The legendary Queen Mary may finally have a clear path to reopening after being shut down for more than two years — if, that is, the Long Beach City Council moves forward with a new hospitality management contract next week.
The City Council will vote on Tuesday, June 21, whether to approve a contract with Evolution Hospitality to oversee the ship’s operations leading up to and after the planned reopening date, which the city has set as Oct. 1, if the necessary repairs are done in time.
The World War II-era ship fell into massive disrepair under the management of its previous operators, Urban Commons. The company declared bankruptcy and gave up its 66-year lease in 2021, bringing the Queen Mary back under city control for the first time in 40 years.
But it wasn’t a gift to Long Beach so much as a burden: A few years earlier, the city gave Urban Commons $23 million to fund major ship repairs. A 2021 city audit, however, found the repairs were never completed.
An earlier report, conducted in 2017, estimated all necessary repairs — including work on the ship’s hull and structural frame — could cost anywhere from $235 to $285 million.
In April, Long Beach removed 20 deteriorated lifeboats from the Queen Mary — which were worsening the ship’s structural integrity by overloading it with nearly 100 tons of excess weight — a major milestone in critical repairs needed to reopen the ship to the public, according to a city press release from mid-May.
Those improvements were necessary for the city to prepare the ship for reopening, which the city is targeting for October.
If the council approves the Evolution contract, the hospitality company will operate the Queen Mary hotel and oversee approximately $1 million dollars in repairs to ensure a safe reopening, including replacing the ship’s boilers, elevator and restroom, plumbing repairs, and parking upgrades.
Evolution will also be responsible for the ship’s overall maintenance and Queen Mary-related events for five years, according to a staff report for the Tuesday council meeting.
Long Beach, however, will continue overseeing major capital improvements necessary for the Queen Mary’s overall restoration and preservation. The city will also handle programming at the nearby Harry Bridges Special Events Park.
It’ll cost about $2,870,500 to cover all pre-opening improvements and reopening costs, the staff report said. That money will come from the city’s Tidelands Area Fund Group.
Those costs haven’t been budgeted from that fund yet, the staff report said, but the Economic Development Department will request that money be appropriated in the city’s year-end budget report at a later date.
“These expenses will be offset to the extent possible by revenue generated from the Queen Mary, Harry Bridges Special Events Park, and leases in the vicinity of the former Queen Mary leasehold,” the staff report said, noting that any outstanding costs may need to be covered by the Tidelands Operating Fund Group.
Under the terms of the contract, Evolution will be subject to frequent financial audits and must submit monthly finance reports. Evolution must also submit an annual budget before Oct. 1 every year, the staff report said.
Evolution, the staff report said, anticipates that revenues from the Queen Mary’s operations will fully offset any city investments by 2023, with an estimated city profit approaching $1 million by then. In 2024 and the years beyond, the staff report said, net revenue is projected to exceed $7 million annually.
The company will also honor pre-existing labor agreements, the report said. About 300 hourly associates, represented by the Seafarers International Union and International Brotherhood of Teamsters, worked on the ship prior to the hotel’s closure in 2020.
Evolution will “make every effort to provide employment opportunities for those that were previously employed on the ship,” according to the staff report.
The next round of major repairs, currently underway, include enhancing the ship’s bulkheads and bilge pump system, Long Beach’s May 13 press release said. Those fixes will further strengthen the Queen Mary’s structure and will help prevent damage should flooding occur onboard.
If the City Council OK’s the agreement with evolution, it will go into effect on July 1 for pre-opening activities. It’ll be renewed for the five-year term upon the ship’s reopening on Oct. 1.
Source: Orange County Register
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