Deal sealed between Disney and Disney World governing district with approval by DeSantis reps

Orlando, Florida. — Gov. Ron DeSantis’ appointees on Wednesday gave final approval to a agreement that buries the hatchet between Disney and the Walt Disney World government district, which the governor of Florida took over after the company two years ago publicly opposed a state law that critics dubbed “Don’t Say Gay.”

The five DeSantis-appointed board members for the Central Florida Tourism Oversight District voted unanimously to approve a 15-year development agreement in which the district committed to making infrastructure improvements in exchange for Disney’s investment of up to $17 billion at Disney World over the next two decades. .

The agreement followed a detente in March in which both sides agreed to stop litigating each other in state courts and work to negotiate a new development agreement and a new comprehensive plan no later than next year. The district provides municipal services such as firefighting, planning and mosquito control, among other things, and was controlled by Disney supporters before the takeover by DeSantis appointees.

District Council Member Brian Aungst said at Wednesday night’s council meeting that the agreement provides a long-lasting and stable framework for Disney and the council to work together.

“This is the day we’ve all been waiting for,” Aungst said. “I was always extremely optimistic and knew we would get here because it was the right outcome.”

Agreement terms

Under the agreement, Disney will be required to donate up to 100 acres of Disney World’s 24,000 acres for the construction of district-controlled infrastructure projects. The company will also need to award at least half of its construction projects to Florida-based companies and spend at least $10 million on affordable housing in central Florida.

Disney would then be approved to build a fifth major theme park at Disney World and two more smaller parks, such as water parks, if it so desired. The company could increase the number of hotel rooms on its property from nearly 40,000 to more than 53,000 and increase the amount of retail and restaurant space by more than 20%. Disney will maintain control of building heights due to the need to maintain an immersive environment.

Orlando tourism industry leaders praised the deal, telling district council members it will bring unlimited jobs, tourists and attention to Central Florida.

“This clearly demonstrates to the world that the District and Disney are eager to resume working together for the great state of Florida,” said Robert Earl, founder and CEO of Planet Hollywood International, Inc.

One remaining legal question

Still up in the air was an appeal of a federal lawsuit Disney had filed against DeSantis and his appointees. After the settlement was reached in March, Disney asked the appeals court to stay the case while the development agreement was negotiated. The company has until next week to petition the court if it wants to pursue the case.

Disney did not respond to an email Wednesday afternoon seeking comment on how the company planned to proceed. DeSantis’ appointees to the district had planned to hold a closed-door discussion about the process after Wednesday’s board meeting, but canceled the meeting.

Matthew Oberly, a spokesman for the district, said Wednesday night that the district had no comment on the future of the federal litigation.

The March settlement ended nearly two years of litigation sparked by DeSantis’ takeover of the district following the company’s opposition to a 2022 law banning in-person classes on sexual orientation and gender identity in early grades. The law was defended by the Republican governor, who used Disney as a punching bag in speeches during his bid for the 2024 Republican presidential nomination, until he suspended his campaign earlier this year.

As punishment for Disney’s opposition to the controversial law, DeSantis took over the gubernatorial district through legislation passed by the Republican-controlled Florida Legislature and appointed a new board of supervisors. Disney sued DeSantis and his appointees, claiming the company’s free speech rights were violated for speaking out against the legislation. A federal judge dismissed the lawsuit in January, but Disney appealed.

Before control of the district changed hands early last year, Disney supporters on its board signed agreements with the company transferring control over the design and construction of Disney World to the company. DeSantis’ new appointees claimed the “last-minute deals” neutralized their powers, and the district sued the company in Orlando state court to void the contracts.

Disney filed counterclaims that included asking the state court to declare the agreements valid and enforceable. Those state lawsuits were dismissed as part of the March settlement.