Disney and DeSantis-supported panel make a fresh compromise.
Disney and Florida Governor Ron DeSantis reached a 15-year agreement after years of legal disputes. The newly renamed Central Florida Tourism Oversight District (CFTOD) now oversees public services for the Walt Disney World resort area, with the governor selecting its board supervisors. Aubrey Jewett, a political science professor at University of Central Florida, stated that both parties finally realized that the agreement is the best course of action.
Board Supervisor Brian Aungst Jr. described it as a moment everyone had been anticipating. He used the term "we" to include all stakeholders - Florida residents, business owners in the area, and Disney employees. He emphasized that Disney and Central Florida's success are intertwined.
Jeff Vahle, Walt Disney World Resort's president, shared that the deal allows Disney to invest billions of dollars in building new parks, strengthening the Florida economy, and enhancing guests' experiences.
The agreement outlines services CFTOD may provide for Disney as it expands. Disney plans to spend up to $17 billion, which contributes to their $60 billion global investment program. CFTOD is responsible for maintaining the region's infrastructure, like roads, bridges, fire services, emergency medical response, wastewater, and electrical power.
Disney promised $10 million for attainable housing projects and a local business hiring program where over 50% of construction cost goes to Florida-based companies. The agreement does not specify Disney's future plan for parks.
Despite the legal battles, Dennis Speigel, International Theme Park Services owner, believes Disney needs to build a fifth park to maintain their status as Orlando's leader in theme parks. He predicts $8 to $10 billion will be dedicated to this project.
Disney's plans were halted due to their legal disputes with Florida. In 2022, Florida passed the controversial "Don't Say Gay" bill, which Disney initially remained silent on. DeSantis then dissolved the Reedy Creek Improvement District, taking away Disney's control over local services. They had exempted Disney from bureaucratic red tape since 1967. However, Jewett pointed out that had it not been for Disney's powerful lobby, the bill may not have been passed.
Ultimately, DeSantis maintained control of some aspects of the district but changed its name and board control. Aungst Jr. mentioned that, after Disney's project cancellation, DeSantis threatened Disney with possibilities of competitors or poor services if they did not agree.
Reedy Creek board members, chosen by Disney, allowed them to control the district. This arrangement, while sometimes criticized, had been beneficial to both Disney and Florida due to their shared tourism interests. But dissolving the district would have transferred its debts to local taxpayers and forced them to provide services for Disney's 25,000-acre resort. Instead, DeSantis maintained the district and changed its governance.
What's in the deal
The agreement outlines the services CFTOD could offer, given the potential growth of Disney's theme parks. Disney plans to invest $17 billion towards this growth, with some of it expected to fund a new fifth gate. (Dennis Speigel proposed that $8-$10 billion could be dedicated to this expansion.) Disney has been quiet about its future plans for parks.
Coming off a bumpy ride
Launching new projects at Disney World was made difficult by the ongoing legal disputes with Florida. The state's "Don't Say Gay" bill angered Disney, with former CEO Bob Chapek initially silent on the issue.
When Chapek finally spoke out against the law, DeSantis seemed to retaliate by dissolving the special Reedy Creek Improvement District, the arrangement that allowed Disney to control services around their theme parks. Chapek pointed out that without this arrangement, Disney could not have grown so much in Florida.
DeSantis restructured the district, keeping it but giving him control of the board. This shift threatened Disney's established services and influence. In response, Disney halted a potential future campus project, losing out on 2,000 jobs for Florida residents.
The stakes were high for DeSantis and Disney, as each relied heavily on tourism growth and income.
In January, a federal judge threw out a Disney lawsuit claiming that Governor DeSantis used his position to retaliate against the company for using their right to speak freely.
A few months later, in March, Disney and Florida reached an agreement, which involved both parties dropping their respective lawsuits against each other.
Jewett explained, "There was a lot going on behind the scenes. By then, DeSantis had seen his presidential aspirations (at least temporarily) tanked, and he faced pushback from several Republicans."
Spiegel added, "The split was a lose-lose scenario. However, reuniting is a win-win situation. Orlando is the epicenter of the theme park world - for it to thrive, Disney and Florida must work together."
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The agreement allows Disney to continue investing in their business, with plans to spend up to $17 billion on expanding their theme parks and enhancing guest experiences. The newly formed Central Florida Tourism Oversight District (CFTOD) is responsible for providing essential services to Disney, including infrastructure maintenance and emergency responses.
In light of the agreement, Disney has pledged $10 million towards affordable housing projects and a local business hiring program, ensuring that a significant portion of construction costs goes to Florida-based companies.
