Huntington Beach is giving up thousands of public parking spots as well as waiving public safety fees and costs for the annual late summer Pacific Airshow held on the coast.
The revelation comes as residents get their first look today at the city’s multi-million dollar settlement with air show operators after city leaders lost a battle in court to keep it secret.
City hall officials released the settlement Wednesday.
Click here to read the settlement agreement.
Shortly after the city council’s majority took office, officials announced plans to pay Code Four – the air show operator – between $5 to $7 million in damages for canceling the airshow during the 2021 oil spill off the city’s coast.
Officials refused to give specific details of the deal at the time.
That changed Wednesday.
The settlement’s release comes as state auditors are probing the deal after complaints from the city council minority and local residents that the airshow’s operator got a deal that amounts to a gift of public funds to a campaign supporter for the council majority.
[Read: State Auditors to Investigate Huntington Beach’s Pacific Airshow Settlement]
City Attorney Michael Gates argued that the city could keep the settlement secret because they were still looking to sue the oil rig’s operator, and some of that money would go to Code Four because of the settlement terms.
“The holding of the release of the Settlement Agreement was only done to ensure the City was not compromised while attempting to resolve all other disputes related to the 2021 oil spill, including the pending litigation with Amplify and other oil companies,” Gates said in a Wednesday news release.
But he lost that argument in court after the city was sued by Ocean View School Board member Gina Clayton Tarvin, who argued it was within the public’s right to know under California’s public record act.
[Read: Will Surf City Residents Get to See Details of a $7 Million Air Show Settlement?]
What Did Surf City Give Up?
While the settlement includes the financial payout disclosed by city leaders, there are more details that were never disclosed to residents.
Under the settlement, the Pacific Airshow also gets the right to take over and “monetize” 3,500 city owned parking spaces.
Those spaces are spread throughout the Pier Plaza, Sixth Street parking lots, city beach lots and the Main Street parking garage, according to the settlement.
Pacific Airshow will also get up to 600 public parking spots leading up to the event for two weeks leading up to and 12 days after the event for unloading and loading equipment.
That concession puts more than 4,000 public parking spots into private hands for the event and the weeks around it.
The settlement also mandates the city will staff the parking lots at taxpayer expense during the air show.
All of the city’s RV parking spots are also turned over to Code Four during the airshow to be sold for a profit.
Huntington Beach is also banned from canceling or modifying the airshow without consulting with Code Four and having a “justifiable health and/or safety crisis.”
Pacific Airshow is also guaranteed exclusive rights to host the air show over the next 40 years.
The city is also now required to pay for any environmental reviews for the airshow.
Mayor Gracey Van Der Mark didn’t return a Wednesday call seeking comment on settlement specifics.
Surf City is also waiving fees for police officers or firefighters needed for the event, and must waive all permitting fees associated with the event, along with “mitigating” any fees from the sheriff’s department, state parks, road closure fees and more.
City Councilmembers Rhonda Bolton, Dan Kalmick and Natalie Moser – the council minority – issued a Wednesday statement lambasting the settlement.
“This no-bid contract, resulting from a lawsuit and lacking public scrutiny, represents a giveaway of public funds and resources for cancellation of 1-day of an event. We call on the Attorney General to investigate this agreement for potential a gift of public funds,” reads the statement.
They also specifically called out the parking giveaway.
“This is worth millions compared to a previous flat subsidy of $110,000 on incremental parking cost increase during airshow,” reads the council minority statement.
Questions Over Tax Revenue and Coastal Access
The settlement’s release also comes as questions persist about how much money the air show brings in for the city.
[Read: How Much Money Does the Pacific Airshow Bring to Huntington Beach?]
“As the community knows, the Pacific Airshow is a world-class event here in Huntington Beach that brings in visitors from all over the world,” said Mayor Van Der Mark in a Wednesday news release.
“The City’s settlement with Pacific Airshow LLC ensures the potential for future Airshow events which bring in over a hundred million dollars in economic benefit to the region and tens of millions of dollars directly to the City of Huntington Beach each year.”
The release also comes as the California Coastal Commission and Lands Commission have been closely scrutinizing the airshow.
Earlier this year, the coastal commission said the airshow illegally blocks public access to the beach.
[Read: State Agencies Say Pacific Airshow in HB Illegitimately Privatized the Coastline]
“The October 2023 air show’s widespread unpermitted privatization of public land discussed in this letter is not compliant with the City’s certified (local coastal program), wrote Spenser Sayre of the California Coastal Commission’s enforcement division, adding that the air show “violates public access protection policies of the Coastal Act, and breaches contractual obligations of the City’s lease.”
Spencer Custodio is the civic editor. You can reach him at scustodio@voiceofoc.org. Follow him on Twitter @SpencerCustodio.
Noah Biesiada is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at nbiesiada@voiceofoc.org or on Twitter @NBiesiada.
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