Latest: New Downtown Disney Parking Garages May Cost Taxpayers Millions

Originally Posted By AutoPost

This topic is for Discussion of <a href="http://www.LaughingPlace.com/Latest-ID-81724.asp" target="_blank"><b>Latest: New Downtown Disney Parking Garages May Cost Taxpayers Millions</b></a>
<p>Smart business or taking advantage? The Orlando Sentinel reports Reedy Creek, Disney's "personal" government, will construct the $85 million parking garages being added as a part of Downtown Disney's makeover to Disney Springs. The arrangement will allow Disney to save money while costing Florida and federal taxpayers by enabling the garages to be financed with tax-free bonds. In addition, as a government agency, Reedy Creek will not have to pay taxes on materials. Disney says the garages are an important part of a broader transportation overhaul for the expansion that will ease traffic in the area. They also note the Florida legislature, in creating Reedy Creek, specifically allows them to create infrastructure pieces including parking garages.</p>

 

Originally Posted By fkurucz

Gotta love Corporate Welfare

 

Originally Posted By FerretAfros

I'm not surprised by this at all. Given how large of a tax base WDW is, I'm sure that they've more than made up for it through the years. When DL was constructing its resort expansion around 2000, including the Mickey & Friends parking structure, I believe they also got a lot of government assistance; they certainly benefitted from the I-5 widening project that focused on the DLR area first (and has only recently been completed to the LA/Orange County line), including several ramp reconfigurations.

I've also heard rumors from several different places that WDW's DTD redo may include a new exit/entrance directly from the freeway. This would definitely be considered "a broader transportation overhaul for the expansion that will ease traffic in the area", and make a big difference. If it is constructed, it would definitely have some federal funding involved, and could easily have state invovlement as well. I assume that it was not included in the official announcement because either the details aren't finalized (there should be an Environmental Impact Report around somewhere if it's official), or because Disney doesn't want to publicize how much easier it will be to leave the area (similar to how the Vegas casinos make it easy to get in, but tough to find the exit).

 

Originally Posted By Kennesaw Tom

I'm all for the parking garages. I'm not convinced there needs to be an additional exit off of Route 4. I agree DTD would definately benefit with its own exit. It is a nighmare trying to get through that area if your leaving DTD and using the S Apopka Vineland Rd exit to/from Route 4. I'm just not sure there is enough room to fit an exit somewhere south of the S Apopka Vineland Rd exit. Plus, adding an exit would only increase greater flow for quests staying off property. Unless your goal is to get more folks staying off property into DTD, which wouldn't be a bad goal to have. As it is right now, evenings S Apopka Vineland Rd is gridlock from Winter Garden Vineland Rd to Lake Bryan Beach Blvd. Better traffic flow from Route 4 to/from DTD would benefit the entire DTD area and decrease the standstill traffic on Hotel Plaza Blvd.

Garage and road improvements is only part of what needs to be done. DTD needs more things to draw people there. The downside to DTD improvements is that if folks are at DTD then they are not in the parks. Going to DTD is free. Entering the parks is $$.

 

Originally Posted By SuperDry

The tone of this article and the message it's delivering is terribly misleading, resulting in what I think are misguided comments like this:

<<< Gotta love Corporate Welfare >>>

If you have a thorough understanding of what Reedy Creek is, you'll realize that the reality of this situation is far different from what the article seems to be getting at, and is quite a ways away from "corporate welfare."

<<< Reedy Creek, Disney's "personal" government, will construct the $85 million parking garages >>>

That's true. What is left out is that 90% of the revenue that Reedy Creek gets comes from Disney itself in the form of extra property tax and fees it pays for government services. And, the Reedy Creek taxes are above and beyond the regular taxes that Disney pays to the state and county. So, of the $85 million in "taxpayer money" being spent on these garages, $76.5 million is coming directly from Disney and not from anywhere else. The rest comes from the other Reedy Creek property owners and service users, which are mostly the non-Disney hotels and other businesses that are on property. None of the $85 million is coming from non-WDW Orange County residents or property owners, or the state or federal government.

There is a *small* amount of advantage given to Disney for doing things this way, in that they don't have to pay sales tax on the materials, and the people that buy the construction bonds won't have to pay income tax on the interest earned (thus Reedy Creek pays a lower interest rate). The "government bond" status of the bonds doesn't convey any sort of guarantee of payment by the county, state, or federal government: they are backed solely by the ongoing taxing power of Reedy Creek to collect future taxes from Disney (and the 10% non-Disney property owners within the district).

This reality is a far cry from "$85 million of corporate welfare" that the article seems to imply.

 

Originally Posted By TP2000

Thank you SuperDry! Nice of you to shed some light on the topic instead of just reverting to cliche' blanket statements and PC slogans.

This also seems to be exactly what Reedy Creek was set up to do, and how it was supposed to function. And this setup was created and blessed by Walt and Roy and his hand-picked team of theme park ops guys in the 1960's. This is classic EPCOT acting exactly as Walt wanted it to act, with the direct blessing of the Florida state legislature.

Reedy Creek has the authority to build and operate its own nuclear power plant and commercial jetport. If they can get flak so easily for just building a parking structure for a new mall, I don't envy Disney one bit trying to run a profitable business in this current socio-political climate where they are instantly accused of wrongdoing over a parking garage.

 

Originally Posted By schnebs

The Sentinel overdid it this time, but it's not like Disney/Reedy Creek hasn't taken advantage of taxpayer funds before. IIRC, the extension of Osceola Parkway to Animal Kingdom was paid for out of state transportation funds that were earkmarked for projects in central Florida. Disney didn't win a lot of friends in Orange and Osceola counties by calling first dibs on the money and using it to build a road to their new theme park.

 

Originally Posted By fkurucz

Except that Reedy Creek isn't a real municipality (even though legally it is). It's Disney. So it is Corporate Welfare.

 

Originally Posted By SuperDry

How is Disney spending its own money "corporate welfare?"