Construction has yet to begin on the city-owned amphitheater planned near the Queen Mary, but projected costs have already climbed sharply. Originally estimated at $14 million, the project is now expected to cost $21.3 million. City officials are scheduled to ask the City Council on Tuesday to approve an additional $7.3 million, citing rising material and labor costs, tariffs, and design changes that include upgraded furnishings and equipment intended to position the venue as a higher-quality, competitive facility.
The city has already spent $4 million on unexpected emergency maintenance at the site. To cover the new cost increases, including $2.2 million in additional construction expenses and $4.3 million in proposed upgrades, officials are proposing a loan from the city’s Tidelands Fund. The loan would be repaid over eight years using future profits generated by the amphitheater.
Project delays are also affecting revenue projections. The opening has been pushed from spring 2026 to summer 2026, reducing the early revenue window. City officials estimate the venue could turn a profit by its fifth year of operation and generate approximately $7.4 million over its planned 10-year lifespan after startup costs are recovered.
Borrowing from the Tidelands Fund means those funds would not be available for other major capital projects until the amphitheater begins repaying the loan. City staff say the move is not expected to affect currently funded Tidelands projects, though officials noted that issuing debt could become necessary if funds are redirected before repayment is complete.
Other City Council items of note:
- The city plans to refurbish and reinstall the iconic VIP Records sign at a site along Pacific Coast Highway and Martin Luther King Jr. Avenue, to be known as VIP Records Park. The project would cost up to $235,000 for refurbishment, plus $170,000 paid to the record store to display the sign, under a five-year agreement.
- The Long Beach Yacht Club is seeking to extend its lease at 6201 Appian Way from 2050 to 2091. The proposal includes major renovations, a 20,000-square-foot expansion, a new community room available to the city up to 600 hours per year, and an increase in rent to $200,000 annually, with a $20,000 guaranteed minimum.
- The Long Beach Museum of Art Foundation is requesting a lease extension for its Ocean Boulevard location through September 2035 to support continued growth and grant eligibility.
- First Response Healthcare plans to lease a 1,300-square-foot clinic space inside the Ronald Arias Health Equity Center in Houghton Park for at least three years, operating five days a week at $2,000 per month.
- Council members will consider designs for a seven-story, 157-unit mixed-use building with commercial space and a two-level parking garage at 507 Pacific Ave. in downtown Long Beach.
- The city is also proposing the installation of up to 50 digital information kiosks over the next decade, estimating potential advertising revenue of $1.4 million annually, with half of the kiosks located downtown and the rest distributed citywide.
