LongBeachMedia@longbeach.gov
Long Beach, CA – The City of Long Beach announced today an anticipated partnership between the City and Port of Long Beach. Expected for early May 2023, the Long Beach City Council will consider a partnership agreement with the Port of Long Beach that would provide support and investment for the Queen Mary, while strengthening two Long Beach industry sectors: tourism and hospitality, and transportation and logistics.
“This proposed agreement will support our Grow Long Beach Initiative by identifying new strategies to bolster our local economy in two key emerging industry sectors, tourism and goods movement,” said Mayor Rex Richardson. “I look forward to the many benefits this partnership will bring, and I appreciate the Port of Long Beach’s leadership for engaging with us in this opportunity and the Harbor Commission for their support.”
“This additional property will generate additional economic activity and jobs and in turn will create additional revenue for our environmental and community programs,” said Long Beach Harbor Commission President Sharon L. Weissman. “The Port of Long Beach is an economic engine and this opportunity will provide additional economic support to our city and our residents.”
The Long Beach Department of Energy Resources has identified 13.9 acres of underutilized City-controlled oil operations properties in the Port of Long Beach. Long Beach Energy Resources would shrink its oil operations in these areas, providing additional land that can be used for new non-oil uses. Under the agreement, control of these properties would then be transferred to the Port of Long Beach to be leased by Port customers. The revenue from these new leases would be split equally between the Port and City.
As part of the agreement, the Port will advance $12 million to the City, which will be used to fund the Queen Mary’s re-opening amenities and activities, support ongoing restoration projects or address infrastructure needs at the site to help the Queen Mary generate revenue to support additional future restoration and ultimate development of the surrounding 43 acres. The City’s allocation of the new revenue share will be used to repay the advance, after which it will accrue to the City’s Tidelands Operating Fund.
“The advanced funding proposed under this contract agreement would help support the many ongoing restoration and refurbishments taking place onboard the Queen Mary as well as other reopening amenities for our residents and tourists to enjoy,” said First District Councilwoman Mary Zendejas. “I look forward to discussing this with my City Council colleagues next week.”
The recommendation that led to this proposed agreement was brought forth to the Long Beach City Council on April 6, 2021, by Second District Councilwoman Cindy Allen, co-sponsored by First District Councilwoman Mary Zendejas and former Third District Councilwoman Suzie Price, and was approved unanimously by the entire City Council.
“When I introduced the item that began this process, I never imagined we would get to such a great place. I am so proud of our Port and City for jointly working together to secure the Queen’s future with this mutually beneficial agreement,” said Vice Mayor Cindy Allen. “I am pleased with the direction this effort has gone and I look forward to discussing this opportunity with my colleagues at our upcoming Council meeting.”
Major Partnership Benefits
- As part of the Grow Long Beach Initiative, the partnership will be key to implementing strategies and policies that will facilitate the Port and City’s future economic success by diversifying the local economy, establishing new revenue streams, and grow targeted industry sectors.
- Implements innovative collaboration that recognizes the shift away from fossil fuels. The 13.9 acres of former oil operating property will be provided to strengthen and grow transportation and logistics at the Port of Long Beach.
- The City and Port will create new revenue streams supported by private leaseholders.
- The City will receive $12 million advance to support the iconic Queen Mary, strengthening the broader tourism and hospitality sector in Long Beach.
“I want to thank our City team and our Port team for the comprehensive review of all options to pursue the best possible future for the Queen Mary,” said City Manager Tom Modica. “It is clear the Queen Mary has the potential to be a large economic generator and this partnership helps find new revenues to give her the best shot at being successful in generating revenue to support restoration efforts.”
“It's very rare to be able to expand the leasable land we manage in the harbor,” said Port of Long Beach Executive Director Mario Cordero. “To do so is an opportunity we welcome as we continue to build a more efficient, sustainable port.”
At its April 19, 2023, Harbor Commission meeting, the Board authorized the Port’s Executive Director to complete a Memorandum of Understanding between the City and the Port. This agreement is anticipated to be considered by the Long Beach City Council in early May 2023.
About the City of Long Beach
Home to approximately 470,000 people, the multiple award-winning and innovative City of Long Beach offers all the world-class amenities of a large metropolitan city while maintaining a strong sense of individual and diverse neighborhoods nestled together along the California coast. As a full-service charter city, Long Beach is home to the Queen Mary, Aquarium of the Pacific, several museums and theaters, a highly-rated school district, Long Beach Airport, the Port of Long Beach, as well as many award-winning City departments such as Health and Human Services; Parks, Recreation and Marine; Development Services; Public Works and more. The City also has a highly respected university and city college, two historic ranchos, five hospitals, 12 libraries, five golf courses, 169 parks, miles of beaches, marinas, bike paths and a Bike Share program.
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