Disney has just announced a major update on a BILLION dollar construction project it had planned for the Orlando area.

Some time ago, Disney announced plans for a new campus in Lake Nona, a suburb of Orlando, FL. It was expected that the project could cost $1.3 billion to build (according to the Orlando Business Journal) and it was set to become home to a “regional campus” for THOUSANDS of Disney employees (some would relocate from California to Florida). The timeline for the project had been extended previously but now it’s hit a major stopping point.

According to The New York Times, Disney CEO Bob Iger and Chairman of Disney Parks, Experiences and Products Josh D’Amaro have officially called the Lake Nona project. That’s right, the $1 billion office complex that was set to be built in Orlando is no more.

As the Times points out, the project would have brought more than 2,000 jobs to the area, and more than 1,000 employees from Southern California (including most of the Imagineering department) would have relocated to this new campus.

D’Amaro initially cited Florida’s “business-friendly climate” when the move was announced in 2021. But in a recent email sent to employees, D’Amaro talked about “changing business conditions” and noted that those changes were behind the cancelation of the Lake Nona project.

D’Amaro once again reiterated that $17 BILLION is expected to be invested in construction at Disney World over the next decade (which is something we’ve heard Disney talk about before). It’s anticipated that this investment could bring 13,000 jobs to the area. In talking about that investment, D’Amaro wrote “I hope we’re able to.”

Two people briefed on the matter who spoke with the New York Times on condition of anonymity shared that Disney’s battle with Florida Governor Ron DeSantis “figured prominently” into Disney’s decision to cancel the Lake Nona project.

Disney’s battles with DeSantis began back when it made a statement against the Parental Rights in Education bill and the Company’s desire that the bill be repealed or struck down. Since then, Disney’s Reedy Creek Improvement District has been dramatically changed (removing much of Disney’s control), DeSantis has signed legislation that will subject the Disney World monorail to state inspections, and the Company is in the middle of 2 lawsuits (one federal and one state) involving the Reedy Creek issues.

Most recently, Iger fired back at DeSantis and asked this question: “Does the state want us to invest more, employ more people, and pay taxes, or not?”

UPDATE: A DeSantis spokesperson has commented on the situation. According to Deadline, DeSantis’ press secretary said “Disney announced the possibility of a Lake Nona campus nearly two years ago. Nothing ever came of the project, and the state was unsure whether it would come to fruition…Given the company’s financial straits, falling market cap and declining stock price, it is unsurprising that they would restructure their business operations and cancel unsuccessful ventures.”

Another change has hit the Walt Disney Company in recent months that may have impacted this project as well — the return of current CEO Bob Iger. The Lake Nona campus was one championed by former CEO Bob Chapek. The Times reports that Iger had been “less enthusiastic” about the project, even before the Company’s battles with DeSantis.

Reportedly, as soon as Iger returned he started to insist that it made little sense to move Imagineering so far from Disney’s movie studios in California.

And let us not forget that Disney is in the middle of carrying out plans to cut $5.5 BILLION in spending.

Thus far, around 200 Disney employees have relocated to Florida from California. D’Amaro has shared that Disney will talk to them about options including the possibility of moving them back.

We will continue to look for updates, but for now, it seems the Lake Nona project is no longer happening, though other investments planned for Disney World are still expected to take place if, as D’Amaro seems to indicate, Disney is able to do them.

UPDATE: Orange County Mayor Jerry Demings has issued a statement on the issue. In a press release, he shared, “It is unfortunate that Disney will not be moving forward with construction of the Lake Nona campus. However, these are the consequences when there isn’t an inclusive and collaborative work environment between the state of Florida and the business community. We will continue to work closely with our valued partners at Disney.”

UPDATE: According to ABC Action News, Jeff Vahle, President of Walt Disney World Resort, has issued a statement on the cancelation of the project. He shared that since the project was first announced, “several dynamics have changed, including a change in company leadership and evolving economic and business conditions.”

He noted that Disney’s plans call for them to invest $17 billion in Disney World over the next 10 years. He said, “We hope those plans will become a future reality.” He continued, “For decades, we have operated our business responsibly and being the region’s largest taxpayer, we paid and collected over $1.1 billion in state and local taxes during last year alone. As the largest single-site employer in Central Florida, we are deeply rooted in this community, and we continue to make investments for the betterment of our region.”

He concluded by saying, “While today’s decision was not easy, we remain committed to our Cast Members as well as you and our wonderful community.”

For more about Iger’s statements surrounding the DeSantis conflict, click here. And stay tuned for more Disney news.

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The post BREAKING: Disney Cancels Billion-Dollar Project in Orlando first appeared on the disney food blog.