Disney and the Central Florida Tourism Oversight District have come to an agreement on Wednesday concerning the management of the special governing district encompassing the Walt Disney World Resort, as per Fox Business. The tourism entity, supported by Florida Governor Ron DeSantis, has given the green light to the resolution of the legal dispute that has been ongoing for almost two years.
“We are glad that Disney has dropped its lawsuits against the new Central Florida Tourism Oversight District and conceded that their last-minute development agreements are null, void, and unenforceable,” Bryan Griffin, DeSantis’ communications director, said in a statement. “No corporation should be its own government. Moving forward, we stand ready to work with Disney and the District to help promote economic growth, family-friendly tourism, and accountable government in Central Florida.”
Disney was vocally opposed Florida’s Parental Rights in Education Act, which subsequently led the DeSantis administration to revoke the “special Disney-controlled tax district that gave the entertainment autonomy over its theme parks in the region,” Fox Business reported.
“The 2022 law bans classroom lessons on sexual orientation and gender identity in early grades and was championed by the Republican governor, who used Disney as a punching bag in speeches until he suspended his presidential campaign this year,” The Associated Press reported.
The board was quick to act, replacing the Disney-controlled Reedy Creek Improvement District.
“This agreement opens a new chapter of constructive engagement with the new leadership of the district and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the state,” Jeff Vahle, president of Walt Disney World Resort, said.
“The Central Florida Tourism Oversight District was created to bring public accountability and transparency to one of Florida’s most important destinations,” the board’s vice chair Charbel Barakat told Fox Business in a statement. “We’re proud of the landmark work the District has accomplished and look forward to what lies ahead. With this agreement, we’re eager to work with Disney and other businesses within Central Florida to make our destination known for world-class attractions and accountable governance.”
The lawsuit was dismissed by a federal judge in January. Prior to the change in district leadership from Disney allies to DeSantis appointees last year, agreements were signed by Disney supporters on the board transferring control over design and construction at Disney World to the company. The new DeSantis appointees argued that these last-minute agreements limited their authority, leading to a lawsuit against Disney in state court in Orlando to invalidate the contracts.
Disney responded with counterclaims, seeking to uphold the validity of the agreements in question.
As per the terms of the settlement reached on Wednesday, Disney accepts the decision made by the DeSantis-appointed board that the comprehensive plan approved by Disney supporters prior to the change in leadership is no longer valid. Additionally, Disney acknowledges that the development agreement and restrictive covenants approved before the change in leadership are also invalid. Instead, a 2020 comprehensive plan will be utilized, with the new board having the ability to make modifications. The settlement also indicates that Disney and the new board will work towards negotiating a new development agreement in the near future.
