In what is being seen as a significant setback for Florida’s economy and for the administration of its Republican Governor Ron DeSantis, entertainment behemoth Disney has withdrawn plans for a proposed $1 billion office complex in the state, a move that is set to erase the creation of about 2,000 potential jobs. The cancellation further strains the fraught relationship between Disney and DeSantis, who is speculated to make his bid for the 2024 GOP presidential race official next week.
A representative from Disney attributed the decision to “evolving business circumstances” in a memo made public to the media. This development unfolds in the backdrop of the company grappling with adverse advertising conditions and a broad-based writers strike that has significantly disrupted its functioning. Earlier this year, as part of its expenditure reduction strategy, Disney declared it would be releasing 7,000 employees from their roles.
Tensions between Disney and Governor DeSantis have been on the rise for over a year, fueled by DeSantis’ approval of a law that restricts the instruction of sexual orientation and gender identity in schools. This controversial law, widely termed as the “Don’t Say Gay” bill by opponents, has provoked Disney’s ire, leading the company to instigate legal proceedings against DeSantis and the state of Florida, alleging an infringement of its First Amendment rights to free expression.
Further complicating matters, DeSantis has sought to wrest control of Disney’s unique tax district, encompassing Disney World and its surrounding areas. His endeavor to install a board of his choosing to oversee the district was blocked when Disney secured agreements with the outgoing board, thereby curbing the influence of DeSantis’ nominees.
In response to Disney’s decision, a representative for DeSantis labeled the move as “expected,” ascribing it to the company’s financial predicament, diminishing market capitalization, and a falling share price. However, detractors of the governor, such as Florida Democratic Party Chair Nikki Fried, have sharply criticized DeSantis for his “reckless personal grudge against Disney,” claiming it has resulted in Florida losing 2,000 jobs and a significant amount of potential revenue.
In another development, Disney confirmed the forthcoming closure of its Star Wars: Galactic Starcruiser resort at Disney World, less than a year after its inauguration. The company announced that the renowned attraction “will embark on its final journey” by the end of September, with current efforts underway to assist guests in rescheduling bookings for later in the year.
The now-cancelled office complex, planned to be situated in Lake Nona, Florida, in the Greater Orlando region, was expected to bring in 2,000 jobs, many of which were slated to be transferred from California. The cancellation has elicited reactions from local leaders.
The Mayor of Orange County, Jerry L. Demings, expressed his regret in a statement, “The cancellation of Disney’s Lake Nona campus is a misfortune. Yet, this is the fallout when there is a lack of an inclusive and cooperative atmosphere between Florida’s government and its business community. We will maintain our close relationship with our esteemed partners at Disney.”
Disney’s CEO, Bob Iger, has been vocal about his displeasure with DeSantis’ initiatives, branding them as “anti-business” and “anti-Florida.” During a recent call with investors, he questioned the future of the company’s investment in Florida, given its plans to invest $17 billion and generate 13,000 jobs over the forthcoming decade.
He pondered, “Does the state desire us to invest more, employ more individuals, and contribute more taxes or not?” Disney’s decision to withdraw from the Lake Nona project seems to indicate the beginning of an answer to Iger’s query. Despite the upheaval, Disney’s share value experienced a marginal surge following the announcement.
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