SEAS behind in rent in San Diego

[BeeastFarmer]

https://www.nbcsandiego.com/local/seaworld-has-til-end-of-day-to-pay-12-2-million-in-back-rent-san-diego-news-daily/3300423/

[jsus]

https://www.sandiegouniontribune.com/business/story/2023-09-07/we-expect-them-to-pay-whats-due-san-diego-sues-seaworld-to-recover-rent-that-went-unpaid-during-pandemic

Quote

SeaWorld said in a May regulatory filing that it paid $500,000 in rent in 2020, $11.1 million in rent and prior-year charges in 2021, and $13.6 million in rent and prior-year charges in 2022. In the annul report to the shareholders, the company said it continues defer payment of $8.3 million in minimum rent for 2020 because, “temporary park closures, limited reopenings, modified operations and capacity restrictions resulting from the impact of the COVID-19 pandemic and related government restrictions in San Diego,” negatively impacted sales.

SeaWorld was forced to close its park to the public in response to county and state mandates during the height of the pandemic. The San Diego park closed for five months between March 2020 and August 2020, and then again for two months between December 2020 to February 2021.

The theme park owes nearly $8.9 million in unpaid rent and surcharges for the period between Jan. 1, 2019, and April 30, 2022, according to a lease audit performed by the City Treasurer’s office last year. The outstanding sum has been compounded by nearly $3.4 million in interest charges and late fees, with interest continuing to accumulate. The city issued invoices on Oct. 24, Nov. 2 and June 30 seeking payment, but no payments have been received.

“Their position is that they were impacted by the pandemic, and they therefore should have been excused from the lease terms and the city should just swallow the losses, which we’re not willing to do,” Elliott said. “This is a very lucrative company that’s done well. We’ve got a long-term relationship and we expect them to pay what’s due, just like everybody else did.”

 

[Kenban]

This is more of a protest against the Covid shutdowns and charging rent when they were forced to be closed, then an inability to pay.  They have the money and have paid rent for the time since they reopened.  My guess is they will have a hard time arguing this in court, but it appears they want to try.