TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to evidence (i) a loan by the City of Long Beach to the Aquarium of the Pacific Corporation of up to $2,154,000, from the Tidelands Operating Fund Group, (ii) the acceptance of the prepayment of an existing 2017 loan by the City to the Aquarium, and (iii) the prefunding of the Challenge Grant by the City to the Aquarium; and, approving related documents. (District 2)
DISCUSSION
On March 4, 2020, California Governor Newsom declared a State of Emergency in response to the spread of the novel coronavirus (COVID-19). Shortly thereafter, the City of Long Beach (City) also issued a Proclamation of Local Emergency, beginning a series of measures to protect Long Beach residents. As a result of the State’s and City’s health orders, the Aquarium of the Pacific Corporation (Corporation) suspended public visitation to the Aquarium of the Pacific (Aquarium). Revenues have been severely impacted and will continue to be impacted until the Aquarium can reopen and have a significant attendance. The Corporation intends to open as soon as allowed with appropriate safeguards complying with any revised health order. If the opening is soon enough and the attendance is adequate, the Corporation’s revenue stream could be sufficient to allow the Corporation to meet its October 2020 rent obligations to the City. The rent is deposited and used by the City’s Tidelands Operating Fund Group to pay debt service on the 2012 Aquarium refunding bonds. However, there is no assurance that the Aquarium will be able to make the full rent payment.
The Corporation has requested two actions to assist them through this pandemic. The actions are intended to minimize impact on the City while still providing support for this important City landmark and attraction. The proposed actions are as follows:
1. The Corporation has requested a loan, if needed, to pay up to the full amount of the annual $2,154,00...
Click here for full text