Walt Disney DIS.N and Florida Governor Ron DeSantis reached a settlement agreement on Wednesday to end a high-profile lawsuit in state court over control of a special district that includes Walt Disney World theme parks. This was reported by Reuters, according to UNN.
We are committed to working with Disney and other companies in Central Florida to make our destination known for world-class attractions and responsible stewardship.
This agreement opens a new page of constructive cooperation with the new leadership of the district.
Details
Disney has also agreed to postpone briefings in the federal lawsuit filed against DeSantis while the parties try to reach a consensus on a new agreement for the development of Walt Disney World.
Members of the Central Florida Tourism Oversight District approved the settlement at a meeting on Wednesday. The agreement was reached after the resignations of board chairman Martin Garcia and county administrator Glenn Gilzean.
It is noted that on Wednesday, after the news of the "settlement agreement" between Disney and the state of Florida, the company's shares rose 0.9% to $120.98 on the New York Stock Exchange.
Context
The confrontation between Governor DeSantis and Disney, one of Florida's largest employers, began in 2022. Back then, former Disney CEO Bob Chapek criticized the state legislature's attempts to limit discussion of sexual minorities and LGBT communities in classrooms for younger students. Critics called it the "Don't Say Gay" law.
In response, the Florida state board, appointed by DeSantis to oversee the development of Disney theme parks, sued the company to annul "backroom deals" favorable to the entertainment conglomerate.
This controversy became the central theme of all DeSantis' speeches last year when he was running for the US presidency from the Republican Party. The politician criticized the company, calling it a "Disney wake-up call.
Later, DeSantis limited his public attacks on the company and dropped out of the presidential race. This happened in January.
Former Republican congressman from Florida, now an independent, David Jolly, believes that DeSantis and his allies lost their appetites for battle when the governor dropped out of the presidential race.
It made sense for his politics. ...It never made sense for Florida's economy or for the long-term interests of the state.
In his opinion, the agreement showed that both sides wanted to overcome the dispute and restore the historically strong relationship between Disney and state officials.
Speaking to reporters on Wednesday, DeSantis said the state's actions were "justified.
A year ago, people were trying to act as if all these legal maneuvers would succeed, but the reality is that a year later, none of them have succeeded.
Optional
In a federal lawsuit, Disney accused DeSantis of "weaponizing" the government by punishing the company for exercising its free speech rights. In January, a judge dismissed the lawsuit, but Disney appealed. The appeal is currently on hold while the parties negotiate.
In 1967, the Florida Legislature created the Reedy Creek Improvement District to facilitate the development of Walt Disney World on a 38.5-square-mile area. Disney paid taxes to the district, which provided municipal services and exempted it from certain regulations.
Under the terms of the agreement, Disney agreed not to challenge the supervisory board's opinion that the land use plan adopted by the previous board in the last days of its oversight of Walt Disney World was invalid.
This would leave the plan adopted in 2020 as the working plan for Orlando's theme parks and retail district. Disney also agreed to drop its lawsuit over access to public records.