Disney and Florida Reach Settlement Over Tax District Dispute
In a major development, Disney (DIS) and the state of Florida have reached a settlement to end the long-standing litigation over the company’s special tax district. The district, previously known as the Reedy Creek Improvement District (RCID), allowed Disney to operate as a self-governing entity since its inception.
The dispute escalated last year when Florida Governor Ron DeSantis seized control of the district following Disney’s opposition to the state’s controversial “Don’t Say Gay” law, which prohibits instruction on sexual orientation and gender identity in early education.
“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,” said Jeff Vahle, president of Walt Disney World, in a statement.
The settlement marks a new chapter of engagement with the district’s new leadership and aims to facilitate continued investment, job creation, and economic opportunities in the state.
The resolution of the high-profile dispute comes as Disney faces challenges in its various business segments, including a declining linear TV business, slower growth in its parks division, and losses in its streaming services.
According to the terms of the settlement, both parties express a mutual desire to resolve all disputes related to pending litigation in Florida’s state court. The agreement also suggests that Disney may drop its federal complaint against Gov. DeSantis, pending negotiations on a new development agreement between Disney and the district.
Last month, Disney filed a notice of appeal after a federal judge dismissed its free speech case against the governor, citing a lack of standing to sue DeSantis and another government official. The lawsuit alleged that DeSantis and the CFTOD board retaliated against Disney for its stance on the “Don’t Say Gay” law.
The resolution of this long-standing dispute is a significant development for Disney and Florida, paving the way for a more constructive relationship between the two parties. Stay tuned for further updates on this story.
