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Florida Governor Ron Desantis To Repeal Disney's Development Agreement, Intensifying Conflict

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published April 18, 2023

By Author - LawCrossing

Florida Governor Ron Desantis To Repeal Disney's Development Agreement, Intensifying Conflict

On Monday, Florida Governor Ron DeSantis announced that the state legislature would introduce a bill to repeal an agreement between the Walt Disney Co (DIS.N) and the outgoing members of the state oversight board. This development agreement limits the power of DeSantis' appointees and allows Disney to bypass state oversight of its parks. This move has further intensified the already heated conflict between DeSantis, a possible presidential candidate, and one of the state's largest employers.
 
DeSantis has clarified that the state legislature will take action to nullify the development agreement that Disney had hoped would render everything he did null and void. "That's not gonna fly," DeSantis asserted. This marks a significant shift from his stance towards Disney a year ago when the company's then-CEO Bob Chapek spoke out against a bill restricting discussion of sexuality and gender identity in Florida's elementary school classrooms - known as the Parental Rights in Education Act, also referred to as the "Don't say gay" law.
 
For over 50 years, Walt Disney World has enjoyed virtual autonomy, and DeSantis and the Florida legislature have been working towards reducing the company's power in the state. Disney is one of the largest employers in Florida, with around 75,000 people on its payroll.
 
United States
Florida Governor Ron DeSantis has been waging a battle against Walt Disney Co, a central theme in his speeches as he sets his sights on a possible 2024 presidential bid. In February, Florida lawmakers passed a bill that gives DeSantis effective control over a board that oversees municipal services and development in a particular district, including the Walt Disney World resort. Current Disney CEO Bob Iger criticized the move as "anti-business" and "anti-Florida." Before DeSantis' takeover of the board, Disney had already made changes to the special tax district agreement that would limit the board's actions for decades.
 
However, it was recently revealed that a development agreement was reached just three weeks before DeSantis signed legislation granting the state authority over the district. This has been described as a "shocking" revelation by the attorney for the newly constituted Central Florida Tourism Oversight District, Daniel Langley. Langley believes the agreement was created to circumvent the enabling Act of the district and bind the hands of this board and future boards.

The development agreement cements a 10-year comprehensive plan adopted on July 15, 2022, that serves as a blueprint for future development. It includes an option for Disney to add a fifth central theme park, two minor parks, 1 million square feet of retail space, and 14,000 hotel rooms. Additionally, the agreement ensures that future boards honor a commitment to $527 million in planned capital improvements to support Walt Disney World's growth over the next decade. The deal would remain in force until 21 years after the death of the last survivor of the descendants of King Charles III, King of England, a legal provision used in contracts to extend a right in perpetuity.
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