Florida lawmakers are working on plans to reverse a decision that would strip Disney of its right to operate private government around its theme parks, potentially resolving fallout from the ‘Don’t Say Gay’ controversy that has dragged the giant entertainment in the culture wars.
In April, the Florida legislature voted to dissolve Disney’s 55-year-old special tax district following a public spat between Ron DeSantis, the state’s governor, and then-chief executive. , Bob Chapek, on a new state law restricting discussion of LGBTQ issues in classrooms.
The setup allows Disney to step in to cover the costs of providing water, electricity, roads, and fire services in the area, known as the Reedy Creek Improvement District. The special district is considered essential for the theme park operator to maintain high standards for visitors.
However, state lawmakers are working on a compromise that would allow Disney to keep the arrangement largely in place with some modifications. Some believe the return of Bob Iger as CEO last month will help pave the way for a resolution, according to people briefed on the plan.
Randy Fine, the Republican lawmaker who drafted the law to end Disney’s control of the 25,000-acre Reedy Creek property, said removing Chapek from executive office last week improved the odds that “something settles” in the district.
“It’s easier to change policy when you don’t have to defend the old policy,” Fine said. “Chapek fucked up, but Bob Iger doesn’t have to own that shit.”
Since returning to Disney, Iger has avoided criticizing Florida for a bill he said would “endanger vulnerable LGBTQ youth” when it was introduced in February.
Iger’s fierce opposition to the legislation, dubbed “Don’t Say Gay” by critics, has pressured Disney to backtrack this spring and speak out against the bill after initially refusing to to take a position. The hesitation helped fuel feelings that Chapek was struggling to make big calls as CEO.
In a public meeting with employees on Monday, Iger said he was “sorry to see us dragged into [the] battle” on Reedy Creek and needed time to “get up to speed” on the matter.
“What can I say [is] Florida State has been important to us for a long time and we have been very important to Florida State,” Iger said. “It’s something I’m extremely aware of and will articulate if I have the chance.”
Iger found the right tone to reach a compromise, said an influential figure in Florida state politics. “It was a good olive brand message to the employees of Disney and the State of Florida,” he said. “It was kind of a diplomatic message.”
Meanwhile, tax authorities and lawmakers have warned that the dissolution of Disney’s private government threatens to shift a huge financial burden onto taxpayers and potentially transfer $1 billion in debt to the state.
The Reedy Creek legislation was hastily drafted this spring, just as DeSantis was beginning to make national headlines for his war on “woke” Disney — an unprecedented attack by a Florida governor on the largest state employer. Disney’s economic clout, coupled with a team of 38 lobbyists, has kept it strong in Florida for more than half a century.
Chapek angered DeSantis for opposing the Education Act, which had outraged Disney’s LGBTQ employees at its Florida parks and across the company. He also halted Disney’s political contributions to Florida and delayed a plan to relocate thousands of employees to the state.
But circumstances in Florida — and inside Disney — have changed since then. Chapek was fired by Disney’s board last week and Iger, who ran the company for 15 years and is a known quantity in Florida, is back at work. DeSantis was easily re-elected as governor of Florida in November, catapulting him into frontrunner for the 2024 Republican presidential nomination.
The law passed this spring “is a tax hike,” said Linda Stewart, a Democratic senator from the state who represents part of Orlando, where Disney World is based. ” I do not think so [DeSantis] understood how badly this could go for the state of Florida, counties and cities.
She said a potential compromise being discussed would prevent Disney from building a nuclear power plant or an airport on the property, rights granted to the company by Florida in 1967 that it is unlikely to use.
More importantly for DeSantis, there is also talk of allowing the governor to appoint two members to Reedy Creek’s board of directors. “These compromises can be made with the least impact,” Stewart said. “We can’t let the governor look like he’s lost.”
The law removing Disney’s special status won’t go into effect until next summer, giving different parties time to negotiate. A compromise bill is already being drafted by a Republican senator, according to lawmakers.
“It looks like Disney and the legislature have the motivation to make a deal. Nobody wants a train wreck,” said a source involved in Florida politics who asked not to be named.
Disney declined to comment. A spokesperson for DeSantis and Reedy Creek did not respond to a request for comment.