Walt Disney Parks and Resorts green-lighted $17 billion in development plans at Walt Disney World and surrounding Orange County, Fla., getting approval June 12 from the Board of Supervisors District Central Florida Tourism (CFTOD) for its expansive capital plan. .
The development agreement was unanimously approved after a second reading on June 12 by the CFTOD (formerly Reedy Creek Improvement District), a local special taxing district that acts as a county government that oversees the area of 24,000 acres covered by the Disney property. The district ensures that it, and not local property owners, pays for municipal services such as water, electricity and roads.
The purpose of the agreement is to ensure that Disney’s development planning aligns with CFTOD’s comprehensive planning process, which requires the district to update its comprehensive plan to account for the development program outlined in the agreement before the third quarter of 2025.
The plan, however, includes a commitment from Disney for an initial 8 billion dollars capital investment over the next 10 years and obliges him to donate up to 100 acres of land under his ownership or control that will be required for public improvements in the District.
With an extension of 17,000 hectares, the agreement includes proposals for road improvements and other infrastructure planned for the coming years. Requires at least 50% of goods and services related to design, development and construction to go to Florida businesses. As part of the deal, Disney will also commit a minimum of $10 million to affordable housing efforts over the next 10 years.
The agreement allows for the types of development currently approved under the District’s comprehensive plan, such as hotel/motel, office, retail/restaurant, major theme park and minor theme park.
While the news sparked speculation that Disney is building a fifth theme park at Walt Disney World, the agreement does not list or prohibit a new park, but is instead “intended to specify an orderly process for approving a program of development and the corresponding public infrastructure commitments to support the development of the Project, as well as certain economic development conditions to benefit the surrounding community”.
However, under the current approved comprehensive plan, the agreement notes, five major theme parks and five minor theme parks are approved for approval, although only four and three, respectively, have been developed so far.
The plan states that public facilities such as transportation, sanitary sewer, and water systems must be financed, designed, and constructed by CFTOD. An included capital improvement schedule shows the projects that fall under this umbrella, including several projects to be completed in the coming years.
A four-lane divided rural road called World Drive North Phase 3, extending from World Drive North Phase 2 to Floridian Place and including utility transfers and other related work, with a desired completion date of 2026.
The goal is to widen the road from four lanes to six lanes for completion in 2031, intersection improvements along Buena Vista Drive and dedicated bus lanes on the roadway are planned for completions of 2030 and 2032, respectively.
Other planned projects include expansions and improvements to water, solid waste, stormwater and sanitation facilities, including a 2026 target date for a new master plan for stormwater improvements.
The deal also gives Disney some leeway to convert the hotel’s land use rights to add up to 225,000 square feet of office uses and gives it control over the height of the buildings due to of the “unique nature of the buildings and attractions that make up a theme park”.
The Florida plans come on the heels of other Disney development efforts elsewhere, including DisneyLandForward’s estimated $2.5 billion plan to expand Disneyland Resort in California. In September, Disney announced a 10-year investment plan of $60 billion globally for theme parks and cruise lines, nearly double its investment in the previous 10 years, according to the AP.
Several local businesses spoke in favor of the deal at the June 5 and 12 meetings, including owners and representatives of Disney Springs businesses such as Wine Bar George owner George Miliotis and CEO of Planet Hollywood, Robert Earl.
Robert Agrusa, president and CEO of the Central Florida Hotel and Lodging Association, expressed enthusiastic support for the project, saying it’s no secret that Disney is Central Florida’s economic engine, including the nearly 450,000 hospitality employees in the area, which make up 40.% of their workforce.
The settlement also serves as the definitive end to legal disputes between Disney and Florida Gov. Ron DeSantis stemming from actions by Florida Republicans to create the CFOTD appointed by DeSantis after the passage of a law that revoked Disney’s self-governing status, which followed Disney’s opposition to the state. The so-called “Don’t say gay” law that restricts how sexual orientation and gender identity is discussed in schools.
Disney challenged the board’s review in court, but lost and appealed. Although both sides reached an agreement in March to effectively end the dispute, according to the AP, the appeal has now been dropped thanks to the development agreement.
In a June 13 filing, the day after the development agreement was approved, Disney states, “Based on the new development agreement between Appellant Walt Disney Parks and Resorts . . . and appellee Central Florida Tourism Supervisory District, Disney has agreed to dismiss the above-captioned appeal.”
