SAN DIEGO — The City of San Diego said Tuesday it will be filing a lawsuit against SeaWorld 'as soon as possible.'
CBS 8 asked the city attorney's office if all legal options are on the table, including eviction.
In an e-mail, Richard Jackoway, Director of Communications for Mara Elliott's office, wrote: "All legal options are on the table."
"I really truly believe they should be embarrassed," said Council President Sean Elo-Rivera during an interview Tuesday morning.. "I think any person or corporation or anybody who is extremely wealthy, who has abundant resources, to not pay any bill, is shameful."
The city claims SeaWorld owes it $12 million in unpaid rent, late fees and interest. Monday the council voted in favor of filing a lawsuit.
In a statement, San Diego City Council President Sean Elo-Rivera said,
"Despite publicly touting record revenues as recently as last week, SeaWorld continues to refuse to pay the over $12 million they owe the City in past due rent, penalties and interest, said Council president Sean Elo-Rivera. ”While legal action should not be necessary, I am glad the City has drawn a line in the sand and is demanding SeaWorld pay us what they owe us."
The statement continued, "Multibillion dollar corporations do not deserve special treatment and the millions of dollars SeaWorld is wrongfully withholding from the City could greatly benefit the people of San Diego. It’s time for SeaWorld to pay up,” he said.
SeaWorld did not respond to CBS 8's request for comment.
Background:
The City of San Diego insists SeaWorld owes nearly $10 million in back rent, but the theme park disagrees and they’re not paying up. The issue came up at a Budget Review Committee meeting this week when representatives from the Department of Real Estate and Airport Management were discussing their budget.
“I just want it to be known that it is entirely unacceptable, and SeaWorld should be ashamed of themselves for holding onto $10 million of the City’s money while communities are struggling, while we’re making very difficult budget decisions,” said San Diego City Council President, Sean Elo-Rivera, in council chambers Thursday.
“I want that money now, I want it yesterday, I want it with interest, and so I’m getting more and more mad as I think about it because of all the things that it could be used for.”
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. Since then, a formal audit was completed by the City Treasurer, confirming what they said SeaWorld owed.
“They should be embarrassed. I don’t think that this should be a negotiation, they owe us $10 million and I want that money,” said Elo-Rivera.
“With the completion of the recent revenue audit, we will hold SeaWorld accountable for paying the City the approximate $9 million, plus late fees and interest owed,” said Penny Maus, Director of the Department of Real Estate and Airport Management.
But SeaWorld’s not backing down. In a statement to CBS 8 Friday, SeaWorld said, “Our position remains unchanged, the City of San Diego has been a great partner of ours over the years and we continue to work with them in an attempt to resolve this issue.”
SeaWorld’s lease with the city operates on a yearly basis, usually based on a percentage of their gross income. But in a year like 2020 when shutdowns were happening during the pandemic, their lease required a minimum yearly charge of $10.4 million plus a 3% surcharge. The audit showed that only $2.2 million had been paid for that year.
“At the end of the day, they owe us $10 million, we’re in budget season, we’ve got the community asking for some really important investments. I don’t think it’s right for a multi-billion-dollar corporation to be holding out when they owe us money,” said Elo-Rivera to CBS 8 Friday.
For fiscal year 2022, SeaWorld hosted nearly 22 million guests at its three theme parks across the country, generating $1.7 billion dollars in revenue, with a net profit of more than $290 million.
“Whether you’re a community member who has concerns about street lights not being on or potholes not being filled or wanting your library fully staffed or public safety needs to be met, we’ve got $10 million sitting out there SeaWorld owes us,” said Elo-Rivera.
The City says it has given plenty of opportunities for payment plans and deferrals.
“In 2021, the City offered a rent deferral program to all lessees and allowed a two-year repayment period. SeaWorld did not take advantage of this program and remains in arrears on their rent,” said Maus. “Although the program closed, in good faith, the City has offered SeaWorld multiple opportunities to participate in the program, but they have not accepted the City’s offer.”
The park remains the only city lessee, out of about 800, in default on their required lease payments.
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