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Trading fire: Central Florida Tourism Oversight District files lawsuit against Disney in state court



The Central Florida Tourism Oversight District (CFTOD) voted today to file a lawsuit against The Walt Disney Company in state court. The move comes after Disney sued Florida Governor Ron DeSantis, the CFTOD, and other state officials in federal court just days prior.

In remarks during the meeting, CFTOD Chairman Martin Garcia painted the picture that after Disney’s decision to sue in federal court, the board had few options at its disposal.

“We have no choice now but to respond,” Garcia said during the board meeting. “We’ll seek justice in our own backyard.”

The lawsuit aims to uphold and enforce the CFTOD’s actions that voided agreements made at the 11th hour by Disney, just before control switched from the Reedy Creek Improvement District to the new CFTOD.  The agreements, which CFTOD says were made without proper public notice, granted Disney control over development in the area.

Disney’s lawyers assert that the agreements were legitimately approved during transparent meetings, and the company also alleges that the state is using its authority to unconstitutionally retaliate against Disney for opposing DeSantis’ legislative plans.

The lawsuit features statements from DeSantis and his supporters criticizing Disney for its opposition to the Parental Rights in Education Law, which has been labeled by critics as the “don’t say gay” law. In reality, the legislation restricts classroom discussions on sexual orientation and gender identity for students in Kindergarten through 3rd grade.

But regardless of what the law actually says, Disney’s attorneys wrote that “Disney voiced its stance on state legislation, and subsequently, the state penalized the company for expressing its opinion.”

While DeSantis condemned Disney as a “woke” corporation, state legislators decided to revamp the Reedy Creek Improvement District, responsible for overseeing government services at Disney World. The lawmakers chose to replace the five Disney-elected members with governor-appointed ones, disrupting a system that allowed Disney to govern its Florida theme parks and resorts autonomously for over 50 years. Florida officials, and particularly DeSantis, have repeatedly pointed out that the changes merely level the playing field so that Disney is now subject to the same laws and regulations as all other companies in Florida.

Garcia highlighted the new board’s objective of “fostering public interest” by introducing what he described as innovative approaches to Disney’s special district. In prepared remarks emailed to journalists before the board meeting, Garcia wrote:

“In essence, [Disney] is asking a federal court in Tallahassee to wrestle back the hands of time to 1967, while this board is instead charged legislatively with bringing the district into the 21st century with new and better policies and practices.”

Read the full statement here:

Remarks as prepared by Central Florida Tourism Oversight District Board Chairman Martin Garcia.

We, the board of the Central Florida Tourism Oversight District, convened last week to continue pursuing an eminently sensible and straightforward task placed upon us by the Governor of Florida and the Florida Legislature, and hence, the people of this great state of Florida.

 

I have said this at every meeting of this board. Please hear me loud and clear. The task of this board is to promote better governance and evaluate a new and better zoning structure for the district, among other things. This means that we must address and correct longstanding problems and evaluate and adopt new policies and practices to promote more prosperity for more people working and playing in the district, and, in addition, for all the residents of Osceola and Orange Counties.

 

In just four meetings of this board, here is what we have done to promote better governance, more transparency, new leadership and to evaluate how the district can function better for more of Florida’s citizens:

 

  • We hired a new general counsel, who doesn’t represent Disney, to make sure the district is in compliance with Florida law;
  • We hired legal counsel, one being a former Florida Supreme Court Justice, who has since advised the board that Disney created illegal agreements in violation of many Florida laws;
  • We hired an independent financial advisor to bring financial transparency and accountability to the district;
  • We adopted rules to govern the conduct of this board – something that never existed before for the old board;
  • We authorized the hiring of a rate-setting consultant to ensure that the utility rates that Disney tries to impose on other district taxpayers are appropriate and reasonable;
  • We authorized a search to hire an independent urban planner to evaluate affordable and work force housing in the district, and, additionally, to develop better traffic and environmental solutions;
  • We authorized a search to hire an economic consultant to do a regional fiscal impact study to make sure that the district is functioning as a good neighbor to Orange and Osceola Counties;
  • We committed to evaluate how the district can help Orange and Osceola Counties in the eighty-seven (87) lawsuits Disney has filed contesting their own ad valorem taxes; and
  • We authorized the hiring of a new administrator of this district with impressive leadership credentials and an impeccable reputation for doing the right thing. The diversity and work experiences that he will bring to the district will significantly enhance this board’s capacity to make the district more inclusive and more prosperous for more people.

Our board has taken these enumerated actions to promote the public good pursuant to the new legislation governing the district. Notwithstanding these board actions, Disney, while we were meeting last week, sued this board to stop our efforts to improve the district and its operations. In essence, it is asking a federal court in Tallahassee to wrestle back the hands of time to 1967, while this board is instead charged legislatively with bringing the district into the 21st century with new and better policies and practices.

 

It should be obvious to everyone that this board didn’t enact any of the legislation that Disney is and has been complaining about. This board didn’t make those laws and had nothing to do with their making. Our role is simply to follow all the laws enacted by the Florida Legislature. This is what this board has done and will continue to do to move the district forward.

 

Since Disney sued us, we have no choice now but to respond. This is why we called today’s meeting – to authorize legal action in response to Disney’s federal lawsuit. The district will seek justice in state court here in central Florida where both it and Disney reside and do business.

 

Since Disney sued us, we have no choice now but to respond. This is why we called today’s meeting – to authorize legal action in response to Disney’s federal lawsuit. The district will seek justice in state court here in central Florida where both it and Disney reside and do business.