Disney & Florida Reach Lawsuit Settlement
Walt Disney World and the Central Florida Tourism District have reached a settlement agreement in the lawsuits regarding, among other things, the company’s development agreements with the former Reedy Creek Improvement District. This post outlines terms of the deal plus brief commentary.
As you might recall, Walt Disney World’s federal lawsuit against Governor Ron DeSantis, Secretary of Florida’s Department of Commerce, and all members of the Central Florida Tourism Oversight District (CFTOD) was dismissed earlier this year. Disney already filed a notice of appeal over that ruling in the federal case.
Fast-forward to late March, and the CFTOD Board of Supervisors announced during their Wednesday, March 27 meeting that they have reached a settlement with The Walt Disney Company in the state lawsuit. The settlement was voted on and approved by the Board of Supervisors during that meeting, which ends most of the litigation between Disney and Florida, with only a few lingering loose ends (for now).
The settlement agreement stipulates that development agreements and covenants approved by the Reedy Creek Improvement District shortly before a state takeover a year ago are null and void. Both the CFTOD and Disney will dismiss all claims and counterclaims, meaning that Disney drops a countersuit seeking public records from the CFTOD Board of Supervisors.
For its part, Disney agrees not to contest the District’s assessment that the 2032 Comprehensive Plan is now null and void. This means that the 2020 Comprehensive Plan will remain in effect (for now). The CFTOD agrees to consult with Disney while reviewing and amending the current plan and creating a new comprehensive plan.
The labor services agreement between the District and Reedy Creek Energy Services will end in 2028. Disney owns the long-term mitigation credits and the District will not impede on those credits. Both parties agree not to contest the actions of the Reedy Creek Improvement District from prior to the creation and appointment of the CFTOD.
Pursuant to this settlement agreement, Disney will also seek permission from a federal appeals court to pause its federal court case in light of anticipated negotiations of a new development agreement between the company and CFTOD. This suggests that a mutually agreed-upon development agreement is the last step before all outstanding litigation is resolved.
The Board of Supervisors also voted to name Stephanie Kopelousos as District Administrator, rather than launching a search for a replacement. The Board has seen a shuffling of positions in recent weeks and months, with open spots resulting from resignations and members leaving for greener pastures (better appointments).
As District Administrator, Kopelousos replaces Glen Gilzean, who DeSantis appointed to serve as the interim supervisor of elections in Orange County. Kopelousos has a long resume of government and political work, and has worked with Walt Disney World in the past on legislation that has been beneficial to the company.
Kopelousos also headed the Florida Department of Transportation and as county manager of Clay County. Her letter to the Board of Supervisors highlighted her background in county management, strategic planning, and infrastructure development. She seems to be well-qualified for the position. Given that she’s worked with Disney in the past and is qualified, it wouldn’t surprise me in the least if she’s a ‘compromise candidate’ between Disney and DeSantis.
In addition to the new District Administrator, Governor DeSantis appointed Craig Mateer to the empty CFTOD Board of Supervisors seat vacated by Martin Garcia, who was Chairman of the Board until his resignation a few weeks ago. This is also notable because Mateer is an Orlando-area hospitality entrepreneur who previously partnered with Disney. Mateer founded the Bags Inc. luggage handling business…so let the rumors start flying that his Mateer’s appointment means a return of Disney’s Magical Express. (I’m kidding. It does not mean that.)
Following the news of a settlement, Walt Disney World President Jeff Vahle released the following statement: “We are pleased to put an end to all litigation pending in state court in Florida between Disney and the Central Florida Tourism Oversight District. This agreement opens a new chapter of constructive engagement with the new leadership of the district and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the State.”
Florida Governor Ron DeSantis spokesperson Bryan Griffin also released a statement: “No corporation should be its own government. Moving forward, we stand ready to work with Disney and the District to help promote economic growth, family-friendly tourism, and accountable government in Central Florida.”
Turning to commentary, I’m glad this is seemingly over. Sure, there’s still the federal appeal that’s outstanding, but this settlement indicates that both parties are ready to move on. Once things are squared away with the comprehensive plan, development agreement, and whatever else the CFTOD and Disney need to work towards, the appeal will eventually be withdrawn.
Beyond that, nothing to add about the terms of the agreement. The “great” thing about a settlement is that everyone can claim that they’ve won and the other side has lost. Critics of Disney can continue denouncing the company, arguing that they were outwitted and outmatched, terrified of what ongoing litigation would uncover. Opponents of the CFTOD can do likewise, asserting that there must’ve been something in the public records case that the Board of Supervisors didn’t want seeing the light of day. Everyone you like wins, everyone you dislike loses.
Our view is that a settlement is a win for everyone involved and a loss for no one. We’ve been saying for a while that it’s mutually advantageous for both parties to work together and put this in the rearview mirror. It was one of the major points in last year’s post, What Bob Iger Needs to Fix at Walt Disney World & Beyond in 2024 (under “Quiet Controversy”). Our perspective has absolutely nothing to do with matters of law.
Instead, that Walt Disney World continuing to pursue this is bad for business (see Disney’s Reputation Falls Further). That, at this point, they are not “winning over” new customers by continuing to engage in culture wars, and are instead reminding ones they’ve alienated of that. That a lot of Disney’s past success has come as a cultural unifier that has found a way to be trusted by and resonate with people of all persuasions and walks of life.
I know many of you disagree with this because you’ve said as much in the past. That’s fair enough. This is a big legal question with significant stakes and a lot of entrenched opinions about Florida and/or Disney overstepping. Personally, I think it’s possible to believe all of that and also that it benefits no one for the state and its biggest business to be engaged in a standoff, embroiled in controversy, and wasting millions of dollars on a legal fight. The only people winning in this matter are the lawyers and the rage farmers who traffic in divisiveness.
Ultimately, I look at Disney’s previous standoff with another state as illustrative for a good shoe on the other foot example. It’s easy to forget, but Bob Iger resigned from California Governor Gavin Newsom’s Economic Recovery Task Force back in October 2020 due to tensions between that state and Disneyland. That was a bitter battle at the time, and one that cost Disney dearly in not being able to reopen its Anaheim parks.
Since then, Iger has made inroads improving Disney’s relationship with California. As a result, Newsom has become an ally to Disney, making overtures to get the company to increase its presence in the state. The next step out west is getting DisneylandForward approved, which should happen later this month. Disney has done a great job of community outreach in both the City of Anaheim and the state, and now they’re going to get what they want as a result of that bridge-building.
Some of you will argue “that’s different because ___.” Our view is that, regardless of how you assign blame, the end result was exactly the same in that it was “not good” for Disney. It definitely “is good” that Disney has done the hard work of repairing the relationship, irrespective of whether the company was right or wrong in the first place.
That is precisely what I’ve wanted to see happen in Florida. It doesn’t matter what opinions you hold of Bob Iger or Ron DeSantis. That doesn’t change the fact that Walt Disney World is absolutely huge for Florida’s economic engine. It is mutually advantageous for the company and the state to repair their relationship and build towards a better future for both.
Disney wants to invest billions of dollars into Florida and it’s safe to assume the state wants that, too. That’s why we hoped after the federal dismissal and appeal, our hope was that Team DeSantis and Team Disney were working behind closed doors to fix things and move forward. Everyone loses and no one wins when these states and one of their largest businesses are at odds.
That brings us to the final and most important point. This being in the rearview mirror paves the way for investment in Walt Disney World. As has been discussed time and time again, the company plans to spend $60 billion over the next decade on Disney Parks & Resorts. Of that amount, it’s expected that $17 billion is earmarked for Walt Disney World.
There have been some concerns in the past that Disney is withholding announcements and construction in Florida until there’s resolution and clarity about the future of CFTOD. (For what it’s worth, the same is happening in California with DisneylandForward’s approval.) This settlement seems to offer that, resolving yet another threshold issue before a potentially blockbuster slate of 2024 D23 Expo announcements for Parks & Resorts. Here’s hoping that Jeff Vahle is right, and this begins a “new chapter” of constructive collaboration between the parties…and literal construction by Walt Disney World!
Planning a Walt Disney World trip? Learn about hotels on our Walt Disney World Hotels Reviews page. For where to eat, read our Walt Disney World Restaurant Reviews. To save money on tickets or determine which type to buy, read our Tips for Saving Money on Walt Disney World Tickets post. Our What to Pack for Disney Trips post takes a unique look at clever items to take. For what to do and when to do it, our Walt Disney World Ride Guides will help. For comprehensive advice, the best place to start is our Walt Disney World Trip Planning Guide for everything you need to know!
YOUR THOUGHTS
Any reaction to the latest season of the Reedy Creek Improvement District drama? Hope this is the end of the road for the lawsuits? Ready to 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.
I for one refuse to spend my tourist dollars in Florida and will continue my refusal as long as Florida leaders are all about hate and intolerance. I will continue to spend money at DL and DCA. As the mom of a gay child and aunt to a gender fluid person, I simply cannot support hate and intolerance. I would be a poor mom and aunt if I ignored Florida’s politics.
Iger wanted this to go away, and go away quietly. He’s a politician and a unifier and he’s good at smoothing things over, as Tom points out he ultimately did the same in California after the 2020 disagreements. To my view, Iger conceeded a whole lot to end this but ultimately (sadly) I agree with Tom’s pragmatism – it just needed to go away at this point and what’s done is done. Better for Disney Inc. to move forward. WDW will still be there in 10, 20, 30 years…government figures will change, and we can pray for nicer and less vindicative leaders in the future.
I haven’t seen any comments that connect the ongoing board battle in the Disney company to this decision to settle. The changes in the CFTOD board do make it appear that DeSantis offered Disney an olive branch, but I would also surmise that Disney knew that fighting on two fronts was a poor decision and they needed to do whatever was necessary to make the Florida controversy go away.
At the end of all this litigation, Disney still lost its special district and lost its lawsuit against Florida. Hopefully Disney can move past politics and start building something to compete against epic universe
You are 100% correct, Tom. This is better for all involved. I’m very glad to hear it’s over. I like the term “rage farmer.” I know that I’ve been that. I will never give up hope for a return to non-divisive and QUALITY entertainment from Disney.
If you think it’s “divisive” to have minorities in movies and TV shows, or to say that bigotry is bad, I don’t know what to say to you…
I would not trust DeSantis as far as I could throw him. And for some reason this arrangement suits him. He’s unstable and this will change with his closed mind.
Well, had his opponent won the election, Disney would certainly have been better off. But the rest of the state and its economy would have been run off the rails. Democrats are not good at managing people or governments. Look at the spit show in California. They all work together in lock-step without regard to whether it hurts the people or not. Yet they get wealthier and become “the elite” in the land. How nice… I have a family I’m friends with, they just moved to Florida from California. They’re spitting bricks worried that California will impose the “moving out of state” tax on them. Yeah, they moved their business out here too. They have ALOT to lose. Thank you, Democrats….
Sorry, I completely disagree with your summary. This was nothing but an example of right-wing politicians acting like a 2-year old because they were slighted over “dont say gay” and used baseless claims that Disney was abusing their self-government to enact the new CFTOD. Until other self-government entities, like those run by Universal and The Villages, are dismantled, then this was nothing but a witch hunt because of political beliefs. And your support of such a move is embarrassing for you because I’m sure you’re making a nice living off of Disney World. Thanks for acknowledging your right-wing tendencies at the expense of threatening free speech in America
My perspective is simply that Disney continuing with litigation is bad for business. Whether they have the moral or legal high ground is not addressed, because it’s not the pertinent question or consideration for a corporation, acting in its own–not society’s–best interests.
If you disagree with that, it’s certainly your prerogative. But take it up with Disney, as they’re the ones who voluntarily chose to enter into a settlement agreement.
As for (erroneous) assumptions about my personal politics, they’re no big secret. I just don’t inject them into articles because I don’t see that being particularly productive.
While I agree it is the best path forward, every action DeSantis took against Reedy Creek was spiteful and punitive. If a DeSantis spokesperson says ““No corporation should be its own government,” then let’s see the State start to dismantle Daytona, and any other tax district.
This is wrong. This country was started because of no taxation without representation. Disney pays and collects the most taxes by far in Florida. The law was already passed. Desantis gets upset because Disney said somthing he didnt like. Does the State of Florida now have to pay Disney for all there road equipment, ambulances, fire trucks, public service equipment, and pay for all the employees involved as well as build there own facilities. As a stock owner I do not want anything just given as I and all the other owners own that equipment.
DeSantis and his minions have sent a clear message. Either agree with them on their right wing agenda or there will be consequences. It’s just another example of how government can be weaponized. I hope all businesses get the message of how horrible it is to exist in Florida.
I think this is the best path forward for Disney and for Florida….. Just not for the USA. There were important principals that needed to be litigated.
Totally agree!
Hoping Disney gets back to just that…..Good Family Friendly Fun, the way Walt would actually wanted it.
and let me guess, family friendly only means families that look exactly the same as yours.
I am highly suspicious of DiSantis saying they want to promote “family-friendly” tourism. This state is only family-friendly to the Mothers of Liberty and their ilk. As soon as Disney expresses a statement that Ron considers “woke,” you can be sure he will continue to retaliate. His notion of “family friendly” is intolerant and non-inclusive–everything that Disney has to tried to be and support. Let us hope that Disney continues its upstanding support of all definitions of “family.”
Yes ma’am!
Smart move by both. Like Michael Jordan said, Republicans buy sneakers too. And it goes for the other side, too. Disney is a place where we want to forget about the real world.
Sounds like Disney got the shaft.
I guess it’s good in the fact that everyone can get back to business, BUT I am still reminded how much this seems to roll back to the days of all the Native American Treaties that were signed in the 1800’s. Not one was adhered to by the government. Florida signed a contract with Disney decades ago and now they don’t want to honor it anymore, so they just don’t. As they say, history repeats itself. (not that the Native American problems can compare, but the inallegy is the same).
Thanks for the excellent and balanced report. They used to call this “Journalism”.
It’s an editorial, Richard. It’s perfect for this blog and I enjoyed reading it and getting Tom’s take but opinion pieces are not what real journalism should look like.
My theory is that DeSantis folded and decided to concede that under no circumstances will Donald Duck ever have to wear pants.
This is great news! My biggest takeaway is that appointing a qualified, experienced District Administrator instead of a culture warrior signals the district intends to focus on doing its actual job. The previous board members were there only to generate headlines, and they did, although I’m sure DeSantis never anticipated throwing a sex scandal into the mix.
Most likely, the political board members will lose interest in the mundane minutiae of actually running the district and will quit soon.
This could be the end, but it could also be just the end of the state case and a focus on the Federal case. Disney has basically told the state of Florida “Make us an offer on how we live together, and if we can live with it, we’ll drop the whole thing. But it had better be a good deal”.
The news today boils down to this single part of the agreement. “… pending negotiations among other matters of a new development agreement between Disney and the District.”
Eh, I think that’s a reach. The federal case is an appeal. Maybe there’s a path to victory with it, but I don’t think we should pretend Disney had a ton of leverage here.
What I think is the more likely scenario is that the new board member and district administrator were an olive branch from the DeSantis camp, and helped everyone put this in the rearview mirror. So it’s more like Disney agreeing to a board they can work with, rather than an actual good deal. But a good board should, hopefully, lead to a mutually advantageous arrangement.
The problem for Disney is that they could get a “good board” to work with for now but that future governors could install their own set of political culture warriors who could, absent a strong, new development agreement, potentially wreak havoc. I know it was just political theater, but DeSantis threatened to build a state prison on property CFTOD controlled.
Lawyers get paid and are the real winners in cases like this. Disney and the State of Florida cry “uncle” and declare victory. Both sides save face. And I believe the Disney shareholders want to see an end to this nonsense as well.