Allies of Gov. Ron DeSantis and Disney have reached a settlement agreement in a state court fight over the future development of Walt Disney World. The conflict arose after DeSantis took over the Central Florida Tourism Oversight District from Disney supporters following the company’s opposition to Florida’s “Don’t Say Gay” law. The law prohibits classroom lessons on sexual orientation and gender identity in early grades, a move championed by DeSantis. The settlement agreement, approved by DeSantis-appointed members of the board, ends almost two years of litigation and nullifies covenants and a development agreement made with Disney supporters just before the state takeover.
The agreement came after the appointment of a new board member to replace a DeSantis-appointed chairman who was critical of Disney. Under the terms of the settlement, the covenants and agreements made by Disney supporters with the company before the state takeover will be dropped, and the new board will operate under an earlier plan. Jeff Vahle, president of Walt Disney World Resort, expressed satisfaction with the settlement, stating that it opens a new chapter of constructive engagement with the district’s new leadership, enabling continued investment and job creation in the state. DeSantis, who was present in Orlando during the announcement, affirmed that the settlement vindicates the actions taken by his administration.
As a result of Disney’s opposition to the controversial law, DeSantis took control of the governing district through legislation passed by the Florida Legislature and appointed a new board. Disney sued DeSantis and his appointees, claiming their free speech rights were violated. A federal judge dismissed the lawsuit in January, but Disney appealed the decision. Before the district changed hands from Disney allies to DeSantis appointees, supporters of the company signed agreements with Disney that gave the company control over design and construction at Walt Disney World. The new appointees argued that these agreements limited their powers, leading to a lawsuit in state court.
Under the terms of the settlement agreement, Disney accepts that the comprehensive plan approved by the Disney supporters before the takeover is null and void. The company also acknowledges that the development agreement and restrictive covenants passed before the takeover are not valid. Moving forward, a comprehensive plan from 2020 will be used, with the new board having the ability to make changes. The agreement suggests that Disney and the board will negotiate a new development agreement in the near future. Additionally, Disney agreed to put on hold the appeal of the federal lawsuit pending the negotiations and to drop its two state lawsuits against the district. The settlement signifies a mutual understanding between both parties to resolve the conflict.
Since the takeover of the district by DeSantis appointees, there has been an exodus of experienced staffers who have cited politicization of the governing body as a concern. The district has recently seen the departure of its administrator and board chairman. DeSantis appointed new members to the board, including Orlando businessman Craig Mateer and former DeSantis advisor Stephanie Kopelousos. Mateer, a donor to DeSantis campaigns, is known in Orlando tourism and business circles, while Kopelousos previously served as secretary of the Florida Department of Transportation. The board expressed eagerness to work cooperatively with Disney following the approval of the settlement agreement.
