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4/19/23 Central Florida Tourism Oversight District Board of Supervisors

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Florida tourism board approves Walt Disney World expansion plans, ending Disney-DeSantis feud

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A special Florida district that governs Walt Disney World Resort has voted unanimously to approve the company’s plans for expansion, officially ending the years-long feud between the House of Mouse and Florida Gov. Ron DeSantis.

The Central Florida Tourism Oversight District voted Wednesday in favor of Walt Disney Co.’s proposal to expand its theme park complex in Orlando, including an $8-billion investment during the first 10 years and up to $17 billion over the next 10 to 20 years.

The expansion is part of a major investment spree by the Burbank media and entertainment giant into its so-called “experiences” division, which is largely comprised of its theme park empire around the world. Disneyland Resort in Anaheim is expected to expand as well, with an investment of at least $1.9 billion .

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At Wednesday’s meeting, local tourism executives and board members alike praised the benefits of the proposal and its potential economic effect on the state.

“Walt Disney World is inextricably intertwined in the fabric of the state of Florida, and the success of Walt Disney World is the success of Central Florida,” board member Brian Aungst Jr. said during the meeting. “I was always extremely optimistic and knew that we would get here because it’s the right outcome.”

The path to Wednesday’s approval was long and winding. The controversy began in 2022, when Disney — Florida’s largest private employer — voiced opposition to DeSantis’ so-called “Don’t Say Gay” legislation, which banned instruction on sexual orientation and gender identity in local schools.

DeSantis then took control of what was known as the Reedy Creek Improvement District, a quasi-municipal government that controlled the land Walt Disney World sat on but was run for years by officials essentially selected by Disney. DeSantis renamed the governing body the Central Florida Tourism Oversight District and appointed his allies as members.

Dueling lawsuits ensued, including a First Amendment case Disney filed against the state and the governor, which was eventually tossed. Tensions started to ease in March, after Disney and the state of Florida reached a settlement of a separate state lawsuit , a move that came a few months after DeSantis ended his presidential bid. DeSantis had made Disney a high-profile culture war punching bag even before his doomed campaign began.

After Wednesday’s vote, Walt Disney World Resort President Jeff Vahle cheered the outcome, saying in a statement that the new development agreement “paves the way for us to invest billions of dollars in Walt Disney World Resort, supporting the growth of this global destination, fueling the Florida economy, and allowing us to deliver even more memorable and extraordinary experiences for our guests.”

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Deal sealed between Disney and Disney World governing district with approval by DeSantis reps

Updated on: June 13, 2024 / 5:07 PM EDT / AP

Orlando, Fla. — Gov. Ron DeSantis' appointees on Wednesday gave final approval to an agreement that buries the hatchet between Disney and the governing district for Walt Disney World, which the Florida governor took over after the company two years ago publicly opposed a state law critics dubbed "Don't Say Gay."

The five DeSantis-appointed board members to the Central Florida Tourism Oversight District unanimously voted to approve a 15-year development deal in which the district committed to making infrastructure improvements in exchange for Disney investing up to $17 billion into Disney World over the next two decades.

The agreement followed a detente in March in which both sides agreed to stop litigating against each other in state court and work toward negotiating a new development agreement and a new comprehensive plan no later than next year. The district provides municipal services such as firefighting, planning and mosquito control, among other things, and was controlled by Disney supporters before the takeover by the DeSantis appointees.

District board member Brian Aungst said at Wednesday night's board meeting that the agreement provides a lasting and stable framework for Disney and the board to work together.

"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."

Terms of the accord  

Under the deal, Disney will be required to donate up to 100 acres of Disney World's 24,000 acres for the construction of infrastructure projects controlled by the district. The company also will need to award at least half of its construction projects to companies based in Florida and spend at least $10 million on affordable housing for central Florida.

Disney would then be approved to build a fifth major theme park at Disney World and two more minor parks, such as water parks, if it desired. The company could raise the number of hotel rooms on its property from almost 40,000 to more than 53,000 and increase the amount of retail and restaurant space by more than 20%. Disney will retain control of building heights due to its need to maintain an immersive environment.

Leaders of Orlando's tourism industry praised the agreement, telling the district's board members that it will bring boundless jobs, tourists and attention to central Florida.

"It very clearly demonstrates to the world that the district and Disney are eager to resume working together for the great state of Florida," said Robert Earl, founder and CEO of Planet Hollywood International, Inc.

In a statement from DeSantis' office, communications director Bryan Griffin said: "Disney and the state of Florida continue working well together under [Central Florida Tourism Oversight District's] new governance structure, and we are pleased to see CFTOD and Disney reach a new development agreement that secures up to $17 billion in future investment in the state of Florida. This agreement is a big win for central Florida and will lead to numerous jobs and improved guest experiences."

A remaining legal issue  

Still up in the air was an appeal of a federal lawsuit Disney had filed against DeSantis and his appointees. After the settlement was reached in March, Disney asked the appellate court to put that case on hold while the development agreement was negotiated. The company has until next week to file a brief with the court if it wants to move ahead with the case.

Disney didn't respond to an email Wednesday afternoon seeking comment on how the company planned to proceed. The DeSantis appointees to the district had planned to hold a closed-door discussion about the lawsuit after their board meeting Wednesday but cancelled that meeting.

Matthew Oberly, a spokesperson for the district, said Wednesday night that the district didn't have any comment on the future of the federal litigation.

The March settlement ended almost two years of litigation sparked by DeSantis' takeover of the district following the company's opposition to the 2022 law that bans classroom lessons on sexual orientation and gender identity in early grades. The law was championed by the Republican governor, who used Disney as a punching bag in speeches during his run for the 2024 GOP presidential nomination until he suspended his campaign earlier this year.

As punishment for Disney's opposition to the controversial law, DeSantis took over the governing district through legislation passed by the Republican-controlled Florida Legislature and appointed a new board of supervisors. Disney sued DeSantis and his appointees, claiming the company's free speech rights were violated for speaking out against the legislation. A federal judge dismissed that lawsuit in January, but Disney appealed.

Before control of the district changed hands early last year, the Disney supporters on its board signed agreements with the company shifting control over design and construction at Disney World to the company. The new DeSantis appointees claimed the "eleventh-hour deals" neutered their powers, and the district sued the company in state court in Orlando to have the contracts voided.

Disney filed counterclaims that included asking the state court to declare the agreements valid and enforceable. Those state court lawsuits were dismissed as part of the March settlement.

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Disney has ended a legal battle with Florida and its oversight district

After reaching a development deal, Walt Disney Parks and Resorts on Thursday ended a legal fight about whether Florida unconstitutionally retaliated against the company because of opposition to a controversial education law.

Disney attorneys filed a document at the 11th U.S. Circuit Court of Appeals that said the company agreed to dismiss the case. It cited a new development agreement between Disney and the Central Florida Tourism Oversight District, which largely governs an area that includes Disney properties.

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The district Board of Supervisors on Wednesday approved the development agreement, which includes Disney investing up to $17 billion, according to a summary released by the district.

Disney and the district also reached a legal settlement in March that ended a related case in Orange County circuit court. In early April, Disney asked for an extension in submitting briefs to the federal appeals court to “facilitate” negotiations that were contemplated when the Orange County case was settled.

The district summary said the development agreement is for 15 years, “solidifying a long-term partnership” between the company and the district. Along with Disney’s investment, the deal includes such things as the company creating a local-business hiring program and providing at least $10 million for “attainable” housing projects, according to the summary.

The lawsuits, which drew national attention, were rooted in a decision last year by Gov. Ron DeSantis and the Republican-controlled Legislature to replace the former Reedy Creek Improvement District with the Central Florida Tourism Oversight District.

The decades-old Reedy Creek district was closely aligned with Disney, while DeSantis appointed the new district’s board. Also, a former DeSantis aide, Stephanie Kopelousos, was named this year as the new district’s administrator.

The federal lawsuit alleged the state violated First Amendment rights by retaliating against the company after Disney officials in 2022 opposed a controversial law that restricted instruction about sexual orientation and gender identity in schools.

The federal lawsuit named as defendants DeSantis, Florida Department of Commerce Secretary J. Alex Kelly and the district.

But U.S. District Judge Allen Winsor in January dismissed the lawsuit, saying Disney did not have legal standing to pursue the case against DeSantis and Kelly and rejecting claims against the district.

In dismissing the claims against the district, Winsor cited legal precedents preventing First Amendment retaliation claims against “facially constitutional” laws. He said the disputed laws about the district do not mention Disney and that their effects would go beyond Disney.

“The laws are directed at a special development district in which Disney operates,” Winsor wrote. “But as Disney acknowledges, it is not the district’s only landowner, and other landowners within the district are affected by the same laws.”

Disney quickly appealed to the Atlanta-based appeals court, but the case drew little activity amid the negotiations.

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About Central Florida Tourism Oversight District

Central Florida Tourism Oversight District formerly known as, Reedy Creek Improvement District (the “District”) is a local government entity, created in 1967 by a special Act of the Florida Legislature, the purpose of which is to support and administer certain aspects of the economic development and tourism within District boundaries. In April of 2022, Governor Ron DeSantis signed Senate Bill 4-C into Law to dissolve Reedy Creek Improvement District effective June 1st 2023. In February of 2023, Governor DeSantis signed House Bill 9-B establishing a new state appointed board renaming RCID to Central Florida Tourism Oversight District.  With an administration office located on Hotel Plaza Boulevard in Lake Buena Vista, the District encompasses approximately 25,000 acres in both Orange and Osceola counties, servicing 24 landowners, including Walt Disney Co. and its wholly-owned affiliates.

Click here to view the District Charter

The District is responsible to oversee land use and environmental protections within the District, and provide essential public services ( e.g.  fire protection, emergency medical services, potable water production, treatment, storage, pumping & distribution, reclaimed water distribution, chilled water systems, wastewater services, drainage and flood control, electric power generation & distribution, and solid waste and recyclables collection & disposal) and operate and maintain all public roadways & bridges.  The District operates on a fiscal year, beginning on October 1 st  and ending on September 30 th ; and funds its operations, services, and capital improvements by assessing taxes and fees to the landowners and lessees, within the District, and by issuing ad valorem and utility revenue bonds.

Click here for a map of the District boundaries

SERVICING the Central Florida Tourism Oversight District & OTHER AREAS

One of the busiest places in America, the District’s boundaries include:  4 theme parks, 2 water parks, 1 sports complex, 179 lane miles of roadway, 67 miles of waterway, the cities of Bay Lake and Lake Buena Vista, an environmental science laboratory where the continuity of water quality is monitored, an electric power-generating & distribution facility, a natural gas distribution system, a chilled water distribution system, water and wastewater collection & treatment facilities, a solid waste and recyclables collection & transfer system, plus over 40,000 hotel rooms and 100’s of restaurants and retail stores.

The District is governed by a five-member Board of Supervisors, appointed by the Governor. Their goal is to support the economic viability of all venues and businesses within the District, while never sacrificing Central Florida’s remarkable wildlife and ecological environment.  Through the creation and effective operation of the District, 38.5 square miles of remote and largely uninhabited pasture and swamp land was developed into a world-class tourist destination that welcomes millions of visitors every year.

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Disney set to invest $17B in Florida parks following approval of development agreement

Five appointees of Gov. Ron DeSantis voted to approve the agreement this week.

Disney and appointees of Florida Gov. Ron DeSantis have officially approved an agreement that could result in the company investing $17 billion into its Florida properties, as well as a potential fifth major theme park.

The news comes two months after the two parties agreed to end their drawn-out legal battle, which centered on oversight of the Disney World district that provides municipal services like fire suppression, emergency medical services, law enforcement services, environmental protection and public utilities.

The DeSantis-appointed supervisors of the Central Florida Tourism and Oversight District -- formerly the Reedy Creek Improvement District -- are one step closer to cementing a final agreement with Walt Disney Parks and Resorts U.S., after the appointees unanimously voted Wednesday to accept proposed revisions and approve the new development agreement. Disney is the parent company of ABC News and "Good Morning America."

Both sides had agreed to negotiate this new agreement after a March settlement, which ended their previous lawsuits against each other.

Final action for the development agreement will take place with Walt Disney Parks and Resorts in another public board meeting on June 12.

During a livestream of the first of the board's two public hearings on the agreement on Wednesday, Katherine Luetzow, manager of planning and engineering for the district, highlighted details of the 15-year development agreement, which covers nearly 17,000 acres of land within the district that is currently owned by Walt Disney Parks and Resorts and its subsidiaries.

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"Disney is currently planning up to $17 billion of capital investments within the district in the next 10 to 20 years, with a commitment of $8 billion in the next 10 years," she said. "There are provisions for by local initiatives, including a minimum of 50% of goods and services related to the design, development and construction, to be retained with Florida businesses. There is $10 million going to attainable housing projects, and there are provisions for land, as well as wetland and threatening endangered species mitigation credits being donated to the district."

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The members of the Central Florida Tourism Oversight District board welcomed public comment from two small business owners that operate at Disney Springs, who both urged the board to approve the new deal.

Luetzow said their staff reviewed this agreement and recommended the board review and approve this development agreement.

The members of the Central Florida Tourism and Oversight District board welcomed public comment from two small-business owners who operate multiple food establishments at Disney Springs. Both urged the board to approve the investment from Disney, which they said would benefit thousands of restaurant workers, their families and anyone who lives and works in this district.

Woody Rodriguez, director of external affairs for Disney Parks, spoke at the meeting and thanked the board for considering the agreement.

"I especially thank your district administrator who definitely hit the ground running," Rodriguez said. "The development agreement will enable us to continue to invest significantly in the district to benefit all parties. We hope that the board votes to approve it at your next public hearing. Thank you."

As ABC News reported previously, DeSantis has been at odds with Disney since the company publicly criticized a DeSantis-backed controversial Florida law that restricts content concerning sexual orientation and gender identity in grades kindergarten through third grade. The Parental Rights in Education Law was dubbed by critics as the "Don't Say Gay" law, with opponents arguing it painted LGBTQ topics as taboo or inappropriate.

DeSantis subsequently took control of Disney's special tax district, which allows the theme park to govern itself, and the Florida Legislature voted to dissolve the former governing board of the district, creating the DeSantis-appointed Central Florida Tourism Oversight District in its place.

Disney sued DeSantis and various Florida officials in April 2023 over the decision, alleging the move was "patently retaliatory, patently anti-business, and patently unconstitutional." The lawsuit took aim at the state oversight board's decision 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," according to the legal filing.

The company called the move "a targeted campaign of government retaliation -- orchestrated at every step by Gov. DeSantis as punishment for Disney's protected speech" and said it "threatens Disney's business operations, jeopardizes its economic future in the region, and violates its constitutional rights."

A federal judge in Florida dismissed the lawsuit in January this year, stating at the time that Disney had not shown standing to sue the governor. Disney subsequently appealed the ruling.

In March, Disney agreed to end litigation in light of the proposed development agreements, which were approved on Wednesday, with Walt Disney World President Jeff Vahle stating at the time, "We are pleased to put an end to all litigation pending in state court in Florida between Disney and the Central Florida Tourism Oversight District. This agreement opens a new chapter of constructive engagement with the new leadership of the district and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the State."

Disney is the parent company of ABC News and "Good Morning America."

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DeSantis tourism board approves $17 billion development deal with Disney that could pave the way for a 5th theme park

• The Central Florida Tourism Oversight District approved a $17 billion development deal with Disney.
• The development plan could allow Disney World to build a fifth major theme park and two minor parks.
• Disney must award at least 50% of all construction work to Florida businesses.

Central Florida's tourism district unanimously approved a $17 billion development deal with Disney that could mean a new era for the company's profitable theme parks.

Members of the Central Florida Tourism Oversight District's board of supervisors pushed through the landmark deal on Wednesday evening during a meeting at its Lake Buena Vista headquarters.

The deal comes amid a détente between Disney and Florida Gov. Ron DeSantis , whose administration took control of the local tourism district from the entertainment conglomerate last February. Disney had previously self-managed any development in the area with little government oversight.

The resulting legal battle between Disney and the DeSantis administration began in 2022 but ended this March when both parties agreed to a settlement .

"This is the day we have all been looking forward to," Board Member Brian Aungst said prior to the vote. "Walt Disney World is inextricably intertwined in the fabric of Central Florida."

After the vote, Board Member Charbel Barakat thanked DeSantis for his leadership, inspiration, and "tireless efforts" to reach a deal with Disney.

A representative for DeSantis called the agreement a "big win" in a statement to BI.

"Disney and the state of Florida continue working well together under CFTOD's new governance structure, and we are pleased to see CFTOD and Disney reach a new development agreement that secures up to $17 billion in future investment in the state of Florida," Communications Director Bryan Griffin said. "This agreement is a big win for central Florida and will lead to numerous jobs and improved guest experiences."

The development deal, a version of which Business Insider reviewed, will allow Disney to spend billions of dollars on its Walt Disney World properties over the next 10 to 20 years.

It will also permit Disney to build a fifth major theme park and two minor theme parks — something Disney fans have fantasized about for years. Reddit boards and Disney-themed discussion forums have long speculated about the so-called "fifth gate," or a potential fifth theme park that would join the four existing locations.

Disney hasn't discussed how or when it could pursue the massive project, but fans have clamored for a villain-centric theme park in the past. Another popular idea was a Star Wars-based attraction, which came to life in 2019 when Disney unveiled Galaxy's Edge .

The development deal also authorizes Disney to add more rooms to its Central Florida hotel and expand its retail and restaurant space.

In return, Disney must award at least 50% of its related construction work to Florida-based businesses and fund at least $10 million toward "attainable housing projects." The company must also donate at least 100 acres of its land to the tourism district.

In a hearing last week, local businesses came out in support of the deal , which they view as an opportunity to grow the local economy and increase sales.

"The one thing we're sure of is that investment and reinvestment guarantee growth and excellence," George Miliotes, the owner and operator of Wine Bar George in Disney Springs, told board members. "So, when we see the billion-dollar number in front of the investment that's on the table, we get very excited."

He added: "We know that we're securing the future if we make this investment."

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