Disney and the state of Florida reached a settlement to end a high-profile lawsuit in state court over control of the special district encompassing the Walt Disney World theme parks. Additionally, Disney agreed to defer briefings in a federal lawsuit against DeSantis while both parties attempt to reach a consensus on a new development agreement for Walt Disney World, among other matters.
“This agreement opens a new chapter of constructive engagement with the new leadership of the district,” remarked Walt Disney World President Jeff Vahle. The dispute between DeSantis and Disney dates back to 2022 when former Disney CEO Bob Chapek criticized a state legislative effort to limit classroom discussions on sexuality and gender issues for younger students, labeled by critics as the “Don’t Say Gay” law. (The actual name of the law is “The Parental Rights in Education Act” (HB 1557))
A Florida board appointed by DeSantis to oversee development around Disney’s theme parks sued the company to void “backroom deals” favorable to the entertainment conglomerate. This clash was a focal point of DeSantis’ speeches in his pursuit of the Republican nomination for the U.S. presidency, during which he criticized the company as “woke Disney.” However, DeSantis later toned down his public attacks on the company and withdrew from the presidential race in January.
The settlement reflects a desire from both sides to move past the skirmish and restore the historically strong relationship between Disney and state officials, according to David Jolly, a former Republican congressman from Florida who is now an independent. Jolly suggests that DeSantis and his allies lost their appetite for the battle once the governor exited the presidential contest, stating, “It made sense for his politics. It never made sense for Florida’s economy or for the long-term interests of the state.”
In 2022, Disney’s four theme parks in Orlando attracted approximately 47 million visitors, according to industry statistics. Speaking to reporters on Wednesday, DeSantis stated that the state’s actions had been “vindicated.” Under the terms of the settlement, Disney agreed not to challenge the oversight board’s view that the land use plan adopted by the previous board, in the waning days of its oversight of Walt Disney World, is invalid. Consequently, a plan adopted in 2020 would serve as the working blueprint for the Orlando theme parks and retail district. Disney also agreed to drop a lawsuit over access to public records.
Members of the Central Florida Tourism Oversight District approved the settlement at a meeting on Wednesday. This agreement was reached after the departures of board chairman Martin Garcia and the district’s administrator, Glen Gilzean. “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,” remarked Central Florida Tourism Oversight District Vice Chairman Charbel Barakat.
In the federal suit, Disney had accused DeSantis of “weaponizing” government by punishing the company for exercising free speech rights. A judge dismissed that lawsuit in January, but Disney appealed. The appeal is now paused while the sides hold talks. The Florida legislature established the Reedy Creek Improvement District in 1967 to promote the development of Walt Disney World on 38.5 square miles of land. Disney paid taxes to that district, which provided municipal services and exempted it from some regulations.
Disney’s shares rose 0.9% to close at $120.98 on the New York Stock Exchange on Wednesday.
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Disney, Florida settle bitter legal feud over Disney World district
Image courtesy of HenningE @ Pixabay