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The Walt Disney Company has filed a lawsuit against Florida Governor Ron DeSantis over the elimination of their special tax district.
Reedy Creek as it's known is a governing jurisdiction and special taxing district for the land of Walt Disney World Resort.
The lawsuit was filed minutes after the DeSantis-appointed oversight board voided an agreement between Disney and the previous board that oversees the 25,000-acre resort complex in Orlando.
“This government action was patently retaliatory, patently anti-business, and patently unconstitutional,” Disney said.
The Central Florida Tourism Oversight District Board of Supervisors appointed by Governor Ron DeSantis voted today to void Disney’s final agreement with the previous Reedy Creek Improvement District board.
The fight began last year after Disney, in the face of significant pressure, publicly opposed a state law that bans classroom lessons on sexual orientation and gender identity in early grades, a policy critics call "Don't Say Gay".
Disney has accused DeSantis and the five-member board of launching “a targeted campaign of government retaliation” against the company, according to a lawsuit filed in the Northern District of Florida.
The development agreement arranged between Disney and the previous Reedy Creek Improvement District board allowed Disney maximum building rights over its property for the next three decades.
A separate set of covenants gave the company veto power over whatever Reedy Creek does with its property until 20 years after the last living heir of King Charles dies.
The Reedy Creek Improvement District has now been renamed The Central Florida Tourism Oversight District, with key figures appointed by DeSantis.
During their Wednesday meeting, the Board of Supervisors declared the agreement with Disney null and void.
They said that proper procedure had not been followed for comprehensive plan amendments and pointed to multiple documents missing exhibits.
In a document released before this decision was formally made, the board outlined their reasons for voiding the agreement.
It claimed “the benefits of the development agreement are entirely one-sided,” and added that “the District receives nothing in return.”
Disney's court filing claimed: “Today’s action is the latest strike: At the Governor’s bidding, the State’s oversight board has purported to ‘void’ publicly noticed and duly agreed development contracts, which had laid the foundation for billions of Disney’s investment dollars and thousands of jobs."
It continued: “A targeted campaign of government retaliation — orchestrated at every step by Governor DeSantis as punishment for Disney’s protected speech — now threatens Disney’s business operations, jeopardises its economic future in the region, and violates its constitutional rights."
Last week, the new board handpicked by DeSantis vowed to undo the “sweetheart” deal between Disney and their predecessors.
Martin Garcia, the chairman of Central Florida Tourism Oversight District, said: “Regardless of your politics, nobody should favour outdated legislation that elevates a corporation above the public good.
“In seeking to improve the functioning of the district, nothing is off the table for us.”