Disney released some pretty big news this week.
A few days ago it was announced that Disney canceled its $1 Billion Lake Nona project. The project was going to spread out over 60 acres and bring 6 office buildings, 2 flex buildings, and more to the area, which would result in thousands of jobs. So now that it’s been scrapped, what’s going to happen to the land?
But first, let’s talk about what this project was. Back in 2021, Disney purchased land in Lake Nona in hopes to move thousands of employees from California to Florida. It was expected to bring more than 2,000 jobs to Central Florida, according to The New York Times.
So why did Disney change their mind? Well at a recent earnings call, Disney CEO Bob Iger asked, “Does the state want us to invest more, employ more people, and pay more taxes, or not?” According to The New York Times, in an email to Disney employees, Josh D’Amaro said that “changing business conditions” was a reason for canceling the project.
Now, according to the Orlando Business Journal, it seems Tavistock Development Co. LLC, who is the master developer for the whole project, “may be able to buy back the land.” This loss of Disney being a part of the project is a “significant blow” for Tavistock, so buying back the land may be in their best interest.
Right now, it’s unclear how this will all play out, or if there are any “timelines or other triggers to compel the resale of the land.” However, a Disney spokesperson did say that Disney is considering what their next steps for the property could be.
UPDATE: The Orlando Business Journal has since reviewed some legal documents surrounding the sale of the land between Disney and Tavistock.
The documents show a memorandum of repurchase option between a subsidiary of Tavistock — Lake Nona Land Co. — and “Disney’s related Dynamic Campus LLC.” That memorandum indicates that Disney is supposed to hit the following construction milestones:
- Completion of 250,000 square feet of interior construction and a certificate of occupancy issued by seven years from the property sale closing date. That puts it at Sept. 14, 2028.
- Completion of a total of 500,000 square feet of the project by 10 years from the closing date, putting it at Sept. 14, 2031.
The deadlines act as “repurchase triggers” and set a timeframe by which things need to happen or the seller will have “the right to buy back any undeveloped portion of the 60 acres for the original purchase price of $46.4 million or a prorated price.”
If Disney wants to sell the land, Tavistock would also have a right of first offer and right of first refusal on the property. This is how that works out:
- For 99 years from the original sale date of the land, Disney has to “provide written notice to Tavistock of its intent to market the property for sale or lease.” Once they do that, Tavistock would have “30 days to decide whether to buy or lease the property before that opportunity” is given to another company.
- Also, if an unsolicited offer is presented to Disney to buy or lease the property (which Disney wants to act upon), that would have to be presented to Tavistock before Disney takes any action on it. Tavistock would then have 30 days to match it, per the agreement.
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What do you think this land should be used for? Tell us in the comment.
Build another park
Doesn’t Disney own a lot of undeveloped land around WDW? There’s always talk they will eventually build another theme park, so they ust have the land to do that.They sat on lots of land over the years and developed it when they wanted. So why should this land be any different. I live in an area where a person, labeled as eccentric, sits on lots of land he refuses to, but certainly could, develop. My guess is they will sit on the land and wait for conditions to be more favorable to them. I.E. another governor comes along who doesn’t try and get them to keep their mouth shut. In the meantime they can use this to point out to the people of Florida: This is just some of what your governor cost you.