The Contractual Impossibility of Unwinding Disney’s Reedy Creek
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The Contractual Impossibility of Unwinding Disney’s Reedy Creek
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Re: The Contractual Impossibility of Unwinding Disney’s Reedy Creek
#2Any new or existing municipality can take over those bonds. They do it all the time. And as a fallback the state could take those on and refinance them and pay then off. It's really not difficult, but the author makes it seem to be.
As for the millage rate, if Reedy Creek is higher than the state maximum, I'm curious for what valuation Disney appraises its own property, since the millage rate is only part of the story.
Re: The Contractual Impossibility of Unwinding Disney’s Reedy Creek
#3Any new or existing municipality can take over those bonds. They do it all the time. And as a fallback the state could take those on and refinance them and pay then off. It's really not difficult, but the author makes it seem to be. As for the millage rate, if Reedy Creek is higher than the state maximum, I'm curious for what valuation Disney appraises its own property, since the millage rate is only part of the stor…
Except one of the bonds cannot be redeemed early, and based on the taxation rate authorized to Reedy Creek means the underlying terms of the bonds have been changed. The Florida state constitution apparently has strict limits on the state governments ability to interfere with contracts, and according to the article, that is also strongly held in previous Supreme Court cases.
This article is written by an attorney based in Florida. I think it’s probably reasonable to defer to their expertise, in this case. after all, they are an attorney with experience in the state - are you?
Re: The Contractual Impossibility of Unwinding Disney’s Reedy Creek
#4It would be a shame if current legislators could restrict future legislators by adding infinite year bonds to all new laws with promises the law will never change as long as that bond exists.
If this principal of preserving bond contracts prohibits legistivative action or could even have a chilling effect on it, perhaps the real issue is that government debt generally is a risk to our democracy. Perhaps congresses should not be allowed to engage in debt terms that exceed the term limit of that congress. (2 years or so).
(I don't want to make any claim with regard to Florida law, nor the politics behind what's happening in Florida.)
Re: The Contractual Impossibility of Unwinding Disney’s Reedy Creek
#5All of Disney's troubles are coming from retaliation to their direct political donations.
and this is why you donate anonymously. everyone likes to imagine Russians and Saudi's swaying US politics - the boogeyman du jour - but this is the more realistic outcome: retaliation by the incumbent party.
Just form the LLC, donate, shut it down before that state's reporting requirements come into effect.
for coders: an LLC instance rendered JIT
Re: The Contractual Impossibility of Unwinding Disney’s Reedy Creek
#6It would be a shame if current legislators could restrict future legislators by adding infinite year bonds to all new laws with promises the law will never change as long as that bond exists. If this principal of preserving bond contracts prohibits legistivative action or could even have a chilling effect on it, perhaps the real issue is that government debt generally is a risk to our democracy. Perhaps congresses sh…
> It would be a shame if current legislators could restrict future legislators by adding infinite year bonds to all new laws with promises the law will never change as long as that bond exists.
Isn't it some core legal principle that legislature can't do that, and always has the power to reverse itself?
This article feels like it's built on a priority inversion, like debt terms are really the supreme law of the land, which wouldn't surprise me from something deeply embedded in financial market thinking as "Bloomberg Tax" probably is.
Re: The Contractual Impossibility of Unwinding Disney’s Reedy Creek
#7All of Disney's troubles are coming from retaliation to their direct political donations. and this is why you donate anonymously. everyone likes to imagine Russians and Saudi's swaying US politics - the boogeyman du jour - but this is the more realistic outcome: retaliation by the incumbent party. Just form the LLC, donate, shut it down before that state's reporting requirements come into effect. for coders: an LLC i…
>Just form the LLC, donate, shut it down before that state's reporting requirements come into effect.
Is that legal?
Re: The Contractual Impossibility of Unwinding Disney’s Reedy Creek
#8It would be a shame if current legislators could restrict future legislators by adding infinite year bonds to all new laws with promises the law will never change as long as that bond exists. If this principal of preserving bond contracts prohibits legistivative action or could even have a chilling effect on it, perhaps the real issue is that government debt generally is a risk to our democracy. Perhaps congresses sh…
> It would be a shame if current legislators could restrict future legislators by adding infinite year bonds to all new laws with promises the law will never change as long as that bond exists. Isn't it some core legal principle that legislature can't do that, and always has the power to reverse itself? This article feels like it's built on a priority inversion, like debt terms are really the supreme law of the land,…
I may have missed the nuance in the article, but in Florida it seems they found a way to do that.
Re: The Contractual Impossibility of Unwinding Disney’s Reedy Creek
#9All of Disney's troubles are coming from retaliation to their direct political donations. and this is why you donate anonymously. everyone likes to imagine Russians and Saudi's swaying US politics - the boogeyman du jour - but this is the more realistic outcome: retaliation by the incumbent party. Just form the LLC, donate, shut it down before that state's reporting requirements come into effect. for coders: an LLC i…
> Just form the LLC, donate, shut it down before that state's reporting requirements come into effect. Is that legal?
It is legal. or the consequences are non-existent. Read the desired state's LLC statutes. Pick a state with the desired LLC statutes.
Re: The Contractual Impossibility of Unwinding Disney’s Reedy Creek
#10It would be a shame if current legislators could restrict future legislators by adding infinite year bonds to all new laws with promises the law will never change as long as that bond exists. If this principal of preserving bond contracts prohibits legistivative action or could even have a chilling effect on it, perhaps the real issue is that government debt generally is a risk to our democracy. Perhaps congresses sh…
> Perhaps congresses should not be allowed to engage in debt terms that exceed the term limit of that congress. (2 years or so).
That would completely flatten any investment into infrastructure, these projects need extremely long bond terms simply because otherwise repayment would be astronomical.