After a protracted legal tussle that has seen the City of San Diego and SeaWorld entwined in disputes over unpaid rent accrued during the COVID-19 pandemic, the two parties have finally settled. According to CBS8, SeaWorld will pay the city $8.5 million, resolving the lawsuit over the theme park's financial obligations totaling over $12 million in rent, late fees, and interest.
The settlement also includes items aimed at benefiting the local community. SeaWorld has agreed to provide complimentary season passes to San Diego teachers annually for five years and one free admission each year for active duty military and veterans across a five-year span. In addition, as part of the agreement, 1,000 SeaWorld admission tickets will be distributed to local school districts by the city. Former San Diego City Attorney Mara Elliott described the settlement as "a good result for San Diego taxpayers," stating via CBS8, "We'll recover overdue taxes and provide benefits to service members and local schools."
While Elliott outlined the terms of the agreement, FOX 5/KUSI reported that a spokesperson confirmed additional details about the settlement but did not elaborate further. Meanwhile, the current City Attorney Heather Ferbert's office and SeaWorld have yet to provide official statements post-settlement.
The disagreement regarding the unpaid rent dates back to 2022, when the city served SeaWorld a default notice for the sum, including penalties such as late fees and interest. SeaWorld contested the claim, indicating that its agreement with the city didn't account for the pandemic's unprecedented impact on the venue's operations, thereby arguing that it should not be held to the usual lease terms under such circumstances. Still, an audit completed by the city treasurer established the amount SeaWorld owed. The theme park had only paid $2.2 million of the minimum yearly charge of $10.4 million plus a 3% surcharge for 2020, as confirmed by CBS8.
According to court records, the settled figure stands at $8.8 million. Further discussions appear to be on the horizon, with both parties due to reconvene for a settlement disposition conference at the end of January. This will likely see the closure of the city's lawsuit and SeaWorld's countersuit, which argued for "substantial damages" due to revenue loss during the park's forced closure, as noted by FOX 5/KUSI. The settlement ends an arduous chapter that had SeaWorld facing accusations of debt evasion and the city striving to recuperate funds at a time when they are most needed.
