Disney has decided to conclude its legal battle in state court over a Florida special tourism district, surrendering control it had held for more than five decades until the previous year. This decision follows Governor Ron DeSantis' move to revoke Disney's control over the district.

The settlement reached represents a significant milestone for the ongoing development of Walt Disney World in the Orlando area and lays the groundwork for a potential resolution of a related federal case.

In Orange County, the Central Florida Tourism Oversight District filed a lawsuit:

Seeking to invalidate agreements made by the former district board with Disney just before its dissolution at the urging of Governor DeSantis, following Disney's opposition to Florida's controversial "Don't Say Gay" bill.

Disney countered by petitioning the court to affirm the validity of these agreements, which were favorable to the company.

As part of the settlement, Disney has agreed not to contest the determination by the CFTOD that the previous agreements with the now-defunct Reedy Creek Improvement District were null and void.

Moreover, the settlement includes Disney's commitment to seek permission from a federal appeals court to suspend its efforts to revive a dismissed retaliation lawsuit against Governor DeSantis in Florida federal court. This suspension is contingent upon anticipated negotiations regarding "a development agreement" among other matters between Disney and the district.

This provision suggests that if Disney finds the outcome of the negotiations satisfactory, it may withdraw the federal civil complaint against the Republican governor.

The CFTOD board convened for an executive session on Wednesday morning to deliberate on the settlement.

Jeff Vahle, President of Walt Disney World, expressed satisfaction with the resolution, stating, “We are pleased to put an end to all litigation pending in state court in Florida between Disney and the Central Florida Tourism Oversight District." He added, “This agreement opens a new chapter of constructive engagement with the new leadership of the district and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the State."

In January, a federal judge dismissed Disney’s lawsuit against Governor DeSantis, which alleged retaliation against the company for criticizing the controversial parental rights education law known as the “Don’t Say Gay” bill. The judge ruled that Disney lacked legal standing to sue DeSantis over claims of First Amendment rights violation stemming from the push to alter the Reedy Creek Improvement District due to Disney’s opposition to the law.

Disney had appealed the dismissal of this lawsuit. However, with the agreement reached on Wednesday with the CFTOD, Disney has committed to "seek, and the District will not oppose, permission from the court to defer briefing in Disney’s pending federal appeal ... pending negotiations among other matters of a new development agreement between Disney and the District."

This settlement signals a mutual willingness to move forward and foster a positive relationship between Disney and the district, paving the way for continued collaboration and economic growth in the region.