ORLANDO, Fla. – An investigation led by Florida's Office of Chief Inspector General (OCIG) has concluded with no findings of criminal wrongdoing against the former members of the Reedy Creek Improvement District board, following concerns raised by Governor Ron DeSantis. This decision follows DeSantis’ request for scrutiny over the special taxing district, formally responsible for the governance of Walt Disney World, amid his contentious relationship with the entertainment giant.
Documents obtained by News 6 reveal details surrounding the probe, which determined there was "a blurring of the lines" between the Reedy Creek Improvement District (RCID) and The Walt Disney Company. The investigation concluded earlier this year, but only after examining various governance documents, property tax records, and other controls, which led to the OCIG finding no basis for recommendations or prosecution.
After the Florida Legislature modified the district's structure and renamed it the Central Florida Tourism Oversight District (CFTOD), DeSantis, alarmed by last-minute agreements made by the former RCID board, instructed the OCIG to launch its review on April 3, 2023. He claimed these agreements were aimed at undermining legislation passed by the legislature to increase state control over the district.
"These collusive and self-dealing arrangements aim to nullify the recently-passed legislation, undercut Florida’s legislative process, and defy the will of Floridians," DeSantis stated at the time, prompting concerns about the purported cozy relationship between the former board and Disney.
Despite DeSantis’ allegations, the OCIG memo sent to him on June 21, 2024, clearly stated, "The OCIG found, prior to the creation of the CFTOD, a blurring of the lines between Walt Disney Parks and Resorts U.S. Inc. and the RCID." This blurring was evidenced by practices such as the hiring of shared legal representation and favorable treatment extended to RCID employees at Disney venues.
Specifically, the memo detailed how RCID had purchased annual passes to Disney parks for its employees, which was seen as financial favoritism toward Disney. It also pointed out how such arrangements were terminated with the board's restructuring under DeSantis’ appointees.
Further complicity was suggested as the OCIG looked at whether proper notifications were issued to property owners about board meetings prior to votes on Disney-related agreements, though it could not confirm the adequacy of communication as required by law.
The findings also noted past practices including discounts available to RCID staff, which were typical offerings for Disney employees, but had since been revoked by the newly appointed board. This shift signified the DeSantis administration's push for accountability and elimination of perceived conflicts of interest.
Following the governor's review, the Florida Department of Law Enforcement (FDLE) also closed its probe without filing any charges, affirming there was "a lack of a criminal predicate" with respect to the former board's actions.
The OCIG’s report followed fourteen months of careful scrutiny, working alongside FDLE, as well as engaging various county authorities on matters of ethics and governance. It indicated no criminal or civil law breaches were found, even as questions remained about the legitimacy of past agreements between Disney and the district.
Aside from concluding the inquiry, the agency also took note of reform needs for the structure and operations of the RCID, which had been criticized heavily for its operations leading up to the governor's interventions. Documents reviewed showed patterns of governance practices requiring restructuring.
The completion of these investigations coincided with Disney and CFTOD reaching settlements concerning the development agreements passed by the former RCID board, which were at the center of earlier concerns, nullifying those last-minute arrangements.
Disney's management of the RCID, which had included self-governing capabilities since its inception, faced significant upheaval as DeSantis moved to establish state oversight over the newly named CFTOD. The conflict escalated following the company's public opposition to the 2022 Parental Rights in Education law, which limited classroom discussions about sexual orientation and gender identity.
The investigation's results reveal not just the complex relationship between Disney and state governance but also highlight the broader political battles at play as DeSantis coordinates with Republican allies to redefine the oversight of one of the state's key economic engines. Representatives from both CFTOD and Disney have yet to comment on the findings of this investigation.
