Long Beach council approves $7.3M increase for waterfront amphitheater; officials say venue will pay back Tidelands fund
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Summary
The City Council voted to add $7.3 million to the Tidelands Fund to cover construction and upgraded equipment for a temporary Long Beach Amphitheater, with staff saying the venue will be repaid from net operating profits and generate broader tourism revenue.
The Long Beach City Council on Jan. 6 approved a $7,314,000 increase in the Tidelands Area Fund to cover higher site improvements, an extended pre‑opening period and upgraded furniture, fixtures and equipment for the proposed Long Beach Amphitheater.
City Manager Tom Modica and economic development staff told councilmembers the additional funds respond to market and design refinements — including construction cost pressures, tariffs and added sustainability and transit integration — and that the project will be repaid from venue net operating profit. "This project ... pays for itself, it does not have a subsidy," Modica said during the presentation.
Why it matters: Staff and the operator, Legends Global, said a higher‑quality venue is expected to attract stronger artists, sponsorships and premium seating revenue that will help the Tidelands fund recover its advance on construction. The council directed staff to continue community engagement on transportation and to track the project’s economic effects after opening.
Details: Staff summarized a revised project development cost of roughly $21.3 million and said the additional $7.3 million request breaks down into approximately $2.2 million for increased construction costs, $4.3 million for upgraded FF&E to improve guest and artist amenities, $400,000 for an extended preopening period, and $414,000 for contingency. Staff said roughly half the venue could be funded by sponsorship and naming rights, and projected an estimated payback period of about eight years based on a $2.4–$3.0 million annual net operating estimate.
Council discussion and concerns: Several members asked for clearer, earlier metrics on indirect economic impacts; Councilmember Kerr and others asked staff to work with Visit Long Beach and downtown stakeholders to track hotel, restaurant and local retail effects as events begin. Councilmember Duggan said he supported the project but asked for a clearer explanation of the 10‑year assumptions and a plan to monitor whether the venue produces the promised indirect benefits sooner than the three‑year mark the staff proposed for a comprehensive economic impact report.
Public comment: Business and arts leaders, chambers and tourism advocates spoke in favor of the amphitheater, describing anticipated boosts to visitors, hotels and restaurants. Some public speakers urged caution about optimistic revenue projections and asked for stronger guarantees of public benefit.
Next steps: Staff said major site work would begin this month with seating, stage and FF&E installation to follow; a soft opening is planned for spring and a full opening this summer. The council approved the appropriation by roll call. Councilmembers said they will monitor transportation planning and early economic indicators and return to the council with updates as the venue begins operations.
