LAKE BUENA VISTA, Florida. – The Walt Disney Co. announced on Thursday that it was scrapping its plans to build a factory new campus in Central Florida and relocating 2,000 employees from Southern California to work in digital technology, finance and product development.
The decision follows a year of attacks Governor Ron DeSantis and lawmakers because the company opposed a state law banning classes on sexual orientation and gender identity in early grades. Disney filed a lawsuit First Amendment lawsuit against DeSantis and other officials last month.
Disney had planned to build the campus about 20 miles from the massive Walt Disney World theme park resort, but Josh D’Amaro, chairman of the parks, experiences and products division, said in a memo to employees that “a new “Leadership” and changing business conditions” caused the company to scrap those plans.
“I remain optimistic about the direction of our Walt Disney World business,” said D’Amaro. “We plan to invest $17 billion and create 13,000 jobs over the next ten years. I hope we can do that.”
Disney and DeSantis have been in a tug-of-war for more than a year, which has drawn criticism for the GOP governor as he prepares to launch an expected law presidential candidacy In the coming weeks.
DeSantis spokesman Jeremy Redfern said the state had been unsure whether the new Disney campus would go ahead since its announcement nearly two years ago.
“Given the company’s financial constraints, declining market capitalization and declining share price, it is not surprising that they are restructuring their operations and canceling unsuccessful ventures,” Redfern said.
Florida Senator Joe Gruters, a former chairman of the state’s Republican Party, called Disney’s decision a great loss.
“I hope we can put this conflict behind us and return to a more normal working relationship with a company that has been one of our best business and tourism partners for 50 years,” Gruters said. “Two thousand jobs and $1 billion in investment in our state, I think that’s a huge blow. The market is far better at dealing with corporations than with stubborn government.”
Democratic Rep. Anna Eskamani, representing the Orlando area of the Florida House of Representatives, released a statement blaming the governor for the lost jobs.
“Governor Ron DeSantis is a job-killing jerk who cares more about his own political ambitions and culture wars than he does about Florida and our future,” Eskamani said. “According to him, ‘waking you up’ makes you broke, but that’s another example of what it’s like.” actually the complete opposite. DeSantis isn’t who you want to be president – never.”
The feud began after Disney publicly opposed the state in the face of significant pressure on early-grade sexual orientation and gender identity education, which critics dubbed “don’t say gay.”
As punishment, DeSantis, through legislation passed by the Legislature, took over Disney World’s self-governing district and appointed a new board of directors. Before the new board came in, the company signed agreements with the old board that stripped the new managers of design and construction authority.
In response, the Florida Republican-controlled legislature passed legislation allowing the DeSantis-appointed board of directors to rescind those agreements, and made the theme park-resort monorail system subject to state inspection, while this had previously been done internally.
Disney’s lawsuit against DeSantis accuses the governor of conducting a “targeted government retaliation campaign.” It will ask a federal judge to void the amusement park district acquisition and the actions of the DeSantis oversight board on the grounds that they violated the company’s freedom of speech law.
The creation of Disney’s self-governing district by the Florida Legislature was pivotal in the company’s decision to build near Orlando in the 1960s. Disney told the state at the time that it was planning to build a futuristic city with a transportation system and urban design innovations, so the company needed autonomy. However, the futuristic city never materialized and instead turned into a second theme park, which opened in 1982.
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