Disney Under Fire: Governor DeSantis Urges Investigation Into Oversight Board Avoidance

Florida Governor Ron DeSantis is calling for an investigation into Walt Disney Co's DIS recent attempt to limit state oversight of development at Disney World.

What Happened: DeSantis sent a letter to Florida’s chief inspector general, Melinda Miguel, requesting the investigation after discovering last week that Disney approved a development agreement in early February that would allow the company to bypass a new oversight board whose members were appointed by the governor, according to a New York Times report.

The Background: In 2022, DeSantis requested that Florida lawmakers terminate the special tax district privileges that Disney World had enjoyed since 1967, which allowed the company to self-govern its 25,000-acre theme park complex. These privileges had given Disney control over significant aspects such as fire protection, policing, road maintenance, and development planning.

Also See: DeSantis Vs. Disney Battle Heats Up — And How King Charles III Is Now Involved

Although the district was not terminated, according to the report, it was agreed that the previous Disney-controlled board would be replaced with one controlled by the governor.

Before the installation of the new oversight board at Disney World, the previous Disney-controlled board passed “restrictive covenants” and an agreement that granted the company substantial control over future construction in the district, limiting the new board's say over the matter, the Times said.

Disney has not responded to DeSantis’ request, according to the report, though the company stated that all agreements between Disney and the district were discussed and approved in open public forums and were in compliance with Florida's Government-in-the-Sunshine law.

Price action: Shares of Disney are trading 0.39% lower at $99.74, according to data from Benzinga Pro.

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