Disney and allies of Gov. Ron DeSantis reached a settlement agreement on Wednesday (March 27) in a state court dispute concerning Walt Disney World’s future development after the governor of Florida assumed control of the theme park resort.
The Central Florida Tourism Oversight District board members approved the settlement agreement during a meeting, bringing an end to nearly two years of court case that had been sparked by DeSantis assuming control of the district from Disney supporters after the latter objected to Florida’s so-called ‘Don’t Say Gay’ law.
The Republican governor, who was using Disney as a punching bag in speeches until he halted his presidential campaign this year, pushed for the 2022 law, which forbids teachings on sexual orientation and gender identity in early grades.
For the majority of its fifty years, the district which offers municipal services including planning, firefighting, and mosquito control was governed by fans of Disney.
Jeff Vahle, president of Walt Disney World Resort, said in a statement that the company was pleased a settlement had been reached.
“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,” Vahle said.
In response to Disney’s opposition to the law, DeSantis assumed control of the governing district through legislation passed by the Republican-controlled Florida Legislature and appointed a new board of supervisors.
Disney filed a lawsuit against DeSantis and his appointees, alleging violation of the company’s free speech rights for speaking out against the legislation. In January, a federal judge dismissed the lawsuit.
Prior to the transition of control from Disney allies to DeSantis appointees early last year, the Disney supporters on the board entered into agreements with Disney, transferring control over design and construction at Disney World to the company.
The new DeSantis appointees argued that these last-minute deals diminished their authority, prompting the district to file a lawsuit against the company in state court in Orlando seeking to void the contracts.
Disney filed counterclaims that include asking the state court to declare the agreements valid and enforceable.
Under the terms of Wednesday’s settlement agreement, Disney lets stand a determination by the board of DeSantis-appointees that the all-inclusive plan approved by the Disney supporters before the takeover are null and void. Disney also agrees that a development agreement and restrictive covenants passed before the takeover are also not valid, according to the settlement terms.
Rather than implementing a new plan, the existing comprehensive plan from 2020 will be utilised, with the newly appointed board having the authority to make modifications as needed.
Additionally, the agreement indicates that Disney and the new board will engage in negotiations to establish a new development agreement in the coming days.
(With inputs from agencies)
