Disney and Florida Governor Ron DeSantis' camp reached a settlement on Wednesday to end a lawsuit in state court over who controls the special district that includes the Walt Disney World theme parks in Orlando.
Florida, Disney Settle Legal Feud Over Disney World Special District
According to the Associated Press, members of the Central Florida Tourism Oversight District board appointed by Ron DeSantis approved the settlement agreement in a meeting.
The settlement ended nearly two years of litigation sparked by DeSantis' takeover of Disney's special district following the entertainment giant's opposition to Florida's so-called "Don't Say Gay" law, which limits school classroom discussion of sexual orientation and gender identity.
Disney's special zone is known as the Reedy Creek Improvement District. The district's self-governing status allowed Disney to operate under its own government around its 25,000-acre property in central Florida.
Under Wednesday's settlement agreement, CNBC reported that Disney agreed not to challenge the oversight board's determination that the prior agreements with the Reedy Creek Improvement District were null and void.
Disney also agreed that a development agreement passed before the takeover was invalid, leaving a plan adopted in 2020 as the working blueprint for the theme parks and retail district.
Disney also agreed to put on hold an appeal to revive a dismissed retaliation lawsuit against DeSantis pending the expected negotiations on the development agreement and "other matters."
That hinted that Disney and the new board will negotiate a new development agreement soon. If Disney finds the negotiations' outcome satisfactory, the settlement suggests it may drop the federal civil complaint against DeSantis.
In a statement, Walt Disney World President Jeff Vahle said they "are pleased to put an end to all litigation pending in state court in Florida between Disney and the Central Florida Tourism Oversight District," one of which was a public records complaint.
"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," he noted.
Disney World's Special District Revoked by Florida Governor Ron DeSantis
Reedy Creek was created in 1967 by the Florida legislature so Disney could develop the infrastructure for Walt Disney World without any cost to Florida taxpayers.
But in April 2022, Ron DeSantis signed the bill to remove the special district that allows Disney to self-govern its theme park as the governor delivered his promise to "punish" the company over its stances on social and education issues.
A month before this, the Republican governor signed the "Don't Say Gay" bill prohibiting classroom instruction and discussion about sexual orientation and gender identity, which many opposed. Disney joined the opposition when its former CEO, Bob Chapek, made remarks criticizing the law.
DeSantis responded by saying that if Disney wants to pick a fight, "they chose the wrong guy." The Florida governor then went on to describe it as "Woke Disney" politics.
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