For nearly a century, The Walt Disney Company has been primarily based in California. But according to a new report from the Orlando Business Journal, things could be changing soon, as the company is reportedly considering moving a number of its divisions to Florida.
Jack Witthaus and Richard Bilbao write that Disney could be relocating part of its company to Lake Nona, a master-planned community in southeastern Orlando. The move comes as a number of companies, including Hewlett Packard Enterprise, have announced relocations to southeastern states, which have a tendency to be more tax-friendly and supportive toward businesses. Reportedly, Disney hasn’t signed any deal with the community, and it’s unsure which divisions or how people would make the move.
Recently, Disney has had open struggles with California, particularly with regard to the state’s COVID-19 restrictions, which have kept the parks of the Disneyland Resort closed since March. Meanwhile, Florida’s guidelines have allowed Walt Disney World’s parks to be open since July.
A spokesperson for Disney told Witthaus and Bilbao, “as the largest employer in Central Florida, we are always exploring opportunities for additional locations within the vicinity of our theme park, but there is nothing concrete.” Lake Nona developer Tavistock Development Co. didn’t comment on the story.
Jeff Sweeney, a managing director at Cushman & Wakefield, who isn’t involved in the possible move, said that Disney has “compelling reasons” to move more of its divisions to Orlando, saying, “we’ve seen time and time again in last 12 months corporations leaving California for other markets that are business-friendly. You look at what happened to the [theme] parks in California versus Florida. That’s a big financial impact on the organization, coupled with the cost of operations and personal income tax for employees in addition to other California regulations.”
Tuna Amobi, director and industry analyst for CFRA Research, added that it’s unlikely to be a complete relocation, especially with its film and television production already rooted in Los Angeles and New York. More likely, it would be the theme park divisions to move, likely additional support and operations departments, with much of it already in Central Florida. Amobi also expressed a lack of surprise about the rumor, saying, “The Covid situation is not under control despite the vaccine’s progress, [but] it’s given investors some hope.”
Keep reading WDWNT as we learn more about this ongoing story.
Sounds like an office building would be required and some residences for the employees. I think Disney has plans on file that would fit that bill. Time to dust off the Progress City plans from the 60’s EPCOT pitch film. Doesn’t necessarily have to be full size. How cool would it look if it took on such a design as the original, regardless of size? One can dream.
Better late than never! Just hope the anti-business policies don’t follow them.
And in Summary, California politicians have made a mess of the state, so people are leaving. Florida, here they come.
And the California exit continues. Business does not lie, it’s all about the bottom line.
Newsome got this coming. Now he deserves to be removed from office.
Disney – congratulations. You just made a smart business decision. Remember those? You haven’t had one of those since 1995. Just ask Michael Eisner. Now if you will just train your own CEO to think rationally in this same manner, you’d be all set.
But they will vote for the same left-leaning candidate types that have destroyed California. Oh goody.
Yup here we come Florida. Gonna turn you into a blue state in no time! ;)