Item 2. Properties
Item 2. Properties
The following table summarizes our principal properties as of December 31, 2020, which includes approximately 400 acres of land available for future development.
Location
Size
Use
San Diego, CA
190 acres (a)
Leased Land
Chula Vista, CA
66 acres
Owned Water Park (b)
Orlando, FL
279 acres
Owned Theme Park and Corporate Headquarters
Orlando, FL
58 acres
Owned All-inclusive Interactive Park
Orlando, FL
81 acres
Owned Water Park
Tampa, FL
56 acres
Owned Water Park
Tampa, FL
306 acres
Owned Theme Park
Dade City, FL
109 acres
Owned Breeding and Holding Facility
Langhorne, PA
55 acres
Owned Theme Park
San Antonio, TX
397 acres
Owned Theme Park
San Antonio, TX
18 acres
Owned Water Park
Williamsburg, VA
222 acres
Owned Water Park
Williamsburg, VA
422 acres
Owned Theme Park
Williamsburg, VA
5 acres
Owned Warehouse Space
Williamsburg, VA
5 acres
Owned Seasonal Worker Lodging
(a)
Includes approximately 17 acres of water in Mission Bay Park, California.
(b)
Expected to be converted to Sesame Place in 2022.
We believe that our properties are in good operating condition and adequately serve our current business operations.
Lease Agreement with City of San Diego
Our subsidiary, Sea World LLC (f/k/a Sea World Inc.), leases approximately 190 acres from the City of San Diego, including approximately 17 acres of water in Mission Bay Park, California (the “Premises”). The current lease term commenced on July 1, 1998 and extends for 50 years or the maximum period allowed by law. Under the lease, the Premises must be used as a marine park facility and related uses. In addition, we may not operate another marine park facility within a radius of 560 miles from the City of San Diego.
The annual rent under the lease is calculated on the basis of a specified percentage of Sea World LLC’s gross income from the Premises (the “Percentage Rent”), or the minimum yearly rent (the “Minimum Rent”), whichever is greater. The minimum yearly rent is adjusted every three years to an amount equal to 80% of the average accounting year rent actually paid for the three previous years. The current minimum yearly rent is approximately $10.4 million, which is subject to adjustment on January 1, 2023. The Company’s gross income from the Premises was significantly impacted during the year ended December 31, 2020 due to the 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. As a result, the Company deferred approximately $1.6 million of the Percentage Rent related to the year ended December 31, 2020, which was subsequently paid during the first quarter of 2021. The Company continues to defer an additional $8.3 million related to the Minimum Rent for the year ended December 31, 2020.
See further discussion in Note 14–Leases to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
Item 3. Legal Proceedings
This information is set forth under Note 15– Commitments and Contingencies to the consolidated financial statements included in Part IV, Item 15, which is incorporated herein by reference.
Item 4. Mine Safety Disclosures
Not applicable.
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PART II.