After years of acrimony between Disney and Florida Gov. Ron DeSantis, the two sides are working on a new development agreement that would provide assurances and guardrails for the Bob Iger-run behemoth as it plans to expand near Orlando. In exchange, the State of Florida would see up to $17 billion in investment from Disney over “the next ten to twenty years.” It also sets the stage for a fifth park at the resort.
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NewsDisney’s $1.9B DisneylandForward Plan Gets Final Approval From Anaheim City Council; Major Changes Set For Walt’s Original ParkExecutivesBob Iger Reveals First Look At ‘Avatar’ Area At Disneyland, Says The Idea That Disney Is Letting NBCU’s Epic Universe Invade Its Orlando Turf “Couldn’t Be Further From The Truth” While the cessation of hostilities is good for all involved, the monetary commitment from Disney is more a renewal of vows than a new promise. The corporation has repeatedly promised over several years to invest $17 billion in and around Disney World and hire over 10,000 new parks employees in the state over the 10 years. The new agreement cites the same monetary investment, but extends the timeframe. But given all that’s happened between the parties in Florida, state and local officials are likely grateful to have any reassurance.
One new deal point in the proposed agreement is a minimum spend on Disney’s part.
“In furtherance of its plans to make significant capital investment in the Project during the term of this Agreement, Disney agrees to make at least an initial capital investment of $8 billion dollars within the first ten (10) years of the term of the Agreement, consisting of capital investment in existing infrastructure, new construction and technology investment.”
There is also a promise of a “minimum development” of 5 major theme parks in Orlando.
Additionally, there is a provision that Disney may “convert hotel/motel land use entitlements to up to an additional 225,000 gross square feet of office uses within the District Jurisdictional Properties.”
That item may just be additional flexibility, but it also could make room for Disney to restart its plan to move approximately 2,000 Parks, Experiences & Products staffers and their families to central Florida from California. That plan, which was put on ice almost exactly a year ago, would add not just jobs, but more tax revenue to the $1.1 billion Disney already pours into the state’s economy.
The new agreement would replace a very favorable 30-year development deal the then Disney-controlledboard signed at its last meeting before the current DeSantis appointees stepped in. It requires a final vote next week to become official.
Disney just locked down a similar revised development agreement with the City of Anaheim for Walt’s original park. That deal gives Disney increased flexibility to create mixed use environments and new zoning permissions enabling it to add additional attractions. DubbedDisneylandForward, the multi-decade expansion plan is tabbed at $1.9 billion. The company last fall touted a $60 billion investment commitment to its parks worldwide over the next 10 years, though details have been scant.
Another force likely driving the Disney deals is Epic Universe, a highly anticipated $1 billion expansion at Universal Studios Orlando set to open next year. Universal’s parks unit is riding high ofter opening its first Super Nintendo World at Universal Studios Hollywood last year and announcing regional parks in Las Vegas and Texas.
In response to a question about competition from NBCU during the company’s last earnings call, Disney CEO Bob Iger said, “We’ve been aware of Universal’s plans for a new park for more than a decade. And we have a sophisticated approach to analyzing the needs of all of our businesses and strategically deploying capital.”
He then got another shareholder question about why more details about Disney’s promised total $60 billion investment in its parks have not been shared. Iger kept his comments fairly brief. “You know, we have a lot of projects in development,” he said. “Many of them are known to us. But we disclose these at a cadence and when we really feel we’re ready, and we have something more tangible to show people.”
Experiences, the division that encompasses theme parks and consumer products, reported a 10% rise to $8.4 billion, while operating profit climbed 12% to almost $2.3 billion in the most recent quarter.
The uptick was driven by international led by Hong KongDisneyland.Walt Disney Worldand the cruise line were solid. But Disneyland, despite growing attendance and per capita spend, saw results dip year-on-year on higher costs, including labor, said CFO Hugh Johnston on an earnings call with analysts.
A big surprise — he said Parks growth in the current fiscal third quarter will be flat for a few reasons including “some normalization of post-Covid demand as it relates to demand. While consumers continue to travel in record numbers and we are still seeing healthy demand, we are seeing some evidence of a global moderation from peak post-Covid travel.”
FAQs
The agreement allows Disney to increase the number of hotel rooms (from 36,000+ to 53,000+), plus add restaurants, shopping outlets, and even add a fifth “major theme park” and up to three additional water parks and/or other “minor theme parks.”
What is the Disney agreement with Florida? ›
The five DeSantis-appointed board members to the Central Florida Tourism Oversight District unanimously voted to approve a 15-year development deal in which the district committed to making infrastructure improvements in exchange for Disney investing up to $17 billion into Disney World over the next two decades.
What is the new Disney agreement? ›
The deal locks in a 15-year expansion plan for Disney World and clears a path for Disney to restart in-kind political donations in Florida. Disney and Gov. Ron DeSantis of Florida have finally ended their feud, clearing the way for $17 billion in planned development at Walt Disney World near Orlando.
How much did Walt Disney pay for the land to build Disney World? ›
In 1965, Walt Disney revealed the park, and it became officially known. Overall, the company bought 27,400 acres of land from 51 landowners for over $5 million. The land cost $182 per acre after the deal was done.
How much property is owned by Disney in Florida? ›
The property covers nearly 25,000 acres (39 sq mi; 101 km2), of which half has been developed.
How does Disney World benefit Florida? ›
“Disney is also vital to the funding of public services, as it generated taxes of $6.6 billion in 2022, including state and local taxes of $3.1 billion generated by Disney, non-local visitors, employees and third-party businesses—equivalent to $379 per Florida household,” the report says, noting that the company ...
Why is Disney World only in Florida? ›
Disney settled on Orlando as the perfect site, convinced by its year-round sunshine, its excellent road access and relatively cheap land, as much of its was covered by swamps. In 1965, Walt Disney made an announcement that would forever alter the course of Orlando's history.
What will happen to Disney in 2024? ›
And starting January 9, 2024, guests will see even more changes: All-day Park Hopper access during park hours. No theme park reservations required for date-based tickets. Return of Disney dining plans for Disney Resort hotel guests as part of a package.
What will happen when Disney loses exclusive rights to Mickey Mouse in 2024? ›
Disney lose Mickey Mouse exclusivity
Specifically, this means that now anyone can create their own version of these short films and, above all, most importantly, take one of their characters, Mickey Mouse, or Minnie Mouse, as many animated film artists did in 2013, under the leadership of Disney itself.
Will Disney expand Disney World? ›
Two months after Disney and Florida's governor settled their legal beef, the company is now authorized to expand with a potential fifth park sometime over the next decade.
Does Disney pay property taxes in Florida? ›
Does Disney pay taxes in Florida? As one of the largest taxpayers in the region, we have always paid our fair share of taxes and more, including paying and collecting a combined $1.146B in state and local taxes.
How many Floridians are employed by Disney? ›
Disney accounted for 263,000 jobs in Florida, more than three times the actual workforce at Walt Disney World, according to the study conducted by Oxford Economics and commissioned by Disney, covering fiscal year 2022.
Can Disney move out of Florida? ›
Will Disney eventually pull out of Florida? Nothing can be ruled out, but Disney would have to spend an incredible amount of resources to completely pull out of Florida. Disney owns about 25,000 acres of land in Florida, which is approximately 39 square miles.
What would happen to Florida's economy if Disney left? ›
If Disney were to flee, Florida would lose a visitor magnet and major moneymaker: In 2019, the four theme parks drew nearly 60 million guests combined, according to an industry estimate. And the company said the resort contributed more than $780 million in state and local taxes for fiscal 2021.
Do Disney employees live on property? ›
No one lives in the theme parks. They do however have living quarters on Disney property. However Disney World has extensive property holdings around the theme parks and they do have housing for employees and students of their Institute of Learning. They attract workers and students from around the world.
What does the Disney settlement mean? ›
Disney has denied any wrongdoing, instead offering to pay around $67 to any customers who purchased a Dream Key pass from Aug. 25, 2021 through Oct. 25, 2021, according to the Disney Dream Key Settlement website.
What is the Disney planned community in Florida? ›
The history of Celebration is one of a kind. Founded by The Walt Disney Company in the mid-1990s, this master-planned community was fashioned after historical American small towns, with civic buildings designed by world-famous architects like Philip Johnson, Cesar Pelli, and Robert A.M. Stern.
What does Disney promise? ›
Our Mission. The mission of The Walt Disney Company is to entertain, inform and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative technologies that make ours the world's premier entertainment company.
What does Disney own the rights to? ›
Through these divisions, Disney owns and operates the ABC television network; cable television networks such as Disney Channel, ESPN, Freeform, FX, and National Geographic; publishing, merchandising, music, and theater divisions; direct-to-consumer streaming services such as Disney+, Star+, ESPN+, Hulu, and Hotstar; ...
