Florida Gov. Ron DeSantis signed a bill on Monday to take control of municipal services and development for the special zone encompassing Walt Disney World. The move deals a major blow to the company's ability to operate with autonomy.
DeSantis says that the special district surrounding Disney World has enabled the park to unfairly skirt local rules and building codes.
But DeSantis' critics say the bill looks like retaliation for a growing feud between Disney and the governor, which hit a tipping point last year. DeSantis said Disney "crossed the line" by opposing an education bill that restricts classroom discussion around gender identity and sexual orientation.
Here's a rundown of the situation.
What's in the new bill?
"The corporate kingdom finally comes to an end," DeSantis said during a news conference announcing the move on Monday. "There's a new sheriff in town, and accountability will be the order of the day."
The heart of the bill is the appointment of a five-person state board to oversee municipal services, such as fire protection and road maintenance, where Disney World operates.
DeSantis wanted to punish Disney. Repealing its tax status may hurt taxpayers instead
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DeSantis wanted to punish Disney. Repealing its tax status may hurt taxpayers instead
The newly appointed board will have the ability to raise revenue to fund services and pay off Disney's debts. DeSantis' previous pledge to strip Disney of its special tax status sparked fears that local taxpayers would be left on the hook, which would, in turn, spark a significant spike in local tax rates.
DeSantis stressed on Monday that under the new structure, Disney would still be responsible for its municipal debts and local governments would not raise taxes.
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DeSantis wants to end Disney World's special status in Florida
The governor said the five board members include people who "very much want to see Disney be what Walt envisioned," implying that Disney's values wouldn't be negatively impacted.
The members include Michael Sasso, a local elections lawyer, and Bridget Ziegler, a conservative school board member and wife of the Florida Republican Party chairman.
In press materials released with the bill signing, DeSantis' office said the bill would also end some of Disney's other special privileges, such as exemption from state regulatory reviews.
What does the bill mean for Disney?
The creation of the self-governing zone, known as Reedy Creek Improvement District, was instrumental to Disney's decision to build its theme park near Orlando in the 1960s, according to WMFE reporter Amy Green.
The zone sits on nearly 25,000 acres, sandwiched between Orange and Osceola counties. Once a remote and rural area, the Reedy Creek Improvement District received electricity, water, roads and police thanks to Disney's investments.
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DeSantis' power is on full display as he pushes lawmakers on Disney and redistricting
According to a local tax collector, Disney has taxed itself roughly $53 million each year to pay off the debts from that development.
Disney did not immediately respond to NPR's request for comment, but the company has previously told media outlets that it wouldn't fight the government takeover.
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