With the deal reached, Disney will withdraw the lawsuit, ending the conflict with DeSantis and his appointees

Orlando, Florida – Now that Disney and Florida Governor Ron DeSantis’ nominees for a gubernatorial district have reached an agreement on How Walt Disney World Will Be Developed over the next two decades, the company plans to ask its federal lawsuit be rejected, ending the last conflict between the two sides.

The decision is not surprising because the future of the federal lawsuit depended on whether a development agreement could be reached between Disney and DeSantis’ appointees to the Central Florida Tourism Oversight District, which governs Disney World, under an agreement achieved in March.

The development agreement was approved Wednesday night by DeSantis’ district council appointees. A Disney official on Thursday confirmed plans to ask for the federal lawsuit against DeSantis and his appointees to be dismissed, but was not authorized to speak publicly about the matter.

As part of the 15-year agreement, Disney agreed to invest $17 billion in Disney World over the next two decades and the district committed to making infrastructure improvements on the theme park property. The district provides city services such as firefighting, planning and mosquito control, among other things, and was controlled by Disney supporters before its takeover last year by DeSantis appointees.

“This new development agreement paves the way for us to invest billions of dollars in Walt Disney World Resort, supporting the growth of this global destination, fueling Florida’s economy and enabling us to deliver even more memorable and extraordinary experiences to our guests.” said Jeff Vahle, president of Walt Disney World Resort.

Under the terms of the agreement, Disney is approved to build a fifth major theme park at Disney World and two more smaller parks, such as water parks, if desired. The company can also increase the number of hotel rooms on its property from nearly 40,000 rooms to more than 53,000 rooms and increase the amount of retail and restaurant space by more than 20%. Disney will maintain control of building heights to maintain an immersive environment.

In exchange, Disney will donate up to 100 acres (40 hectares) of Disney World’s 24,000 acres (9,700 hectares) for the construction of district-controlled infrastructure projects. The company will also need to award at least half of its construction projects to Florida-based companies and spend at least $10 million on affordable housing in central Florida.

A spokesperson for DeSantis said the governor was pleased the agreement had been reached.

“This agreement is a huge win for Central Florida and will lead to multiple jobs and better guest experiences,” said Bryan Griffin, communications director for the governor’s office.

The deal followed a détente in March in which both sides agreed to stop litigating each other in state courts and work to negotiate a new development agreement and new comprehensive plan no later than next year.

The March settlement ended nearly two years of litigation sparked by DeSantis’ takeover of the district following the company’s opposition to a 2022 law banning in-person classes on sexual orientation and gender identity in early grades. The law was championed by the Republican governor, who used Disney as a punching bag in speeches during his bid for the Republican Party’s 2024 presidential nomination, until he suspended his campaign earlier this year.

As punishment for Disney’s opposition to the controversial law, DeSantis took over the gubernatorial district through legislation passed by the Republican-controlled Florida Legislature and appointed a new board of supervisors. Disney sued DeSantis and his appointees, claiming the company’s free speech rights were violated for speaking out against the legislation. A federal judge fired this lawsuit in January, but Disney appealed.

Before control of the district changed hands early last year, Disney supporters on its board signed agreements with the company transferring control over the design and construction of Disney World to the company. DeSantis’ new appointees claimed that “last-minute agreements” neutralized his powersand the district sued the company in Orlando state court to void the contracts.

Disney filed counterclaims that included asking the state court to declare the agreements valid and enforceable. Those state lawsuits were dismissed as part of the March settlement.

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Follow Mike Schneider on social platform X: @MikeSchneiderAP.