The Walt Disney Company is facing a potential legal battle with the newly-formed Central Florida Tourism Oversight District over a 30-year development agreement that the board claims renders them powerless to manage the entertainment giant’s future growth in Central Florida.[0] The previous board, known as the Reedy Creek Improvement District and controlled by Disney, approved the agreement on February 8, 2023, the day before the Florida House voted to put Governor Ron DeSantis in charge.[1] An initial review by the Governor’s office suggests that the agreements may have “significant legal infirmities” that would void them as a matter of law.[2]
The development agreement allows Disney to build projects at the highest density and the right to sell or assign those development rights to other district landowners without the board having any say, according to the presentation by the district’s new special legal counsel.[3] The agreement also states that Disney must review any exterior changes to the district’s buildings to ensure consistent “theming” with Disney World.[4] The board claims that the agreement essentially makes Disney the government, as it loses the majority of its ability to do anything beyond maintaining the roads and basic infrastructure.
The ‘Disney Defenders,’ a political committee in Florida, has launched a ballot initiative to put the Reedy Creek Improvement District in the Florida Constitution and restore its legislative powers to what was in place on January 1, 2022.[5] For the proposal to appear on the 2024 ballot, the committee needs to present the state with 891,589 petition signatures that are deemed valid.[5]
Disney has defended the agreements, stating that they were legally binding and made in public.[6] However, the district’s legal counsel referred to the agreements as “unusual” and “suspect,” arguing that they were most likely put in place as an insurance policy for Disney.[7] The DeSantis administration was informed by the newly established board under state control that the previous members, who were under Disney’s control, had signed a three-decade agreement granting Disney significant authority over public lands, land-use agreements, and operational duties.[4]
The board approved the hiring of law firms Cooper & Kirk and Lawson to represent the district “regarding certain constitutional and contract matters and potential legal challenges for matters involving the District that occurred under the prior board of supervisors and that may involve the Walt Disney Parks and Resorts U.S., Inc. and its affiliates and subsidiary and related entities.” Cooper & Kirk will represent the district regarding certain constitutional and contract matters and potential legal challenges for matters involving the district that occurred under the prior board of supervisors and that may involve the Walt Disney Parks and Resorts U.S., Inc. and its affiliates and subsidiary and related entities.
The situation has sparked concern among board members and legal experts. Board member Brian Aungst Jr. stated, “It’s a subversion of the will of the voters and the Legislature and the governor. It completely circumvents the authority of this board to govern.”[0] Meanwhile, board member Ron Peri added, “This essentially makes Disney the government. This board loses, for practical purposes, the majority of its ability to do anything beyond maintaining the roads and maintaining basic infrastructure.”
As the situation unfolds, it remains to be seen how the legal battle will play out and what implications it may have for the future of Disney’s presence in Central Florida.
0. “War over the corporate kingdom: DeSantis’ new board spars for control with Disney” Fox News, 29 Mar. 2023, https://www.foxnews.com/politics/war-corporate-kingdom-desantis-new-board-spars-control-disney
1. “District to investigate Disney after ‘shocking’ contracts zipped through in 11th hour” Florida’s Voice, 29 Mar. 2023, https://flvoicenews.com/district-to-investigate-disney-after-shocking-contracts-zipped-through-in-11th-hour/
2. “DeSantis’ office: Reedy Creek Board snuck in last-minute deal allowing Disney to retain developmental power” The Capitolist, 29 Mar. 2023, https://thecapitolist.com/desantis-office-reedy-creek-board-snuck-in-last-minute-deal-allowing-disney-to-retain-developmental-power
3. “‘Ron DeSantis just got out-negotiated by Mickey Mouse,’ Donald Trump super PAC chief says” Florida Politics, 29 Mar. 2023, https://floridapolitics.com/archives/599374-ron-desantis-just-got-out-negotiated-by-mickey-mouse-donald-trump-super-pac-chief-says/
4. “Disney accused of ‘overreach’ by new Reedy Creek board” The Business Journals, 29 Mar. 2023, https://www.bizjournals.com/orlando/news/2023/03/29/florida-reedy-creek-desantis-overreach.html
5. “Group of ‘Disney Defenders’ Wants Reedy Creek Added to Florida Constitution” The DIS, 29 Mar. 2023, https://www.wdwinfo.com/news-stories/group-of-disney-defenders-wants-reedy-creek-added-to-florida-constitution/
6. “Central Florida Tourism Oversight District Gearing Up For Fight With Walt Disney World Resort” DAPS MAGIC, 29 Mar. 2023, https://dapsmagic.com/2023/03/central-florida-tourism-oversight-district-gearing-up-for-fight-with-walt-disney-world-resort
7. “UPDATE: Disney Releases Statement Following Central Florida Tourism Oversight Board Meeting Regarding Possible …” WDW News Today, 29 Mar. 2023, https://wdwnt.com/2023/03/update-disney-releases-statement-in-reedy-creek-impending-case/
