Disney is About to Run Into Huge Problems With Its Florida Expansion Plans

Earlier this year, when Disney CEO Bob Iger announced that Disney would be spending $17 billion and hiring 13,000 Cast Members, Disney fans everywhere started speculating on what they might be building. For that much money, it could be a new Park. And maybe even a few new hotels and restaurants thrown in. The possibilities were endless.

But then Disney Chairman of Parks, Experiences, and Products Josh D’Amaro announced the cancelation of Disney’s Lake Nona Project and hoped for something new dimmed. D’Amaro said he “hoped” Disney would continue with its intended investment in Walt Disney World. Not exactly a strong endorsement.

Shortly after the Lake Nona breaking news, Iger came to the rescue, telling fans Disney still intended on spending that money in Florida. And so, like kids on Christmas morning, we’re waiting for our new toys. But there may be another Grinch about to steal away the joy from Disney fans everywhere.

According to Reuters, funding at local and regional banks, usually those who lend for these projects, has dried up in the last two months since interest rates have risen. So, unless Bob Iger has $17 billion hiding under his mattress, Disney will have difficulty finding funding for its new projects.

In the past three months, 60 percent of U.S. hotel projects that already broke ground this year have been paused. That’s a vast number and a bad omen for Disney.

After the collapse of Silicon Valley Bank in March, many regional banks have pulled back from larger building projects. At the same time, interest rates have spiked to nearly 10 percent scaring off builders. Even private equity firms, which used to be a reliable source of money, have backed away.

It is the perfect storm for Disney. Combine that with the uncertain political climate in Florida, and now that investment seems even further away than before. The Walt Disney Company is currently embroiled in a lawsuit with Florida Governor Ron DeSantis and the Central Florida Tourism Oversight District, the outcome of which could decide the fate of Disney’s expansion plans.

In the meantime, Disney fans eagerly await any news on plans for Walt Disney World. And we keep dreaming of a villain’s land in Magic Kingdom, an expansion of Disney Springs, or anything at Animal Kingdom. We’ll just have to wait for something new at Walt Disney Parks.

We will continue to update those plans at Disney Fanatic.