Ron DeSantis asked Monday for an investigation into a last-minute deal the Walt Disney Company made with a board it controlled that was about to be replaced by one controlled by Florida’s governor.
DeSantis worked with Florida lawmakers to take control of the Reedy Creek District, where Disney World is located, after a feud with the theme park company over a state law banning discussions of sexual orientation and gender identity in the classroom.
But Disney officials outmaneuvered DeSantis to take control of the 24,000-acre lot near Orlando, leading DeSantis to declare “you haven’t seen anything yet” and vow to continue the battle with the house that became Mickey Mouse. had built.
And Disney shows no signs of backing down as both sides heat up the war of words and prepare for what will likely be a long and costly legal battle.
CEO Bob Iger accused DeSantis of being “anti-business and anti-Florida” at the company’s annual shareholders’ meeting. He accused the governor of retaliation against the company.
Ron DeSantis asked for an investigation into a last-minute deal the Walt Disney Company made with a board under its control that was about to be replaced by one controlled by the Governor of Florida
Last year, after Disney cut off political donations in Florida over the “Don’t Say Gay” law, Florida lawmakers ended the self-government privileges Disney World had held since 1967.
DeSantis appointed the Central Florida Tourism Oversight Board to replace the Reedy Creek Improvement District, which was controlled by Disney and oversaw development at Disney World.
However, before the DeSantis board took control, Disney officials and the old board struck a deal that allowed the company to evade the new board’s control, using an obscure legal clause controlling the King Charles III name.
In addition, for the next 30 years, Disney has secured zoning, infrastructure and air rights approvals that the company may need if it chooses to expand its theme park — meaning it can do so without approval from DeSantis’s hand-picked board.
At a meeting last week, the new board hired five law firms to investigate these agreements and possibly take Disney to court.
And the DeSantis office warned that the agreements the previous administration “attempted to push through at the 11th hour” are likely void and that all legislative options are back on the table.
“Disney is fighting again to keep its special corporate benefits and get around Florida law. We will not let that happen,” his office said in a statement.
Disney CEO Bob Iger said Ron DeSantis is “anti-business and anti-Florida.”
Disney World is the largest employer in central Florida, with nearly 75,000 employees
DeSantis has asked the state to investigate what happened.
“These collusive and self-acting arrangements are designed to overturn recently passed legislation, undermine Florida’s legislative process, and defy the will of the Floridians,” DeSantis wrote in a letter to Melinda Miguel, Florida’s superintendent general. “Any legal or ethical violations must be referred to the appropriate authorities.”
Meanwhile, Iger showed shareholders he’s not afraid to get into a street fight with DeSantis, who is reportedly exploring a bid for the 2024 Republican presidential nomination.
“A company has the right to freedom of expression just like an individual,” Iger said, referring to Disney’s criticism last year of the “Don’t Say Gay” law.
DeSantis “is taking revenge on us – basically to punish a company for exercising its constitutional right,” Iger added. “And that seems really wrong.”
He noted that “diversity is a real priority for us,” and expressed a desire for Disney to continue creating content that promotes “greater understanding, greater acceptance.”
Disney World is the largest employer in central Florida, with nearly 75,000 employees and 36.2 million visitors by 2021, according to the Themed Entertainment Association.
Iger pointed out that Disney is the largest taxpayer in the state of Florida and plans to invest $17 billion over the next 10 years.
“Our point is that any action that foils those efforts simply to retaliate against a position the company has taken sounds not only anti-business but also anti-Florida,” he said.
Disney World in Florida is located in what is called a special tax district known as Reedy Creek. The set-up allowed the company to govern itself as a de facto province – control over fire protection, policing, road maintenance and development planning.
Because of the deals Disney made with the old board, the new DeSantis board can’t do much more than maintain the roads and control basic infrastructure.
The deal Disney has made states that the provisions will remain in effect until “21 years after the death of the last survivor of the descendants of King Charles III, King of England living at the date of this declaration.”
This ‘last survivor’ is the year-old Princess Lilibet of Sussex, who lives in California.
The deal Disney has made invokes an obscure legal clause that says it lasts until “21 years after the death of the last survivor of the descendants of King Charles III, King of England living at the date of this declaration.”
The Reedy Creek Improvement District spans nearly 40 square miles and includes the entire Walt Disney World Resort. It will be renamed the Central Florida Tourism Oversight District under the new bill
The so-called ‘Royal Clause’ is used by lawyers to circumvent rules against perpetual contracts. The British Royals were selected because information about their family tree is readily available and because the family generally has a “longer life expectancy,” according to law firm Bricketts.
Often used in connection with trusts and options to acquire property, the legal maneuver was created to circumvent perpetual laws, and to maximize the possible length of time that trusts in particular can remain in effect.
In this particular case, that period – if not destroyed – could be a significant number of years, with the youngest living descendant of Charles, Princess Lilibet, only a year old.
Lawyers hired by the new board claim that the agreement with the old board was made in secret.
However, Disney attorneys believe the agreement came about within the requirements of state law This was reported by the Wall Street Journal. The contents of the old board meeting — including a description of the plan being voted on — were advertised twice in print articles published in the Orlando Sentinel newspaper in January, as required by law.
Board members appointed by DeSantis accused the company of dealing in backrooms.
Board member Ron Peri said last week that “this essentially makes Disney the government” of the district.