Disney has requested a federal appellate court to drop its lawsuit against Florida Governor Ron DeSantis, following the approval of a development agreement by DeSantis' appointees. This agreement marks the resolution of all disputes between Disney and the state administration.
The resolution was expected, as the fate of Disney's federal lawsuit depended on reaching a development deal with the Central Florida Tourism Oversight District, now governed by DeSantis' appointees. This settlement, finalized in March, stipulated that the lawsuit's continuation hinged on the approval of such an agreement.
On Wednesday night, DeSantis' appointees granted approval to the development deal. Disney, facing a deadline next week to proceed with court filings, opted to withdraw its lawsuit against Governor DeSantis and his appointees.
As part of the 15-year agreement, Disney committed to investing $17 billion into Walt Disney World over the next two decades. The Central Florida Tourism Oversight District, responsible for municipal services on Disney's property, agreed to undertake infrastructure improvements. The district's governance underwent a shift last year under DeSantis, replacing previous Disney-aligned leadership.
Jeff Vahle, President of Walt Disney World Resort, emphasized the significance of the new development agreement in supporting economic growth and enhancing guest experiences at Disney World.
Key provisions of the deal allow Disney to potentially develop a fifth major theme park and additional minor parks. The company can expand its hotel accommodations from nearly 40,000 rooms to over 53,000 rooms and increase retail and dining space by more than 20%, with control over building heights to maintain thematic integrity.
In return, Disney will allocate up to 100 acres of its extensive property for district-controlled infrastructure projects. The company also committed to awarding at least half of its construction contracts to Florida-based firms and investing a minimum of $10 million in affordable housing initiatives in central Florida.
A spokesperson for Governor DeSantis expressed satisfaction with the agreement, highlighting its anticipated benefits for job creation and guest experiences in central Florida.
The settlement follows a previous truce in March, which halted litigation between the parties and initiated negotiations for a new development agreement and comprehensive plan by next year. This détente ended nearly two years of legal battles triggered by Disney's opposition to a state law prohibiting certain classroom teachings, which Governor DeSantis championed.
The legislative maneuver by DeSantis in response to Disney's public stance involved assuming control of the oversight district and appointing a new board, prompting Disney's initial lawsuit claiming infringement of its free speech rights. Though a federal court dismissed Disney's initial suit earlier this year, the company pursued an appeal until the recent agreement rendered further litigation unnecessary.
Prior to DeSantis' intervention, previous district board members had arranged agreements with Disney granting the company extensive control over design and construction at Disney World. DeSantis' appointees contested these agreements, leading to state court disputes that were resolved as part of the March settlement.
With this comprehensive agreement now in place, both Disney and the state administration look forward to a collaborative approach in managing and developing one of the world's most iconic tourist destinations.