DeSantis-appointed board blindsided by secret Disney docs

 In an aerial view, Walt Disney World's iconic Cinderella Castle sits on the grounds of the theme park on February 08, 2023 in Orlando, Florida. As Florida Gov. Ron DeSantis continues his push to punish Walt Disney Co. by taking control of the board of Disney's special taxing district, the company announced today a restructuring. As a result, Disney expects to cut costs by $5.5 billion and lay off roughly 7,000 employees, or about 4 percent of its global workforce. (Photo by Joe Raedle/Getty Images)
In an aerial view, Walt Disney World's iconic Cinderella Castle sits on the grounds of the theme park on February 08, 2023 in Orlando, Florida. As Florida Gov. Ron DeSantis continues his push to punish Walt Disney Co. by taking control of the board of Disney's special taxing district, the company announced today a restructuring. As a result, Disney expects to cut costs by $5.5 billion and lay off roughly 7,000 employees, or about 4 percent of its global workforce. Photo credit (Photo by Joe Raedle/Getty Images)

Before a new board appointed by Florida Gov. Ron DeSantis took over the Reedy Creek Improvement District, the previous Walt Disney Co.-controlled board passed a secret agreement.

It “essentially makes Disney the government,” said Ron Peri, a member of DeSantis’ board. “This board loses, for practical purposes, the majority of its ability to do anything beyond maintain the roads and maintain basic infrastructure.”

What is the Reedy Creek Improvement District?

This district was created in 1967 by a special Act of the Florida Legislature to “support and administer certain aspects of the economic development and tourism within District boundaries.”

Approximately 25,000 acres in both Orange and Osceola counties are within the district’s boundaries, and services around two dozen landowners, including Disney World owner Walt Disney Co. Per the district website, it is “one of the busiest places in America,” with four theme parks, two water parks and more.

“The District is responsible to oversee land use and environmental protections within the District, and provide essential public services,” according to the website.

In February, DeSantis signed legislation that renamed the district as “Central Florida Tourism Oversight District” and was meant to transfer control from Disney to the state, Click Orlando explained. According to the Orlando Sentinel, the governor handpicked a new board of Republicans to replace the Disney board Feb. 27.

DeSantis’ conflict with Disney goes back to at least last May, regarding the company’s opposition of the “Don’t Say Gay” legislation in Florida.

Disney’s secret documents

On Feb. 8, shortly before the new board was assembled, the previous Reedy Creek board “quietly approved” a development agreement.

“Board members held a public meeting that day but spent little time discussing the document before unanimously approving it in a brief meeting,” said the Orlando Sentinel.

According to CNN, the agreement allows Disney to “maintain control over much of its vast footprint in Central Florida for 30 years,” and in some cases prevents the new board from taking significant action without first getting approval from the company.

Restrictive covenants passed by the former board “tie the hands of future board members for decades, according to a legal presentation by the district’s lawyers on Wednesday,” and prevent it from using the Disney name or images, the Orlando Sentinel reported. A copy of the covenants shared by the outlet states it is valid 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.”

Citing an “unsigned company statement,” the Sentinel said Disney maintains that “all agreements signed between Disney and the district were appropriate and were discussed and approved in open, noticed public forums in compliance with Florida’s Government in the Sunshine law.”

DeSantis’ board reacts

While Disney apparently stands by the development agreement, the new board was dismayed and is “gearing up for a potential legal battle,” per the Sentinel. During a Wednesday meeting, the board approved hiring four outside law firms.

Video of the meeting was shared by Click Orlando.

“We’re going to have to deal with it and correct it,” board member Brian Aungst Jr. said, according to the Sentinel. “It’s a subversion of the will of the voters and the Legislature and the governor. It completely circumvents the authority of this board to govern.”

However, he also said that they hope to work with Disney in a “very collaborative manner.”

According to the Sentinel, DeSantis spokesperson Taryn Fenske also weighed in on the agreement.

“An initial review suggests these agreements may have significant legal infirmities that would render the contracts void as a matter of law,” she said in a prepared statement cited by the outlet. “We are pleased the new governor-appointed board retained multiple financial and legal firms to conduct audits and investigate Disney’s past behavior.”

Featured Image Photo Credit: (Photo by Joe Raedle/Getty Images)