central florida tourism oversight district (cftod)

DeSantis Board Reaches Historic Agreement With Disney World, Lawsuit Tossed Out

in Walt Disney World

The Disney DeSantis legal battle has come to an end. The Central Florida Tourism Oversight District (CFTOD) and Walt Disney World Resort (WDW) have settled for a morning meeting that took place only a few hours ago. Here’s what we know so far as the story is still developing.

Ron Desantis Disney Board Reaches Historic Settlement With Walt Disney World Resort

During this morning’s CFTOD Board meeting , the Central Florida Tourism Oversight District announced a settlement agreement with Disney concerning a state-level lawsuit over development agreements. The Disney DeSantis legal battle for control of the former Reedy Creek Improvement District has been ongoing since 2022. Disney CEO Bob Iger has expressed his firm foot on Disney’s handling of the “Don’t Say Gay” Bill passed. But it would appear that DeSantis has won this battle. Although Disney also has some upper hands in it.

During a meeting this morning, the Central Florida Tourism Oversight District announced they reached a settlement agreement with Disney over the state-level lawsuit involving development agreements. I'm working to learn more about what this means going forward. pic.twitter.com/W1nqQJgxH6 — Scott Gustin (@ScottGustin) March 27, 2024

During a meeting this morning, the Central Florida Tourism Oversight District announced they reached a settlement agreement with Disney over the state-level lawsuit involving development agreements. I’m working to learn more about what this means going forward. – @ScottGustin on X (Twitter)

As part of the settlement, Disney has agreed to declare the Development Agreement and Restrictive Covenants null and void while acknowledging the nullification of the 2032 Comprehensive Plan, as asserted by the District. The District plans to amend the 2020 Comprehensive Plan in consultation with Disney to devise a new plan. Both parties have agreed to dismiss the claims and counterclaims , with Disney also dropping the Public Records case.

Additionally, the labor services agreement between the District and Reedy Creek Energy Services will conclude in 2028. Disney will retain ownership of long-term mitigation credits, with the District pledging not to interfere with these credits. Furthermore, both the District and Disney have agreed not to contest the actions of the Reedy Creek Improvement District before Governor DeSantis’ takeover. The Board approved the settlement of Supervisors following a vote.

Which Lawsuit Is This About Between WDW and the CFTOD?

During a meeting, the Central Florida Tourism Oversight District board members unanimously approved the settlement agreement, effectively ending nearly two years of litigation. This legal battle was triggered by Governor DeSantis’ takeover of the district from Disney supporters, following the company’s opposition to Florida’s “Don’t Say Gay” law.

Enacted in 2022, this law prohibits classroom discussions on sexual orientation and gender identity in early grades and was vigorously supported by DeSantis. Disney found itself at the center of political rhetoric, with DeSantis frequently using the company as a target in his speeches until he suspended his presidential campaign earlier this year.

Addressing attendees at today’s CFTOD board meeting, Vice Chair Charbel Barakat expressed enthusiasm about collaborating with Disney, stating, “We are eager to work with Disney. I’m certainly eager to work with Disney and all other businesses to make the country’s tourism destination famous for a second reason, which is good government. I’d like to publicly thank the district’s general counsel for their Herculean efforts on this front as well as our outside counsel.”

CFTOD counsel Paul Huck outlining the main points of the new settlement agreement the district reaced with Disney (Part 2): pic.twitter.com/ihIRi6kVwQ — Ashley Carter (@AshleyLCarter1) March 27, 2024

It’s crucial to note that today’s news solely pertains to the state-level lawsuit . There have been no alterations to Disney’s appeal of the federal lawsuit.

Disney released a statement expressing that the settlement 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 …” It’s worth noting that the agreement’s announcement coincides with introducing new leadership within the district, including a fresh district administrator and a new chairman.

Jeff Vahle, President of Walt Disney World Resort, said the following:

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 opportunities in the State

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The cities of Lake Buena Vista and Bay Lake will be taking over some city services that they haven't had to handle for decades.

That's because the Central Florida Tourism Oversight District, which has handled those services as part of an interlocal agreement with both cities, gave notice it is terminating that agreement, according to the city manager for both cities.

Lake Buena Vista and Bay Lake held a joint meeting Wednesday to discuss the changes to services.

It's complicated for a few reasons.

For one, the termination means the agreement ends in January, which isn't a lot of time to set up new services.

But it also comes after budgets have been approved and tax rates have been set.

Another factor, the district taxes property in the cities in exchange for providing services rather than the cities paying for them directly.

"What's going to happen to us? You know, we live here," said Lake Buena Vista resident William Sterner.

He's been living there for decades. He came to the meeting Wednesday night with some concerns.

Related: 'Sick of it': Florida lawmakers aim to repeal law that created CFTOD, bring back Reedy Creek

"It's taxation without representation," Sterner said. "We have legal residents here, but we have no say in what the district does."

Under the agreement between the district and the cities, the district has provided services to both — things like fire and EMS, and building and code enforcement.

According to slides presented in the meeting on Wednesday, the district plans to keep providing those services.

But will no longer provide things like finance and accounting services, risk management and insurance coverage, election services, and more.

Both cities already contract with the Orange County Sheriff's Office for law enforcement services, so that won't be affected.

The city manager for both cities says there will be an impact on taxes and finances.

But it's hard to say how much.

"Until we define exactly what the district will be providing versus what the cities would be providing, we wouldn't know what revenues would be necessary to provide those services," city manager Randy Singh said.

But city budgets have already been passed without including these new costs. For Sterner, he guesses that means his taxes are probably going up.

"Oh yeah, they're going to go up," he said. "But obviously, you know, we've got to provide services."

Right now, it seems like the cities will be using money from their reserves to cover the new costs. It's not looking like the district will be giving any of that money back to the cities.

The interlocal agreement is set to end Jan. 16.

WESH did reach out to the district for this story. They directed us to the cities of Lake Buena Vista and Bay Lake for comment.

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