Sea World to Propose Expansion to City Panel

Sea World is considering an expansion that would incorporate about 15 acres of city-owned land on Mission Bay, Robert Gault, president of Sea World of California, says.

Gault declined to discuss specific plans or the cost of the proposed expansion that will be made public later this year during a presentation to the San Diego City Council. However, Sea World, which sits on land leased from the city, recognizes that the proposed expansion must be “mutually beneficial” to the city and the park, Gault said.

San Diego City Architect Mike Stepner said Monday that he is not familiar with Sea World’s proposed expansion. “If they’re talking about (introducing it at council) then they’re setting the stage for hearings on amendments to their lease,” Stepner said. “They’re allowed to do many minor type things, but anything major requires council review and approval.”

Planning for an expansion comes at a time when all of the park’s 165 existing acres are filled with attractions, parking or support facilities. Sea World executives are confident that the proposed expansion will be completed, in part because the positive impact that the park has on the local economy.

According to an economic study released last week by Sea World, the park generated $19.7 million in public revenue during 1989 through rent payments to the city, state sales tax receipts and other state, local and federal taxes and payments.

The aquatic park generated $611 million in direct and indirect economic benefits for San Diego County during 1989. That figure includes $2.9 million in capital spending by then-owners Harcourt Brace Jovanovich and $268 million in payroll and “operations” spending. The rest of the $611 million included direct tourist spending at the park during 1989 and indirect spending by visitors whose “primary inducement” in visiting San Diego was the aquatic park.

Gault said the park has seen dramatic improvements in the year since Anheuser-Busch Entertainment Corp., a subsidiary of St. Louis-based Anheuser-Busch Cos., acquired Sea World of San Diego and its sister parks in Orlando, Ohio and Texas from Orlando-based Harcourt Brace Jovanovich.

One obvious improvement is a noticeable increase in the park’s capital improvement and maintenance budget, Gault said. HBJ had whittled back spending at its parks in order to free up cash needed to pay off debt accumulated when HBJ successfully fended off a hostile takeover attempt.

Although Gault said those cuts did not hurt Sea World’s animal-care programs, he acknowledged that many of the park’s facilities had fallen into relative disrepair because of HBJ’s economic woes.

During 1990, Anheuser-Busch earmarked $13 million for capital improvements at the park, Gault said. An additional $15 million will be spent in 1991. In contrast, HBJ’s capital expenditures budget for the park during 1989 totaled just $2.3 million, Gault said.

Some of the capital improvements will be noticeable. Sea World is spending $5.2 million on a “world class” water-ski show that will open next spring on Mission Bay. Others will be less noticeable. Anheuser-Busch has provided funding needed to replacing basic necessities such as food service facilities and behind-the-scenes plumbing that were largely ignored during HBJ’s waning days.

Sea World of California Annual Attendance (in millions) ‘80: 2.62 ‘87: 3.74 *’90: 3.45 *Estimate