Months after Disney and Florida Governor Ron DeSantis ended a bitter legal battle, the two sides are poised to agree to a $17 billion deal that would pave the way for the construction of a fifth mega-theme park at Walt Disney World.
The five Disney World district supervisors, appointed by Gov. DeSantis, voted Wednesday to give initial approval to a new development agreement that the two sides agreed to negotiate after a March settlement ended litigation in state court.
Final approval requires a second vote, which was expected next week.
“We are heading into a new era and we are excited about what’s to come,” said Charbel Barakat, vice chairman of the district committee. “We wish we could have been here sooner.”
Woody Rodriguez, director of external relations for Disney Parks, told the board that the agreement will allow the company to make significant investments in Disney World.
Disney’s agreement with the Central Florida Tourism Board is set to run for the next 15 years.
The district provides municipal services such as fire protection, planning and mosquito control.
The company was controlled by Disney allies for most of the past 50 years before being taken over by people appointed by DeSantis last year.
Under the terms of the deal, Disney will be approved to build a fifth major theme park at Disney World over the next 10 to 20 years, as well as two more smaller theme parks, such as water parks.
The company could increase the number of hotel rooms it owns from about 40,000 to more than 53,000 and increase its retail and restaurant space by more than 20%.
Disney will retain control over the height of the buildings due to the need to maintain an immersive environment.
In exchange, Disney would be required to donate up to 100 of Disney World’s 24,000 acres for the construction of infrastructure projects that would be managed by the District.
The company also must award at least half of its construction projects to Florida-based companies and spend at least $10 million on affordable housing in Central Florida.
The March settlement ended nearly two years of litigation that began when DeSantis wrested the district from Disney allies after Disney opposed Florida’s law. It was titled “Don’t Call Me Gay.”
The 2022 law would ban classes on sexual orientation and gender identity in early grades and was backed by the Republican governor, who used Disney as a punching bag in his speech. He called off his presidential campaign. this year.
As punishment for Disney’s opposition to this controversial legislation, Governor DeSantis took control of the district and appointed a new oversight board through legislation passed by the Republican-controlled Florida Legislature.
Disney sued DeSantis and his appointees, alleging that they violated the company’s free speech rights by speaking out against the bill.
A federal judge dismissed the case. Disney appealed in January.
As part of the March settlement, Disney agreed to put on hold any appeals of the federal lawsuit.
Early last year, before control of the district was transferred from Disney allies to Gov. DeSantis appointees, Disney supporters on the district’s board of directors signed an agreement with Disney to transfer control of the design and construction of Disney World to the company.
DeSantis’ new appointee They claimed that “last-minute deals” had neutered their power. The district then sued the company in state court in Orlando to void the contract.
Disney filed a counterclaim, asking the state court to declare the agreement valid and enforceable.
Those state court lawsuits were dismissed as part of a settlement in March.
