Walt Disney Parks and Resorts is moving forward with plans to expand its presence in Orlando, Florida, after striking an agreement with the Central Florida Tourism Oversight Board, ending a long-running feud with Gov. Ron DeSantis and paving the way for the park’s next 15 years.
The five DeSantis-appointed members voted unanimously Wednesday evening to allow Disney to continue expanding for the next 15 years in exchange for a commitment from Florida's largest employer to invest up to $17 billion into Central Florida over the next two decades.
“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" and boosting the Florida economy, Jeff Vahle, president of Walt Disney World Resort, said in a prepared statement after the vote.
Under the new agreement, Disney is required to spend at least $8 billion during the first 10 years and up to $17 billion over the next 20 years on its park expansion plans. Additional requirements include expanding affordable housing options and implementing a “buy local initiative,” requiring at least 50% of its total spending to go to Florida businesses as it expands the park.
As part of the deal, Disney will be able to boost its 1.4 million square feet of retail and restaurant space as well as the 1 million square feet of offices already built by 300,000 square feet each. It can also add another 14,000 hotel rooms, for a total of 53,467 rooms.
More information about the development plans was not disclosed. Representatives for Central Florida Tourism Oversight Board and Disney did not immediately return requests for comment from CoStar News.
In addition, the deal allows Disney to have five major parks—the company currently has four—and five minor parks, up from the three Disney has now in Central Florida.
The district will support Disney's investments by working on capital improvements and public infrastructure projects throughout the duration of the development agreement.
The new deal comes after the two parties reached a settlement to drop their respective lawsuits after two years of litigation and a canceled $1 billion project that would have relocated about 2,000 Disney employees to the state.
The governor had originally dissolved the previous Reedy Creek Improvement District, controlled by Disney since its inception in 1967, to bring transparency to the 25,000-acre district in the heart of Florida. Disney claimed the move was in retaliation after it announced it would back efforts to repeal House Bill 1557, known officially as the Parental Rights in Education Act and unofficially as the Don’t Say Gay Bill by opponents.
The special district encompasses an area that stretches across both Orange and Osceola counties and services 24 landowners, including Walt Disney and its wholly owned affiliates. The district and the Central Florida Tourism Oversight Board oversee land use and environmental protections, administer essential public services, and operate and maintain all public roadways and bridges.
The move comes just as Disney rival Universal is gearing up to launch its fourth theme park, Epic Universe, at Universal Orlando, which is expected to open next year.