Disney and its affiliates fund the bulk of the district’s budget, making up about 86% of property tax revenue.
DeSantis’ feud with Disney started in 2022 over the corporation’s opposition to what critics called the “don’t say gay” bill. That law limited classroom instruction on sexual orientation and gender identity. As the feud escalated, the Florida Legislature overhauled Disney’s district, putting the governor in charge of picking the five board members.
In February, DeSantis replaced the Disney-friendly board with his Republican allies. DeSantis and Disney are battling in court for control of the special district.
DeSantis’ hand-picked board reviewed the report’s findings at a meeting this past week. In particular, they faulted the previous Disney-controlled district for offering theme park passes and Disney discounts to district employees that weren’t reported as taxable income. That created a tax liability of more than $2 million, according to district officials.
The new board ended that perks program, offering a $3,000 stipend instead.
Conservative media outlets received “advance” copies of the report, which Disney dismissed it as “revisionist history” that was “neither objective nor credible.”
One critic of the district, state Sen. Linda Stewart, D-Orlando, said she thinks the board overspent on consultants and used public money to help boost DeSantis’ political fortunes.
“This is just a one-sided, unfair report,” said Stewart, who is pushing legislation to restore Reedy Creek. “To me, it was undeniable this report … was designed to make the governor look good.”
Elaine Hadley is a dedicated journalist covering the ever-evolving landscape of U.S. news. With a keen interest in politics and a commitment to uncovering the truth, she provides insightful commentary and in-depth analysis on domestic issues. When not reporting, Elaine enjoys exploring the diverse cultures and landscapes of the United States.
