Disney Loses Control of Special District to Florida Gov. Ron DeSantis
Florida Gov. Ron DeSantis has assumed control of the board that oversees development at Walt Disney World, seizing leverage over the state’s largest employer and retaliating against the entertainment giant for opposing the so-called “Don’t Say Gay” law.
“Today, the corporate kingdom finally comes to an end,” he said Monday at a bill signing ceremony on Disney property. “There’s a new sheriff in town, and accountability will be the order of the day.”
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Under the law, effective immediately, DeSantis has the authority to appoint every member of the special tax district’s five-member governing body subject to approval by the state Senate. At the news conference, DeSantis said Florida attorney Martin Garcia will serve as chairman. The board will include Brian Aungst Jr., a lawyer and son of a former Republican mayor of one of Florida’s largest cities; Florida Republican Party chairman Christian Ziegler; Bridget Ziegler, a conservative school board member; Ron Peri, CEO of The Gathering USA Ministry; and attorney Michael Sasso, he added.
Still, Disney gets to keep most of the perks that have allowed the company to self-govern the land on its sprawling theme park resort for over 50 years. It retains almost all of its debt obligations and exemptions from a host of regulations, taxes and fees, in addition to powers allowing it to act much like its own government, including the issuance of bonds and the ability to provide infrastructure services on its land.
Disney didn’t immediately respond to requests for comment.
The feud between Florida lawmakers and Disney started when the company pushed back on the Parental Rights in Education Law, which prohibits instruction on gender and sexuality through the third grade. Disney initially stayed silent on the legislation but later opposed it under pressure from employees.
In response, Florida lawmakers last year passed a bill dissolving independent special districts that were created prior to 1968. While the state has hundreds of special districts, most were set up after that date. Another bill was introduced in February reshaping the district’s leadership structure and changing the name of Disney’s Reedy Creek Improvement District to the Central Florida Tourism Oversight District.
The passage of the law is a part of DeSantis’ crusade seeking to overhaul the education establishment as he positions himself for a presidential run next year. The law is intended to corner Disney into keeping quiet on cultural issues, like gender identity and sexual orientation, or risk having him disrupt company operations. That pressure could extend to Disney’s content decisions.
“I think that all of these board members very much would like to see the type of entertainment that all families can appreciate,” DeSantis said at the news conference.
Other issues brought up during the announcement included increasing pay for emergency services personnel, forcing Disney to pay more for transportation projects, and “woke” policies from the company, like vaccine mandates for employees and masking requirements for children.
The governor also said that the law eliminates Disney’s exemptions from the Florida building and fire prevention codes as well as state regulatory reviews in addition to ensuring that the company pays its “fair share of taxes.”
“This bill will impose Florida law on this area, just like it’s imposed on Universal Studios and SeaWorld and all these other places,” he said. “And so this is what accountability looks like. This is what standing up for Florida taxpayers and the rule of law looks like.”
Rep. Anna V. Eskamani, a Democrat from Orlando, in a statement, stressed that Disney’s special tax district — and the advantages that come along with it — weren’t dissolved despite statements from DeSantis indicating otherwise.
“All this bill does is rename Reedy Creek and allow Governor DeSantis to appoint hostile conservative cronies to a new board,” she said. “Disney still maintains the same tax breaks, but their First Amendment rights have been suppressed, and it sends a message to any private individual or company that if you don’t purport to what the governor wants, then you’ll be punished.”
A similar version of events played out in January when the governor overhauled the leadership at the New College of Florida, a small liberal arts school in the state. Pointing to low enrollment and test scores, he installed six new conservative members to the college’s board of trustees. They then voted to replace the president.
Former Vice President Mike Pence said on CNBC’s Squawk Box last week that DeSantis may have overreached.
“Disney stepped into the fray. They lost, but then the taxing authority — that was beyond the scope of what I, as a conservative, limited-government Republican — would be prepared to do,” he said.
Disney, a former DeSantis donor, remains one of the state’s largest employers. After it was granted a $578 million tax break, the company announced it would move 2,000 jobs from California to Florida.
The new board is set to meet on March 8.