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Disney Scraps $1-Billion Florida Investment as Feud with Governor DeSantis Continues to Escalate

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Disney was set to build a large campus in Lake Nona, Florida with plans to move over 2,000 employees, including Imagineering. Now, Parks, Experiences, and Products Chairman Josh D’Amaro has announced that the whole project has been canceled.

Lake Buena Vista - Wednesday May 18, 2023: The Walt Disney Company announced Thursday that it was scrapping plans to build a new campus in central Florida and relocate 2,000 employees from Southern California to work in digital technology, finance and product development.

The decision follows a year of attacks from Gov. Ron DeSantis and the Legislature, with Disney filing a First Amendment lawsuit against him and other officials last month.

Disney had planned to build the campus about 20 miles (30 kilometers) from the giant 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 “new leadership and changing business conditions” prompted the company to abandon those plans.

“I remain optimistic about the direction of our Walt Disney World business,” D’Amaro said. “We have plans to invest $17 billion and create 13,000 jobs over the next ten years. I hope we’re able to do so.”

The governor's office didn't immediately respond to a message seeking comment about the announcement.

Disney and DeSantis have been engaged in a tug-of-war for more than a year that has engulfed the GOP governor in criticism as he prepares to launch an expected presidential bid in the coming weeks.

The feud started after Disney, in the face of significant pressure, publicly opposed a state law that bans classroom lessons on sexual orientation and gender identity in early grades, a policy critics call “Don’t Say Gay.”

As punishment, DeSantis took over Disney World’s self-governing district through legislation passed by lawmakers and appointed a new board of supervisors. Before the new board came in, the company signed agreements with the old board stripping the new supervisors of design and construction authority.

In response, the Republican-controlled Florida Legislature passed legislation allowing the DeSantis-appointed board to repeal those agreements and made the theme park resort’s monorail system subject to state inspection, when it previously had been done in-house.

Disney's suit against DeSantis alleges the governor waged a “targeted campaign of government retaliation." It asks a federal judge to void the takeover of the theme park district, as well as the DeSantis oversight board’s actions, on the grounds that they were violations of the company’s free speech rights.

The creation of Disney’s self-governing district by the Florida Legislature was instrumental in the company’s decision in the 1960s to build near Orlando. Disney told the state at the time that it planned to build a futuristic city that would include a transit system and urban planning innovations, so the company needed autonomy. The futuristic city never materialized, however, and instead morphed into a second theme park that opened in 1982.

READ D'Amaro's memo to employees in FULL below:

Team,

I wanted to let you know that we’ve just begun communication regarding our updated plans for the Lake Nona campus.

As many of you know, the company has decided to build a new Disney campus in Lake Nona and many cast members, Imagineers, and employees were asked to commit to making a move to Florida. While some were excited about the new campus, I know that this decision and the circumstances surrounding it have been difficult for others.

Given the considerable changes that have occurred since the announcement of this project, including new leadership and changing business conditions, we have decided not to move forward with the construction of the campus. his was not an easy decision to make, but I believe it is the right one. As a result, we will no longer be asking our employees to relocate. For those who have already moved, we will talk to you individually about your situation, including the possibility of you moving back.

It is clear to me that the power of this brand comes from our incredible people, and we are committed to handling this change with care and compassion. I remain optimistic about the direction of our Walt Disney World business. We have plans to invest $17 billion and create 13,000 jobs over the next ten years. I hope we’re able to do so.

We are committed to our teams who call Central Florida home and to all our Cast Members around the world, and I want to thank you for your continued dedication to Disney Parks, Experiences, and Products for delivering world-class entertainment for our guests.

Josh