Topline
Disney settled its state lawsuit with the board that Florida Gov. Ron DeSantis appointed to oversee Walt Disney World’s special district, the board and Disney confirmed Wednesday, ending a lengthy legal battle between the media giant and Florida government and canceling a controversial development agreement Disney enacted that hamstrung DeSantis’ political appointees.
Cinderella Castle at Walt Disney World's Magic Kingdom Park in Lake Buena Vista, Florida.
Key Facts
The settlement agreement, which the board of the Central Florida Tourism Oversight District approved at its meeting on Wednesday, will end litigation in state court between Disney and the DeSantis-appointed board.
The legal battle concerned a last-minute development agreement that Disney reached with the board before it was replaced by DeSantis’ appointees, which stripped the board of much of its power and, the new board complained, “essentially makes Disney the government.”
That agreement is now null and void under the terms of the settlement, the board said Wednesday.
Disney is separately suing DeSantis and other officials in federal court through an appeal after a district judge dismissed the lawsuit—and under the terms of the settlement, Disney won’t end that appeal, but will ask the court to push it back until a new development agreement and other matters are negotiated.
The legal battles are part of a broader yearslong controversy between Disney and DeSantis, as the governor targeted Disney and its special district—which the company previously essentially controlled as its majority landowner—after the company opposed the state’s Parental Rights in Education law, known by critics as “Don’t Say Gay.”
Walt Disney World President Jeff Vahle said in a statement the company was “pleased” to end the state court litigation, adding the settlement “opens a new chapter of constructive engagement with the new leadership of the district” and enables continued job creation.
What To Watch For
It’s unclear how the new legal settlement will affect relations with the DeSantis-appointed board and Disney going forward, though it’s likely to make their relations less acrimonious. Thesettlement also coincided with the appointment of a new administrator, Stephanie Kopelousos, whose arrival at the Central Florida Tourism Oversight District is viewed as “somewhat of a peace offering” to Disney, Politico reported Wednesday. Kopelousos is the former Florida transportation secretary and she authored a carveout in a Florida social media law that exempted Disney and other companies that own theme parks from the law’s restrictions, with sources cited by Politico saying she’s “respected” by the company and that her appointment is “a signal of detente and move on and mutual collaboration.”
Key Background
The special district that oversees Walt Disney World—previously known as Reedy Creek Improvement District before being renamed to the Central Florida Tourism Oversight District—functions essentially as a local government, overseeing infrastructure functions like waste removal, construction permits and road maintenance. Though the district is distinct from Disney, the company had been able to exert strong pressure over it, as it had majority voting power to decide who should be appointed to the district’s board. The district had largely functioned without controversy since Walt Disney World opened in 1971, but that changed when DeSantis started taking aim at Disney. The GOP-controlled Florida government put the special district in its crosshairs when the company spoke out against the “Don’t Say Gay” law, first enacting legislation abolishing the special district entirely, but then backtracking and just overhauling the board with DeSantis appointees in February 2023. The governor-appointed board started feuding with the company when it discovered the existence of the development agreement, and Disney sued the board in federal court in April 2023 minutes after it voted to declare the agreement null and void. The special district then countersued Disney in state court days later, and a state judge allowed the case to move forward in July.
Further Reading
