Taxpayers take DeSantis to court, fearing Disney feud will raise property taxes, cost jobs

Four Central Florida residents have gone to federal court to block a new law that would revoke the Walt Disney Co.’s authority to self-govern its Central Florida entertainment empire.

SB 4 was widely viewed as an attempt by Gov. Ron DeSantis and the GOP-majority Legislature to punish Disney for its opposition to another law restricting classroom discussion of gender and sexual identity.

This latest lawsuit adds to a lengthy list of legal challenges to DeSantis’ policy initiatives, ranging from congressional redistricting bill to the “Stop Woke Act.”

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Plaintiffs in the lawsuit filed Wednesday in Miami federal court allege the effort to silence Disney will result in significant injury to taxpayers, threatens the loss of thousands of jobs, and violates not only the Florida Taxpayers’ Bill of Rights and contractual law, but also the U.S. Constitution’s guarantees to free speech and due process.

Miami attorney William J. Sanchez filed the suit on behalf of Michael, Edward and Leslie Foronda of Osceola County and Vivian Gorsky of Orange County.

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The court filing states DeSantis and certain Republican lawmakers “made it very clear” they sought to punish Disney’s special status “because many Disney employees had expressed disagreement with the Don’t Say Gay Bill" — the name critics gave to what is the "Parental Rights in Education Act."

The complaint said the move to dissolve the Reedy Creek Improvement District, which provides Disney authorization to govern its property as it sees fit, puts taxpayers on the hook for more than $1.7 billion of Disney’s debt.

Sanchez, in the suit, raises questions about the proper application of tax laws under the taxpayers’ Bill of Rights.

Lawmakers approved SB 4 after Disney's CEO said the company would work to repeal HB 1557, the Parental Rights in Education Act, which critics say is hostile to gay students and exposes schools to lawsuits.

SB 4 revokes Disney's authority to operate 38 miles of theme parks and resorts free of government regulations,

However, SB 4 ignores provisions in the law creating the Reedy Creek Improvement District that forbids its dissolution until all bond obligations are met and debts discharged.

The complaint points out that while “the Governor and certain Republican lawmakers welcome a fight with Disney on this matter,” experts suggest the outcome “will probably lead to increased taxes for residents of the Orlando area, as well as those that live throughout the State of Florida.”

Orange County mayor: financial impact could be 'catastrophic'

Orange County Mayor Jerry Demings said the financial impact on his county could be "catastrophic" if Disney’s independent district is dissolved. Orange County Tax Collector Scott Randolph predicted a 20% to 25% increase in property taxes for county residents.

DeSantis’ office declined to comment on the specifics of a pending lawsuit but did stand by previous statements that Orange and Osceola counties will not be burdened with Disney’s debt.

“This opportunity can and should be utilized to generate more taxes from Disney, as the governor has said,” wrote spokeswoman Christina Pushaw in an email exchange with the Tallahassee Democrat.

Sanchez argues a lawsuit is the only way for taxpayers to discover how much the GOP Disney fight will cost in terms of increase property taxes and job losses — Disney employs 80,000 workers directly and economists connect hundreds of thousands of other jobs to its six theme parks and resorts.

Lawsuit challenging Disney bill was expected

A lawsuit challenging the Disney bill was expected after lawmakers passed it in April.

It is the third lawsuit to emerge this year tied to legislation DeSantis pushed by the Republican-dominated Legislature to approve.

In April, a high school teacher from Manatee County joined a University of Central Florida professor, and a Tallahassee educator, to file suit against HB 7, known as the “Stop Woke Act.”

The suit alleges a ban on what is called “critical race theory” violates the First and Fourteenth amendments.

The League of Women Voters followed the educators into the courthouse and filed suit to block the congressional redistricting plan DeSantis demanded.

Those suits come on the heels of lawsuits filed the previous two years over an anti-riot bill, limits on donations for ballot initiatives, a plan to regulate social media companies, a ban on sanctuary cities and new limits on third party voter registration groups.

DeSantis’ Democratic opponents charge those initiatives have more to do with presidential ambitions than they do with Florida public policy.

During debate on the Disney bill, Sen. Jason Pizzo, D-Miami, cited a litany of bills that triggered lawsuits to tell the chamber he was tired of missing his sons’ baseball games to “be spoon-fed bills” from DeSantis.

“Nothing is going to happen with immigration. Nothing is going to happen to critical race theory. None of my kids’ teachers were teaching anything about sexual orientation K through three. It is not happening. And this is not going to happen,” said Pizzo.

John Russo, a labor scholar at Georgetown University, reviewed the Disney bill and associated costs in terms of potential tax increases and job loss and saw “regulatory and economic blackmail in pursuit of political opportunism."

So far, Disney has been silent other than posting a statement to investors that it was exploring options and conducting business as usual.

The Foronda and Gorsky lawsuit seek permanent injunctive relief and have SB 4 declared unlawful. It also seeks an award to cover attorney fees, and any other relief the court thinks is warranted.

James Call is a member of the USA TODAY NETWORK-Florida Capital Bureau. He can be reached at jcall@tallahassee.com. Follow on him Twitter: @CallTallahassee

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This article originally appeared on Tallahassee Democrat: Florida: Taxpayers sue DeSantis, say Disney dissolution violates rights