However, they could re-apply to be recognized as a special district again. The Axios Harris Poll ranked Disney as the fifth-most-polarizing brand in America; the company had been nearly neutral in 2021. Ron DeSantis often trashes Walt Disney World when he's on the campaign trail, accusing the family Democrats fear that if DeSantis is successful in removing Disneys special status, taxpayers in Orange and Osceola counties would be left on the hook for an enormous amount of debt. With the passage of this law, DeSantis, and by extension, the Republican party is sending the strongest signal yet to corporate America, historically among its most consistent supporters and source of campaign cash for the GOP, that culture war politics will trump business as usual in todays hyper-partisan nation. However, 73% of respondents - including 82% of Democrats and 63% of Republicans - said they were less likely to support a political candidate who backs laws designed to punish a company for its political or cultural stances. Disney paid taxes to that district, which provided municipal services and exempted it from some regulations. DeSantis A: I think this is one of the culture wars. Ron DeSantis this week declared Why did Florida grant Disney a special status? A Division of NBCUniversal. A spokesperson for Gov. ", "We have people flooding into the state," DeSantis said during a trade mission to Israel in April. "There is not a lot of high paying jobs in Orlando. With DeSantis on the Stump, Disney Sees a Long Campaign Ahead They were catching so much crap for it, annihilated, so these guys are not stupid it is deflection., But Republicans are defending the measure as one to stand up to Disneys wokeness., Look, theres policy disputes, and thats fine, DeSantis said on Fox News. Besides the battle between Chapek and DeSantis, Democratic state Rep. Grieco accused Republicans of doing this now because they are trying to distract from the criticism of the newly drawn congressional map. Weve put this company on a pedestal in the past it has been like the all-American company, Mr. DeSantis said at a town hall in New Hampshire last week. As the bill worked its way through the Florida legislature, Disneys now-former CEO Bob Chapek faced mounting pressure from employees and Disney fans to disavow the legislation. For background, the Reedy Creek Improvement District created by state lawmakers in 1967 allows Walt Disney World to act as its own government. Several Florida politicians and other critics called the move an act of retribution by Republican governor DeSantis and his party for The Walt Disney Companys opposition to the bill. For DeSantis, who has been using the Burbank entertainment company as a foil on cultural issues, the move is a public relations coup among conservatives as politicos widely expect him to run for president in 2024. Irfan Khan | Los Angeles Times | Getty Images, canceling plans for a new corporate campus, CNBCs 2023 Americas Top States for Business rankings to be unveiled on July 11, States are paying huge sums to lure semiconductor manufacturers, on top of CHIPS Act billions. The law also changed the special districts name from the Reedy Creek Improvement District to the Central Florida Tourism Oversight District. Florida Gov. Disney cant up and move. Times staff writer Ryan Faughnder and the Associated Press contributed to this report. According to the RCIDs annual financial report for 2021, it carries a debt of nearly $1 billion. But what did Disney actually lose from its battle with DeSantis? The company also became the largest employer of Florida residents and helped the Orlando area become one of the largest hubs for tourism in the U.S. And Disney allies came to the Feb. 8 meeting prepared to defend its special status in the state. But they could leverage their positions in Floridas ongoing culture war clash with Disney in any future requests the company makes for roads, new projects or other ventures. Disney is in the midst of a campaign to cut $5.5. Disney, he argues, has So theyre gonna fight this tooth and nail. Q&A: DeSantis vs. Disney, what does it mean? - ClickOrlando March 1, 2023 5:33 PM PT Standing at the podium at a fire station in Floridas Lake Buena Vista home to Walt Disney World Gov. All rights reserved. Send us a tip using our anonymous form. The video, shared by DeSantis campaign on Twitter, slams rival 2024 presidential candidate Donald Trump for vowing to protect our LGBTQ citizens. The video also mocks Trump for standing up for Caitlyn Jenners right to choose her own bathroom and allowing transgender women to compete in his Miss Universe pageants. With this special status, Disney was able to build roads, buildings, and provide services without asking for the permission of a county government. Toward the end of a news conference in Ponte Vedra Beach on Thursday, Florida Gov. However, Disney says all of its conduct was legal. The legislature ultimately decided to let Disney keep its special tax district, but gave DeSantis power to appoint the board that governs it. Tap to enable a layout that focuses on the article. Mr. Newsom also attended Disneylands first-ever Pride Nite, posing for photos with visitors outfitted in rainbow Mickey Mouse ears. Variety is a part of Penske Media Corporation. Republican lawmaker tweeted about repealing Reedy Creek act after company denounced Dont Say Gay bill, Florida lawmakers will consider getting rid of special districts. The move is a new level in DeSantiss fight against the tourism giant following Disneys opposition of of what critics call Floridas Dont Say Gay law, which limits how Florida educators can discuss gender identity and sexual orientation in kindergarten through third grade. The 500 Greatest Songs of All Time DeSantis replaced all of the Disney-allied board members with five Republicans on Feb. 27. Mr. Iger is also dealing with unwelcome business developments, including poor results at the box office, a lingering screenwriters strike and the departure of Disneys chief financial officer. Under legislation DeSantis signed Monday, the state of Florida took control of the Reedy Creek Improvement District, which essentially operated as Disneys private municipal government in the area containing Walt Disney World and other parks. Attorneys for Florida Gov. Disney executives have watched in horror as attacks by Mr. DeSantis have spread. Stephanie Hsu Clears the Air About Jamie Lee Curtis Oscar Win, Trump goes after DeSantis over Disney, saying its all so unnecessary and calling it a political STUNT.Disneys next move will be the announcement that no more money will be invested in Florida because of the Governor, he writes on Truth Social. Until recently, there had been no major public discussion about dissolving Disney's long-established special district, which it's occupied for 55 years, leading DeSantis' critics to question its timing and the speed at which the governor acted against the company. I think hes waiting to see what Donald Trump does and whats going to be interesting is will Donald Trump run again and even if he does, will Ron DeSantis challenge him? Why does he harbor so much animosity toward the place where he married Floridas First Lady Casey DeSantis in 2009? DeSantis signs bill to give him more control of Disney's special He worries about Florida's reputation in corporate America. In his yearlong battle with Disney, Florida Gov. Q: Whats the big picture here for DeSantis? But again, this thing has momentum. Representatives for DeSantis did not immediately respond to CNBC's request for comment. DeSantis said that Disney alienated a lot of people as a result of its opposition to the so-called Dont Say Gay law, after Disney CEO Bob Chapek announced the company would pause political donations. 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The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. After Ron DeSantis presidential campaign shared a bizarre and wildly homophobic video that includes footage of Cillian Murphys character in Peaky Blinders, the team behind the British crime drama has denounced the video, adding that the footage of the show was obtained without permission or official license.. DeSantis to ax Disney development deal that aimed to undermine And the governments not going to get reimbursed for what they have to pick up and take care of.. But he cant afford to retreat. The law is set to dissolve the Reedy Creek special district effective June 1, 2023, but its unlikely that would happen without a lengthy legal battle first. That's over triple the national average.". As the brothers looked to expand Disneys footprint only 10% of the people who came to Disneyland in California came from east of the Mississippi River they wanted to have their own self-regulating system. "We wait patiently to see what the Fed's going to do next," Fangman said. 2023 Variety Media, LLC. A group of demonstrators, some displaying Nazi symbols and others holding DeSantis campaign signs, gathered outside Disney Worlds entrance a few weeks ago, drawing national attention. Robert A. Iger, Disneys chief executive, is also dealing with significant pressures of the companys business. State Rep. Randy Fine (R) submitted a bill to the House and state Sen. Jennifer Bradley (R) submitted a bill to the Florida Senate, which passed Wednesday. Instead, Disney attributed the move to "changing business conditions.". And I dont think (the counties) want responsibility for whats 27 square miles of additional territory. In an earnings call in May, Disney CEO Bob Iger called DeSantis actions a matter of retaliation against the entertainment conglomerate for its stance against the Florida governors controversial Dont Say Gay bill in 2022. A thousand people a day are moving to Florida," said John Boyd, Jr., of The Boyd Company. "I've never had a business leave some of the northern states like New York and say it's harder to do business in Florida than New York. Supporters of the bill accused critics of endorsing child abuse and grooming children for sex. Meet the co-presidents of the union behind the hotel workers strike. DeSantis, in mid-April suggested the newly formed tourism board could step up inspections of Disney's rides, add additional toll roads, or other development of the A spokesperson for Gov. DeSantis 0:51. The LGBTQ legislation was signed into law by Gov. What originally began as He joined The Times in 2007 as a business reporter focused primarily on the Walt Disney Company. Hours later, Disney sued DeSantis. Democratic state senator Lori Berman likened the debacle to political theater, saying the Republicans in the legislature were doing the bidding of the governor. Get this delivered to your inbox, and more info about our products and services. Correction: Before DeSantis could replace the Reedy Creek Improvement District board of supervisors, that Disney-allied panel signed a long-lasting development agreement that drastically limits his control. (Mr. Iger declined an interview request for this article.) The Lake Nona real estate agents take some solace in the fact that Disney is entrenched in the area, with 75,000 employees and more than 50 years of history. "Does the state want us to invest more, employ more people, and pay more taxes, or not?" DeSantis initially called for the special legislative session to approve his congressional map passed by the Senate Wednesday which has been denounced by Black lawmakers for being overtly racist since it would reduce the number of districts where Black voters are a plurality. Remember, this was a law passed by the state, which gave them these rights, and Disney agreed to come here because of that. 'Sound Of Freedom' Is a Superhero Movie for Dads With Brainworms WebDon't expect Disney to hit back in court, defamation experts say. Ron DeSantis has repeatedly leaned on the element of surprise in his attempts to outmaneuver the entertainment giant