An entrance to Walt Disney World is pictured on February 8 in Orlando, Fla. Disney quietly blocked a move by Florida Gov. Ron DeSantis to strip the company of its control over a special taxing district.
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An entrance to Walt Disney World is pictured on February 8 in Orlando, Fla. Disney quietly blocked a move by Florida Gov. Ron DeSantis to strip the company of its control over a special taxing district.
Joe Radle/Getty Images
Florida Govt. Ron DeSantis, Walt Disney World and a special tax district are making headlines once again, but this time, it’s with a new performer: England’s King Charles III.
In a quiet move that has the internet mesmerized, the former Reedy Creek Development board signed its power back to Disney before leaving office, a binding declaration that doesn’t expire until England’s monarchy is gone.
That means the five DeSantis associates who promised to rein in one of Florida’s largest employers have little ability to do anything, at least until legal action is taken.
Here’s a look at what’s happening and what might happen next.
First, a quick refresher on the Disney-DeSantis controversy
Things started heating up in 2020, when Disney implemented COVID-19 masking measures and, later, vaccine mandates. Tensions reached a peak when Disney sided against Florida’s Parental Rights in Education Act, known by its critics as the Don’t Say Gay bill.
Last month, in a move widely seen as retaliation, DeSantis signed a bill that took control of a special tax zone that included Walt Disney World. The Reedy Creek Development District has allowed Disney to operate and expand with a great deal of autonomy for the past 50 years.
The governor gave it a new name, the Central Florida Tourism Oversight District, and appointed five of his allies to the board, including a prominent parental rights activist, a Christian nationalist and an attorney, who donated $50,000 to his campaign. Gave.
On paper, the new board would oversee municipal services and development for the land surrounding Disney World. In practice, DeSantis said, the board would also act as an ethical arbiter for a company that has lost its way.
One of the board members told NPR in early March that its first step would be to conduct a comprehensive financial and legal audit into Disney’s dealings.
But, unbeknownst to the governor, Disney had already curtailed the board’s powers.
A sign is seen near the entrance to the Reedy Creek Improvement District Administration Building in early February.
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A sign is seen near the entrance to the Reedy Creek Improvement District Administration Building in early February.
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The newly appointed board was sitting for its second official meeting on Wednesday when it announced it had made a discovery: It may not be able to deliver on the agenda it had planned.
Nineteen days before DeSantis signed the final bill, the former board signed a settlement with Disney, essentially stripping the board of power and handing that power back to Disney.
Called the Declaration of Restrictive Covenants, the measure allows Disney to make the final decision on any changes to the property and requires the board to notify Disney of plans for such changes without conditions or delay.
Basically, the board “lost its ability to do anything beyond maintaining roads and infrastructure,” as board member Ron Perry put it, according to local news outlet Click Orlando.
and, in an additional detail that’s eating the internetThe term of the agreement was determined using the “rule against perpetuities”—which states that a policy will continue until a certain person dies.
In this case, the declaration would “continue for twenty-one (21) years after the death of the last surviving descendant of King Charles III.” DeSantis, after all, often refers to Walt Disney World as a “corporate empire”.
Knowledgeable social media users also pointed out this strategy as the Republicans have used After the recent election defeat. In places like Arizona, Michigan, North Carolina and Wisconsin, GOP-led legislatures tweaked state election laws before handing the reins to incoming Democratic majorities, consolidating their party’s power.
In a statement provided to NPR, Disney said the move was “appropriate” and “viewed in open, public forums in compliance with Florida’s government.”
The biggest thing is that no one noticed this public incident
As far as power moves go, it appears above the board. A detailed note regarding the restrictive covenant clause was recorded in the February 8 Reedy Creek agenda and meeting minutes. A day later, the settlement was registered with the Orange County Comptroller.
All those documents were, and are still available online, no public records request is required. Anyone could have attended the old board meeting on February 8. (There was no public comment on the measure, which the board approved unanimously.)
Walt Disney World Resorts and surrounding districts, seen in an aerial view last month. Gov. DeSantis’ office thinks it may be able to terminate the restrictive covenant on the basis of legality alone.
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Walt Disney World Resorts and surrounding districts, seen in an aerial view last month. Gov. DeSantis’ office thinks it may be able to terminate the restrictive covenant on the basis of legality alone.
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And, yet, no one noticed – or if they did, they didn’t raise the alarm. Neither the new board, nor the governor, nor the legislators or the reporters are actively monitoring the developments (guilty).
When news outlets including NPR asked Disney for comment throughout February about the various stages of its acquisition of DeSantis, the company played it straight, saying it would not fight the acquisition.
“For more than 50 years, the Reedy Creek Improvement District has operated to the highest standards, and we appreciate all that the district has done to develop our destination,” Jeff Wahle, president of Walt Disney World Resort, said in a statement. helped to do.” “We are focused on the future and ready to work within this new framework.”
So what happens next? Can the board take back the power?
The restrictive covenant is binding, meaning Disney can easily sue the board for legal damages if it tries to exceed its powers.
And it can be set aside only “if any clause or provision” is “illegal, invalid or unenforceable under applicable present or future laws”.
DeSantis’ office thinks it may be able to nullify the contract on the basis of legality alone.
“The executive office of the governor is aware of Disney’s last-ditch efforts to execute the contracts just prior to ratifying the new law,” communications director Taryn Fenske said in a statement shared with other outlets. “A preliminary review suggests that these agreements may contain significant legal weaknesses that would render the contracts void as a matter of law.”
DeSantis’ office did not immediately respond to NPR’s request for comment and clarification.
Worst case, can DeSantis just pass a new law? Maybe, but any legislation that more broadly cracks down on restrictive covenants or special districts could have the kind of cascading consequences DeSantis wants to avoid.
One of the governor’s earlier plans to dissolve all of the state’s special tax districts failed when analysts said doing so could ultimately raise taxes for the county next to Reedy Creek, frustrating local residents. .
arrogance of @disney To be continued… From ignoring parents and allowing fanatics to sexually abuse our children, to now sneaking past Florida taxpayers in a last minute development deal, Disney has once again made Florida its home. He has extended his hand.
We will not stand for this…
— Bridget Ziegler (@BridgetAZiegler) March 30, 2023
Finally, it was left to the board to mount a legal challenge to the covenant, which could still take months to resolve in the courts.
The board hired four outside law firms to investigate the contract, including Cooper & Kirk. DeSantis has paid millions to a boutique Washington, D.C. firm to help defend several controversial policies Orlando Sentinel.
NPR reached out to board members for comment but did not receive a response by the time of publication. Bridget ZieglerOne of the more high-profile members, said on Twitter that the board “will not stand for this” and “will not back down.”
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