Disney CANCELS Lake Nona Project!

On May 10, The Walt Disney Company held its second-quarter earnings call. During the call, CEO Bob Iger was asked about the company’s fight with Florida Governor Ron DeSantis. Iger said that the governor was targeting Disney because he didn’t like that the company spoke out against a Florida bill that the governor supported. Iger ended his Florida conversation by asking one key question: “Does the state want us to invest more, employ more people, and pay more taxes, or not?”

Well, it looks like Disney made the call before DeSantis could answer the question.

On May 18, Disney pulled a huge move by announcing that their massive Lake Nona project was being canceled. Lake Nona was first announced by now-fired CEO Bob Chapek back in July 2021. Chapek said that Disney would be building a huge Imagineering Campus in Lake Nona, Florida. Many of Disney’s Imagineers would have to uproot their lives in California to head to the Sunshine State. The announcement went over like a lead balloon, but Chapek stuck to his guns and gave Imagineers the option of “move or work somewhere else.”

While the Imagineer move was supposed to happen relatively quickly, things came to a halt as Disney got deeper into its fight with the Florida Governor. Originally, Disney announced that the move would be pushed back to 2026. Now, it isn’t going to happen at all.

Per a bombshell report from The New York Times:

On Thursday, Mr. Iger and Josh D’Amaro, Disney’s theme park and consumer products chairman, showed that they were not bluffing, pulling the plug on a nearly $1 billion office complex that was scheduled for construction in Orlando. It would have brought more than 2,000 jobs to the region, with $120,000 as the average salary, according to an estimate from the Florida Department of Economic Opportunity.

When he announced the project in 2021, Mr. D’Amaro cited “Florida’s business-friendly climate” as justification.

Mr. D’Amaro’s tone in an email to employees on Thursday was notably different. He cited “changing business conditions” as a reason for canceling the Lake Nona project. “I remain optimistic about the direction of our Walt Disney World business,” Mr. D’Amaro said in the memo. He noted that $17 billion was still earmarked for construction at Disney World over the next decade — growth that would create an estimated 13,000 jobs. “I hope we’re able to,” he said.

Disney is currently embroiled in a lawsuit against Governor DeSantis. Disney has claimed that the Governor has been targeting them and making laws against them ever since they spoke out against the controversial Parental Rights in Education bill. DeSantis — and the Florida legislature — have stripped Disney World of its right to self-govern. They have also put the Disney World monorail under state control. The law that will require the Disney World monorail to be inspected by the state only applies to Disney, and not neighboring theme parks Universal Orlando and SeaWorld Orlando.

The governor has said that Disney’s lawsuit is a purely political move, but Disney is using DeSantis’ own words against him. At multiple rallies and in multiple interviews, DeSantis has admitted that he only started attacking Disney AFTER they spoke out against the Parental Rights bill.

DeSantis and his team have not responded to the news of the Lake Nona cancellation. Stopping the project has just cost the state of Florida thousands of jobs and millions in taxes.

You can read Josh D’Amaro’s entire email below:

Team, 

I wanted to let you know that we’ve just begun communication regarding our updated plans for the Lake Nona Campus.

As many of you know, the company had decided to build the new Disney campus in Lake Nona and many Cast Members, Imagineers, and employees were asked to committ to making a move to Florida. While some where excited about this new campus, I know that this decision and the circumstances surrounding it have been difficult for others. 

Given the considerable changes that have occurred since the announcement of this project, including new leadership and changing business conditions, we have decided not to move forward with construction of the campus. This was not an easy decision to make, but I believe it is the right one. As a result, we will no longer be asking our eomployees to relocate. For those who have already moved, we will talk to you individually about your situation, including the possibility of moving you back. 

It is clear to me that the power of this brand comes from our incredible people, and we are committed to handling this change with care and compassion. 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 are able to DeSantis. 

We are committed to our teams who call Central Florida home and to all of our Cast Members around the world, and I want to thank you for your continued dedication to Disney Parks, Experiences and Products and for delivering world-class entertainment for our Guests. 

– Josh