They could build to 199 feet and not have the red beacon on top. This is why Cinderella Castle, Spaceship Earth, Tower of Terror, etc. all are just under the 200 feet mark and so do not have the red lights that FAA requires.
Cinderella Castle 189 ft (as measured from base of moat)
Tower of Terror Hotel 199 ft
Spaceship Earth 180 ft
Tree of Life 145 ft
Expedition Everest 199.50 ft
I've always found this so ridiculous. Especially post 9/11. Isn't WDW a no-fly zone anyway since then? Or at least requires special permission?
It seems nuts that they can't get some exception to putting a stupid red light on the top of a building.