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Disney struck a second secret agreement to mess up DeSantis’ power grab on the company, official says

Apr 20, 2023, 18:49 IST
Business Insider
Republican Gov. Ron DeSantis is again going after Walt Disney World, after the company launched a stealth power play.Chris Pizzello/Invision/AP and Chris duMond/Getty Images
  • The board appointed by Ron DeSantis to oversee Disney said the company struck a secret agreement.
  • A member of the board said Disney agreed a last-minute deal to set its own utilities rate.
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The board appointed by Ron DeSantis to oversee Disney said the company struck a second secret deal to sidestep the Florida governor's bid to strip it of some of its privileges.

Chairman Martin Garcia said at a public meeting Thursday that a Disney subsidiary responsible for utilities in central Florida had struck an "11th hour deal" to set its own utilities rates until 2032, Reuters said.

The announcement comes amid an escalating feud between Florida's governor and the entertainment company, sparked by DeSantis' attempts to roll back LGBTQ education.

DeSantis has pushed to expand the scope of the Parental Rights in Education Act in the state, which has been referred to by critics as the "Don't Say Gay" bill. The rule change would ban lessons on sexual orientation and gender identity from grades 4-12.

Disney expressed opposition to the policy, and DeSantis responded by waging a campaign to strip Disney of some of the special legal status it has in Florida. He also put together a five-member state-appointed board to subject Disney to more oversight.

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But Disney outmaneuvered DeSantis, striking a new deal for the land Disney World occupies back in March, shielding its status for the foreseeable future. According to the board chairman, it struck the utilities deal at the same time.

"Last Friday afternoon I learned for the first time about one of these new 11th hour agreements entered into between Disney and the district. This one relates to our utility services," Garcia said, reported Reuters. "We'll have to evaluate the legality of that agreement, that essentially enables Disney to set their utility rates."

"I've never heard of such a thing," Garcia added.

The Walt Disney World territory operated within Florida's Reedy Creek Improvement District for decades, allowing the resort to function as its own municipal government.

Insider reported Wednesday that the board is seeking to restrict the special status Disney has, increase its taxes, and compel it to build more affordable homes. DeSantis has claimed there are problems with the new land deal Disney struck, and he will seek to have it overturned.

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Disney chief executive Bob Iger has accused DeSantis of pursuing "anti-business" and "anti-Florida" policies.

DeSantis' has pledged to fight the influence of so-called "woke" liberal elites as he gears up a widely expected bid for the presidency in 2024.

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