Disney Scraps $864M Lake Nona Project Amid Tensions With Florida Governor DeSantis

The Walt Disney Company DIS is withdrawing its decision to invest $864 million in a new Florida corporate campus. The project, which was initially anticipated to relocate more than 2,000 Disney employees primarily from its theme parks division to Lake Nona, Florida.

What Happened: The news came from an email sent to employees by Josh D’Amaro, head of Disney’s Parks, Experiences and Products division since 2020, according to The Wall Street Journal.

D’Amaro stated that "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." Employees who had already relocated to Florida are now presented with the choice of returning to Southern California.

Also Read: Disney Vs. DeSantis Goes Directly To Classroom With Florida Teacher Under Investigation

The Lake Nona project was originally proposed by Bob Chapek, Disney's former CEO, who was dismissed by the board in November 2022 and replaced by Bob Iger, who previously served as the company's CEO from 2005 to 2020.

Disney has also been grappling with numerous issues, which include cutting 7,000 jobs and reducing its content and administrative budgets by $5.5 billion. Further, there have been escalating tensions with Florida Governor Ron DeSantis and state lawmakers.

The company is now involved in a legal battle after the governor attempted to assume control of Reedy Creek, a special tax district that enables Disney to self-govern land that houses its theme parks and hotels in the vicinity of Orlando.

Why It Matters: The Lake Nona project was heralded as a key factor for investment and job creation by local government and tourism officials in Orange County, Florida. As Danielle Hollander, the Chief Marketing Officer at Visit Orlando, suggested, this project was viewed as a testament to Disney's dedication to Central Florida, WSJ reports.

During Disney's annual meeting in April, Iger denounced DeSantis' actions, labeling them as "antibusiness" and "anti-Florida." He also revealed Disney's plan to invest $17 billion in Florida over the coming decade and to create 13,000 new jobs.

However, the cancellation of the Lake Nona project has left many questioning the company's future plans in the state of Florida.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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