Disney feud with DeSantis quashed with development agreement

Florida Gov. Ron DeSantis and Disney have put an end to their years-long feud, allowing for the development of Walt Disney World Resort near Orlando for the next 15 years. 

DeSantis’ five appointees on the Central Florida Tourism Oversight District gave final approval on Wednesday to a deal that would allow the entertainment giant to make infrastructure improvements, CBS reported. In exchange, the company will spend at least $8 billion on the resort over the next decade with a total of $17 billion invested over 10 to 20 years.

DeSantis and Disney had been embroiled in a dispute over who rightfully controls Disney World’s special district, the so-called Reedy Creek Improvement District, which encompasses the Walt Disney World resort, since former Disney CEO Bob Chapek publicly opposed a state law that limited discussion of sexuality and gender in classrooms, dubbed “Don’t Say Gay” by critics.

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Before the takeover by DeSantis appointees, the district was controlled by Disney supporters, and provided municipal services like firefighting, planning and mosquito control. In March, Disney and the governor agreed to stop litigating over the district in court and work toward a new development agreement and comprehensive plan.

Under the deal, Disney has gotten approval to build a fifth theme park and two more minor parks, like water parks. It can now expand retail and office space and add about 14,000 hotel rooms, bringing the resort’s total to nearly 54,000, Reuters reported. 

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Florida Gov. Ron DeSantis during the second Republican presidential primary debate at the Ronald Reagan Presidential Library in Simi Valley, California, on Sept. 27, 2023. (Frederic J. Brown/AFP / Getty Images)

Disney will be required to donate 100 of its 24,000 acres to construction projects controlled by the district, and the company will need to award half of its construction projects to Florida-based companies. Disney has also agreed to spend at least $10 million on affordable housing in central Florida, per CBS. 

Now, an appeal of a federal lawsuit filed against DeSantis and his appointees is still up in the air. Disney asked the appellate court to put that case on hold while the two parties negotiated the development agreement. Disney now has until next week to file a brief with the court if they want to move ahead with that case. 

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A sign near an entrance to Walt Disney World in Orlando, Florida. Gov. Ron DeSantis and the entertainment giant have come to an agreement that will allow Disney to develop a new park, in exchange for investment promises. (Joe Raedle / Getty Images)

Disney could not be immediately reached for comment on the pending suit. 

The DeSantis appointees canceled a closed-door meeting to discuss the lawsuit after their board meeting on Wednesday, CBS reported. 

Disney’s lawsuit claims that DeSantis’s takeover of the district in response to the company’s dissent to the “Don’t Say Gay” law violated free speech rights. Disney appealed after a federal judge dismissed that lawsuit in January.