Disney’s efforts to out-maneuver DeSantis fall short under new settlement, lawsuits to be dismissed

Published Mar. 27, 2024, 9:42 a.m. ET | Updated Mar. 27, 2024

Gov. Ron DeSantis. (Photo/Team DeSantis)
Gov. Ron DeSantis. (Photo/Team DeSantis)

LAKE BUENA VISTA, Fla. – Gov. Ron DeSantis’ office is celebrating another legal victory over Disney after a new settlement was reached between the state-appointed Central Florida board and the company on Wednesday.

Under the agreement, Disney is set to drop its lawsuit against the Central Florida Tourism Oversight District, and the district will drop its own lawsuit against Disney. Claims and counterclaims from both parties would be dismissed as well. Disney is also set to drop a public records effort part of the legal battle.

The legal battles were over last-minute, far-reaching restrictive covenants and agreements, which gave Disney broad power and developmental rights over its former self-governing improvement district of Reedy Creek, which was dissolved and replaced last year.

The agreements by Disney were flaunted by the media as “legal humiliation,” and as a move aimed to “mess up DeSantis’ power grab” over the Walt Disney World area.

“Out-negotiated by Mickey Mouse,” a headline from Salon read. “DeSantis’ board reveals Disney quietly stripped them of power.”

Those agreements are set to be swiped aside as both parties move forward.

Bryan Griffin, communications director for DeSantis, celebrated the move Wednesday.

“[Disney] conceded that their last-minute development agreements are null, void, and unenforceable,” Griffin said. “No corporation should be its own government. Moving forward, we stand ready to work with Disney and the District to help promote economic growth, family-friendly tourism, and accountable government in Central Florida.”

“As usual, the media were wrong,” Griffin said.

The battles sparked in 2023 when the state-appointed board found out that Disney formulated agreements with the former Reedy Creek Improvement District as a last-minute insurance policy aiming to ward off influence of the new board.

The agreements were approved just before Florida lawmakers officially voted in favor of creating the new district.

“This essentially makes Disney the government,” one board member said of Disney’s agreements last year.

Audit of Disney’s former special district details ‘cronyism’ ultimately abolished by Florida

The former district board chair, Martin Garcia, had said it appeared the agreement was trying to “nullify” the work of the legislature and the governor.

This week, DeSantis nominated a new board chair in Craig Mateer.

The prior agreements declared other “restrictive covenants” further hampering the new district’s authority.

DeSantis had declared he would work to nullify the agreements last year.

The development this week comes not long after DeSantis won in federal court, where Disney’s case centered around alleged First Amendment violations. That case is technically ongoing with an appeals process, though Disney had already been ruled against.

Disney had already publicly toned down the rhetoric against Florida and DeSantis.

With the state-level legal battles ending, Florida and Disney are slated for a fresh start as the company vies to continue bolstering investment in its Florida theme parks.

Bob Iger became Disney’s CEO in November 2022 after a hiatus from the position, formerly held by Bob Chapek. Iger said last year that he doesn’t want Disney to further engage in the vitriolic “culture war.

Last year, Disney announced that $17 billion would be invested in its Florida parks.

Iger, while still recently noting his sourness over DeSantis’ actions, had still vowed to “quiet things down” and said he was “sorry” to see Disney “dragged” into a battle with Florida over the Parental Rights in Education Act.

The bill was the tipping point that kicked off Florida and DeSantis’ war with Disney after the company vowed to get the law repealed, which aimed to keep young children from being indoctrinated with gender ideology and discussions around sexual orientation.

The parental rights law also recently held up in court.

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