Volume 2, No. 6. March 22, 2002
Drowned
in debt
Open
only three years, during which time it became a warning beacon of financial
excess among the aquarium community, Colorado's Ocean Journey in Denver, Colorado,
announced Tuesday that it would shut its doors to the public April 2. The aquarium
will remain operating another two months while it finds homes at other AZA-accredited
facilities for its 8,000 animals.
"We are still hoping there can be some miracle to pull us through," said Kimberly
Thomas, public relations manager for the aquarium. "We hope some angel will
come along to give us money that the bondholders would find acceptable. But
we're talking multi-millions."
Specifically, $63 million in debt, $57 million of that in bonds. Last July the
aquarium defaulted on its bonds when it quit paying into the escrow accounts.
By then Ocean Journey, which had opened at a price tag of $93 million to much
fanfare in June 1999, was on its way to losing another $6.8 million for the
year. Ocean Journey was built and budgeted on a forecast of 1.1 million visitors
per year, a figure—if it could be reached—that still swould not allow
the aquarium to climb out of debt quickly. The first year 1.4 million visitors
passed through its doors, and the aquarium still struggled financially. Last
year attendance dropped to 742,000.
In January the mayor offered a bail-out plan, but the city council this month
wouldn't approve it in the face of an economic downturn that forced budget cuts
throughout the city government. The aquarium also reportedly approached several
amusement corporations about purchasing the facility, including its neighbor,
Six Flags, none of whom showed interest in running the operation.
At an impasse with the bondholders, the aquarium board decided on a course of
closure. "We're trying to be very realistic so we can give our employees as
much notice as possible as well as help our animals find suitable homes," Thomas
said. Ocean Journey employees 100 people, not including three contracting agencies,
and 550 volunteers also work there. The animals represent 500 species, including
three Sumatran tigers, two people-loving sea otters and a flirtatious octopus.
With
a fiduciary obligation to make as much money as possible and save capital, the
aquarium decided to close after spring breaks are concluded, and will sell as
many animals as possible rather than give them away to other institutions, Thomas
said. Next week the aquarium will host a scheduled Regional Aquatic Workshop,
attended by aquarium professionals from around the world. "It turned out to
be very good timing," Thomas said. "It will help people see what we have here
in our inventory, and it offers the aquarists here a chance to network."
The aquarium announced that it would not reimburse the 15,000 families who had
paid $85 memberships, but Wednesday the Denver Zoo offered free memberships
to the zoo for all current Ocean Journey members. Meanwhile, news of the closing
caused an outpouring of community support and visitors. Children started fund-raising
campaigns, and one raised $112 to give to Ocean Journey. "There's grass roots
support, but when you're talking multimillions, it's not enough," Thomas said.
More than 4,000 people visited the aquarium Wednesday, about double its normal
gate, she said. "It was real bittersweet because they were having a lot of fun,
but it was too late."
Institutions accredited by the American Zoo and Aquarium Association who are interested in providing new homes for the animals can contact Ocean Journey's curator of fish Rich Lerner (rlerner@oceanjourney.org) or curator of training and husbandry Pete Davey (pdavey@oceanjourney.org).
