How Disney Dodged Ron DeSantis and Kept Control of Its Florida Land

This week, those approvals were criticized by members of a new board that was created by the Republican governor to strip Disney of governing control over the land’s special tax district, known as Reedy Creek. Mr. DeSantis, who has been clashing with Disney for more than a year, appointed the new board after the February meeting.

The new board members for the Reedy Creek special tax district said Disney’s moves circumvented their authority, leaving it unable to do much beyond maintaining roads and basic infrastructure. Board members said the district has hired outside attorneys to review the development plan and explore ways to nullify it. 

A spokeswoman for Mr. DeSantis said in a statement, “An initial review suggests these agreements may have significant legal infirmities that would render the contracts void as a matter of law.” She added that the new board had “retained multiple financial and legal firms to conduct audits and investigate Disney’s past behavior.”

Mr. DeSantis addressed the Disney situation Thursday during a book-tour stop in Smyrna, Ga. “There’s a lot of little back-and-forths going on now with the state taking control,” he said. “But rest assured—you ain’t seen nothing yet. There’s more to come in that regard.”

The state attorney general’s office on Thursday sent a public records request to the Reedy Creek district for documents discussing agreements and covenants that were approved or considered at the February meeting. 

Disney thinks the land-development project approved at the public meeting was in compliance with state law, according to people familiar with the company’s thinking. The substance of the meeting—including a description of the plan that was voted on—was advertised twice in print articles published in the Orlando Sentinel newspaper in January, as required by law.

Juan-Carlos Planas, a former Republican legislator in Florida who has taught law school courses about Reedy Creek’s legal structure, said it would likely be very difficult for the district to do anything about the plan. 

The board can’t nullify it without breaching the district’s contract with Disney, which would likely prompt a legal challenge, and can’t sue to block the agreement because the only party with standing to do so is likely the residents of the district, which include only Disney employees, he said. 

“Disney didn’t do anything secret. They publicized it, they advertised it,” Mr. Planas said. “If you’re in Tallahassee, and you’re replacing the board, how do you not know what that board is doing in their public meeting? This was negligence on the part of the governor’s office and Republican legislators.”

Members of the new board have expressed outrage, alleging that Disney sneaked through the changes at the 11th hour. Board member Ron Peri said Wednesday, “This essentially makes Disney the government” of the district. 

Bridget Ziegler, another board member and co-founder of the conservative group Moms for Liberty, tweeted that “if unlawful actions were taken, this development agreement will be nullified.”

The Reedy Creek Improvement District was a special tax entity set up by Disney in the late 1960s to accommodate the building of its theme parks, hotels and other attractions in the area.

The district had functioned like a county government—approving zoning changes, granting building permits and running its own fire department, among other functions—with its board of supervisors effectively selected by Disney, which is the district’s primary landowner. 

Following fights with Disney over the past year, Mr. DeSantis and state lawmakers approved a new board to supervise Reedy Creek, which was renamed the Central Florida Tourism Oversight District. 

The new setup allowed Mr. DeSantis, in theory, to give his appointees control over any approvals Disney might need to expand its theme parks or other properties at the resort.

The governor and Disney began battling last spring, when the company came out in opposition to the Parental Rights in Education bill, a measure now signed into law that prohibits teachers from giving classroom instruction about gender identity or sexuality to schoolchildren up to the third grade, and limits sex education for older students to topics deemed age-appropriate. 

Disney, under pressure from some employees and human rights activists, said the bill was harmful to LGBT youth. Mr. DeSantis fired back by calling Disney a “woke corporation” that was out of step with the values of Florida parents. 

On Feb. 8, weeks before the new board was seated, Reedy Creek’s supervisors voted in a public meeting to approve a 30-year land-development contract that locks in scores of zoning, infrastructure and air rights approvals for future expansions.

The agreement’s 30-year term length is unusual. Most land-development agreements struck by municipalities in Florida are shorter, legal observers in the state said, to increase the chance that developers will complete their projects rather than sitting on the land without building on it.

The term of the provision lasts, according to publicly-filed documents, “until 21 years after the death of the last survivor of the descendants of King Charles III, King of England.” 

While it is common for land-use agreements to have extended terms related to the lifetimes of the property owners, it is less common for a land-use agreement to be tied to the longevity of the British royal family, Florida land-use observers said. 

Disney operates four major theme parks—Magic Kingdom Park, Epcot, Animal Kingdom Park and Hollywood Studios—and three smaller ones at the resort, in addition to hundreds of hotel rooms and other attractions. A comprehensive plan adopted by the district last year contemplates Disney building one more major theme park; two new minor theme parks, such as water parks; and more hotel rooms.

Write to Robbie Whelan at [email protected] and Arian Campo-Flores at [email protected]

This week, those approvals were criticized by members of a new board that was created by the Republican governor to strip Disney of governing control over the land’s special tax district, known as Reedy Creek. Mr. DeSantis, who has been clashing with Disney for more than a year, appointed the new board after the February meeting.

The new board members for the Reedy Creek special tax district said Disney’s moves circumvented their authority, leaving it unable to do much beyond maintaining roads and basic infrastructure. Board members said the district has hired outside attorneys to review the development plan and explore ways to nullify it. 

A spokeswoman for Mr. DeSantis said in a statement, “An initial review suggests these agreements may have significant legal infirmities that would render the contracts void as a matter of law.” She added that the new board had “retained multiple financial and legal firms to conduct audits and investigate Disney’s past behavior.”

Mr. DeSantis addressed the Disney situation Thursday during a book-tour stop in Smyrna, Ga. “There’s a lot of little back-and-forths going on now with the state taking control,” he said. “But rest assured—you ain’t seen nothing yet. There’s more to come in that regard.”

The state attorney general’s office on Thursday sent a public records request to the Reedy Creek district for documents discussing agreements and covenants that were approved or considered at the February meeting. 

Disney thinks the land-development project approved at the public meeting was in compliance with state law, according to people familiar with the company’s thinking. The substance of the meeting—including a description of the plan that was voted on—was advertised twice in print articles published in the Orlando Sentinel newspaper in January, as required by law.

Juan-Carlos Planas, a former Republican legislator in Florida who has taught law school courses about Reedy Creek’s legal structure, said it would likely be very difficult for the district to do anything about the plan. 

The board can’t nullify it without breaching the district’s contract with Disney, which would likely prompt a legal challenge, and can’t sue to block the agreement because the only party with standing to do so is likely the residents of the district, which include only Disney employees, he said. 

“Disney didn’t do anything secret. They publicized it, they advertised it,” Mr. Planas said. “If you’re in Tallahassee, and you’re replacing the board, how do you not know what that board is doing in their public meeting? This was negligence on the part of the governor’s office and Republican legislators.”

Members of the new board have expressed outrage, alleging that Disney sneaked through the changes at the 11th hour. Board member Ron Peri said Wednesday, “This essentially makes Disney the government” of the district. 

Bridget Ziegler, another board member and co-founder of the conservative group Moms for Liberty, tweeted that “if unlawful actions were taken, this development agreement will be nullified.”

The Reedy Creek Improvement District was a special tax entity set up by Disney in the late 1960s to accommodate the building of its theme parks, hotels and other attractions in the area.

The district had functioned like a county government—approving zoning changes, granting building permits and running its own fire department, among other functions—with its board of supervisors effectively selected by Disney, which is the district’s primary landowner. 

Following fights with Disney over the past year, Mr. DeSantis and state lawmakers approved a new board to supervise Reedy Creek, which was renamed the Central Florida Tourism Oversight District. 

The new setup allowed Mr. DeSantis, in theory, to give his appointees control over any approvals Disney might need to expand its theme parks or other properties at the resort.

The governor and Disney began battling last spring, when the company came out in opposition to the Parental Rights in Education bill, a measure now signed into law that prohibits teachers from giving classroom instruction about gender identity or sexuality to schoolchildren up to the third grade, and limits sex education for older students to topics deemed age-appropriate. 

Disney, under pressure from some employees and human rights activists, said the bill was harmful to LGBT youth. Mr. DeSantis fired back by calling Disney a “woke corporation” that was out of step with the values of Florida parents. 

On Feb. 8, weeks before the new board was seated, Reedy Creek’s supervisors voted in a public meeting to approve a 30-year land-development contract that locks in scores of zoning, infrastructure and air rights approvals for future expansions.

The agreement’s 30-year term length is unusual. Most land-development agreements struck by municipalities in Florida are shorter, legal observers in the state said, to increase the chance that developers will complete their projects rather than sitting on the land without building on it.

The term of the provision lasts, according to publicly-filed documents, “until 21 years after the death of the last survivor of the descendants of King Charles III, King of England.” 

While it is common for land-use agreements to have extended terms related to the lifetimes of the property owners, it is less common for a land-use agreement to be tied to the longevity of the British royal family, Florida land-use observers said. 

Disney operates four major theme parks—Magic Kingdom Park, Epcot, Animal Kingdom Park and Hollywood Studios—and three smaller ones at the resort, in addition to hundreds of hotel rooms and other attractions. A comprehensive plan adopted by the district last year contemplates Disney building one more major theme park; two new minor theme parks, such as water parks; and more hotel rooms.

Write to Robbie Whelan at [email protected] and Arian Campo-Flores at [email protected]