DeSantis Threatens New Toll Roads & Hotel Taxes for Disney World Visitors
Governor Ron DeSantis promised new action against Walt Disney World in the escalating battle between Florida and its biggest employer during a sit-down at Hillsdale College in Michigan. This post shares the pertinent part of his statement, plus commentary about what each side stands to gain and lose in this still-ongoing dispute.
Earlier this week, Governor DeSantis sent a letter formally requesting that Florida’s Chief Inspector General investigate the former Reedy Creek Improvement District board and Disney employees for their adherence to state civil and criminal laws and ethics requirements.
At issue is a 30-year development agreement made between the Reedy Creek Improvement District and the Walt Disney Company prior to the new Board of Supervisors taking over. Those agreements consist of restrictive covenants, license agreement, and developer’s agreement that were discussed at a public hearing by RCID on February 8. The relevant documents were then published publicly (and can be found online here).
Only a few hours later at the company’s 2023 Annual Meeting of Shareholders, Disney CEO Bob Iger fired back. While conceding that last year the company did not handle the public position it took on pending Florida legislation very well, he contended that Disney has a right to freedom of speech. Iger asserted that DeSantis “got very angry and he’s decided to retaliate” against Disney as a result, “in effect seeking to punish a company for its exercise of a constitutional right.”
Iger added that Walt Disney World has over 75,000 Cast Members, and the resort complex has created countless thousands of indirect jobs throughout Central Florida, as Disney has transformed the region into a tourism powerhouse. Iger indicated that approximately 50 million people will visit Walt Disney World in 2023 and that Disney is the largest taxpayer in Florida.
He also revealed that the company has a plan to invest over $17 billion in Walt Disney World over the next decade that will create 13,000 new jobs. Iger concluded that “to retaliate for a position the company took, sounds not just anti-business but it sounds anti-Florida, and I’ll just leave it at that.” All of this week’s earlier developments are covered in full here.
In essence, DeSantis responded to that, dedicating several minutes of his sit-down in Michigan to his battle with Disney. The first couple of minutes were mostly an uneventful recap of what had already happened. After that, he turned to the latest developments, addressing the development agreement. Here are those comments from DeSantis in full:
Disney trying to do these agreements very quietly before we took control, and they’re trying to act like they pulled one over on us. There will be a lot that comes out over the next month or two, but suffice to say, the legislature is going to void anything Disney did on the way out the door.
Now that Disney has reopened this issue, we’re not just going to void the development agreement they tried to do; we’re going to look at things like taxes on the hotels; we’re going to look at things like tolls on the roads; we’re going to look at things like developing some of the property that the district owns.
At the end of the day, what I think what Disney has tried to do is say they should be able to operate outside the context of our constitutional system in Florida. No, we took this action prior to the election, we won overwhelmingly.
They are not superior to the people of Florida. Come hell or high water, we are going to make sure that that policy of Florida carries the day. So they can keep trying to do things, but ultimately, we’re going to win on every single issue involving Disney, I can tell you that.
As a preface to the commentary in our last post about Florida v. Disney, we cautioned against jumping to premature conclusions or declaring victors. Again, this standoff is incredibly multifaceted, involving the intersection of law and politics. The Reedy Creek saga alone involves myriad complex little-understood legal issues, and that’s before even arriving at the political angle.
Although certain aspects are ascertainable and relevant to the legal challenge and its likelihood of success, the eventual outcome as a whole is not. No one should pretend to know how it’ll play out from here. Most Walt Disney World fans and those in the mainstream media clearly did not heed our warnings. There have been countless articles, op-eds, memes, and even political cartoons about how Disney defeated, outsmarted, or outwitted DeSantis.
All of this is premature. Just as it was premature when DeSantis took his own victory lap during his book tour/presidential campaign, writing op-eds and delivering stump speeches about how he beat Disney.
In all likelihood, DeSantis cannot or will not let this go precisely because of the narrative that has emerged in the last couple of weeks. Between Disney’s last-minute development agreement and CEO Bob Iger going on the offensive with comments during the 2023 Annual Meeting of Shareholders, DeSantis likely felt the need to respond.
From his perspective, DeSantis could not let Iger’s comments go unanswered. He could not let Disney to have the last word, or allow there to be a perception that the company had beaten him, giving his opposition’s allies an opening to contend that “Ron DeSantis just got out-negotiated by Mickey Mouse.”
Although I’ve admonished others against drawing premature conclusions, I can’t help but wonder whether now is when DeSantis claims a victory and lets this finally die. To be clear, I’m not suggesting that he will. Time and time again, I’ve expected that he’d be satisfied with a superficial win and let issues go; instead, he has pushed further.
This time might be different. (Famous last words!) So long as Disney doesn’t issue a follow-up statement and DeSantis maintains the final punch, I wonder what he has to gain politically by continuing to drag this out. Last year, the answer was obvious and the approach was made all the more obvious given that Bob Chapek was a less-than-formidable foe. No matter which “side” you’re on in this debate, it’s fair to say that Chapek did not handle this matter well and DeSantis scored countless political points with his base.
The calculus is decidedly different now. For one thing, Bob Iger is back at the helm and has a defter touch. His statements during the shareholder meeting threaded the needle perfectly, hitting precisely the points he should have to ‘win’ in the court of public opinion, while also offering concessions and admitting how Disney (via Chapek) mishandled its original response last year.
Unsurprisingly, this standoff worked out much better for DeSantis when his adversary was inept or nonresponsive. Sparring with a shrewd CEO is not so simple, adding an element of unpredictability and downside risk.
For another thing, DeSantis has already succeeded at his original mission of raising his national profile and scoring points with his base. By prolonging this, what else does he stand to gain? What does he stand to lose? Beyond the base that he’s already won over, how is this likely to be perceived by ‘undecideds’ who did not previously hold an opinion in the Disney v. Florida battle? (That last one is a question that probably no one reading this can answer for themselves; your mind was already made up.)
It’s almost impossible to be an impartial observer here. Everyone has their biases. With that in mind, my personal perception is that DeSantis stands little to gain by continuing to drag this out. Most perplexing here is the angle of the latest threat made to Walt Disney World…visitors and locals. I would hazard a guess that most voters know who pays hotel occupancy taxes and the fees associated with toll roads.
I cannot imagine that being particularly popular, let alone with locals or Cast Members who will end up paying those tolls in addition to the tourists. This angle simply does not strike me as a winner; advocating for toll roads does not hit the same as cultivating culture wars or punishing the company itself. (There’s a reason neither party is overtly “pro-toll roads” in its platform–they are largely unpopular with voters.)
Those same allies who fired shots that DeSantis got out-negotiated by Mickey Mouse can claim that he wants to raise taxes if he pushes that point further. Hard to see that as a winner even with the base. To that same point, the values or principles at play also become murkier the longer this continues. DeSantis’ argument for pursuing this was clear and concise last year, but can the same be said today? Iger already recalibrated this as an issue of speech and business; now it’s poised to become one of taxation. That’s quite far afield from where it started last year.
DeSantis has promised civil and criminal investigations into the activity of Disney and the prior Reedy Creek board. Investigations like that can take a lot of time; if he’s asked about this going forward, he could simply say, “that’s a pending legal matter and I don’t want to comment, but I’m looking forward to any illegal activity being brought to light and addressed to the fullest extent of the law. Florida will win in the end.”
Basically, a twist on what DeSantis actually did say during his speech at Hillsdale College, but minus the tax stuff and drawn out over a longer time horizon than the next month or two. He could use that line until 2024 if he were so inclined. Politicians make hollow promises with zero follow-through all the time; no one would bat an eye.
Clearly, DeSantis is not the only one who needs to do a sober evaluation on what there is to gain versus lose. It would appear that Bob Iger has done precisely that, as he didn’t simply let the development agreement speak for itself. Iger didn’t have to say anything when questioned at the shareholder meeting; he could have deferred to statements already made by the company or its legal counsel. His comments were calculated.
I suspect that internal conclusion reached by Disney is that there’s little left to lose by speaking up. That the company has already taken as big of a hit as it can in the court of public opinion, and that DeSantis has played all of his cards and earned as much “goodwill” as he can from this. That the company is unlikely to alienate anyone it already hasn’t, and if anything, is starting to come across as the more sympathetic party in the dispute. (That the tides are turning is my perception, but there’s undoubtedly selection bias in Disney fan circles!)
The thought process within Disney is likely that Iger can gain some public support without sustaining much more damage. His points about economics and free speech are precisely the way to do that–he made the best possible arguments available to him. With that said, and now that he has made those points, what else does Disney stand to gain by responding yet again? Personally, I feel like we are very close to this being a lose-lose scenario where both sides suffer by the battle being drawn out further.
Of course, that all pertains to the court of public opinion, and overlooks how this will play out in actual courts, or what the governor might otherwise be able to do to punish Walt Disney World and its visitors. That all requires a more vivid imagination and I’m not comfortable speculating about what other cards DeSantis might have up his sleeve. I certainly would not have guessed “raise taxes” to be one of them a week ago, but here we are.
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YOUR THOUGHTS
What is your reaction to the latest developments in the battle of Florida v. Disney? Thoughts on DeSantis’ plan to punish Walt Disney World visitors, locals, and Cast Members with occupancy taxes and toll roads? Think Bob Iger hit the right notes during the Annual Shareholders meeting, or do you agree with the governor’s approach? Or, is this one of this no-win situations where everyone loses the longer it’s drawn out? Keep the comments civil, and avoid personal attacks or perpetuating pointless culture wars. Respectfully debating the differing approaches is totally fine, but don’t attack others, go on pointless diatribes, or troll for controversy.
Disney’s passing of the restrictive covenants, license agreement, and developer’s agreement really tell us what’s at stake. The DeSantis appointees to the new board all have communicated that they expected to be able to use their leverage to make Disney less “woke”, whatever that means. It seems unbelievable that they could expect to demand that gay or minority characters be pulled from existing or upcoming productions. Still, whatever their future demands, they were clearly expecting to use the approval of new projects to exert control over the company.
One would expect DeSantis to bluster on TV, then go back and work a deal that’s acceptable to both sides and then move on to some other culture war issue. That obviously hasn’t happened, and the question is how far he is willing to push Disney. If he tries to control the company’s future direction in Florida, then it’s likely Disney has a contingency lawsuit waiting in the wings.
I still don’t understand what he thought he would gain even starting this war. He got his law. He doesn’t realize how much Disney had brought to his state. Disney can just say that we are on hold for our $17 billion future. How does that benefit Florida? How many jobs are indirectly affected in Florida? He has shown such a poor judgment in this matter. And by the way, did his polls go up recently?
It looks to me like DeSantis is having trouble running against Trump because the later tends to suck up 100
% of the press coverage. DeSantis is having to do more and more outrageous things to get press coverage and look like a viable primary candidate to the MAGA faithful.
I don’t think DeSantis cares about the particular of what’s going on with Disney, only that he stay in the news every day, and he appears to be “anti-woke warrior”.
Also, one more thing. DeSantis got married at Disney World and he has young kids. I think he understands this situation much more than he’s given credit for in some of these comments. He’s not some older, out of touch politician. He’s looking to score points with his base and reign Disney in a bit.
And obviously Disney is looking out for themselves as well they should. I just don’t think this situation is so dire. It’ll work out. Disney and Florida need each other.
I don’t have a problem with either side’s posturing. The market will figure it out if DeSantis goes too far just as it will if Disney goes too far. Frankly, Disney has a lot more problems with its cable/streaming business and ESPN than what DeSantis is doing. This is all a distraction really.
I’m surprised this is playing out the way it is. When Iger took over I expected him to contact the Gov at least by back channels if nothing else and create a working relationship that benefitted both FL and WDW. There’s no need for animosity which serves no one ever. Perhaps Iger could have achieved much the same outcome with the new board as he did last minute with the outgoing Reedy group which was like dunking a basketball over Altuve. Iger must be smart enough to know how that would turn out. Often the headwiter on a show is not the best writer but one who knows how to get the best out of his writers. Incredibly. despire both sides needing each other and having great building blocks they could play together with they’re choosing to act like monkees and throw feces at each other. My apologies to all simians everywhere. One last thought. If being married 48 years has taught me anything it’s that the one who really wins is the one let’s the other person think they’ve won. I bet Sarah knows what I’m talking about.
Well, I don’t think DeSantis is someone who can be reasoned with. He’s a fascist who is obsessed with gaining power. That’s his end goal, so there is no common ground for him and Disney. He is the antithesis to everything Disney wants, and he doesn’t really care if he hurts local Floridians to get his way. Sometimes there is someone in power who just cannot be convinced to see reality.
Hi Fred, As a left leaning individual myself Ive no idea how to respond to “he’s a fascist, he wants more power and he’s willing to hurt the people who elected him”
except to say you and I both love Disney and that’s good enough for us to be friends. We’ll just have to leave it at that.
DeSantis’ huge ego is bigger than his brain. In the long run, who has done more for Florida? DeSantis or Disney? Stop your stupid culture war Ron. It’s not helping anyone.
It’s helping us who believe that Disney shouldn’t be very publicly threatening to unseat politicians it doesn’t like then pledging millions of dollars to do so. Those of us who live here don’t want Disney butting into state politics in that manner.
Nobody should sell their souls for a few bucks nor allow mega corps to run things because they bring in jobs. In fact, that’s terrible for employees and customers too.
Disney should have worked to establish a relationship instead of undercutting the new board, forcing the Governor to act.
Thanks Tom for the article… frankly infuriating from my perspective. Desantis doesn’t understand, or more than likely, just doesn’t care about the massive Disney fan base and voters for that matter. This was another knee-jerk reaction from a politician who took on Disney for the free publicity to get his name on the front page. Reedy Creek was a win-win situation for both Disney and the State of Florida. I don’t understand why he would consider placing the additional tax burden on the sunshine state residents and now eyeing for a Presidential bid?? I am a DVC owner since 1991 but not a Florida resident but will support Disney through these tough times. Frankly, if Desantis gets the republican ticket for the presidency, he will have an uphill battle from all those Disney folks – I certainly don’t support his actions or is bid for the Presidency.
I’m a Disney “folk” and I support DeSantis here. Disney should not be allowed to run around and do whatever it wants just because it brings in jobs. That leads to bad outcomes for voters, customers, and workers.
I’m glad DeSantis is taking it to Disney.
Toll roads? Did everybody forget about 417 North and South? And room taxes? Every time I stay at a hotel there are at least 2, and mostly 3 different room taxes. Raising the room taxes won’t stop people from visiting Disney or Universal or even Sea World. All the revenge he takes out on Disney will affect all the tourist sites and businesses. How many of them will stand up and stay they’ve had it with their governor??
His attempt to take over a private corporation and govern it through the state legislator via a board of directors appointed by the governors office sounds extremely anti-republican
Also anti-business ………
This is exhausting.
We are emerging from a pandemic and there is a land war raging in Europe. I could continue the list of important issues for whatever the character limit is in these comment boxes. Point being, can we put our time and attention towards things that solve complex problems and move us forward together? Is that really too much to ask?
Apologies if this goes too far. I didn’t mean it as a political statement.
It is absolutely befuddling to me that this is still going on. If DeSantis hadn’t started the recent legal action, likely the public eye wouldn’t even have noticed that the board was limited to handling infrastructure (which seems like exactly what the previous board did anyway) and he could have kept it as a win. Bringing it up again was the impetus for public perception to shift….and bringing it up again, AGAIN in this matter, just makes him seem like a kid who didn’t get his way.
More than that…say he gets exactly what he wants and starts taxing Disney hotels and roads, and successfully gets his followers to boycott Disney. So…less people come to Disney because of higher prices and politics. Less tourists coming = less taxes collected = less money for the state. There is no possible win for Florida even in his best-case scenario.
I hope Floridians are as confused by this as I am, and make it known the next time they vote.
disney does not own Florida. By trying to influence Florida laws that do not pertained to them, they crossed the line.
disney was a well favored guest in Florida, but they have killed the goose! I’m stock holder and a former passholder
And neither does this tyrannosaurus DeSatan. Time to put big boy pants on and stop trying to shove his tyranny agenda down Disney’s throats!!Disney can support who it likes. Without Disney, FL is done!
While you and a lot of other people might not agree with Disney’s views on the legislation, using the government to punish a company for exercising its right to free speech is unamerican. As a stockholder, and consumer, you should be using your votes on the board, and your pocketbook if you disagree with Disney – not the government.
That’s not the way the political process works. Businesses lobby government all of the time, and are a constituent just like other residents.
Disney was under pressure to protect their employees and guests. The more hostile Florida becomes, the more difficult it will be for Disney to attract and retain employees. Who’s going to want to work in Florida when they, their children, or grandchildren will become persecuted through a witch-hunt to embellish someone’s political resume?
The laws do pertain to Disney, because they have to attract employees. I live here and I have a child in school and those laws are VERY unpopular with parents. The people who like them are elderly retirees who don’t have kids who are subject to them.
Wow he seems to have missed high school with the pettiness in that statement. Republicans don’t want to interfere with business. Florida wants tourism but he’ll let’s blow that up because desantis needs to pretend his form of sorach and governing is the best. Honestly, he should learn from the former presidents mistakes and just learn to keep your mouth shut sometimes. They all turn out to be their worst enemies. And does desantis want to be the candidate suggesting taxes and tolls. Give me a break. I used to like this guy. But just like trump, when you hurt their feelings they turn into teen girls. Sorry for the rant but this gas crossed the ridiculous line now.
I agree! I love the decisions he made for our schools but when he does things like this it’s just not good. It’s like some big baby that is whining and whining. I also feel that Disney shouldn’t have made political comments. That’s what set him off and pissed off alof of conservative people. It is supposed to be a family park but now it sort of caters to woke and well to do individuals. DeSantis could have just voiced his concerns, threatened Disney and then let it alone. But Ron just keeps pushing and pushing to prove he is RIGHT! If he gets to be President, we will definitely be on either the brink of war or there will be a war. Yes, he is a teen girl!
Boooooo
I wish people could go back to supporting politicians for what they accomplish FOR US, instead of this polarizing team sport its become. We as Americans are so busy fighting each other that we are willing to be hurt by the decisions they make in order to be on the winning side. BTW none of the American people are EVER on the winning side.
Disney will win. Disney always wins, by virtue of being Florida’s goose that laid the golden eggs.
That’s true! Ron is just a sore loser. We will ALL lose in Florida if he keeps making trouble for Disney World.
Sorry, Tom, but I don’t usually jump into this political discussions, but I feel compelled! I’m not from Florida, but I am a DVC member and AP holder. I love the Disney World product, the creativity, the scope of options, but especially the cast members. From my perspective, I really don’t understand DeSantis’ strategy here. It does not seem sound; it feels very juvenile. And he’s beginning to look like, act like a bully. I’d like to understand this from the common Floridian perspective, especially those in Orlando. How is this all being received there?
I agree! He IS a bully. When he doesn’t get his way, you better get out of the way. Some people just need their big ole diapers changed. As far as the other decisions he made for Florida, I support most of them. I do not support him punishing Disney and their supporters just because a few of the Disney heads pissed him off. I fear for this country if he runs for President.
Orlando is a very blue city, likely the bluest in the state.
DeSantis is petty, venal, and vindictive. Horrible governor who doesn’t the meaning of democracy.
It’s hard to know how to respond. Good luck, Tom, with the comment section on this one. All I can say is, I enjoy Disney, I have many LGBTQ+ family and friends, I support the freedom of ideas university educations should offer, and The 1619 Project is a really good book, which I recommend. That was all positive, right?
Wow, if this man doesn’t get things to go his way, he punishes everybody! Thank you Governor!! SMH!