In a potentially ugly lawsuit, the city of San Diego has sued SeaWorld for allegedly owing $12.2 million in unpaid rent, late fees, and interest, incurred between January 1, 2019, and April 30, 2022. The ongoing disagreement rests on whether those payments were deferred or waived during the pandemic, and the outcome could significantly impact both parties.
SeaWorld maintains that its payments were waived due to forced shutdowns during the pandemic. However, city officials argue that rent was only deferred. With the ultimatum of litigation looming, the park remains hopeful for a resolution. In a previous statement, a SeaWorld representative mentioned the company's long-standing partnership with the city, totaling more than $146 million in lease payments since 2010. SeaWorld emphasized their appreciation for the city and their desire to address the situation collaboratively.
Conversely, San Diego officials take a firm stance on the matter. The city sought litigation after its demands to pay rent and penalties by a set deadline were ignored by SeaWorld. In May, the San Diego City Council voted 8-0 to authorize the lawsuit. For them, the unresolved debt is an unacceptable burden on taxpayers, many of whom continue to struggle to recover from the global pandemic.
San Diego City Attorney Mara Elliott said in a statement that "City taxpayers — many of whom are legitimately struggling to recover from the global pandemic — should not have to absorb SeaWorld’s debts and liabilities." Elliott also pointed out the discrepancy between SeaWorld and the other 800 entities with similar lease agreements; the park is the only major city lessee to remain in default of rent obligations since the pandemic began.
As for the financial impact of the alleged debt, San Diego Mayor Todd Gloria has drawn attention to the extent to which the city could benefit from the resolution, stating that the funds could be used for everything from road repairs to shelter beds. While a significant portion of the funds must stay within the Mission Bay Park, the area could desperately use the many improvements that $12.2 million could cover.
Although SeaWorld Entertainment, Inc. reported a revenue of $1.7 billion last year and a first-quarter revenue of $293.3 million, according to their 2022 report, this lawsuit could still deal a heavy blow to its reputation. SeaWorld holds a prominent position in the childhood memories of many, and Elliott expressed her disappointment at the current state of affairs between the city and the park.
