City of San Diego says SeaWorld owes $10 million in back rent, but the theme park disagrees
The City first warned SeaWorld more than a year ago that it owed more than $9.7 million from 2020, which included late penalties and interest.
San Diego: You owe us money."You owe us money and here's proof."
"I... disagree."
I'd expect that kind of response from Peter Griffin, not a major company.
It's more complexed them that they did pay some rent in 2020 and have resumed paying the percentage of income that they owe for 2021 and 2022 the issue is an argument over how much they should have paid as an alternative to the a percentage of income for 2020 as the city and state issued orders preventing them from opening and generating income. That certainly is getting into some interesting legal areas that might generate a defense.Jesus, they didn’t think to pay even when the pandemic happened?
It should be noted that even from the city side this is only a dispute over 2020 rent 2021 and 2022 appear to have been paid and paid as a percentage of income so would it be in the cities interest to pull the license and loose that percentage of income?I wonder how fast SEAS will pay their rent if the city says they are going to pull their business license if they don't. Also SEAS releases it's first quarter 2023 financial results tomorrow so it will be interesting to see if they again made a profit for the quarter and if so how much and if paying SD would even put much of a dent in it.
Even more so when you consider that their rent is normally based on a percentage of income which we know was zero after March of 2020. The city even acknowledges that SEAS paid their rent for the period that they operated in 2020.What the city doesn't acknowledge is that unlike other business tenants who were able to operate in some capacity throughout the entire pandemic, SeaWorld was unable to operate the entire summer season (March 2020 - September 2020), and could not return to full operations until April 2021. Forcing them to pay rent for the time they were unable to operate is insane considering that they lost millions of $$ during that time period. If anything, SeaWorld should be asking for a rent reduction proportionate to a percent of the money they lost due to California's extremely strict COVID policies.
www.nbcsandiego.com
www.nbcsandiego.com
Source: SeaWorld to pay city $8.5m in back rent, give SD teachers free season passes for 5 yearsThe settlement will have SeaWorld paying $8.5 million to the city, as well as providing:
- Complimentary season passes to San Diego teachers on an annual basis for five years
- One free admission each year to active duty military and veterans for five years
- 1,000 SeaWorld admission tickets that the city will provide to local school districts
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