Disney deals major blow to Florida, cancels $1 billion investment as DeSantis feud escalates

Disney is canceling a $1 billion project that would have relocated 2,000 jobs to Central Florida amid a dispute with Gov. Ron DeSantis, who has passed multiple bills targeting the company after it opposed one of his signature policies.

Josh D’Amaro, who oversees Disney’s parks, sent an email to employees Thursday saying that the Lake Nona Town Center development in Orlando – which had been on hold and faced criticism within the company – has officially been canceled and that employees won't be relocating from California to Florida.

“Given the considerable changes that have occurred since the announcement of this project, including new leadership and changing business conditions, we have decided not to move forward with construction of the campus,” D’Amaro said, according to the Los Angeles Times. “This was not an easy decision to make, but I believe it is the right one. As a result, we will no longer be asking our employees to relocate.”

The New York Times, citing two people who were briefed on Disney's decision, wrote that "the company’s battle with Mr. DeSantis and his allies in the Florida Legislature figured prominently into Disney’s decision to cancel the Lake Nona project."

The cancelation is a major blow to Central Florida's economy. The jobs that were set to be transferred to Florida included many highly paid theme park designers, which Disney calls Imagineers.

DeSantis has been feuding with Disney since the company opposed HB 1557, officially known as the Parental Rights in Education law but derided by critics as the "Don't Say Gay" bill. He called the Legislature into special session to end Disney's self-governing status and take control of the special district that governs Disney's properties in Central Florida after the company's stance.

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Shortly before that law took effect, though, Disney pushed through two contractual agreements − a development agreement and a declaration of restrictive covenants − that allow the company to sidestep the state's oversight, prompting DeSantis to initiate an inspector general investigation and pass legislation to nullify those agreements. He also signed a bill putting Disney's monorail system under the purview of state inspectors.

The DeSantis-appointed oversight board also voted to nullify Disney's actions, prompting a lawsuit from the company.

Disney's lawsuit alleges DeSantis led a "targeted campaign of government retaliation" against the company. It accuses DeSantis of threatening the company's business and violating its constitutional rights, and it calls the government's actions "patently retaliatory, patently anti-business, and patently unconstitutional."

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The lawsuit alleges five different violations of Disney’s constitutional rights by DeSantis, including two free speech violations, a property rights violation, a due process violation and a violation of the contracts clause.

Disney CEO Bob Iger also has been vocal in criticizing the state's actions against his company.

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“Does the state want us to invest more, employ more people, and pay more taxes, or not?” Iger said on an earnings call last week.

D'Amaro's email notes that the company still has $17 billion in investments planned for Disney World over the next decade, which would bring roughly 13,000 jobs.

“I hope we’re able to,” he said.

This article originally appeared on Sarasota Herald-Tribune: DeSantis feud escalates as Disney dumps $1 billion Florida project