The board overseeing Walt Disney World’s special district, made up of officials appointed by Florida Gov. Ron DeSantis (R), voted Wednesday to revoke a controversial development agreement Disney made before their appointment that takes away much of the board’s power, paving the way for a legal battle over the agreement and escalating DeSantis and his allies’ war with Disney.
The board voted unanimously at a public meeting to declare the development agreement “void and unenforceable,” directing the special district’s attorneys to “commence litigation” that would complete the process of nullifying the agreement and prohibit its enforcement.
The development agreement, which was enacted just before DeSantis took control of the special district’s board, gives Disney broad control over the special district, through steps like allowing it to build projects without seeking approval from the district and sell development rights to other landowners.
In addition to the development agreement, the previous special district—made up of board members elected by Disney—also enacted a separate set of restrictive covenants that give the company power to veto buildings the special district oversees as long as they’re on Disney’s property, which the board also challenged and voted to revoke.
The board discovered the agreement in March after taking power, saying the legal document “essentially makes Disney the government” and strips the board of “the majority of its ability to do anything beyond maintain the roads and maintain basic infrastructure.”
Ahead of Wednesday’s meeting, the special district released a 92-point document detailing its legal reasons for why the agreement and covenants should be revoked, including that municipalities in the district didn’t sign the agreement, it goes against laws enacted by the state legislature, cites a separate agreement that wasn’t actually finalized by the time the development agreement was enacted and unlawfully delegates government authority to Disney, arguing the agreement’s benefits are “entirely one-sided” toward the theme parks.
In addition to the district’s efforts, the state legislature is also moving forward with an amendment to legislation that would nullify the state agreement.
Disney has not yet responded to a request for comment on if they intend to bring litigation in response to the development agreement being revoked, though it’s widely anticipated. Legal experts cited by local outlet WFTV said that some of the special district board’s legal arguments as laid out in its pre-meeting document could be enough for a court to justify voiding the deal, such as the claims that the municipalities should have approved the deal and a restriction that should limit certain aspects of the deal to only 10 years. It’s possible there could also be a scenario where only some aspects of the deal get jettisoned in court, experts speculated, potentially leading to a scenario where Disney is allowed to construct buildings without the special district’s approval, but the district could refuse to provide services like water and electricity. Any legal battle over the agreement could take years to resolve, experts cited by the Orlando Sentinel said. Disney also could still challenge DeSantis’ takeover of the special district on other legal grounds, experts have said, such as arguing that the state violated the company’s First Amendment rights by punishing Disney for opposing Florida’s Parental Rights in Education law, known by critics as “Don’t Say Gay.”
Disney has not yet commented on the board’s vote to terminate the development agreement, but has previously maintained the agreement is legal. “All agreements signed between Disney and the District were appropriate, and were discussed and approved in open, noticed public forums in compliance with Florida's Government in the Sunshine law,” Disney said in a March 29 statement.
Wednesday’s meeting also included a series of public comments from small business owners who operate businesses within Walt Disney World that aren’t owned by Disney directly, like shops and restaurants in its Disney Springs shopping district. They asked the board not to take steps to punish Disney that could impact their small businesses by extension, such as raising taxes or imposing tolls on roads, warning such moves could have devastating impacts to their business or harm their employees and their livelihoods. The board also passed a resolution Wednesday that prohibits Covid-19 restrictions by businesses within the district, such as mask mandates.
The special district that oversees Walt Disney World—originally named Reedy Creek Improvement District and now renamed to the Central Florida Tourism Oversight District—functions essentially as a local government for Disney’s Florida property, taking care of maintaining infrastructure like roads and waste collection, emergency fire services, construction permits and other duties. The district is separate from Disney, but as its major landowner, the company had previously been able to essentially handpick its board, as well as other residents who live on the property and have voting powers. DeSantis and the state legislature overhauled the special district in February, passing legislation that changed the special district to have a governor-appointed board, part of a broader fight against Disney for its opposition to the “Don’t Say Gay” law. Disney’s opposition to the law—which the state is now expanding—initially led the Florida government to enact legislation getting rid of Reedy Creek entirely. That plan was then revised amid concerns that nixing the special district could pass a huge tax burden onto local taxpayers.
What the board will do in the special district without the development agreement in place. DeSantis and the board have floated a series of possible steps they may take in retaliation for Disney enacting the development agreement, such as imposing toll roads and taking steps that could raise taxes on Disney. DeSantis has also said the board could develop land within the special district that Disney doesn’t own—with the governor floating that could include a new theme park or a state prison. “Nothing is off the table,” board chair Martin Garcia said at a meeting last week.
DeSantis Ramps Up Disney Feud With New Measures Against Theme Park (Forbes)
DeSantis Disney Board Meeting: Here’s How Governor And His Appointees Could Change Disney World (Forbes)
As Reedy Creek overcomes shock, attorneys say Disney deal could be in trouble (WFTV)