DeSantis orders investigation into previous Disney board’s ‘self-dealing’ contracts

Published Apr. 3, 2023, 11:17 a.m. ET | Updated Apr. 3, 2023

Gov. Ron DeSantis speaks at Florida Blueprint event in Nassau County, New York, April 1, 2023. (Photo/Team DeSantis). "Walt Disney and Mickey" statue at Disney World's Magic Kingdom in Bay Lake, Fla., July 20, 2020. (Photo/Juniper Journal)
Gov. Ron DeSantis speaks at Florida Blueprint event in Nassau County, New York, April 1, 2023. (Photo/Team DeSantis). "Walt Disney and Mickey" statue at Disney World's Magic Kingdom in Bay Lake, Fla., July 20, 2020. (Photo/Juniper Journal)

TALLAHASSEE, Fla. (FLV) – Gov. Ron DeSantis ordered an investigation after the previous district board overseeing Walt Disney World signed contracts that reportedly gave Disney control over all development rights.

DeSantis sent a letter Monday to the chief inspector general, ordering an investigation into potential civil and criminal violations of the previous Reedy Creek Improvement District Board.

In February, the previous board approved covenants and contracts that gave Disney control over development rights.

Those contracts were approved days before DeSantis signed a law to strip Disney of its special privileges and create a newly-formed board, the Central Florida Tourism Oversight District, to oversee Disney.

However, the governor’s five-appointed members to the new district board recently discovered the contracts and covenant agreements between the previous board and Disney.

The “shocking” agreements “bind the hands” of the new Central Florida Tourism Oversight District, according to lawyers for the district.

District to investigate Disney after ‘shocking’ contracts zipped through in 11th hour

“These collusive and self-dealing arrangements aim to nullify the recently passed legislation, undercut Florida’s legislative process, and defy the will of Floridians,” DeSantis said in the letter.

The governor said the Reedy Creek board’s actions “appear to suffer from serious legal infirmities,” including inadequate notice, improper delegation of authority, and ethical violations such as self-dealing.

“I formally request that you, as the Chief Inspector General of the State of Florida, in consultation with the Florida Department of Law Enforcement, launch a thorough review and investigation into the actions of the [Reedy Creek Improvement District] Board of Supervisors described above.”

The governor wants the investigation to include:

  • Reedy Creek’s adherence to applicable Florida civil and criminal laws and ethics requirements
  • The qualifications of the prior Board of Supervisors and the legal validity of their actions
  • The involvement of Walt Disney World employees and agents in the execution of Reedy Creek’s actions
  • Any financial gain or benefit derived by Walt Disney World
  • All Reedy Creek board, employee, or agent communications related to the district’s actions, including those with Walt Disney World employees and agents
  • All Reedy Creek board, employee, or agent communications related to House Bill 9-B

The newly-established Central Florida Tourism Oversight District learned last week about the “highly unusual” and “suspect” agreements between the Reedy Creek Improvement District Board and Disney.

Attorney General Ashley Moody’s office requested text messages and emails from board members and other Reedy Creek affiliates about circumventing or attempting to avoid the effects of anticipated actions by DeSantis and the Florida Legislature.

The governor’s office said there is “possible civil and criminal penalties” related to avoiding those anticipated actions.

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