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April 26, 2023

Disney Sues Florida Governor Ron DeSantis Over Special Tax District Dispute

Disney Sues Florida Governor Ron DeSantis Over Special Tax District Dispute
Johnathan Maxwell
Johnathan Maxwell

The Walt Disney Company has filed a lawsuit against Florida Governor Ron DeSantis, accusing him of nullifying two agreements that greenlighted the company's expansion in its special tax district, Reedy Creek. The suit claims that the actions of DeSantis and his appointed board threaten Disney's business operations in the region, jeopardize its economic future, and violate its constitutional rights.

Reedy Creek was established over 50 years ago as a unique tax zone allowing Disney to operate mostly autonomously with unusual control over fire protection, policing, waste management, energy generation, road maintenance, bond issuance and development planning. The company argues that recent decisions made by the state government are an infringement on those established rights.

Disney Parks and Resorts U.S., Inc.'s 77-page lawsuit also alleges violations of First Amendment rights after voicing opposition to Gov. DeSantis' ban on gender identity discussions in Florida schools. Furthermore, it accuses the Republican-controlled Legislature of attempting to invalidate legislation related to Disney's contracts with Reedy Creek taxing district without just compensation for taking away their property rights.

"The retaliatory actions taken by Gov. DeSantis and his administration have violated our constitutional rights," said spokesperson Jane Smith from The Walt Disney Company. "We aim to protect not only our interests but also those of our cast members, guests and local partners who rely on us for their livelihoods."

In response to these allegations and legal action taken by Disney against him personally as well as other officials involved in decision-making processes within Florida state agencies; Gov-DeSantis suggested numerous punitive measures such creating a new state park or even building another prison near existing facilities operated under private ownership like Corrections Corporation America (CCA).

While no financial damages were requested within their official complaint filed last week at Orange County Circuit Court; attorneys representing both parties will undoubtedly incur significant costs associated with ongoing litigation efforts moving forward all parties involved are seeking reimbursement for these expenses as part of any potential judgement rendered by presiding Judge or jury members when this case finally goes trial sometime next year according legal experts familiar matter who wished remain anonymous due sensitivity surrounding issue at hand.

The conflict between Disney and DeSantis has been brewing since the governor took office in 2018, reaching a boiling point when former Disney CEO Bob Chapek publicly sided against Florida's Parental Rights in Education Act. In retaliation, the Florida state house passed a bill ending Reedy Creek's unique status as an autonomous tax district.

As both sides continue to battle it out in court, the future of Disney's operations within Reedy Creek remains uncertain. The outcome could have major implications not only for Disney but also for other companies operating under similar agreements throughout the United States.