In a significant development, Disney has requested the federal appellate court to dismiss its lawsuit against Florida Governor Ron DeSantis. This comes just a day after DeSantis' appointees approved a comprehensive development agreement with the company for the expansion of Walt Disney World over the next two decades. The approval of the deal marks the end of a long-standing conflict between the two parties.

The dismissal of the lawsuit was expected, as the fate of the federal lawsuit relied on the successful negotiation of a development agreement between Disney and the DeSantis appointees to the board of the Central Florida Tourism Oversight District. This settlement was reached in March, and the development deal was finally approved by the DeSantis appointees on Wednesday night.

As part of the 15-year agreement, Disney will invest a staggering $17 billion into Walt Disney World, fueling its growth over the next two decades. Additionally, the district responsible for providing municipal services in the area, such as firefighting and planning, has committed to making infrastructure improvements on the theme park resort's property. The district was previously under the control of Disney supporters before being taken over by DeSantis appointees last year.

"This new development agreement paves the way for us to invest billions of dollars in Walt Disney World Resort, supporting the growth of this global destination, fueling the Florida economy, and allowing us to deliver even more memorable and extraordinary experiences for our guests," said Jeff Vahle, president of Walt Disney World Resort.

Under the terms of the deal, Disney has been granted approval to construct a fifth major theme park at Disney World, as well as two additional minor parks like water parks, if it desires. The company also has the opportunity to increase the number of hotel rooms on its property from almost 40,000 to over 53,000, and expand the retail and restaurant space by more than 20%. Disney will retain control over building heights to maintain the immersive environment for visitors.

In exchange for these privileges, Disney has agreed to donate up to 100 acres of its vast 24,000-acre property for the construction of infrastructure projects controlled by the district. Additionally, the company has committed to awarding at least half of its construction projects to Florida-based companies and allocating at least $10 million to affordable housing initiatives in central Florida.

A spokesperson for Governor DeSantis expressed his satisfaction with the agreement, stating, "This agreement is a big win for central Florida and will lead to numerous jobs and improved guest experiences."

The resolution comes after a period of détente in March, during which both parties agreed to cease litigation and focus on negotiating a new development agreement and comprehensive plan by next year. The litigation, which lasted for nearly two years, originated from Disney's opposition to a 2022 law banning lessons on sexual orientation and gender identity in early grades. As a repercussion, DeSantis took over the governing district through legislation and appointed a new board of supervisors. Disney filed a lawsuit claiming a violation of their free speech rights, which was dismissed by a federal judge in January, leading to Disney's appeal.

The previous control of the district was held by Disney supporters who had signed agreements with the company, granting them control over design and construction at Disney World. The new DeSantis appointees argued that these agreements rendered them powerless and filed lawsuits in state court to have the contracts voided. However, these state court lawsuits were dismissed as part of the March settlement.

With the lawsuit now dropped, Disney and Governor DeSantis have paved the way for a new era of development at Walt Disney World. The multi-billion-dollar investment and infrastructure improvements promise to drive economic growth in Florida, creating jobs and enhancing the overall guest experience at the iconic theme park resort.