Disney, Florida settle lawsuit over special district, easing tensions in bitter fight

Republican presidential candidate and Florida Gov. Ron DeSantis speaks in Myrtle Beach, S.C., Jan. 20. DeSantis and Walt Disney have reached a settlement to end a high-profile lawsuit.

Republican presidential candidate and Florida Gov. Ron DeSantis speaks in Myrtle Beach, S.C., Jan. 20. DeSantis and Walt Disney have reached a settlement to end a high-profile lawsuit. (Randall Hill, Reuters)


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ORLANDO, Fla. — Florida Gov. Ron DeSantis and Walt Disney have reached a settlement to end a high-profile lawsuit in state court over the control of the special district that includes Walt Disney World in Orlando, the company said on Wednesday.

Disney also agreed to drop a late 2023 lawsuit over access to public records and defer briefings in the federal lawsuit it filed against DeSantis in April last year, pending the outcome of talks on a new development agreement for Walt Disney World.

"This agreement opens a new chapter of constructive engagement with the new leadership of the district," Walt Disney World President Jeff Vahle said.

DeSantis and Disney have been embroiled in a dispute since 2022 when former CEO Bob Chapek criticized a state legislative effort to limit classroom discussion of sexuality and gender issues for younger students, a bill that critics call the "Don't Say Gay" measure.

Last year, a district board appointed by DeSantis to oversee development around Disney's theme parks sued the company to void "backroom deals" favorable to the entertainment giant.

The lawsuit in state court in Orange County, Florida, sought to invalidate an agreement prior board members made with Disney.

Under the terms of the settlement announced on Wednesday, Disney agreed not to challenge the oversight board's view that the land use plan adopted by the previous board, in the waning days of its oversight of Walt Disney World, is invalid.

That would leave a plan adopted in 2020 as the working blueprint for the Orlando theme parks and retail district.

The settlement was reached following the departures of the oversight district board chairman Martin Garcia and the district's administrator, Glen Gilzean, who left to accept an appointment as interim elections commissioner.

"We're eager to work with Disney and other businesses within Central Florida to make our destination known for world-class attractions and accountable governance," Central Florida Tourism Oversight District Vice Chairman Charbel Barakat said.

The Florida Legislature created the Reedy Creek Improvement District in 1967 to promote the development of Walt Disney World on 38.5 square miles of land.

Disney paid taxes to that district, which provided municipal services and exempted it from some regulations.

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Dawn Chmielewski and Aditya Soni

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