Florida may reverse decision on Disney’s Reedy Creek District: report

A resolution to the politically charged conflict that developed this year between the state of Florida and the Walt Disney Company may reportedly be in the works.

The state's lawmakers are working on plans to reverse a move that would strip Disney of its right to operate a private government around its theme parks, according to the Financial Times.

It would potentially resolve the fallout from the "Don’t Say Gay" controversy that dragged the entertainment giant into the culture wars. 

In April, the Florida legislature voted to dissolve Disney’s 55-year-old special tax district following a public feud between Gov. Ron DeSantis and then-chief executive Bob Chapek.

The conflict was over a new state law restricting discussion of LGBTQ issues in classrooms. 

Chapek stepped down from the position last month, with former CEO Bob Iger returning and its believed the return of Iger will help pave the way for a resolution.

RELATED: DeSantis vs. Disney: Governor says state will take over Reedy Creek Improvement District

That district allows Disney to tax itself to cover the costs of providing water, power, roads and fire services in the area, known as the Reedy Creek Improvement District. 

A compromise would allow Disney to keep the arrangement largely in place with a few modifications.

Tax officials and lawmakers have warned dissolving Disney’s private government threatens to shift an enormous financial burden to taxpayers and potentially transfer a $1 billion debt load to the state.

RELATED: DeSantis vs. Disney: What happens if legislature eliminates Reedy Creek Improvement District?

Since returning to Disney, Iger has steered clear of criticizing Florida for a bill that he had warned would "put vulnerable, young LGBTQ people in jeopardy" when it was introduced in February.

Iger opposition to the legislation, dubbed "Don’t Say Gay" by critics, put pressure on Disney to reverse course this spring and come out against the bill after initially refusing to take a stand.

The law removing Disney’s special status does not go into effect until next summer.

FOX Business has reached out to The Walt Disney Company and Governor DeSantis' office for comment.

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