Disney announced Thursday that it canceled plans for a new campus near Orlando, Florida. The development was planned for the Lake Nona region.
"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 construction of the campus," Disney said in a statement.
The decision comes at a time when the company is openly feuding with Florida Governor Ron DeSantis, who is expected to officially enter the 2024 GOP presidential race next week, CNN reported Thursday.
DeSantis' office released a statement to ABC Action News' Forrest Saunders that said:
"Disney announced the possibility of a Lake Nona campus nearly two years ago. Nothing ever came of the project, and the state was unsure whether it would come to fruition. Given the company's financial straits, falling market cap, and declining stock price, it is unsurprising that they would restructure their business operations and cancel unsuccessful ventures."
Disney and DeSantis have been sparring for over a year about controversial legislation the governor signed that restricts the teaching of sexual orientation and gender identity in schools. Critics have labeled the law “Don’t Say Gay.”
The fight has intensified in recent months after DeSantis moved to take over the company’s special tax district, setting rules for Disney World and surrounding areas.
DeSantis has tried to install a hand-picked board to oversee the district. Before the Florida governor selected the board in February, Disney had reached agreements with the outgoing board that limited the power of DeSantis’ appointees.
The two sides are now locked in a legal battle.
Shortly after Disney made the announcement, former President Donald Trump used the move by Disney to attack DeSantis ahead of his planned presidential run. Trump said in part:
"DeSanctus is being absolutely destroyed by Disney. His original P.R. plan fizzled, so now he's going back with a new one in order to save face. Disney's next move will be the announcement that no money will be invested in Florida because of the Governor...In the meantime, this is all so unnecessary, a political STUNT! Ron should work on the squatter MESS!"
Florida State Senator Linda Stewart said in a statement, “While the news from Disney this afternoon comes as a disappointment, it should not be viewed as a reflection on Lake Nona. All industries continuously evaluate environments and economic factors when undertaking such large relocations, and today's announcement is understandable given the business climate we are in as a state.”
“I wish the determination were different, and while the additional jobs and housing would have been a great boost to our community I’m confident that Lake Nona will continue to be a key location for future investment from the Walt Disney company,” said Stewart.
Jeff Vahle, President of the Walt Disney World Resort, said the following in a statement:
Dear Community Leaders,
Today, you may have heard the news that Disney is no longer moving forward on the construction of a new campus in the thriving and growing community of Lake Nona in Orlando. Since we first announced this project, several dynamics have changed, including a change in company leadership and evolving economic and business conditions.
Regarding our world-class destination, our desire is to continue investing in our core business in an effort to attract and welcome millions of visitors to Walt Disney World and Central Florida each year so they can enjoy the kind of hospitality our region is known for around the world. Our plans currently call for us to invest $17 billion in Walt Disney World over the next 10 years and create 13,000 new jobs to continue doing our part as a leading employer in the hospitality and themed entertainment industry. We hope those plans will become a future reality.
For decades, we have operated our business responsibly and being the region’s largest taxpayer, we paid and collected over $1.1 billion in state and local taxes during last year alone.
As the largest single-site employer in Central Florida, we are deeply rooted in this community, and we continue to make investments for the betterment of our region such as our contribution of 80 acres of land to create affordable and attainable housing [r20.rs6.net] for our community, which we announced last year. Groundbreaking on this development is targeted for next year, with the first of 1,400 units anticipated to be completed in 2026.
We also continue to invest in our community through our broad array of philanthropic and citizenship efforts [r20.rs6.net]. Over the last 20 months, we’ve provided $6.5 million in grants to locally based, non-profit organizations such as Give Kids The World, Boys & Girls Clubs of Central Florida, Second Harvest Food Bank of Central Florida, Conservation Florida, Heart of Florida United Way, Hope Partnership, The Nature Conservancy and more. This is on top of the donation of millions of hours of time that our Cast Members have contributed to deserving organizations over the decades.
Of course, none of this would be possible without the amazing dedication of the 75,000 Cast Members who call Central Florida their home. To them, we offer the best overall benefits package in the Central Florida hospitality industry, including an $18 minimum wage by the end of the year - which is well above the state’s minimum wage - affordable medical coverage, subsidized childcare, access to free higher education through Disney Aspire our 100% paid tuition programs, and pathways to help Cast at every step of their career.
While today’s decision was not easy, we remain committed to our Cast Members as well as you and our wonderful community.
Disney is the parent company of ABC News.
