Florida lawmakers are drawing up plans to reverse a move that would strip Disney of the right to run private government around its theme parks, potentially addressing fallout from the “Don’t Say Gay” controversy that has dragged the entertainment giant into a culture war.
In April, Florida Gov. Ron DeSantis and then-CEO Bob Chapek publicly sparred over a new state law limiting discussion of LGBTQ issues in classrooms Last week, the Florida Legislature voted to disband Disney’s 55-year-old special tax district.
The setup allows Disney to collect its own taxes to pay for the cost of providing water, electricity, roads and fire services in the area, known as the Reedy Creek Improvement District. The special zone is seen as necessary for theme park operators to maintain high standards for visitors.
However, state lawmakers are working to reach a compromise that would allow Disney to largely keep the arrangement through some modifications. Some believe Bob Iger’s return as CEO last month would help pave the way for a resolution, according to people familiar with the plans.
Randy Fine, a Republican who drafted the law ending Disney’s control of the 25,000-acre Reedy Creek property, said Chapek’s removal last week added to the district’s “fixing problems” possibility.
“It’s easier to change policy when you don’t have to defend old policies,” Fine said. “Chapek screwed up, but Bob Iger doesn’t have to admit that screwed up.”
Since his return to Disney, Iger has avoided criticism of a Florida bill he warned would “put vulnerable young LGBTQ people at risk” when it was introduced in February.
Iger strongly opposed the legislation, which critics dubbed “don’t say gay,” forcing Disney to reverse course this spring, coming out against the bill after initially refusing to take a stand. This indecision made it feel like Chapek was struggling to make a big decision as CEO.
During a town hall meeting with staff on Monday, Iger said he was “sorry to see us being dragged into [the] Fight” on Reedy Creek, need time to “speed up” on this issue.
“what can I say [is] Florida has been important to us for a long time, and we’ve been very important to Florida,” Iger said. “
An influential figure in Florida politics said Iger had struck the right tone for a compromise. “This is a great olive branch message to Disney employees and the state of Florida,” he said. “It’s a diplomatic message.”
Meanwhile, tax officials and lawmakers have warned that dismantling Disney’s private government could pass a huge fiscal burden on to taxpayers and potentially shift a $1 billion debt burden to the state.
The Reedy Creek legislation was hastily drafted this spring, just as DeSantis was starting to grab national headlines for his war on “wake up” Disney — an unprecedented attack by the Florida governor on the state’s largest employer. For more than half a century, Disney’s economic clout and a team of 38 lobbyists have kept it afloat in Florida.
Chapek angered DeSantis by opposing an education law that outraged LGBTQ employees at Disney’s Florida parks and across the company. He also halted Disney’s political donations in Florida and delayed plans to relocate thousands of employees to the state.
But things have changed in Florida and within Disney since then. Chapek was fired by Disney’s board of directors last week, and Iger, who has run the company for 15 years and is well-known in Florida, is back on the job. DeSantis easily won re-election as Florida governor in November, making him the front-runner for the 2024 Republican presidential nomination.
The law passed this spring “was a tax increase,” said State Sen. Linda Stewart, a Democrat who represents parts of Orlando, home to Disneyland. “I do not think so [DeSantis] See how much this affects the state of Florida and the counties and cities. “
A potential compromise under discussion would bar Disney from building a nuclear power plant or an airport on the property, which is unlikely to be used by Florida, which granted the company rights in 1967, she said.
More importantly to DeSantis, allowing the governor to appoint two members to the Reedy Creek board was also discussed. “These compromises can be done with minimal disruption,” Stewart said. “We can’t make it look like the governor has lost.”
The law removing Disney’s special status won’t go into effect until next summer, giving the parties time to negotiate. Republican senators are already working on a draft compromise bill, lawmakers said.
“Disney and the legislature seem motivated to make a deal. No one wants a train wreck,” said a Florida political source, speaking on condition of anonymity.
Disney declined to comment. A spokesman for Reedy Creek did not respond to a request for comment.
In a statement provided after this article was published, a spokesman for DeSantis said: “Governor DeSantis did not ‘turn around.’ The Governor was right to support the removal of the extraordinary benefits given to a company through the Reedy Creek Improvement District .
He added: “We will level the playing field for Florida businesses and the state certainly owes no particular favor to any one company. Disney’s debt will not fall on Florida taxpayers. A plan is in the works will be published soon.”