Long Beach council awards amphitheater operations to ASM Global, OKs Tidelands funding for buildout

The Long Beach City Council voted to award a contract to ASM Global to operate a temporary amphitheater planned near the Queen Mary and approved Tidelands Fund appropriations to design and build the venue.

Council members approved a five‑year management agreement — with a possible second five‑year renewal — under which ASM Global will provide preopening services and, once open, manage operations, sales and event booking. The council also approved a one‑time preopening reimbursement of up to $1,500,000 and additional appropriations totaling $14,000,000 to fund design, permitting, engineering, site improvements, and furniture/fixtures/equipment for a venue expected to seat about 11,000 people.

City leaders said the amphitheater is part of the Grow Long Beach economic initiative to diversify city revenue as oil‑dependent Tidelands revenues decline. City Manager Tom Modica (staff presentation) told the council the project was scoped as a “phase 1” temporary, modular facility that could be dismantled or replaced by a permanent waterfront venue later. Market and feasibility work by consultant AECOM informed the decision and identified demand for a 10,000–12,000 seat outdoor venue serving LA and Orange counties. The city’s proposal forecasts payback from net venue operating income and related parking, sales tax and transient occupancy tax, with capital costs estimated at about $14 million.

ASM Global’s terms include a $300,000 annual management fee (subject to CPI adjustments), reimbursement of preopening expenses up to $1.5 million, an 18% commission on naming rights sales (city retains 82%), a 20% commission on other sponsorships (city retains 80%), and a $1,000,000 capital contribution to priority food & beverage equipment and other FF&E. The city will retain ownership and oversight of the Queen Mary campus and acts as developer while ASM will be the operator. Food and beverage operations will be managed by ASM’s affiliated operator (Savor), and food & beverage gross receipts split and commissions are specified in the agreement. The city expects to use Tidelands cash to cover preopening expenses and then be repaid from net operating profits.

Council members and dozens of business, labor and arts groups in public comment supported the plan. Labor unions emphasized project‑labor agreements and union hiring; unions and workers also pressed for enforcement of labor standards at city venues. City staff said the procurement requires union labor for construction and food & beverage will be subject to a collective bargaining agreement. The operating plan includes provisions for community events at cost and a small number of lower‑cost community uses per year.

Staff said the city has reached about 50% design, plans to begin major site improvements in July, and aims for limited usable seating or grandstand features by year‑end with full venue elements in place for the spring 2026 concert season. The council adopted the specifications and authorized the award to ASM Global and related budget actions in separate votes.

The council directed staff to proceed with environmental and permitting processes (including harbor permits where applicable) and to return with further details on implementation and community event accommodations. If operational outcomes or community impacts require change, staff said the city retains termination and oversight rights in the management agreement.