After almost two years of litigation, allies of Gov. Ron DeSantis and Disney have finally reached a settlement agreement in a state court battle over the future development of Walt Disney World. This comes after the Florida governor took over the theme park resort's government, sparking a contentious fight with Disney supporters.
The members of the board of the Central Florida Tourism Oversight District approved the settlement agreement in a meeting, putting an end to the long-standing dispute that began when DeSantis seized control of the district from Disney allies. This move was prompted by Disney's opposition to Florida's "Don't Say Gay" law, which prohibits classroom discussions on sexual orientation and gender identity in early grades.
The controversial 2022 law, championed by Gov. DeSantis, led to tensions between the governor and Disney, with the company becoming a target in his speeches until he suspended his presidential campaign earlier this year.
For over five decades, the district has been managed by Disney supporters and provides essential municipal services like firefighting, planning, and mosquito control.
Jeff Vahle, president of Walt Disney World Resort, expressed satisfaction with the settlement in a statement released on Wednesday, signaling an end to this chapter of conflict between the entertainment giant and the state government.
"This accord heralds a fresh era of positive interaction with the new administration of the region and benefits all involved by facilitating substantial ongoing investments, the generation of numerous direct and indirect employment opportunities, and economic growth in the area," Vahle remarked.
As a consequence of Disney's resistance to the legislation, DeSantis assumed control of the administrative district through a bill endorsed by the Republican-led Florida Legislature and installed a new board of directors. Disney took legal action against DeSantis and his appointees, asserting that the company's freedom of speech rights were infringed upon for opposing the legislation. A federal judge threw out that lawsuit in January.
Prior to the transition of authority in the district from Disney allies to DeSantis appointees in early 2021, the Disney supporters on the board entered into agreements with Disney that transferred control over design and construction at Disney World to the corporation. The new DeSantis appointees argued that the last-minute agreements undermined their authority, leading the district to file a lawsuit against Disney in state court in Orlando to invalidate the contracts.
Disney responded with counterclaims, including a request for the state court to affirm the validity and enforceability of the agreements.
As per the terms of the settlement reached on Wednesday, Disney accepts the ruling by the DeSantis-appointed board that the comprehensive plan endorsed by the Disney supporters prior to the takeover is void. Disney also concedes that a development agreement and restrictive covenants approved before the transition are no longer binding, as outlined in the settlement agreement.
The new board will not be creating a fresh plan but will instead be utilizing a detailed strategy from 2020, with the flexibility to make adjustments to it. The agreement outlines that Disney and the new board will engage in discussions to establish a new development agreement shortly.
