Amid its political feud with Gov. Ron DeSantis, Disney is dropping plans to build a nearly $1 billion corporate campus at Lake Nona that would have brought 2,000 high-paying jobs to Orlando.
In 2021, Disney paid $46.4 million for 58 acres in the neighborhood that it planned to turn into a complex for its creative team, Imagineering, and other jobs. The average salary of the positions was cited as $120,000.
But in a memo to employees Thursday, Disney Parks Chairman Josh D’Amaro attributed the project’s cancellation to “changing business conditions,” without mentioning The Walt Disney Co.’s escalating battle with the governor.
“Given the considerable changes that have occurred since the announcement of this project, including new leadership and changing business conditions, we have decided not to move forward with construction of the campus. This was not an easy decision to make, but I believe it is the right one,” his message read.
D’Amaro said he has “hope” the company’s plans to invest $17 billion in Florida over the next 10 years, including the addition of around 13,000 jobs, would still happen. Disney currently employs more than 75,000 people in the state.
A DeSantis spokesman did not immediately respond to a request for comment on Disney’s decision.
Disney’s decision drew a swift reaction from Democrats who have criticized DeSantis’ culture war agenda as creating a hostile environment for business.
“Governor Ron DeSantis is a job killing moron who cares more about his own political ambitions and culture wars than Florida and our future,” said state Rep. Anna Eskamani, D-Orlando, in a statement. “According to him, ‘woke makes you go broke’ but this is another example of how it’s actually the complete opposite. DeSantis is not who you want for President — ever.”
Orange County Mayor Jerry Demings called Disney’s decision “unfortunate.”
“However, these are the consequences when there isn’t an inclusive and collaborative work environment between the state of Florida and the business community,” he said in a statement. “We will continue to work closely with our valued partners at Disney.”
Project developer Tavistock referred comment to Disney Thursday.
Throughout 2021, Disney gradually informed affected employees if their jobs were part of the relocation. Some employees chose to leave the company instead of moving cross-country, from California to Florida, and some had reportedly already made the move.
Though the campus’ opening was initially targeted for December 2022, Disney pushed that to 2026 in June to “give people more time” and accommodate the construction timeline for the new offices.
D’Amaro’s Thursday memo said Disney will not ask the remaining employees to relocate to Florida.
“For those who have already moved, we will talk to you individually about your situation, including the possibility of moving you back,” his memo read.
Disney was slated to receive over half a billion dollars in state tax breaks over 20 years for the project, one of the largest tax breaks in state history for a single corporation.
What might happen to the Lake Nona land if Disney decides to sell it?
“My opinion is, no matter who’s selling it, there will be no shortage of demand,” said Andy Slowick, director of land sales at Cushman & Wakefield. “It’s going to look different than what Disney had planned. But Lake Nona is always one of the first submarkets that every developer or user that is exploring Orlando wants to tour when in town.”
DeSantis and Disney first clashed last year over the Parental Rights in Education Law, which critics call “don’t say gay.” That law limits classroom instruction on sexual orientation and gender identity in schools.
Disney paused its political giving in Florida and vowed to work to repeal the law. DeSantis blasted the entertainment giant as a “woke” corporation.
As the battle escalated, DeSantis’ allies in the Florida Legislature overhauled the special district Disney used to effectively self-govern its theme parks and resorts in Central Florida.
Lawmakers put DeSantis in charge of appointing board members for the district, ending Disney’s ability to elect the members.
Disney responded with a federal lawsuit accusing DeSantis and other state officials of engaging in a “targeted campaign of government retaliation.”
The DeSantis-appointed Central Florida Tourism Oversight District’s board then countersued.
GrowthSpotter editor Laura Kinsler and staff writer Amanda Rabines contributed to this report.