👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Florida board says it discovers another '11th hour' agreement with Disney

Published 04/19/2023, 03:34 PM
Updated 04/19/2023, 03:36 PM
© Reuters. FILE PHOTO: People gather ahead of the "Festival of Fantasy" parade at the Walt Disney World Magic Kingdom theme park in Orlando, Florida, U.S. July 30, 2022.  REUTERS/Octavio Jones/File Photo
DIS
-

By Dawn Chmielewski and Lisa Richwine

(Reuters) - Florida Governor Ron DeSantis' new oversight board has discovered another "11th hour agreement" that allows Walt Disney (NYSE:DIS) Co to set its own utility rates at its Orlando theme parks, the board's chairman said on Wednesday.

A Disney subsidiary, which provides utility services to the central Florida district that includes the Walt Disney World Resort, negotiated an agreement in February to extend its contract through 2032, Chairman Martin Garcia said at a public meeting. Disney did not immediately respond to requests for comment.

"Last Friday afternoon I learned for the first time about one of these new 11th hour agreements entered into between Disney and the district. This one relates to our utility services," Garcia said. "We'll have to evaluate the legality of that agreement, that essentially enables Disney to set their utility rates.

"I've never heard of such a thing," Garcia said.

The board was established to provide state oversight of a special district around Walt Disney World.

DeSantis, a likely Republican presidential candidate who has frequently attacked "woke Disney," said the company has long operated with an "unfair advantage" in the state through the district.

He has previously complained about an agreement Disney made with outgoing board members to preserve the company's option to add a fifth major theme park and more retail space and hotel rooms at the resort.

Legislation filed this week would seek to invalidate the agreement.

State Republicans last year began targeting Disney after it publicly clashed with DeSantis over a law that restricts classroom instruction of gender and sexual orientation.

© Reuters. FILE PHOTO: People gather ahead of the

Republicans named the bill the Parental Rights in Education Act, while opponents criticized it as the "Don't say gay" law.

Disney Chief Executive Bob Iger has called moves to limit Disney's oversight of its theme parks "anti-business" and "anti-Florida."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.