Disney strips DeSantis of his fairy tale ending. Good. | Editorial - Orlando Sentinel
By: Orlando Sentinel
S E E D E D C O N T E N T
Gov. Ron DeSantis has spent months (and an entire chapter of his new book) boasting about his victory over a “woke” corporation after demanding that the state Legislature yank the Reedy Creek Improvement District from under Walt Disney Company control.
Clearly, the governor thought he’d written the perfect fairy tale and cast himself as the hero — only to discover that Disney executives flipped the script.
In broad daylight, no less. Before it was infested with the governor’s band of political buddies, the Reedy Creek board signed binding contracts that transfer most of the control of district-owned facilities and future development back into Disney’s hands, and ban the district from using any Disney trademarks. Now the district, renamed the “Central Florida Tourism Oversight District,” appears to be just a payroll, a bundle of debt and tax levies that probably can’t be disturbed.
The governor’s response is classic DeSantis. He now wants to waste some of that money on a small army of very expensive attorneys in an effort to unwind those agreements.
In other words, DeSantis’ plan for the district he seized is to take tax money from Disney and use it to sue Disney, in an attempt to circumvent Disney’s control over land Disney owns.
Confused yet? We haven’t even gotten to the role of the Princess Lilibet, who lives in a magical, far-away land called Santa Barbara. (What’s a Disney story without a princess?)
Our story so far
Most Central Floridians remember how this spat started: During a special session of the Florida Legislature, Rep. Randy Fine introduced a sneak attack to abolish the Reedy Creek district. It was an apparent attempt to punish Disney executives for mild, belated criticism of DeSantis-backed bills, including attacks on diversity training and the so-called “Don’t Say Gay” bill, which targeted discussions of sexual orientation in schools. (Side note: Fine, a Brevard Republican, asserted last week that DeSantis has since urged him to apply to run Florida Atlantic University. We’re getting Jafar vibes off that one.)
Critics were quick to point out that there were a few reasons not to straight-up abolish the district. Or a billion: The district, created more than 50 years ago to give the company more control over its own permitting and planning for the 38.5 square miles of then-undeveloped land it had purchased, now carries about $1 billion in bond debt.
And some huge, real world responsibilities, including permitting, planning and critical utilities for Disney’s four theme parks, two water parks, a sports complex, a collection of hotels that total more than 40,000 guest rooms and Disney Springs, with its 24-screen movie theater, House of Blues and Cirque du Soleil. The district operates two incorporated cities, full-fledged fire and EVAC departments complete with cranky unions, 170 lane miles of roads, a huge electric plant and natural-gas distribution system, water and wastewater systems.
Many — including this editorial board — have been uneasy about the power that the Reedy Creek district allows Disney to wield, or the untold magnitude of tax payments it’s avoided over the years by taking advantage of its ability to issue government bonds. The district even had the authority (which it never used) to construct a nuclear power plant. But there’s no doubt that the company backed its power with its own cash. Its hand-picked board levied property taxes that are triple or quadruple what other Central Florida cities and counties charge — taxes that Disney was charging itself. Under the first 2022 legislation that would have abolished the board outright, that tax burden and bond debt could have transferred to Orange and Osceola taxpayers.
Without so much as an “oops, my bad,” DeSantis’ minions wrote another secret plan. During a special session in December, lawmakers obediently adopted it. The new legislation took few powers away from the district — but did wrest control from company hands and declared that DeSantis had sole authority to appoint the district’s board.
Unfortunately, those high-priced lawyers and DeSantis’ own staff apparently didn’t bother to pay attention to the agreements the old Reedy Creek board signed off on in the meetings before the state Legislature approved the governor’s hotheaded demands. We’re not sure why. The meetings were open to the public and duly noticed.
As members of those high-priced law firms explained, the old board enacted agreements that transfer most of the control back to the company. There’s also a contract that restricts the district from using any Disney trademarks or changing design aspects of any district-owned properties — ending any possibility of renaming Disney Springs’ parking garages “Ron” and “Casey.”
They were all approved in the Sunshine. They meet the deadlines the Legislature itself set — after the agreements were ratified. And they were rolled out well in advance of the June deadline the first Reedy Creek law set for abolishing the district.
There’s even a hidden Mickey: The restrictive covenants (in effect, a contract between the district and Disney) don’t expire until “21 years after the death of the last survivor of the descendants of King Charles III, king of England living as of the date of this declaration,” a legal (yet delightful) maneuver to protect it against challenges. That’s where Lilibet, the toddler daughter of Prince Harry and Meghan Markle, comes into play: She turns two in June. And as the Sentinel’s Jeff Weiner points out, Windsors tend to live a very long time.
Through a spokesperson, DeSantis declared that the new district will rev up its pricey legal superpower and wrest back control, fulminating about “significant legal infirmities” but failing to identify any, and complaining about last-minute maneuvers after launching not one, but two sneak attacks on a publicly held corporation. We suspect he’s living in Fantasyland.
A word to DeSantis
Political Pulse
And that’s where this ride should end.
This was a foolish, petty and ultimately selfish political vendetta that could have ended up far worse. If Disney executives had responded to DeSantis in the same vengeful vein — by pulling back even a small fraction of the resources the company has invested in Florida — the economic wreckage could have been massive. Instead, company executives and district officials stayed quiet, bided their time and executed a plan that is both elegant and witty.
From now on, Gov. DeSantis, save your tantrums for your taxpayer-funded mansion and endless trips to court donors and rally support in other states.
Whenever you happen to be in Florida, focus on your actual job: Running a massive state government where people are dying every day of drug overdoses and mass shootings that you barely acknowledge. Where school boards across the state are grimly awaiting the final price tag of the economically reckless voucher bill you just signed. Where insurance rates are skyrocketing and damage claims from back-to-back hurricanes are being summarily denied. Where, every day, we’re discovering more cracks your machinations have inflicted on the fundamental integrity of Florida’s own government.
Stop letting your inner Donald control your behavior. (In this case, we mean Donald Duck.) All you’ve managed to do so far is create a situation where Disney has more control, and potentially more secrecy, than it ever did. No matter how you try to play this, it seems apparent that you were outplayed.
So take your advice from the Queen (and in this case, we mean Queen Elsa). Let. It. Go.
The Orlando Sentinel Editorial Board consists of Opinion Editor Krys Fluker, Editor-in-Chief Julie Anderson and Viewpoints Editor Jay Reddick.
Disney World is one of the main things non-Floridians associate with Florida. I dont think DeSantis attempt to lord over Disney was ever going to succeed.
Ironically, conservatives like DeSantis are the ones who whine the most about “cancel culture.” But has anyone poured this much time and energy into canceling someone who disagreed with them on one issue?
At current count, by the way, Disney World employs 77,000 people. Guess their votes don’t matter to DeSantis.
DeSantis is making all kinds of threats to ''get even'' with Disney for making him look the fool.
This is not the first time that businesses have told DeSantis to ''stuff it''. It happen when he tried to make the cruise lines follow his no mask or testing during the pandemic.
This is more of what DeSantis is trying to attack Disney.
Seems that DeSantis is nothing more than a bully that got his ass kicked along with this 5 Star legal team. Now has to try to resort to the nonsense that will hurt no one but the public who enjoy going to Disney.
Meh, Disney lost 123 billion in market value in 2022.
Florida had a 22 billion dollar surplus.
Who’s zoomin who?
Disney is one of the largest employers in Florida and paid close to $800 million in taxes to Florida in 2021.
Zoom Zoom
Lol and yet, they felt the need to shit-can their CEO and bring back Iger.
Yep, zoomin right along .....
Which of course has nothing to do with the comment or the article. In fact, Iger has taken DeSantis head on..
Zoom Zoom
Good luck.
Iger is doubling down on an already failing business plan
Keep spinning though , maybe at some point you will really start to believe it is the correct path.
Disney Statistics in 2022
Source: Statista
If only my business plan was failing like that. Sigh.
Yawn .....
Disney stock dropped 44% in 2022 losing, as noted, 123 billion in market value.
Disney+ lost 2.4 million viewers in the last three months of 2022. The business component of Disney+, Hulu and ESPN+ lost 4 billion alone in 2022.
So, they fired their CEO .....
You need to keep up with current events.
I guess that you didn't understand the record profit for 2022. $28.7 billion
The latest report from Disney:
Drone nonsense? Do you know anything about bees?
Drones only serve one purpose to the colony, to mate with a queen. This mating takes place away from the colony, in mid-air mating sites called 'congregation areas'.
I missed nothing. You on the other hand are ignoring all the negative trends stacking up on Disney ..... as I’ve very clearly noted here.
Desantis is the least of their problems
Yea you did, as you can see if you read the link that I posted. The so-called negative trends have been changing with the last quarterly report and the change that Disney/Iger are implementing.
I don't see DeSantis as a big problem for Disney, more of a fly on an elephants ass.
And yet, here you are, sniffing around like usual.
Your obsession with my postings is not healthy.
Not in the least .....
Keep doing that, it might help.
Increased oxygen levels in the brain can enhance mental clarity, focus, and concentration.
It’s funny watching you trying to hop around the negative trends.
Keep up the good work there brother. I’m sure all the STCU affiliate locals appreciate your hard work.
Awwww .... I’m really starting to feel the love here from the mafia.
Hope you had a hap hap Happy Easter there Pat.
Really!
You too, Sparty
LOL, you're too funny. You can't seem to grasp record revenues and the change being made to address the Hulu/ESPN issue.
Keep swinging you might actually make a point soon, or not.
It's interesting to me, how Trump's populism has reversed the game board. Repubs who were traditional allies of business and the chamber of commerce are now sometimes on the attack while liberals who traditionally are mistrustful of big business, especially a business with Disney's lily white, wholesome image history are defending them.
I’m not sure much has really changed except folks boycotting or supporting companies based on their perceived political stances. That has flipped the script for many folks on both sides
Gotta love free markets and choice .....
Fly more jets. Ride more buses. Drive more cars. Burn more carbon. Let's all go to Disney World!
Not to worry, we can all blame big oil and enjoy another day in fantasyland. And we can pursue political priorities, to boot.
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[4 off topic comments deleted.]
Any reason you deleted the comment in my comment history as well?
If the Florida legislature had any integrity, they’d impeach this governor for blowing off his job to waste government resources on a personal, political vendetta.
If DeSantis isn't doing his job- then how come bills are getting passed? Much to the chagrin of the leftist doomsayers in Florida.
Now you want to talk about impeachment for not doing the job- then get with the Democrats. Brandon the Human Fuck Up Machine's dereliction of duty has no equal.
Progressives cheering for a billion dollar corporation that profits of sweatshops and exploring labor to evade government control and maintain control of its own fiefdom.
It’s transformation into the party of big business is complete.
The relationship that regular people have with Disney does not involve a perception of a “big business.” A “big business” is typically seen as an inhuman abstraction that makes money at the expense of those regular people or does little that actually benefits them.
Disney, by contrast, is a big part of the lives of young families, and the connection stays with many people throughout their lives. While the company makes a lot of money, to be sure, I would say it does not fit the typical “big business” profile from the perspective of most people.
That's fair.