Long Beach, CA
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File #: 22-0702    Version: 1 Name: ED/PW - Queen Mary Hotel Management Agreement D1
Type: Contract Status: CCIS
File created: 6/3/2022 In control: City Council
On agenda: 6/21/2022 Final action: 6/21/2022
Title: Recommendation to authorize City Manager, or designee, to execute any and all documents necessary to enter into a Hotel Management Agreement with Evolution Hospitality, LLC, of San Clemente, CA, for the reopening and operation of the Queen Mary hotel, attractions, parking, retail, food and beverage services, and ship related events for a period of five years, with the option to renew for two successive one-year periods, at the discretion of the City Manager. (District 1)
Sponsors: Economic Development, Public Works
Attachments: 1. 062122-R-33sr, 2. 062122-R-33 Corresp. Anna Christensen
Related files: 36326_000
TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary to enter into a Hotel Management Agreement with Evolution Hospitality, LLC, of San Clemente, CA, for the reopening and operation of the Queen Mary hotel, attractions, parking, retail, food and beverage services, and ship related events for a period of five years, with the option to renew for two successive one-year periods, at the discretion of the City Manager. (District 1)

DISCUSSION
On June 8, 2021, the City Council authorized an emergency Caretaker Agreement with Evolution Hospitality, LLC (Evolution), to maintain the Queen Mary during a prolonged COVID-19 closure after the ship was returned to City of Long Beach (City) control when the former lessee went into bankruptcy. Since that time, Evolution has diligently maintained the ship and its immediate vicinity and worked closely with City staff to implement improvements on the Queen Mary.

The Department of Public Works (Public Works) has begun critical structural and safety projects at the ship and will continue to implement those projects as directed by the City Council. Additionally, the Special Events and Filming Office has facilitated filming activity on-board the ship to help generate additional revenue during the ship’s closure.

Upon direction from the City Council, and in consultation with staff from the Harbor Department, City staff have worked with Evolution to negotiate a short-term Hotel Management Agreement to accommodate the re-opening of the Queen Mary. The scope of this agreement includes re-opening planning and operation of the ship hotel, attractions, parking, retail, food and beverage services, and ship related events.

In anticipation of a fall re-opening, the parties have negotiated the following major terms and conditions:

· Term: Effective Date of July 1, 2022, to accommodate pre-opening activities. Anticipated Commencement Date of October 1, 2022, for an initial five-y...

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