Florida Gov. Ron DeSantis’ Board Outmaneuvered in Wrangling Over Disney Special District Control

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A legal battle is brewing over an agreement that transferred the powers of Disney’s now-dissolved special district back to the company before Florida Gov. Ron DeSantis assumed control of the board.

The 30-year deal includes approval to build another theme park and restrictions that bar the Central Florida Tourism Oversight District’s new board of supervisors from making changes to property without securing company approval, said board member Brian Aungst Jr. at a meeting Wednesday. As it stands, the board is currently powerless beyond the ability to maintain roads and other basic infrastructure. The Orlando Sentinel first reported the legal presentation Wednesday.

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During the meeting, the board voted to hire outside legal counsel to examine the pact. Special general counsel Daniel Langley said he “cannot imagine” any governing body “allowing or agreeing to allow any private developer or property owners to have that sort of control over the government and the officials who run it.” There was also discussion of striking a deal with Disney.

In a statement, Disney said, “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.”

The pact was quietly signed Feb. 8, the day before the state legislature passed a bill reshaping the leadership structure and changing the name of Disney’s Reedy Creek Improvement District. DeSantis taking control was meant to cap off a retaliatory move by Florida Republicans for Disney’s opposition to the so-called “Don’t Say Gay” law, signed in March 2022. Under the new bill, the governor has the authority to appoint every member of the special tax district’s five-member governing body. It was intended to cow Disney into keeping quiet on cultural issues or risk having the state disrupt company operations.

The agreement restricting the new board’s rights is “in effect 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.”

The document mentions that the “perpetual term” of the deal could be voided if it’s deemed to violate the so-called rule against perpetuities, a centuries-old contract rule that prohibits the uncertain endless exertion of control over the ownership of private property.

The rule is considered an obstacle to exemption from transfer taxes.

If a lawsuit is filed, the state is likely to challenge the agreement based on the rule. Any legal proceeding will take place in the circuit court for Orange County, Florida, and will be set for a bench trial, according to the document.

The agreement also includes restrictions barring the Central Florida Tourism Oversight District board from using Disney’s name, symbols, “fanciful characters such as Mickey Mouse” or marks, among other intellectual property, without approval.

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