Florida simply cannot promise to prospective bondholders that it won’t interfere with Reedy Creek, and then dissolve Reedy Creek. If Reedy Creek is ever dissolved, it would be a monumental and complicated enterprise even on a years-long timeline. The district has a nine-figure annual budget for expenditures, and even ignoring its various debts, it has a plethora of other contracts that somehow would have to be assigned to and divided between Orange and Osceola counties. However, the dissolution will have to wait until all of its bonds are paid in full.
However, the dissolution will have to wait until all of its bonds are paid in full.
Could they be paid early?
According to the linked article:
Florida could theoretically get rid of some of these contractual issues by writing a giant check to prepay or “redeem” the bonds, but that’s prevented by at least one of the outstanding bonds—2018’s utility revenue bond prohibits redemption until October of 2029.
The article is an interesting read. The recent bill that was passed is full of legal contradictions, both in Florida and federal contract law.
Florida has almost always been about beachfront land development (propose it and get $$, build it and get more $$$, sell it and get more $$$$ and then RUN like hell!).