After refusing for well over a year to pay nearly $10 million in back rent to the city of San Diego, SeaWorld hinted last month that it was nearing a decision to pay up by Dec. 31.
Its proposed deadline has come and gone, and the theme park company has so far not written a check to San Diego.
The amount due, which covers a large part of the first year of the pandemic when theme parks were shuttered for several months, was confirmed in a formal audit by the city treasurer, which concluded that SeaWorld owes more than $9.7 million in back rent, plus nearly $12,000 to cover the cost of the audit.
In an email sent in early December to the city’s department of real estate and airport management, attorney David Watson, who represents SeaWorld, advised the city that the “issue of payment of the 2020 minimum rent and audit invoice will be discussed by the SeaWorld Parks & Entertainment top level administrators and board members within the next few weeks.” Because of that, he asked that the city extend the deadline for the payment of its back rent to Dec. 31, 2022.
Penny Maus, who heads the city’s real estate department, told Watson that she and the city treasurer were willing to go along with the deadline extension.
While SeaWorld’s email didn’t indicate when — or if — the company would be paying the amount due, it suggested movement toward a possible payment following months of insistence that the theme park was not required to make payments to the city for its Mission Bay site for the time during the pandemic when there were mandated closures.
The city has since heard back from SeaWorld indicating that a payment is not in the offing.
“As of today, the city has not received payment from SeaWorld for $9,729,589.13,” said city spokeswoman Tara Lewis. “Additionally, SeaWorld indicated they would not be making payment at this time.”
SeaWorld San Diego spokeswoman said Thursday that the park had no comment. SeaWorld remains the only city lessee in default on its lease payment.
The city has previously been consistent in its demands that SeaWorld pays its back rent, sending a letter early last year advising it that if the park agreed to take advantage of a 24-month payment plan, the city would agree to waive late fees of more than $200,000. And in November, another letter was sent renewing the demand that back rent be paid in full.
When the pandemic significantly curtailed the operations of many businesses in early 2020, theme parks took a big hit as they were forced to close completely for many months.
While the city eventually agreed to defer rent payments for a time to help struggling businesses recover financially, that concession ended in mid-2021, and the city offered instead the 24-month payment plan.
SeaWorld’s minimum rent is currently set at $10.4 million for a full year, plus a 3 percent surcharge. Just $2.2 million was paid in 2020, the city audit showed.
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