Disney’s Reedy Creek development deal violated state law, lawyers for new district says

Lawyers for the Central Florida Tourism Oversight District say the Feb. 8, 2023, development agreement and restrictive covenants between Disney and the former Reedy Creek Improvement District that practically neutered the state’s takeover of the district failed to follow proper procedure and will not stand up.

During a presentation by the legal counsel, David H. Thompson from Cooper & Kirk, said because this is a development agreement there are two types of notice required. While the meetings were properly advertised in the media, the RCID “failed to mail notice to the other property owners in the district.” Because the second half of this was not done, the agreement will not stand up. In addition, he said that even before a development agreement is signed the law states the government body needs to have procedures in place for something like this and RCID did not have any procedures in place.

In addition, he said, the agreement is unconstitutional because the government can not delegate its powers to a private company.

Because of all of this, the agreement is already “null and void,” Thompson said.

The presentation was part of a long meeting today, April 19, in which the new Central Florida Tourism Oversight District board voted to abolish the planning and zoning boards in the district and place all control under the board of supervisors and the board chair outlined some goals of the board.

The issue of the Feb. 8 agreement has received a lot of scrutiny from Gov. Ron DeSantis and the state Legislature.

In addition to the district’s legal counsel giving its opinions, proposals to void the development agreement are now headed to the Florida House and Senate chambers after clearing committees along party lines. An amendment to the land planning deal would allow any new special district board to invalidate any contracts or agreements approved up to three months “preceding the effective date of a law modifying the manner of selecting [its] members.”

DeSantis is expected to sign.

Disney has not released any statements on the issue. It is not known if this issue will end up in the courts.