DeSantis signs bill nullifying Disney's self-dealing covenant with Reedy Creek

Republican Florida Gov. Ron DeSantis signed legislation Friday to nullify Disney’s last-minute agreements intended to curb the governor’s state control board implemented to oversee the corporation’s special tax district.

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Disney’s Reedy Creek Improvement District anticipated the governor’s signing of legislation to revoke the company’s self-governing privileges, and made eleventh-hour agreements granting Disney control of the district’s developmental rights and privileges. DeSantis signed the bill to nullify those agreements, as they were made within the three-month window that the state control board was enacted.

“An independent special district is precluded from complying with the terms of any development agreement, or any other agreement for which the development agreement serves in whole or part as consideration, which is executed within 3 months preceding the effective date of a law modifying the manner of selecting members of the governing body of the independent special district from election to appointment or from appointment to election,” the bill reads.

[That will make it difficult for Disney to enforce its last-minute covenants. The state legislature acts most strongly by creating statutes, and while those can be challenged, Disney’s self-dealing and clearly “unconscionable” covenant was not likely to withstand judicial scrutiny anyway. — Ed]

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