San Diego City Council extends Zoo lease through 2078, adding parking revenue payments for Balboa Park operations

Lease amendment ties long-term tenancy to new parking revenue sharing

The San Diego City Council has authorized a second amendment to the lease governing the San Diego Zoo’s footprint in Balboa Park, extending the agreement’s expiration from 2034 to 2078. The action effectively adds 44 years to the existing term and is structured as a 52-year extension measured from the current year, placing the full lease term at 99 years, the maximum duration permitted under state law.

The revised lease is designed to enable revenue sharing linked to paid parking at the zoo’s lots, aligning the zoo’s parking program with the city’s broader paid parking effort in Balboa Park. Council also approved related policy waivers needed to implement payments by a nonprofit Balboa Park institution under the city’s long-standing occupancy framework.

Core financial terms: minimum annual payment plus revenue split

Under the amendment, the zoo will provide the city a minimum annual payment of $3.0 million. Beginning in 2030, that minimum will escalate by 3% annually. In addition to the minimum, the city and the zoo will split certain gross parking-related revenues on a 50-50 basis above the floor payment.

The agreement also addresses operating costs tied to administering paid parking. For calculating amounts above the minimum payment, the city’s share accounts for a 50-50 split of parking operation and administration expenses, capped at $700,000 for the city’s costs. The cap does not increase over time, and the city is not responsible for parking-related capital expenses.

• Lease term extended through 2078 (from 2034)
• $3.0 million minimum annual payment, with 3% annual increases starting in 2030
• 50-50 revenue sharing of qualifying parking-related revenues above the minimum
• Expense-sharing framework includes a $700,000 ceiling for the city’s costs; no city obligation for capital costs

Estimated long-range revenue and where the money goes

City budget analysts projected the amendment could generate at least $347.6 million in nominal dollars over the 52-year period under conservative assumptions that the city receives only the minimum payment and no additional upside from revenue-sharing above that floor. Using a 4.5% discount rate, the estimate equates to about $98.5 million in net present value.

All revenue collected under the lease terms is designated for deposit into the Balboa Park Paid Parking Program Fund, which is intended to support city operations inside Balboa Park.

The revenue outcome will ultimately depend on parking rates, the number of days paid parking is in effect, and actual parking utilization, including the effect of complimentary parking for certain visitors.

Other non-financial provisions included in the amendment

Beyond payments, the amendment includes additional operational provisions, including requirements tied to the city’s zero-emissions municipal operations policy, prevailing wage requirements for future capital projects, reserved spaces supporting city operations near the War Memorial Building, and a program of free daily admission tickets for qualifying groups valued at $250,000 annually.

The lease package also includes boundary-related changes and updates to insurance and compliance terms, reflecting a broader reset of how the city and the zoo manage shared impacts associated with parking, access, and long-term stewardship within Balboa Park.