Reedy Creek Improvement District
The Reedy Creek Improvement District, established in 1967, operates six-lane freeways in the Walt Disney World area near Orlando, Florida. Technically, the RCID is a public corporation administered by a five-member Board of Supervisors elected by area landowners. However, through a carefully constructed legal framework, Disney operates the roads and utilities as wholly owned subsidiaries, rather than as a public-private partnership.
Disney is the primary landowner and controls the remaining land through contractual arrangements. In this way, the company is able to hand-pick the landowning electorate. An Associated Press article notes, "Board members are non-Disney business people from central Florida and must own at least an acre in the district". A Florida Office of Program Policy Analysis and Government Accountability report explains the contractual arrangement as follows: "Historically, each board member has been deeded approximately five acres of land by an affiliate of the Walt Disney World Co. . . . According to RCID officials, a Walt Disney World Co. affiliate has the exclusive option to purchase land back from board members at any time". Landowners also have a right to recall board members before the completion of their four-year terms.
Financial arrangements are also circular. According to the RCID Finance Department, Walt Disney Co. is RCID's largest taxpayer, paying about 86% of the District's taxes in 2004. The remaining taxpayers are board members and lessees of property owned by Disney affiliates (e.g., House of Blues, Travelodge, and Hilton) paying ad valorem taxes. An American Prospect article notes, "Disney pays taxes to Reedy Creek, which gives the money straight back to Disney, and the circle is closed".
Read more about this topic: Private Highways In The United States
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