In a significant development, Governor Ron DeSantis’ appointees gave final approval on Wednesday to an agreement that resolves the longstanding dispute between Disney and the governing district of Walt Disney World. The five board members of the Central Florida Tourism Oversight District, all appointed by DeSantis, unanimously approved a 15-year development deal. Under this deal, the district committed to infrastructure improvements in exchange for Disney investing up to $17 billion in Disney World over the next two decades.
Agreement Terms and Development Plans
The agreement, reached after a détente in March, halts ongoing litigation between Disney and the district in state court and outlines a new development agreement and comprehensive plan to be negotiated by next year. The district, which provides essential municipal services like firefighting, planning, and mosquito control, was previously controlled by Disney supporters before DeSantis’ appointees took over.
As part of the deal, Disney will donate up to 100 acres of its 24,000-acre Disney World property for district-controlled infrastructure projects. Additionally, Disney must award at least half of its construction projects to Florida-based companies and invest at least $10 million in affordable housing for central Florida. This agreement allows Disney to build a fifth major theme park and two additional minor parks, such as water parks if desired. The company can also increase its hotel rooms from nearly 40,000 to over 53,000 and expand retail and restaurant space by more than 20%. Importantly, Disney will retain control over building heights to maintain an immersive environment.
Economic and Community Impact
Leaders in Orlando’s tourism industry have praised the agreement, noting the potential for job creation, increased tourism, and heightened attention to central Florida. Robert Earl, founder and CEO of Planet Hollywood International, Inc., commented, “It very clearly demonstrates to the world that the district and Disney are eager to resume working together for the great state of Florida.”
Legal Issues
Despite the agreement, one legal issue remains unresolved: an appeal of a federal lawsuit Disney filed against DeSantis and his appointees. Following the March settlement, Disney requested that the appellate court put the case on hold while the development agreement was negotiated. Disney has until next week to decide whether to move forward with the case.
Disney did not respond to inquiries about its plans regarding the federal litigation. The DeSantis-appointed district members had planned a closed-door discussion about the lawsuit after their board meeting but canceled it. District spokesperson Matthew Oberly stated that there were no comments on the future of the federal litigation.
Future Prospects
The March settlement concluded nearly two years of litigation that began after DeSantis’ takeover of the district in response to Disney’s opposition to the 2022 law banning classroom lessons on sexual orientation and gender identity in early grades. This law was a key issue for DeSantis during his run for the 2024 GOP presidential nomination, a campaign he suspended earlier this year.
In retaliation for Disney’s opposition, DeSantis took control of the district through legislation passed by the Republican-controlled Florida Legislature, appointing a new board of supervisors. Disney sued, alleging that its free speech rights were violated. Although a federal judge dismissed this lawsuit in January, Disney appealed.
Before the district changed control, Disney supporters on the board signed agreements with the company, shifting control over design and construction at Disney World to Disney. DeSantis’ appointees argued these “eleventh-hour deals” undermined their authority, leading to state court litigation in Orlando to void the contracts. These lawsuits were dismissed as part of the March settlement, marking a new chapter in the relationship between Disney and the governing district.