Central Florida Tourism Oversight District vs. Disney World
The Central Florida Tourism Oversight District (CFTOD) board members who were appointed by Governor DeSantis announced they’ll be suing Walt Disney World. This post covers developments from today’s meeting of the CFTOD that authorized this litigation, how it differs from Disney’s lawsuit filed last week, and more.
To quickly bring you up to speed, the new CFTOD board asserted that Development Agreements between Disney and Reedy Creek Improvement District (RCID), which made national news for use of the “King Charles Clause” and other fanciful expressions, rendered them powerless to offer any oversight over Walt Disney World’s tourist district, effectively undermining their very name.
CFTOD has repeatedly called these eleventh-hour, last-minute, or clandestine covenants that were made unlawfully. It is worth noting that RCID gave public notice of the Development Agreements twice, in January and February 2023, and openly discussed them at two different public board meetings, both of which offered periods for public comment. CFTOD and the governor have also categorized the agreements as being a subversion of the will of Florida voters on countless occasions. However, “should the state get in a costly legal battle with its biggest employer and tourism engine, y/n?” was not a question on Florida’s midterm election ballot.
Fast-forward to last week at the normal meeting of the CFTOD, which which the new district’s Board of Supervisors declared that the Development Agreement and Declaration of Restrictive Covenants entered into by and between the (former) Reedy Creek Improvement District (RCID) and Walt Disney Parks & Resorts was void and unenforceable. Consider this analogous to yelling “I DECLARE BANKRUPTCY” on the floor of your office. Just because you loudly and forcefully proclaim it, doesn’t make it legally so.
Anticipating precisely this move, the company had a complaint ready to go, and Walt Disney World sued Governor DeSantis and the CFTOD board members in their official capacities in federal court within a few hours. In response to that, the CFTOD called a meeting for May 1, 2023 to discuss a single agenda item: “board discussion and direction to litigation counsel and authorization to defend District officials sued in official capacities.”
The Central Florida Tourism Oversight District meeting started out amusingly enough, with a public commenter who is a Disney Vacation Club member and, to put it bluntly, was mad as hell. He tore into the board, letting them know he always wanted to retire to the great and free state of Florida, that he was for DeSantis as president “until he started this stupid war” that is “destroying us.”
The commenter offered praise for Walt Disney World’s management of its property and infrastructure, asserting that roadways and landscaping on-property are exceptional as compared to the rest of Florida. He contended that DeSantis and the CFTOD have overstepped. “Raising taxes to pay for your defense is wrong; if you take any of our money, it’s wrong. You’re spending our money? You’re taxing us?!” He called on the CFTOD board to resign, stop, or starting doing what’s in the best interest of the district, not what’s in the best interest of the governor.
This follows last week’s meeting, when board chairmain Martin Garcia told Disney Springs business owners that the board would need to raise taxes to pay legal fees. Those Disney Springs operating participants had pleaded with the CFTOD to de-escalate due to their actions also harming them–many of whom are small business owners. Garcia saying the board would need to raise taxes occurred before any lawsuits had been filed. (It’ll be interesting to see if the CFTOD “loses” the firefighters–the one group that had supported them on the promise of pay raises and more resources.)
Following comments, the Central Florida Tourism Oversight District board voted unanimously to sue Walt Disney World in Central Florida state court. Garcia attempted to justify the move by saying that the board “has no choice now but to respond” since the Walt Disney Company sued them. He went on to say that the CFTOD plans to “seek justice in our own backyard” where both they and Walt Disney World reside.
Garcia also stated what the new CFTOD board has achieved in its short time since taking over from the Reedy Creek Improvement District. The veritable laundry list of achievements related to reviewing documents, hiring lawyers, consultants, and engaging others to fight Disney. To their credit, these are mostly things that RCID never managed to “accomplish.”
He also claimed that the Central Florida Tourism Oversight District board is modernizing Walt Disney World. “Disney sued this board to stop us from improving the district and its operations. Disney is asking a federal court in Tallahassee to turn back the hands of time to 1967, but this board is instead bringing the district into the 21st century.” I’m surprised they didn’t take credit for TRON Lightcycle Run finally opening, because why not?
Before turning to commentary, the key distinction here is that Disney filed its lawsuit in the Northern District of Florida federal court, as opposed to state court. The simple explanation for why the Central Florida Tourism Oversight District board is filing its own lawsuit against Walt Disney World–instead of answering the existing suit and making counterclaims–is because state court in Central Florida has a higher likelihood of a favorable outcome for the board, governor, and their allies.
In offering his reaction to the lawsuit last week, Governor DeSantis hinted at this. “I don’t think the suit has merit. I think it’s political. I think they filed in Tallahassee for a reason, because they’re trying to generate some district court decision, but we’re very confident on the law. The days of putting one company on a pedestal with no accountability are over in the state of Florida.”
DeSantis’s remark about filing in Tallahassee for a reason is a reference to the complaint being filed in the Northern District of Florida, where the case has been assigned to Chief U.S. District Judge Mark E. Walker. This draw sets the company up for success, as Walker has extensive experience with First Amendment cases and his recent rulings suggest a high likelihood of success for Disney.
In striking down key provisions of Florida’s Individual Freedom Act, Judge Walker called the state’s approach “positively dystopian” and invoked Stranger Things in (mind)flaying the law. “In the popular television series Stranger Things, the ‘upside down’ describes a parallel dimension containing a distorted version of our world. See Stranger Things (Netflix 2022). Recently, Florida has seemed like a First Amendment upside down.” That was the opening salvo to Walker’s 44-page opinion.
“Normally, the First Amendment bars the state from burdening speech, while private actors may burden speech freely. But in Florida, the First Amendment apparently bars private actors from burdening speech, while the state may burden speech freely.” The remainder of the opinion is a potential partial sneak peek at Walker’s ruling on Disney’s First Amendment claims.
It may thus appear to make sense for the Central Florida Tourism Oversight District board to forum shop to find a more friendly judge and secure a more favorable decision. But it doesn’t work like that. The outcome of the federal case will preempt the outcome of the state case, effectively superseding or rendering moot the state court decision. It will be a hollow victory, totally meaningless in the bigger picture.
So why bother wasting (taxpayer) money to file a separate suit in state court? For like the thousandth time, this is wholly a matter of political theater. The show where everything’s made up and the points don’t matter. My guess is that the CFTOD board figures it has a good shot at winning in state court while the federal case is still pending. Politicians and board members will then tout that dubious decision while declaring “victory” and “Florida beating the California company” and whatnot during television appearances in the immediate aftermath of the case.
In today’s news cycle, being first is often more important than being accurate, so headlines about the board and governor winning could carry a certain amount of weight when it comes to public opinion, fundraising, poll numbers, etc. All of that is what matters most to them. The goal here is not governance, it’s “owning” the opposition in the culture wars.
If and when the federal case is decided in Disney’s favor, the CFTOD can still point to the state court win in public, and offer that as the basis for arguing they’ll prevail in front of the 11th Circuit Court of Appeals. (Of course, all of this presupposes that the CFTOD will actually win in state court, and that Disney will win before Judge Walker.)
Regardless of the legal outcomes, through the prism of political theater, an early win here could be “important” for the governor. Other Republicans have started distancing themselves from DeSantis on this issue, or smelling blood in the water (several 2024 candidates who have commented thus far). Our commentary on two different past posts (here and here) largely revolved around that angle of the battle, questioning whether DeSantis has overplayed his hand, or made a miscalculation in continuing to push this once Iger returned. As always, it’ll be interesting to see how it plays out from here.
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YOUR THOUGHTS
Thoughts on the Central Florida Tourism Oversight District suing Walt Disney World in state court in Central Florida? Think it’s a savvy move, or a waste of tax dollars that could be better spent elsewhere? Any other reactions to the latest season of the RCID/CFTOD drama? Hope this escalating battle starts to de-escalate soon so we can focus again on the fun of the parks? Keep the comments civil, and avoid personal attacks or perpetuating pointless culture wars. Respectfully debating the change is totally fine, but don’t attack others or troll for controversy. That’s why Facebook was invented.
My retired lawyer father still recalls with fondness the time he managed to work Alice in Wonderland (the book version, admittedly) into a brief. Something tells me that Judge Walker had that Stranger Things conceit locked and loaded. >D
Oh yeah. Either he or one of his clerks had just finished up the latest season of Stranger Things will preparing the ruling.
In general, the most important part of brief-writing is presenting a strong argument–but it’s followed closely by making your colleagues or judges chuckle. I snuck so many things into briefs that I never expected to actually make it into the final draft. (Although that can be a bit risky when it’s a quasi-rant aimed at opposing counsel–you have to remember to remove it!)
We FINALLY got around to planning an (August 2023) Disney trip with our kids and now I’m concerned about the impact this ridiculous culture war will have on our upcoming trip. Do we need to plan for higher prices? Do we need to plan for cancellations?
I do not expect this to have a guest-facing impact in the immediate future.
If it drags on, I could see Disney dragging its feet on the Lake Nona move for WDI or something symbolic with regard to future investment, but that’s really about it. If prices do increase (and some probably will) between now and August, it’ll have more to with what the market will bear than this. With pent-up demand exhausting itself, I wouldn’t expect Disney to attempt to push prices much higher.
I’m eager to read their complaint. While the Disney complaint was a beautiful piece of legal writing, I have a feeling this one will be entertaining for other reasons. Although I’m still trying to figure out what their claim(s) will even be.
The most enjoyable legal writing is usually humorous. This will be no different. 😉
You should read the complaint. The case against Disney is really, really strong. Disney really screwed up by not hiring attorneys who specialize in municipal law because the Florida statutes have to be complied with exactly. Not sorta, not mostly, but exactly. The attorneys in the area who specialize in this area of law (and have represented other special districts) have said that Disney is going to get crushed.
We we just cancelled our WDW Fall trip and rescheduled for a first time trip to Disneyland. Pulled a similar change-up and are now renting a home in Michigan for a Summer week instead of on the Florida panhandle – where we’ve vacationed for the last 10 years. We’ve thought about changing up our annual tradition for some time, and Florida’s political environment gave us just the push we needed. A token impact, certainly, but a way to vote with my wallet.
Honestly, I offer you my full respect for putting your money where your mouth is. I think most people on any side (including myself) often do the opposite of what they say because it’s hard to give up something you like and we all want our cake and want to eat it too. I do try and remember that there are many innocent Floridians caught in the crosshairs here.
I plan on doing the same. We just got back on Saturday from our last WDW trip for a LONG time. We are letting our AP’s lapse and are going to do other things, may go to Disneyland in CA for the first time. Rhonda is screwing things up for no good reason.
Seems like DeSantis/Florida is doing its best to kill the goose that lays the golden eggs. Seems dumb to me.
My understanding is that Judge Walker has recused himself which is the right thing to do.
Unlike some of the Judges we have on our Supreme Court, he is an honarable man.
If I were Disney, I would not put anymore money into Central Florida.
Judge Fitzpatrick is the one who recused himself; Judge Walker is presiding.
recused himself for what conflict?
Fitzpatrick is related to someone employed by one of the parties.
Pretty pedestrian stuff given Disney’s presence in Florida.
Mr. DeSantis makes me very angry, and I don’t even live in Florida.
As far as any of this goes, I really not feel bad for any nor do I really care about any of them. Why are we not wondering why all businesses don’t get the same exact type special deals as Disney etc, and since when is Disney a victim in anything? If Disney wants to keep engaging in content and the like, that keeps losing them money, simply because the people they are trying to attract and get in bed with don’t even support their garbage, then let them die by their own sword. I don’t care if Disney burns they brought it upon themselves. As far as Florida goes, this really should show everyone just how corrupt and backwards things get when you let government get involved in any business dealings, Disney never should of gotten special privileges that no one else gets in the first place, and I am not just talking about theme parks and tourism either, talking all businesses. The fact that these giant mega corporations are getting anything at all from the government, should be appalling. This constant “to big to fail” mantra is ridiculous, and does nothing to help “the little guy” it’s a scam. I refuse to feel sorry for either party, if Desantis and Disney wanna play “who’s the bigger victim” let them. And everyone crying about muh tax dollars, remember it’s all legalized theft anyway.
There are hundreds of development districts across the state. The developer who developed the community where I live has one. Universal has one. Sea World has one. They are literally all over, and most large businesses are granted them in order to build out facilities. There were no special privileges, at all.
Disney is not claiming to be a victim. Actually, Bob Iger has stayed very quiet on most of this stuff. Disney property is some of the most beautiful in Central Florida and it got that way because Disney pays for its own infrastructure. There is no special deal. Disney runs its property and takes VERY good care of its property while still paying billions in taxes and donating millions to the underprivileged in Florida. Ron wanted to start a culture war. He got one.
I think you underestimate exactly what Disney did to Florida. When they first arrived, there was literally nothing but swamp with a population of around 50,000. The likelihood of Florida, let alone Osceola and Orange Counties, being able to build the infrastructure that Disney needed for WDW would be the same as you or I building a rocket ship that rivals SpaceX. So Florida and Disney developed an incredibly successful deal and arrangement, one that I think is unrivaled within the United States. Disney pays for all the infrastructure/municipal costs for the RCID, and Florida reaps the benefits in the form of increased tourism and the tax dollars that flows into its coffers.
Even today, Oscelea and Orange Counties would not be able to pay for the services that Disney provides. They do not have “special privileges.” They have privileges that were granted to them by the State of Florida.
The state isn’t merely eliminating special privileges, they’re imposing a punitive state-controlled local government upon Disney and only Disney.
I think the biggest compliment I can pay Tom is that when I saw a headline about the new lawsuit on a news website, my first reaction was to come straight here to get the real story!
LOL I did the same thing!
Me, too!
Me too!
I appreciate the kind words–thank you all!
Well, well, well. The supposedly pro business Republican Party is certainly showing its true colors. Congratulations to the citizens of Flo RT ida who will be paying the legal bills for this DeSantis hissy fit. Pure political retaliation against free speech, and nothing else.
DeSantis was acting in loco parentis by advocating against the “ sex education “ bill Disney and the Democrats were pushing. No child should exposed to the possibility of sexually manipulation or indoctrination by a school curriculum ( which, please remember, the parent effectively has no control over. ). The safest way to protect the children was a ban on teaching sexuality to the youngest children. ( And we should all remember school attendance is compulsory, and effectively 100% of the parent’s tax money is sent to the public schools, exclusively, which is who this bill regulates.)
If the CFTOD believes it was “rendered powerless” by the RCID, why have they recorded a vote striking down the agreements they claim to be powerless against?
The thing i haven’t figured out is what the CFTOD is suing disney for… Disney had a specific case against first amendment violations. the only thing I’ve been able to come up with with this counter suit is they’re suing Disney… for suing them?? What is the actual complaint they have? Is it the development agreement?
“The thing i haven’t figured out is what the CFTOD is suing disney for…”
To enforce their voiding of the Development Agreement.
They’ll undoubtedly have other causes of action, but that should be the crux of the case.
This whole thing is so sad. The taxpayers r the ones that will have to pay! Governor Desantis is showing his true colors. My 2 year old grandson knows when to stop. What a petty man,
The absolute waste of money being spent on this is mind boggling and criminal.
I don’t know if it is Disney’s tax dollars going to the CFTOD or straight up state dollars being used to defend Desantis and company, but it is egregious and those dollars could be used for so many positive community purposes.
I’m not a Florida resident but am DVC and we know this will all have a trickle down effect on businesses, community members, etc.
How did you get that shot of the sword with the castle in the background completely devoid of people!
I think your analysis is spot-on. DeSantis gets free publicity almost daily and doesn’t have to pay a dime since the legal fees are being picked up by others.
While this plays poorly with the majority of voters, judging by the coverage and comments on right-wing media, its a big hit with GOP primary voters, and that’s exactly who DeSantis needs to reach.
“How did you get that shot of the sword with the castle in the background completely devoid of people!”
I actually took that during the last day of ‘Extra, Extra Magic Hours’ at Magic Kingdom in November 2019 (you can see some Christmas lights already up on the backside of Cinderella Castle). The good ole days when parks other than DAK occasionally opened before sunrise!
Superb Michael Scott reference.
Thanks as always Tom for your article and insights.
And I’m glad I’m not the only one who feels like I’m living in the Upside Down!!
As the largest land owner is disney paying the the CFTOD layers suing them?
As a Central Floridian, I wish someone in the state government cared as much about my homeowner’s and auto insurance rates as much as they do this. RCID did not affect me (a homeowner, a taxpayer, and a parent with a child in public school) one bit. This is likely to cost me money in property taxes and I hate it. I would really like my state government to focus on things that matter, not on pointless posturing and undeclared presidential campaigns.
Hear, hear! Also, sadly, could be applied to most governments,.
This is all so frustratingly lame. Trying to predict the next play by other party seems like a fools errand at this point. That being said…I wonder if Disney announces they are suspending investment in the state and/or launches an “exploratory committee” to investigate the feasibility of moving it’s Florida operations. There is, of course, a 0% chance any of that happens. I just wonder about the optics/theater of being able to paint the State’s unfriendly policies as negatively impacting the economy.
P.S. The photo to prose pairing on these posts is perennially pure perfection.
i guess Disney doesn’t want to be on a level playing field with Universal and other businesses. Hey that CEO needs another 50mil!
Universal has one, the Orlando Community Redevelopment District. So does Sea World.
https://www.downtownorlando.com/About/Community-Redevelopment-Agency
Heck – The Villages supposedly has several special districts. There’s no ways that DeSantis would dare touch those.
The state isn’t leveling the playing field, they’re imposing punitive measures that apply to Disney and only Disney – but not Universal.