Disney's tax district accused of shady dealings amid DeSantis standoff: 'Akin to bribes'

The Central Florida Tourism Oversight Board created by Gov. Ron DeSantis released initial findings Monday that accused Disney of taking payoffs and not following through on promises.

The report, which examined Disney's controversial special improvement district, found that the company had agreed to build hospitals, affordable housing and other public amenities in exchange for the special governing status, though Disney did not follow through on those commitments as it continued to build more theme parks.

"The District is not home to any schools, hospitals, or libraries and instead foists those costs upon the surrounding communities which must supply those services for Disney employees and their families," the report notes.

The special district, previously known as the Reedy Creek Improvement District, had been nearly totally governed by Disney since 1967, the report claims, giving the company "unchecked" power.

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"That authority was so unchecked that Disney attained the power to, among other exceptional privileges, create and direct not just its own fire and police departments, but also, if it chose, construct a nuclear power plant," the report reads.

The report also slams Disney's efforts to limit the public's ability to oversee activities in the district, comparing the setup to an "absolute monarchy."

"Disney had wholly outmaneuvered the legislature and pulled off an incredible act," the report reads. "It had established an extra-constitutional governing authority – 'an experimental absolute monarchy' – within the borders of the State of Florida, and, accordingly, the United States – one that strikingly resembled, without exaggeration, a kingdom of yore."

The report comes after DeSantis signed a law in February that dissolved the district's former board and installed a new five-person board, with the report alleging that the previous board and district employees took gifts from Disney "akin to bribes" that ensured the district put the needs of the company first.

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"As comprehensively documented within, for years, the company treated district employees like Disney employees by, for instance, providing complimentary annual passes and steep discounts – benefits and perks that were akin to bribes," the report reads. "Not surprisingly then, the District’s employees believed that it was their job to prioritize the interests of Disney."

Tensions between the governor and Disney began to flare after the company issued a public condemnation of DeSantis' Parental Rights in Education law that was signed last year, which banned classroom instruction on sexual orientation and gender identity until after fourth grade.

"Florida’s HB 1557, also known as the ‘Don’t Say Gay’ bill, should never have passed and should never have been signed into law," the company said in a statement at the time. "Our goal as a company is for this law to be repealed by the legislature or struck down in the courts, and we remain committed to supporting the national and state organizations working to achieve that. We are dedicated to standing up for the rights and safety of LGBTQ+ members of the Disney family, as well as the LGBTQ+ community in Florida and across the country."

But Disney's public stance on the legislation sparked the governor's move to curtail Disney's autonomy, eventually leading the way to Monday's report.

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Meanwhile, Disney slammed the report as "neither objective nor credible" in a statement provided to FOX Business, arguing that the new board was appointed by DeSantis to "punish Disney for exercising its Constitutional right to free speech."

"This report also comes on the heels of numerous reports in the media which have raised legitimate concerns around the governance of the district under its new leadership," the company said. "While the board may wish to undermine Disney’s ability to continue investing in the region, we are extremely proud of our impact on the Central Florida economy over the past half-century and we remain committed to maintaining the highest quality experience for the tens of millions of guests who visit Walt Disney World each year."

Fox News' Kelly O’Grady and Kevin Gora contributed to this report.