What's going on with DeSantis' takeover of Disney special district
April 04, 2023
Florida Gov. Ron DeSantis (R) on Monday requested the state's inspector general to investigate a recent effort by the Walt Disney Company to limit oversight of development at Disney World by a board of hand-selected DeSantis allies.
Why it matters: The request suggests the yearslong feud between DeSantis and Disney, one of Florida's largest employers, is far from over.
How Disney blocked DeSantis' oversight board:
The members selected by DeSantis to oversee the governance of Walt Disney World in Orlando said in late March that the previous Disney-controlled board passed covenant agreements that effectively stripped the new board of many of its powers, AP reports.
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The agreements passed by the Disney-controlled board, also called the Reedy Creek Improvement District, gave Disney control over most of the future construction in the special tax district established for Disney World.
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They prevent the DeSantis board from using Disney’s name, symbols associated with it and the theme park and the likeness of Disney characters without the company’s permission. It also gives the company the ability to sue for damages for violations.
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They also stipulate that the agreements will be in effect until perpetuity, or until 21 years after the death of the last survivor of the descendants of England’s King Charles III.
What they're saying:
In a statement, Disney said the agreements made between the company and the Reedy Creek Improvement District took place in public and were legal under Florida law.
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Taryn Fenske, a DeSantis spokeswoman, said in a statement to the Orlando Sentinel in March that the agreements "may have significant legal infirmities that would render the contracts void as a matter of law."
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Brian Aungst, a member of the DeSantis board, said Disney's efforts were "a subversion of the will of the voters and the Legislature and the governor," and said the board would have "to deal with it and correct it."
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Disney CEO Bob Iger said during a shareholder meeting on Monday that DeSantis' actions are retaliatory, adding that he believes the governor is seeking "to punish a company for its exercise of a constitutional right. And that just seems really wrong to me," CNBC reports.
Catch up quick on the Disney-DeSantis feud:
DeSantis signed legislation in April 2022 that stripped the company of its special tax zone district.
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The special tax district, created in 1967, granted Walt Disney World Resort the same authority and responsibilities as a county government, allowing the company to carry out its own municipal functions.
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The move was widely seen as political retaliation against Disney, as the governor signed the legislation shortly after the company publicly denounced Florida's Parental Rights in Education Bill, dubbed by critics the "Don't Say Gay" bill.
