ORLANDO, USA – Disney has cancelled plans for a nearly $1 billion office complex in Orlando, known as the Lake Nona Town Center, amid an escalating feud with Florida Governor Ron DeSantis over proposed changes to business oversight in the state.
The decision, announced by Disney CEO Robert A. Iger and Josh D’Amaro, Chairman of Disney’s Parks, Experiences and Products division, will halt a project that was expected to create more than 2,000 jobs with an average salary of $120,000, according to the Florida Department of Economic Opportunity.
On an earnings-related conference call last week, Iger challenged Florida’s leadership: “Does the state want us to invest more, employ more people, and pay more taxes, or not?”
The dispute comes as Governor DeSantis and his allies in the Florida Legislature push for tighter control over Disney’s theme park resort near Orlando. Disney has been critical of recent Florida legislation, which includes measures limiting classroom instruction about gender identity and sexual orientation, labeled by opponents as the “Don’t Say Gay” law.
In his note to employees on Thursday, May 18, 2023 D’Amaro cited “changing business conditions” as the reason for the cancellation. However, two people with knowledge of the situation indicated that the ongoing feud with DeSantis played a significant role in the decision.
Disney, the door is open to bring those jobs back to California – the state that actually represents the values of your workers. https://t.co/kbCi7Zgs90
— Gavin Newsom (@GavinNewsom) March 13, 2022
The Lake Nona project had initially been hailed by former Disney CEO Bob Chapek, who was ousted last year, as a testament to Florida’s “business-friendly climate.” The move was expected to relocate more than 1,000 employees from Southern California, including most of the Imagineering department responsible for theme park attractions development.
However, Iger, who returned from retirement to take over Disney’s helm, was notably less enthusiastic about the project. He argued that moving the creative teams far from Disney’s movie studios was counterproductive. “Creative teams need to be together,” he’s often quoted as saying.
About 200 employees had already relocated to Florida from California, with D’Amaro promising to discuss options with them, including the possibility of returning to their original locations.
Despite the setback, D’Amaro expressed optimism for Walt Disney World’s future, noting that $17 billion is still allocated for development over the next decade, which is expected to create an estimated 13,000 jobs. “I hope we’re able to,” he said.
The feud between DeSantis and Disney has also extended to the special tax district encompassing Disney World. After Disney criticized the education law, DeSantis vowed retaliation. The state legislature, at DeSantis’ urging, ended Disney’s ability to self-govern its 25,000-acre resort and gave the governor control over the resort’s government services.
The move has sparked a legal battle, with Disney suing DeSantis and his allies in federal court and the governor’s tax district appointees retaliating in state court.
Disney’s decision to halt the Lake Nona project signals a new chapter in the growing tension between the entertainment giant and Florida’s government. The ultimate outcome remains uncertain as these formidable forces clash over the future of business operations in the Sunshine State.
