Walt Disney Co. to Receive $ 580 Million in Tax Relief for California Jobs Relocation to Florida
Walt Disney Co. expects to receive nearly $ 580 million in tax credits to move approximately 2,000 California jobs to Florida.
The Burbank-based media giant has applied for and has been approved to receive approximately $ 578 million in Florida state credit over the next 19 years, according to documents obtained from the Florida Department of Economic Opportunity. The appropriations are for the construction and operation of a regional campus near Lake Nona to house the approximately 2,000 workers.
The tax credit claim was submitted on December 26, 2019 and approved on February 10, 2020, according to documents seen by The Times. Disney announced last week that it plans to move 2,000 Californian jobs to Florida. The company described Florida as having a “favorable business climate” and said the new facility would help consolidate operations and promote collaboration among staff.
Approval of the tax credit was first reported by Orlando Sentinel.
In a statement, Disney said it was “using an existing incentive offered by the State of Florida for the development of the new regional hub where we will bring more than 2,000 professional roles to Central Florida and make a significant investment in this. community where we have a long-standing presence and commitment. “
According to the tax credit claim, Disney plans to invest approximately $ 240 million in building the 300,000-400,000 square foot facility and an additional $ 624 million in office equipment, computers, furniture and more. spending over the next three years. The average salary for workers at the facility will be $ 120,000 per year, the demand says.
The 2,000 positions that will be relocated from Burbank and Glendale offices represent less than 5% of Disney’s total workforce in California, according to Disney officials. Employees who move will be offered moving assistance, Disney officials said. The move will take place over the next 18 months, they said.
The positions that will move to the Nona Lake campus include jobs in digital technology, finance, communications, human resources and product development, Disney officials said. Most of the Glendale-based Imagineers – the staff who design the theme park attractions – will move to the Florida campus, Disney officials said.
Disney said in the application that it had considered building the regional campus in the Burbank / Glendale area, New York and Bristol, Connecticut, but the company’s decision to move to Florida was influenced by state incentives, affordable housing, low state income taxes and “excellent schools that are not at full capacity, suburban roads and proper transportation services, etc.”
Still, the app said Disney recognizes the move could mean the loss of key executives to competitors and “critical talent unwilling to relocate.”
This story originally appeared in the Los Angeles Times.