SeaWorld, a tenant on city-owned land in Mission Bay, was informed in March 2022 that it was in default of its lease due to unpaid rent. The city initially offered a 24-month repayment plan, which would have reduced SeaWorld's debt to $8.8 million by waiving late fees and penalties. However, the theme park declined the offer, leading San Diego to file a lawsuit in September 2023 demanding more than $12.2 million, including interest and late fees.
SeaWorld countered by arguing that the city's mandated closures during the pandemic violated the terms of its lease, absolving it of any rental obligations. The park also filed a motion for summary judgment in October, asserting that the facts of the case were undisputed and that no trial was necessary.
The legal dispute culminated in multiple mediation sessions overseen by U.S. District Magistrate Judge Daniel E. Butcher. Tuesday鈥檚 judicial notice confirms that these efforts led to an agreement, though the specifics remain confidential. The settlement is set to be finalized by January 31, 2025.
SeaWorld鈥檚 refusal to pay rent during the pandemic drew criticism from city officials, who noted that it was the only one of more than 800 city tenants to default on rent payments. Former City Attorney Mara Elliott emphasized the park鈥檚 financial stability and urged compliance with lease terms. SeaWorld contended that its financial burdens during the pandemic, including animal care and park maintenance, justified its stance.
Under the agreement, SeaWorld will pay $8.5 million and provide additional benefits, marking the resolution of a contentious legal battle. The settlement also includes additional contributions to the community, including five years of complimentary season passes for San Diego teachers, annual free admission for active-duty military and veterans and 1,000 SeaWorld tickets for local school districts.
Former City Attorney Mara Elliott praised the deal, calling it a 鈥済ood result for San Diego taxpayers.鈥� She emphasized that the agreement resolves the dispute, recovers funds, and fosters goodwill through community benefits.
SeaWorld expressed gratitude for the resolution, highlighting its six-decade partnership with the city and commitment to the San Diego community.
The legal dispute culminated in multiple mediation sessions overseen by U.S. District Magistrate Judge Daniel E. Butcher. Tuesday鈥檚 judicial notice confirms that these efforts led to an agreement, though the specifics remain confidential. The settlement is set to be finalized by January 31, 2025.
SeaWorld鈥檚 refusal to pay rent during the pandemic drew criticism from city officials, who noted that it was the only one of more than 800 city tenants to default on rent payments. Former City Attorney Mara Elliott emphasized the park鈥檚 financial stability and urged compliance with lease terms. SeaWorld contended that its financial burdens during the pandemic, including animal care and park maintenance, justified its stance.
Under the agreement, SeaWorld will pay $8.5 million and provide additional benefits, marking the resolution of a contentious legal battle. The settlement also includes additional contributions to the community, including five years of complimentary season passes for San Diego teachers, annual free admission for active-duty military and veterans and 1,000 SeaWorld tickets for local school districts.
Former City Attorney Mara Elliott praised the deal, calling it a 鈥済ood result for San Diego taxpayers.鈥� She emphasized that the agreement resolves the dispute, recovers funds, and fosters goodwill through community benefits.
SeaWorld expressed gratitude for the resolution, highlighting its six-decade partnership with the city and commitment to the San Diego community.
"We are grateful to have reached a resolution of this matter and look forward to continuing our strong partnership with the city of San Diego for years to come," read a statement issued by SeaWorld San Diego. "We've valued our collaborative relationship with the City for 60 years and are happy to be a part of the San Diego community. We look forward to many years of working together."
The city treasurer鈥檚 audit revealed that SeaWorld paid only $2.2 million of the $10.4 million minimum lease charge in 2020, despite earning $1.7 billion in revenue and $290 million in net profit by fiscal year 2022 across its theme parks.
Council President Sean Elo-Rivera previously criticized SeaWorld鈥檚 nonpayment, asserting the company owed the full amount without negotiation. The finalized settlement, to be completed by January 31, 2025, ends the lawsuit and resets the relationship between the city and one of its largest tenants.
The city treasurer鈥檚 audit revealed that SeaWorld paid only $2.2 million of the $10.4 million minimum lease charge in 2020, despite earning $1.7 billion in revenue and $290 million in net profit by fiscal year 2022 across its theme parks.
Council President Sean Elo-Rivera previously criticized SeaWorld鈥檚 nonpayment, asserting the company owed the full amount without negotiation. The finalized settlement, to be completed by January 31, 2025, ends the lawsuit and resets the relationship between the city and one of its largest tenants.
Originally published on December 10, 2024.听
