FILE - The Cinderella Castle is seen at the Magic Kingdom at Walt Disney World, July 14, 2023, in Lake Buena Vista, Fla. Months after Disney and Florida Gov. Ron DeSantis' appointees agreed to end a protracted legal fight, the two sides are set to approve an agreement Wednesday, June 5, 2024, that could result in the company investing $17 billion into its Florida resort and opens the door to a fifth major theme park at Walt Disney World. (AP Photo/John Raoux, File)



ORLANDO, Fla. (AP) — On Wednesday, appointees of Governor Ron DeSantis approved a 15-year development agreement, marking a reconciliation between Disney and the governing district of Walt Disney World. This move comes after Disney publicly opposed a state law two years ago, leading to a takeover by DeSantis.

The five board members of the Central Florida Tourism Oversight District, all appointed by DeSantis, voted unanimously to approve the deal. Under the agreement, the district will make infrastructure improvements in exchange for Disney's investment of up to $17 billion in Disney World over the next two decades.

This agreement follows a truce in March when both parties decided to stop ongoing litigation and work towards a new development agreement and comprehensive plan by next year. The district, responsible for municipal services like firefighting, planning, and mosquito control, was previously controlled by Disney supporters before the DeSantis appointees took over.

At the board meeting, member Brian Aungst expressed optimism, stating that the agreement ensures a stable collaboration between Disney and the board. "This is the day we all have been looking forward to," Aungst said. "I was always extremely optimistic and knew we would get here because it was the right outcome."

According to the deal, Disney must donate up to 100 acres of its 24,000-acre property for district-controlled infrastructure projects. Additionally, Disney will allocate at least half of its construction projects to Florida-based companies and spend at least $10 million on affordable housing in central Florida.

The agreement also permits Disney to build a fifth major theme park and two smaller parks, such as water parks. The company can increase the number of hotel rooms from nearly 40,000 to over 53,000 and expand retail and restaurant spaces by more than 20%. Disney will retain control over building heights to maintain an immersive environment.

Orlando's tourism industry leaders praised the agreement, highlighting its potential to create jobs, attract tourists, and boost central Florida's economy. Robert Earl, founder and CEO of Planet Hollywood International, Inc., stated, "It very clearly demonstrates to the world that the district and Disney are eager to resume working together for the great state of Florida."

However, an appeal of a federal lawsuit Disney filed against DeSantis and his appointees remains unresolved. After the March settlement, Disney requested the appellate court to pause the case while the new agreement was negotiated. The company has until next week to decide if it wants to continue with the case.

Disney did not respond to a request for comment on their future legal actions. The district had planned a closed-door meeting to discuss the lawsuit but canceled it. Matthew Oberly, a district spokesperson, said there were no comments on the future of the federal litigation.

The March settlement ended nearly two years of litigation stemming from DeSantis' takeover of the district after Disney opposed the 2022 law banning classroom lessons on sexual orientation and gender identity in early grades. DeSantis, who suspended his 2024 presidential campaign earlier this year, used Disney's opposition to the law as a campaign issue.

In retaliation for Disney’s stance, DeSantis took control of the governing district through legislation, appointing a new board. Disney sued, claiming their free speech rights were violated, but a federal judge dismissed the case, leading Disney to appeal. Before the district’s control changed, Disney supporters on the board had signed agreements granting Disney control over design and construction at Disney World. The new board sought to void these agreements, leading to further litigation, which was dismissed as part of the March settlement.

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