The aquarium already boasts a robust educational program geared toward conservation, however the new Pacific Visions project aims to build on its reputation when the facility builds its new wing. When completed, new galleries will be added to the building, as well as a 300-seat theater with a “32-foot-tall, 130-foot long, 180-degree arc digital projection wall,” according to the aquarium’s website.
Dr. Jerry Schubel, Aquarium of the Pacific’s president and CEO, was delighted at the prospect of the city council’s support just before they voted on the payment plan on Dec. 20.
“It will serve as a world-class educational and arts institution that will engage the public like never before,” Schubel told the city council, “and it will tackle the planet’s most pressing issues.” The aquarium executive continued to add that this aquarium will become “the most powerful platform in the world outside of the military that allows the public to explore alternative pathways to the future.”
The grant is a nonbinding program, and according to a staff report from the city manager’s office, the City’s payments toward this grant had decreased significantly in the last couple of years after money from its Tidelands oil revenue fund began to decline.
The City does have a plan to continue its payments.
“The source of payments,” City Manager Pat West wrote in his Dec. 20 staff report, “for the middle six years of the grant (other than the first year and last two years) includes $500,000 per year from savings in debt service due to a recent refunding of outstanding Rainbow Harbor bonds, and a separate $500,000 from Tidelands operating funds. It is intended that the annual $500,000 from operations will come from oil revenue above current operating needs, although that is not certain; if new revenue is not available, budget adjustments may be necessary.”
The Rainbow Harbor bonds, another city financial obligation, are anticipated to be paid off by 2023, according to West, and he stated that the grant payments in 2024 and 2025 “will be funded entirely by savings that result from the termination of debt service payments for the Rainbow Harbor bonds.” The City had been paying $3 million per year towards the Rainbow Harbor bonds, according to the city manager.
Third District Councilmember Suzie Price was especially impressed at the Dec. 20 meeting by the terms of the financing plan.
“I will say,” Price told the council, “my favorite part of the proposal and the budget aspect of it is that it will not impact any existing or future projects out of the Tidelands area. That’s a real concern for those of us who fund many city assets through that particular budget. I think it’s a great added benefit to the city.”
Although the City’s $15 million Aquarium Challenge Grant has been nonbinding, the city manager did state that there is “some financial risk.”
“The Pacific Visions Project is an impressive addition to the Aquarium,” West wrote in his staff report to the council, “but it also may present a higher than minimal risk to the Tidelands funds as there may be costs beyond the Challenge Grant. The risk areas include construction costs and contingency, financing costs, operating income and potential long-term renovation and rehabilitation costs.”
In a statement to the Signal Tribune Thursday morning, the aquarium’s president and CEO expressed his gratitude to the City.
“The City of Long Beach has been very supportive of our expansion efforts since 2013 with a challenge grant of $15 million for Pacific Visions,” Schubel said.
Flush with this cash, the aquarium still has more fundraising to do, but the organization has a very healthy start. Including the city’s grant, the aquarium has already secured $42 million in grants and donations, according to a statement from the aquarium.
