Since the 1960s, The Walt Disney Company has essentially acted as its own government over the Reedy Creek Improvement District that controls the majority of its theme park empire. Now, those special powers are gone.
It will likely go into a prolonged legal battle should Disney and CEO Robert Iger wish to push the issue. But regardless of that fight, it seems Disney’s self-government powers over an area of Central Florida the size of Manhattan have now come to an end. And if Disney continues to fight the issue, it may result in more disdain towards the company from the legislature that appears to be over Disney’s efforts.
A board appointed by Gov. Ron DeSantis of Florida to oversee government services at Disney World voted on Wednesday to nullify two agreements that gave The Walt Disney Company vast control over expansion at the 25,000-acre resort complex.
The five-member board voted after its general counsel, Daniel Langley, presented evidence of what he called “self-dealing” and “procedural unconscionability” by Disney in pushing through the agreements earlier this year. Mr. Langley and another board lawyer said Disney violated Florida law in multiple ways, including by failing to fully notify the public of the actions it took.
“What they created is an absolute legal mess,” Martin Garcia, the board chairman, said of Disney during the meeting. “It will not work.”
Disney had no immediate comment.
— Brooks Barnes, The New York Times
Yet again, those who have said this would never come to pass have been shown to be totally wrong. Those who prognosticated that Disney had completely outsmarted the rubes in Florida just aren’t providing accurate information to their readers.
As for where this goes next, Disney may attempt legal appeals. However, that is not without danger. It is now clear that the general Florida population is not in favor of children being taught about bedroom issues through state-controlled education when children are four and five years old. Disney taking a political position in favor of actively making that possible has not gone over well. Simultaneously, the company losing its special government status as a result has not acted in a manner that has been seen as overwhelmingly positive. For many in Florida, they have felt a sensible piece of legislation was used as a wedge attack against the state and parents’ sensibilities by a California corporation too big for its Mickey britches. Of course, those who are in agreement with Disney feel otherwise.
Now Disney will be submitted to a bevy of rules and regulations they have been exempt from in the past. The theme parks may be subject to attraction inspections from the state, transportation inspections are on the way, the state now controls signage near roads, taxation goes to the state, etc. All-in-all, the expected cost to Disney over the next many decades could easy by in the many billions of dollars.
Perhaps it would have been better for Disney to stay apolitical. And perhaps the crazies cheering Disney on don’t really have the best business interests at heart for the company.
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