Business

Disney sues Florida Gov. DeSantis over elimination of Reedy Creek

Bob Iger has decided toź§‘ go to the mattresses after all in his feud with Ron DeSantiā–Øs.

The Walt Disney Co. on Wednesday escalated its war with the Florida governor by suing the Republican lawmaker in federal court over the elimination of the company’s special tax district.

The House of Mouse accused DeSantis, his five-member board that oversees the now-defunct Reedy Creek Improvement District, and other state officials of launching ā€œa targeted campaign of government retaliationā€ against the company, according to a lawsuit filed in the Norā€thern District of Florida.

Two weeks ago, the Disney boss had said he did not view the scrum over the district “as a going-to-mattresses situation for us.ā€

But on Wednesday, Disney filed the suit minutes after the DeSantis-picked oversight board struck down last-minute agreements mašŸ§øde between Disney and theāœ… board that rules the 25,000-acre resort complex in Orlando.

“Today’s action is the latest strike: At the Governor’s bidding, the State’s oversight board has purported to ‘void’ publicly noticed and duly agreed development contracts, which had laid the foundation for billions of Disney’s investment dollars and thousands of jobs,” Disney said in the court filing.

“A targeted campaign of government retaliation — orchestrated at every step by Governor DeSantis as punishment for Disney’s protected speech — now threatens Disney’s business operations, jeopardizes its economic future in the region, and violates its constitutional rights,” the company alleged in a court filing.

The oversight board named by Florida Gov. Ron DeSantis is expected to strike down agreements that gave Walt Disney Co. authority over its theme parks. AP

Disney cited several statements by DeSantis, including his vow to “void the development agreement” as well as “to look at things like taxes on the hotels,” “tolls on the roads,” “developing some of the property that the district owns” with “more amusement parks,” and even putting a “state prison” next to Walt Disney World.”

“This government action was patently retaliatory, patently anti-business, and patently unconstitutional,” Disney said.

“But the Governor and his allies have made clear they do not care and will not stop.”

DeSantis yanked Disney’s long-time control of the district after the company spoke out against his “Don’t Say Gay” law, which bans the teaching of sex and gender-based education to most elementary school students.

Disney accused DeSantis, his five-member board that oversees Reedy Creek Improvement District, and others of launching ā€œa targeted campaignā€ against the company. TNS
Disney cited several statements by DeSantis, including his vow to “void the development agreement” as well as even putting a “state prison” next to Walt Disney World.” Getty Images

A spokesman for DeSantis called Disney’s lawsuit an “unfortunate example of their hope to undermine the will of Florida voters.”

The board of supervisors which runs the newly christened Central Florida Tourism Oversight District operates as a self-governšŸ²ing authority over issues like taxation and maintenance of public works in and around the Disney theme parks.

Just a day before the February vote, RCID struck a deal that essentially gave Disney the authority to oversee zoning and development in thšŸøe district for the next Ü«three decades.

DeSantiš“”s blasted Disney for the move and vowed to nullify it.

Last week, the five-member board handpicked by DeSantis vowed to undo the “sweetheart” development deal.

ā€œRegardless of your politics, nobody should favor outdated legislation that elevates a corporation above the public good,ā€ Martin Garcia, the chairman of Ceā–Øntral Florida Tourism Oversight District, said.

ā€œIn seeking toš“„§ improve the functioning of the district, nothing is off the table for us.ā€

Garcia also claimed that the new board had ā€œwanted to work with Disney, but Disney decided they didnā€™t want to work with us. It was Disneyā€™s way or the highwayšŸŒœ.ā€ 

The Post has sought comment from Disney.

Florida legislators are also mulling a transportation bill that would mandate state oversight of the monorail system that serves visitors toā™Š Walt ź¦‡Disney World,

Disney filed the suit minutes after the DeSantis-picked oversight board struck down last-minute agreements made between Disney and the board that rules the 25,000-acre resort complex in Orlando. REUTERS
Florida Gov. Ron DeSantis signs legislation to end Disney’s self-governing status Monday, Feb. 27, 2023. Florida Governor's Office

An amendmenš’‰°t to the proposed law would require the Department of Transportation to oversee the monorail and other fixed-guideway transportation systems ā€œlocated within an independent special district created by a local act which has boundaries within two contiguous counties.ā€

The bill, which does not mention Disney or its monorail, would also give the state power to shut down the systems “to ensure safety and welfare of inspectors and the traveling public.”

DešŸ’™Santis has signaled tšŸ…°hat he supports the measure.

DeSantis has been feuding with Disney over its opposition to the so-called “Don’t Say Gay” law. REUTERS

ā€œThey exempted the monorail from any safety standards or inspections so theyā€™re gonna go and make sure that the monorail is subject to oversight just like everything else would be in the state of Florida,ā€ Dą¼ŗeSantis said last week.

DeSantis, who is said to be weighing a run for the GOP nomination for president in 2024, has been feuding with Disney since Iger’s predecessor Bob Chapek opposed the state’s “Don’t Say Gay” law.

A new Reuters/Ipsos poll of 1,005 US adults finds that nearly half of Republican respondents — 44% — held a more positive view of the Florida governor over his stance toward Disney.

Iger, who returned to take over Disney last November, recently hit out at DeSantis, calling his actions toward the company “anti-business” and “anti-Florida.”

Disney has maintained semi-autonomous status over its Central Florida theme parks for decades. Getty Images

But in an interview with Time, Iger sšŸ aid heā€™d be willing to discuss tšŸ¤”he situation.

ā€œIf the governor of Florida wants to meet with me to discuss all of thisšŸ°, of course, I would be glad to do that,ā€ IgešŸ”Ær said.

ā€œYouą±  know, Iā€™m one that typically has respected our elected officials and the responsibility that they have, and there would be no reason why I wouldnā€™t do that.ā€

Shares of Disney were down by some 0.1% šŸ°as of 11:30 a.m. on Wednesday.