Disney's Reedy Creek district OKs deal in light of DeSantis dissolution law

Disney's Reedy Creek district OKs deal in light of DeSantis dissolution law

Walt Disney World's Reedy Creek Improvement District on Oct. 3 approved a plan to ease concerns from one of its top power providers regarding a signed law by Florida Gov. Ron DeSantis that will lead to the district's possible future dissolution. The district, which is the overseeing governing entity of the land including Walt Disney World (NYSE: DIS), approved the plan to enter a reimbursement agreement with Truist Bank for a $3 million letter of credit in favor of Duke Energy Florida LLC. That credit line will ensure that Reedy Creek will be able to pay its May 2023 bill should it be dissolved on June 1, 2023, per the legislation, district officials told Orlando Business Journal. "From Duke's perspective, they want to make sure there's a guarantee they get paid for May's charges in June if we are not here — it's a safety net [for Duke]," John Classe, district administrator of Reedy Creek told OBJ.