Questions Mount Over Show Operator’s Sweetheart Deal

Leaders of Huntington Beach, California, are discussing a new deal with the operator of the Pacific Airshow, guaranteeing an annual music festival, airshow, and boat race to Catalina Island for 25 years as taxpayers get to pay the majority of the fees for the company.

The new agreement follows two years after city council members approved a controversial settlement that paid the operator $5 million plus other guarantees that were kept secret from the public until a judge ordered the terms of the settlement to be revealed.

The settlement came after the city told Kevin Elliott, head of Pacific Airshow LLC and CEO of Code Four, that the city was done subsidizing the show. Elliott sued the city and endorsed city council candidates who subsequently approved the settlement of the lawsuit.

One of the main questions residents have is: how much money does the city make on the airshow? City council have claimed for years the event brings in as much as $120 million, but local reporters found that people cited in the financial reports were unable to explain how the $120 million figure was determined.

Although the city used to receive money directly from parking fees, that will stop until 2030, when the city will get $10 per regular spot and $100 per RV spot.

On the downside, the city – taxpayers, that is – will have to pay for a host of fees such as for public safety – marine, police, fire, medical, etc – application fees, permit fees, beach maintenance  fees, setup & teardown fees, street and road closure fees, and on and on.

Pacific Airshow LLC has a guaranteed contract of 10 years with options for three five-year extensions. The airshow also has a right to host a multiday music festival, and will receive all public parking fees along the coast.

It would be interesting to see if the city actually does make a $120 million profit, and how that is determined.

FMI:  www.huntingtonbeachca.gov/