Disney Scraps $1B Florida Project Amid Feud With DeSantis

ORLANDO, FL — Walt Disney Co. has pulled the plug on the construction of a $1 billion office complex in Orlando amid the company's ongoing feud with Florida Gov. Ron DeSantis, according to reports.

In a memo sent to employees, Disney cited "new leadership" and "changing business conditions" as reasons behind the decision, The Associated Press reported.

"Given the considerable changes that have occurred since the announcement of this project, ...we have decided not to move forward with construction of the campus," Josh D'Amaro, chairman of Walt Disney Parks, said in the memo.

D'Amaro continued, "I remain optimistic about the direction of our Walt Disney World business," "We have plans to invest $17 billion and create 13,000 jobs over the next ten years. I hope we're able to do so."

The project, known as Lake Nona Town Center, was estimated to cost close to $1.3 billion, according to a New York Times report. Disney planned to relocate as many as 2,000 employees to Florida from southern California as part of the project.

In a statement to CNN, a spokesperson for DeSantis called Disney's decision "unsurprising given the company's financial straits, falling market cap and declining stock price."

The move by Disney is the latest in a months-long feud between Florida's governor, the Republican-controlled legislature and the entertainment giant.

In February, lawmakers passed legislation allowing the state to take control of Disney World's independent special taxing district known as the Reedy Creek, which gave Disney World the right to self-govern its 25,000-acre footprint in Orange and Osceola counties.

The legislation renamed the Reedy Creek Improvement District to the Central Florida Tourism Oversight District and gave DeSantis the power to select the five-person board.

The move by Florida lawmakers was primarily seen as retaliation for the entertainment giant publicly opposing Florida's Parental Rights in Education bill that bars instruction on sexual orientation and gender identity in schools.

In March, board members appointed by DeSantis learned Disney's previous board passed a 30-year agreement and restrictive covenants that made new members powerless to manage Disney's future growth in Florida, the Orlando Sentinel first reported.

The board appointed by DeSantis later voted to nullify the agreement. Minutes later, Disney sued DeSantis, the five-member board, and other state officials in federal court, accusing DeSantis of orchestrating "every step" in a "targeted campaign of government retaliation."

Days later, the Central Florida Tourism Oversight District voted unanimously to countersue Disney and defend itself in federal court.

"We will seek justice in our own backyard," said Martin Garcia, chair of the Central Florida Tourism Oversight District.

Since both lawsuits were filed, Florida lawmakers passed a proposal to nullify the controversial development agreement between Disney and the company's previous board.

The Associated Press contributed to this report.