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Council Asked To Authorize Negotiations For Massive, Corporate Proposed, Possible Taxpayer Supported 3-Day AirFest, HarborFest, KidsFest, MusicFest, TasteFest. WaterFest (and possible BlimpFest) To Promote Opening Of "Pike at Rainbow Harbor" in Oct. '03

Council told promoters want taxpayers to "underwrite" costs of city services and associated costs, scope of which would be discussed

(June 7, 2002) -- At the June 11 City Council meeting, city staff will ask Councilmembers to authorize negotiations for a massive, three-day corporate proposed combination air show, shore festival and downtown festival in October 2003 to promote the opening of the "Pike at Rainbow Harbor."

The city staff memo says City Hall "received a request from Shoresales, LLC, a business alliance composed of [Pike at Rainbow Harbor Developer] Developers Diversified Realty (DDR), SaleMaker, and Exsportise, to support its proposal for "ShoreFest at the Pike" (ShoreFest)."

The memo explicitly tells Councilmembers that ShoreFest LLC is asking LB taxpayers to "underwrite" the costs of city services and associated costs, the scope of which would be a "key element" in staff's discussions with ShoreFest LLC.

As described in city staff's memo, "ShoreFest at the Pike" would include:

AirFest - A two-day, four-hour air show targeted to aviation enthusiasts taking place 4,000 feet off the beach. Event components will include: a precision military jet flying team (e.g., Blue Angels, Thunderbirds, Canadian Snow Birds); single-unit and multi-unit military demonstrations (e.g.,bombing runs, water rescue, parachute jumps); and, civilian aerial acts (e.g.,stunt flying, wing walkers). This event would coincide with the City's "Wings Over Long Beach" event at the Long Beach Airport, which would showcase the aircraft featured in the air show, as well as many other static displays."

HarborFest -- A two-day in-water display of various marine craft targeted to watersports to be conducted in Rainbow Harbor. Sponsor exhibits, static military displays, and celebrity activities would also be located at the Pike.

KidsFest -- An event targeted to parents and their 6 to 12 year-old children to take place in the enclosed Rainbow Lagoon area. Event components would include: amusements (e.g.,remote controlled boat races, mazes, karaoke contests); attractions and exhibits (e.g., Air Force Thunderbirds mini-jet, Brutus the Skydiving Dog, sponsor exhibits); and costumed characters and mascots from corporate sponsors (e.g., Willy Wonka, Air Force "Ricky Recruiter").

MusicFest -- A concert series targeted to music enthusiasts to be conducted at one or more Long Beach venues. Specific acts and prices (if any) would be established based on the specific venue, objectives, and capacity.

TasteFest -- A food village targeted to culinary enthusiasts to be conducted on Shoreline Drive. Pine Avenue restaurants and other local restaurants would be featured to attract business sector support and showcase the City's fine cuisine.

WaterFest -- A two-day, two-hour sea show targeted to military and watersports enthusiasts to be conducted off the beach and in front of the Queen Mary. Event components would include: U.S. military exercises (e.g.,hovercraft, beach invasion, US. warship displays); civilian acts (e.g., jet ski, water ski,and kite surfing displays); and unlimited hydroplane racing exhibition.

Other ShoreFest events and activities may include "BlimpFest," the world's first blimp race, powerboat races, and extreme sports demonstrations. Fireworks displays would occur each night of ShoreFest. It is estimated that 500,000 people would participate in the inaugural ShoreFest."

Staff says a key element of its discussions with Shoresales, LLC "would be the scope of City services required and any other associated costs. Shoresales, LLC, is asking for the City to underwrite the cost of these services. In addition, Shoresales, LLC, is investing a substantial amount of its own funds, obtaining corporate sponsors, and asking local organizations for limited financial participation commensurate with the benefits received. This strategy will enable the City and Shoresales, LLC, to offer a series of free events open to the general public (VIP activities excluded)."

In a section it labels "Projected benefits," staff says, "It is believed that ShoreFest would benefit the City in a number of ways including:"

Economic development -- ShoreFest would stimulate economic development in Long Beach by increasing (1) tourism revenues for the Long Beach Airport, hotels, restaurants, and attractions, (2) City tax revenues from stimulated economic activity, and (3) new business recruiting. It is estimated that the Ft. Lauderdale Air and Sea Show has a $17 million impact on the city. It should be noted that the Downtown Long Beach Associates (DLBA), the Convention and Visitors Bureau (CVB), and the Strategic Marketing Initiative (SMI) have all expressed their support for ShoreFest.

Media exposure -- A planned media campaign for ShoreFest, and television news coverage, would provide tremendous exposure and awareness of Long Beach as a distinct, attractive, and active Southern California destination.

Community Goodwill - A partnership between the City and ShoreFest would build public goodwill by offering: (1) a new, world class event celebrating Long Beach, (2)fun, family entertainment appealing to a wide variety of interest groups, and (3) strong, local charitable support and participation opportunities for community service organizations.

The memo says the "concept for the multi-faceted event is modeled on the Ft. Lauderdale Air & Sea Show, which draws over one million people each year. Physical similarities between Ft.Lauderdale and Long Beach, coupled with the City's experience with the Long Beach Grand Prix and other large events, led ShoreSales, LLC, to conclude that Long Beach is the prime location in Southern California to host such an event."

It says that in May 2002, "representatives from the City and the Long Beach business community attended the Ft. Lauderdale Air & Sea Show to experience firsthand an event similar in magnitude to that of the proposed ShoreFest. The delegation unanimously agreed that ShoreFest would add value as a tourist attraction to Long Beach and that Shoresales, LLC, is uniquely positioned to develop and manage the event."

Staff adds, "The City has substantial experience with the type of large-scale events identified above. Major events occurring in the City include the Long Beach Grand Prix, Long Beach Marathon, Wings Over Long Beach, Blues Festival, Jazz Festival, Gay Pride Festival, SeaFestival, Chili Cook-Off,power boat and water ski races, international sailing regattas, 2nd Street Car Show, and 4th of July celebrations."

In a section labelled "Issues and Impacts," city staff says:

An event, or series of events, of ShoreFest’s magnitude brings with it a great number of issues that would have to be addressed before finalization of a permit. These include:

  • Logistics (e.g.,event venues, scheduling, permits and approvals, staging, event management, parking, and public transportation).

  • Public safety (e.g.,Police,Fire,and medical requirements).

  • Impacts on neighborhoods and the general environment.

  • Impacts on businesses and services.

  • Impacts on conventions, hotels, and non-Shore Fest events.

    Finally, the costs and revenues, direct and indirect, to the City need to be understood before a final decision to move forward with ShoreFest is made.

  • The staff memo concludes by asking Council approval to "work with Shoresales, LLC, to develop "the terms and conditions for ShoreFest, to be held in October 2003 and will return to the City Council at a later date to request approval to execute an agreement with Shoresales, LLC."

    The item is number 21 on the Tuesday, June 11 City Council agenda, but (like any item) could be taken out of order (earlier) by the Mayor and Council.

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