DeSantis, agencies want Reedy Creek taxpayer lawsuit tossed

Gov. Ron DeSantis and the leaders of two state agencies are asking a court to dismiss a lawsuit brought against them by Osceola County residents over the dissolution of Disney World’s Reedy Creek Improvement District.

Lawyers for DeSantis, Secretary of State Cord Byrd and Department of Revenue Executive Director Jim Zingale filed the motion on Aug. 19, according to records. Among other allegations, they argued the plaintiffs “have no legal right to prohibit the State of Florida from dissolving governmental entities created by state law.”

The lawsuit was filed by Michael, Leslie and Eduardo Foronda of Kissimmee and Vivian Gonzales of Celebration in May. It alleges the dissolution of the district, which experts said could come with a hefty tax increase, violates their rights as Florida taxpayers, a contractual obligation with Reedy Creek’s bondholders and their rights to due process under federal and state law.

In the complaint filed in Miami-Dade County, the plaintiffs asked for the law that dissolves Reedy Creek to be declared unconstitutional. Their lawsuit was originally filed in federal court in May, but a federal judge dismissed it for jurisdictional reasons, among others.

Lawyers for DeSantis and the state agencies argue that the lawsuit is based on “speculative injuries,” or the assumption that the plaintiffs would see higher taxes when the district is scheduled to dissolve next June.

The motion states that it would be “pure speculation” for the plaintiffs to assume Reedy Creek “will actually dissolve” and the plaintiffs would be directly affected.

“Much can happen prior to the end of the next legislative session,” they wrote.

They further claim the lawsuit should be filed in Leon County, home to the state Capitol.

Spokespeople for DeSantis and the Florida Department of Revenue declined to comment on the filing Wednesday, as did a lawyer representing the Department of State.

The plaintiffs’ lawyer, William Sanchez, said his clients are preparing their response.

“We believe we stand on very firm footing regarding our client’s taxpayer rights under the State of Florida’s broad Taxpayer Bill of Rights,” he said. “We will also be filing separate motions in accordance with the State of Florida’s civil procedure laws.”

DeSantis signed the law dissolving the Reedy Creek Improvement District in late April after a dispute with Disney over the company’s response to the so-called “don’t say gay” law, which prohibits discussion of sexual orientation and gender identity in early education and limits it in higher grades as “age-appropriate.”

Officials and experts warned the 55-year-old district’s end would be “catastrophic” for Orange County taxpayers. DeSantis promised the state would take care of it and later said Florida would likely take over the district after it dissolves June 1.

When contacted about the issue previously, DeSantis spokeswoman Christina Pushaw said “the local residents of Orange and Osceola counties will not have to bear the burden of Disney’s debt.”

krice@orlandosentinel.com and @katievrice on Twitter