Earlier this month when Disney announced that a plan to move 2,000 Cast Member jobs (including most of Walt Disney Imagineering, from California to Florida) would not move forward, it was obviously a financial blow to the state. The move was expected to result in nearly $1 billion in spending in the state that now won’t happen, but it looks like Disney’s decision in its ongoing battle with Florida is already causing repercussions, as it could mean a lot of additional economic activity won’t happen.
At this point, it’s unclear what Disney will do with the land it purchased in 2021, but at least in the short term, the answer is “absolutely nothing” and that’s bad news for the Lake Nona area, which was expecting a boom in both residential and commercial projects in response to the move. The Wall Street Journal reports that when Disney first announced the move, construction on new homes and apartments jumped up, many of which are actively being built now, but it appears the people who were expected to live in them aren’t coming.
And all the new Florida residents would have brought their higher incomes with them, which would have resulted in more spending on consumer goods, inside local restaurants, and everything else that comes with that. It’s also possible that other commercial endeavors that might have been interested in moving into the 11,000-acre community may be less interested when there is a massive empty space due to Disney not taking residence in the Lake Nona campus.
A complete look at the ongoing legal battle between Walt Disney World and the state of Florida
When a major company like Disney makes plans it has an impact on every corner of the economy and clearly, the area was making big plans based on that decision. Now there will be residences likely sitting empty which looks bad for the community but will also be a problem for those that built them that are unable to recoup the investments. And in every step of the process, there would be state taxes that now won't be coming in.
In 2021 it was announced that Disney would move most of Walt Disney Imagineering closer to Walt Disney World, and while the initial deadline was delayed from 2023 to 2026, the move was still going forward until a couple of weeks ago. Reasons given for the cancellation included the new leadership, the old plan had been created under former CEO Bob Chapek before he was fired and Bob Iger returned to the fold, and the changing business climate in Florida.
And the business climate has certainly changed in Florida, specifically for Disney. Disney and Florida Governor Ron DeSantis have been involved in an ongoing battle that has now resulted in Disney suing the state for retaliation. Disney is arguing to a court that the company is being punished by the state for exercising its First Amendment rights. Earlier this year, DeSantis signed a law that replaced the special district that oversaw Walt Disney World with one appointed by the governor. Florida has also targeted the monorail for inspections that had not previously been required.
