Disney has reached a settlement agreement in a longstanding legal battle with a Florida special tourism district.

It’s a move that marks a significant development in the ongoing tensions surrounding the entertainment giant’s operations in the state.

The settlement, announced Wednesday, brings an end to litigation initiated by the Central Florida Tourism Oversight District (CFTOD) in state court.

The dispute arose following Governor Ron DeSantis’ decision to revoke the special status previously held by Disney in the tourism district, a move that prompted legal action from both parties.

Under the terms of the settlement, Disney has agreed not to contest the CFTOD’s determination that previous agreements with the now-defunct Reedy Creek Improvement District, which favored Disney, are null and void.

Disney CEO Bob Iger.

Don’t say gay

This resolution removes a major obstacle to the continued development of Walt Disney World in the Orlando area.

Additionally, the agreement includes Disney’s commitment to seek permission from a federal appeals court to pause its efforts to revive a dismissed retaliation lawsuit against Governor DeSantis.

The lawsuit, filed by Disney in federal court, alleged retaliation by the governor after the company criticized Florida’s controversial “Don’t Say Gay” bill.

The settlement signals a new phase of cooperation between Disney and the CFTOD, with both parties expressing a desire for constructive engagement moving forward.

Walt Disney World President Jeff Vahle emphasized the importance of the agreement in facilitating continued investment, job creation, and economic growth in the state.

Disney’s lawsuit

The resolution of this legal dispute comes after a federal judge dismissed Disney’s previous lawsuit against Governor DeSantis in January.

The judge ruled that Disney lacked legal standing to sue the governor over allegations of First Amendment violations related to the “Don’t Say Gay” bill.

Despite the dismissal of the federal lawsuit, Disney had appealed the decision. However, the agreement reached with the CFTOD suggests a potential willingness on Disney’s part to drop the appeal in light of ongoing negotiations with the special district.

The terms of the settlement were deliberated in an executive session of the CFTOD board, with both parties expressing satisfaction with the outcome.

The agreement paves the way for a renewed partnership between Disney and the district, offering prospects for continued growth and collaboration in the future.