In a notable turn of events, the Central Florida Tourism Oversight District, appointed by Florida Governor Ron DeSantis, has given its initial approval for a major development deal valued at up to $17 billion with Walt Disney Co. The agreement signifies a significant improvement in relations between the state government and one of its largest employers.

The unanimous vote in favor of the expansion marks one of Disney's most significant investments in its Orlando-area theme parks in recent years. The expansion plans, outlined in an agenda published before the meeting, encompass a 15-year agreement between Disney and the Central Florida Tourism Oversight Board.

As part of the deal, Disney has committed to allocating at least half of the project spending to Florida businesses and investing at least $10 million over a decade in affordable housing projects. The proposed development designates 17,000 acres of Walt Disney World Resort for the project.

The détente between Disney and Governor DeSantis began when the tourism board dropped its lawsuit against the company in March. In return, Disney relinquished some control over its 25,000-acre property and dropped its own lawsuit concerning public records from the district. While Disney is still appealing a federal lawsuit dismissed in January, alleging violations of its First Amendment rights, both parties have agreed to pause the legal battle for now.

The feud between Disney and DeSantis initially erupted in March 2022 when former Disney CEO, Bob Chapek, criticized an education law championed by the governor. The contentious exchange and subsequent actions taken by the governor, including dissolving a special taxing district called Reedy Creek, fueled the public dispute.

However, as Governor DeSantis shifted his focus back to Florida following his presidential campaign, the importance of the symbiotic relationship between Disney and the state's economy became evident. The cooling of tensions between the two parties is seen as a result of this realization.

Disney's CEO, Bob Iger, had characterized Governor DeSantis' actions against the company as "not just anti-business, but it sounds anti-Florida." With Iger's return to the helm and the company's successful foray into digital business through Disney Plus, theme parks remain the best-performing sector of the company.

Disney's domestic theme parks generated a revenue of $5.96 billion in the first quarter of 2024, representing a 7 percent increase compared to the same period last year. The company also observed a significant surge in revenue from its international parks, which grew by 29 percent.

While Disney has made strategic decisions to halt certain projects, such as the Star Wars-themed Orlando hotel, it remains committed to park expansions. In September, the company announced plans to double its capital investment over the next 10 years, amounting to $60 billion, with a focus on U.S. parks in Anaheim and Orlando, as well as international locations.

The agreement between Disney and the tourism board sets the stage for the final vote next week. It signifies a turning point in the relationship between the state of Florida and one of its most prominent employers. With future expansions on the horizon, both parties are poised to move forward in a more constructive and collaborative manner.