Arm wrestling between Disney and the governor of Florida

2023-04-26 23:08:05

The Walt Disney Co. is suing Republican Florida Gov. Ron DeSantis, accusing him of waging a “relentless campaign to use the power of government” and an “orchestrated at every step” political battle to undermine the company’s operations ,

Last year Disney criticized DeSantis’s education law known as “Don’t Say Gay” and halted donations in the state, thus ending up in DeSantis’ sights.

The law prohibits teachers to discuss issues relating to gender identity and sexual preferences in school, and was criticized by any non-right-wing voice and by most of the large companies which, even just for the theories of large numbers, cannot afford marginalizing policies with their employees. For these reasons, Disney employees in Florida didn’t need much pressure to get the company to speak out once morest “Don’t say gay.”

This federal lawsuit sours already strained relations between DeSantis and Disney, and what began with a criticism of a controversial education bill has now turned into a high-profile showdown between two of the most powerful entities of the state: Disney, which employs more than 75,000 people, and DeSantis, who is expected to announce his candidacy for the Republican party’s presidential nomination in the coming weeks.

“Government action was blatantly retaliatory, uneconomic and unconstitutional,” Disney said in a civil complaint filed in the United States District Court in Northern Florida the same day that a board of supervisors selected by DeSantis to oversee the operations of Walt Disney World, moved to cancel a development deal that it says Disney entered into with the implied purpose of curbing government power.

Disney resorts are some of Florida’s top attractions, but for DeSantis, it’s inconceivable that the company would criticize one of his bills, and since the beginning of this dispute he has been attacking the company as “spoiled” for too long received a favorable tax treatment.

The governor then addressed to the Republican-controlled state Congress to help him rein in the rebel company. The first effort came a year ago, in April 2022, when the special tax district that had existed since 1967 to help Disney develop and control its property near Orlando was canceled. The move caused far more of a headache as to what would happen with Disney’s taxes and debt burden.

Local government officials had called it a “$1 billion bomb” and warned that they would be forced to raise taxes for homeowners to pay for roads and other utilities usually financed by Disney.

To avoid that eventuality, DeSantis ordered another special session in February to address the issue, seeking to keep the tax district, but replacing Disney’s hand-picked board with a new group of his own choosing. The governor selected 5 new board members and called the Central Florida Tourism Oversight Board. When the new board held its first meeting, members found that the outgoing board had relinquished most of its power to Disney. And that’s what the new board wants to overturn.

In his legal complaintDisney accuses DeSantis of wanting to punish it for speaking out once morest the governor’s law, which is threatening its business operations, jeopardizing its economic future in the region, including violating its constitutional rights.

After exhausting efforts to seek a resolution, the Company has no choice but to file this lawsuit to protect cast members, guests and local development partners from a relentless campaign to arm government power once morest Disney in retaliation for expressing a political point of view unpopular with certain state officials.”

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