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Media

SeaWorld sued by city of San Diego for $12.2M in owed rent

SeaWorld has been sued by the city in which it operates, San Diego, over allegations it owes $12.2 million in unpaid rent, penalties and interest on its 200 acres of city-owned property.

The lawsuit was announced on Thursday after the San Diego City Council in May voted in favor of suing SeaWorld if it did not pay its outstanding rent.

According to the lawsuit, under the terms of the lease, the marine-themed park must either pay a percentage of its gross revenue or $867,000 per month, whichever is greater, in rent to the city.

The city alleges that in 2020 and 2021, when the park was closed due to the COVID-19 pandemic, SeaWorld calculated its rent based on a percentage of its gross revenue only, which was far less than the minimum payment required.

"On information and belief, SeaWorld had, and has, the financial ability to pay the rent, surcharge, audit cost, audit interest, late fees and all other amounts due under the lease," the city said in its lawsuit.

"It disclosed its lease obligation to the City of between $8.3 million and $10.9 million in its annual and public reports."

SeaWorld declined to comment specifically on the lawsuit but provided media with a previously issued statement on the rent conflict with the city.

“While as a matter of policy we don’t comment on potential litigation, we have enjoyed a long relationship with the city and remain hopeful that we can resolve this matter,” a SeaWorld spokesperson said in the statement.

“We have partnered with the city for nearly 60 years – conducting thousands of animal rescues, numerous recycling drives and many other events. We also have paid more than $146 million in lease payments to the City of San Diego since 2010. We appreciate all the city has done and we look forward to addressing this situation.”

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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