TITLE
Recommendation to increase appropriations in the Tidelands Area Fund Group in the Economic Development Department in an amount of $1,000,000, for various re-opening improvements at the Queen Mary, offset by Fiscal Year (FY) 22 Special Events and Filming revenues designated for this purpose. (District 1)
DISCUSSION
On June 21, 2022, the City Council authorized a Hotel Management Agreement (HMA) with Evolution Hospitality, LLC (Evolution) 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. The HMA included approximately $2,870,500 in estimated pre-opening and re-opening costs in FY 22 in the Tidelands Area Fund Group. This estimate includes $1.6 million pre-opening costs for staffing and other approved costs, $1 million pre-opening improvements for priority visitor-serving projects needed to safely re-open the ship, an 8.5 percent contingency of $195,500 for additional re-opening needs, and $75,000 for reopening service fees.
As of October 20, 2022, Evolution has addressed plumbing issuesthroughout the ship, reinstituted internet and Wi-Fi across the entirety of the vessel, begun the process of restoring the ship’s handrails, and is actively improving the energy efficiency aboard the ship by installing energy-efficient lightbulbs and fixtures. In addition, Evolution has initiated the replacement of the ship’s boilers and the repair/installation of the ship’s heat exchangers.
Additional re-opening needs and improvements have since been identified. These needs and improvements will be implemented on behalf of the City of Long Beach (City) by Evolution under the HMA. City Council approval is requested to increase appropriation in the Tidelands Area Fund Group in the Economic Development Department in the amount of $1 million in support of pre-opening improvements. The requested funding will continue to aid in the restoration of the Queen Mary H...
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