Ron DeSantis demands investigation into Disney special district

Florida lawmakers approve Gov. DeSantis' control of Reedy Creek Improvement District

Florida Gov. Ron DeSantis has asked the state's inspector general to investigate how a newly minted tourism oversight board was allegedly stripped of most of its power by Walt Disney World top officials.

Since 1967, the land in Orlando where Disney World sits has been governed by the Reedy Creek Improvement District — a quasi-government entity led by a board of Disney senior executives. DeSantis signed a law in February effectively dissolving the district and replacing it with the Central Florida Tourism Oversight District (CFTOD).

Last month, members of CFTOD accused the Reedy Creek board members of signing an agreement with Disney that gave the company maximum decision-making authority over the theme park grounds. Signing the agreement undermined the new board's authority, its members said. 

In a letter sent Monday to Florida's Chief Inspector General Melinda Miguel, DeSantis said the Reedy Creek board purposely and unethically signed the agreement "to usurp the authority of the Central Florida Tourism Oversight District board."

"These collusive and self-dealing arrangements aim to nullify the recently passed legislation, undercut Florida's legislative process, and defy the will of Floridians," DeSantis wrote. 

Disney said in a statement last week to CBS Miami that its signed agreements were appropriate and discussed openly in accordance with state law. 

At DeSantis' urging, state lawmakers dissolved Reedy Creek after Disney angered the governor by opposing the controversial "Don't say gay" law, which bars instruction on sexual orientation and gender identity in kindergarten through third grade and lessons deemed not age-appropriate.

Disney to lose special Florida tax status

CFTOD board members held their first meeting last month and said they found out about the agreement after their appointments.

In the letter, DeSantis said he wants Miguel to look into any financial gain Disney may have derived from the Reedy Creek board signing the agreement and if the panel violated any state laws in the process.

"Disney is again fighting to keep its special corporate benefits and dodge Florida law," DeSantis spokesman Jeremy Redfern said. "We are not going to let that happen. As Governor DeSantis recently said, 'You ain't seen nothing yet.'"

Disney CEO Bob Iger on Monday said any retaliatory actions from DeSantis and state lawmakers against the company that threaten jobs or expansion is not only "anti-business ... but anti-Florida." During a shareholders' meeting, Iger reiterated the company's love for Florida, noting it has been the largest taxpayer in the state and employed around 75,000 workers. The company plans to make $17 billion in investments at Disney World over the next decade that will create an additional 13,000 jobs, he said.

Disney faces a possible state investigation as the company navigates some business turbulence, with the entertainment company moving to slash 7,000 jobs by early summer. The job cuts, which represent roughly 3% of Disney's global workforce of 220,000, is expected to save Disney $5.5 billion.

Disney's growth has dragged because of its investment in streaming, including its flagship Disney+ platform. The company reported a $1 billion loss in its direct-to-consumer arm during the first quarter of 2023. 

The Associated Press contributed to this report. 

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