Allies of Florida Governor Ron DeSantis and representatives from Walt Disney World have come to a settlement agreement in a state court dispute regarding the future development of the theme park resort. The resolution was reached during a meeting of the board of the Central Florida Tourism Oversight District, marking the end of nearly two years of litigation.
The legal battle was initiated following Governor DeSantis’ assumption of control over the district, which oversees various municipal services including firefighting, planning, and mosquito control. This takeover occurred amidst Disney’s opposition to Florida’s “Don’t Say Gay” law, which prohibits classroom discussions on sexual orientation and gender identity in early grades. Governor DeSantis, a proponent of the law, had previously targeted Disney in his speeches until he suspended his presidential campaign earlier this year.
The settlement signifies a shift in leadership within the district, which had been predominantly controlled by Disney supporters for the majority of its existence. Jeff Vahle, President of Walt Disney World Resort, expressed the company’s satisfaction with the agreement, emphasizing the potential for continued investment and job creation in the state.
In a statement, Vahle stated, “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.”
In response to Disney’s opposition to the “Don’t Say Gay” law, Governor DeSantis seized control of the governing district through legislation enacted by the Republican-dominated Florida Legislature. He subsequently appointed a new board of supervisors, displacing Disney allies from their previous positions. Disney retaliated by suing DeSantis and his appointees, alleging infringement of the company’s free speech rights for speaking out against the legislation. However, a federal judge dismissed this lawsuit in January.
Before the transition of control from Disney allies to DeSantis appointees, Disney supporters on the board had entered agreements with Disney, granting the company authority over design and construction at Disney World. The new appointees appointed by DeSantis argued that these last-minute agreements diminished their authority. Consequently, the district filed a lawsuit against Disney in state court in Orlando, seeking to invalidate these contracts.
In response, Disney filed counterclaims, asserting the validity and enforceability of the agreements in question.
Under the terms of the settlement reached on Wednesday, Disney acknowledges the determination made by the board of DeSantis appointees that the comprehensive plan approved by Disney supporters prior to the takeover is null and void. Additionally, Disney concedes that the development agreement and restrictive covenants established before the transition are also invalid, as outlined in the settlement terms.
Instead, the settlement stipulates the use of a comprehensive plan from 2020, with the new board having the authority to make modifications as needed. Furthermore, the agreement suggests that Disney and the new board will engage in negotiations to establish a new development agreement in the near future.