Disney ends its fight with DeSantis over tax district

In a stunning turn, The Walt Disney Co. dropped its fight against Governor Ron DeSantis of Florida for control over $17 billion in planned development at the Disney World theme park complex near Orlando, Fla.

Disney’s capitulation followed a legal setback. In January, a federal judge threw out a Disney lawsuit claiming that DeSantis and his allies had violated the First Amendment by taking over a special tax district that encompasses the company’s 25,000-acre Florida resort, which employs roughly 75,000 people.

As part of a settlement announced Wednesday, Disney agreed to pause an appeal of that ruling — but not drop it entirely — while negotiating a new comprehensive growth plan with tax district officials. Disney also agreed to stop fighting the tax district in state court, with both sides “choosing to move forward in a spirit of cooperation,” according to the six-page settlement.

“We are pleased to put an end to all litigation pending in state court in Florida,” Jeff Vahle, president of Walt Disney World, said in a statement. He added that the agreement “opens a new chapter of constructive engagement” and would allow the company to continue to invest in the resort. As part of the settlement, the district agreed not to “prohibit or impede” long-term environmental permits granted to Disney.

DeSantis celebrated the settlement, saying the state has been “vindicated” on all of its actions.

“A year ago people were trying to act like all these legal maneuvers were all going to succeed and the reality is here we are a year later, not one of them has succeeded,” DeSantis told reporters in Orlando.

The settlement followed a conspicuous leadership shakeup at the district. Two people whom Disney viewed as particularly antagonistic — the founding chair, Martin Garcia, and Glen Gilzean, a senior administrator — resigned this month.

The typically outspoken Garcia, whose term would have stretched into 2027, gave no explanation. Gilzean, who had been caught in an ethics scandal in an unrelated prior government job, was appointed supervisor of elections for Orange County, which includes Orlando.

DeSantis replaced Garcia with Craig Mateer, a hospitality executive and a donor to the governor’s recent presidential campaign. Stephanie Kopelousos, a former legislative affairs director for the governor who also worked on his presidential campaign, was hired Wednesday as the new administrator. Kopelousos worked closely with Disney lobbyists during her stint in Tallahassee, Fla.; three years ago, she helped exempt Disney from a restrictive social media law.