The hottest read in Huntington Beach this summer? Rather than a steamy rom com, it may be a generous legal settlement between the city of Huntington Beach and the operator of the annual air show, which attracts hundreds of thousands of visitors each year.
The backstory
The controversy began after a major oil spill off the coast in 2021. The city decided to cancel the airshow that year amid public health concerns and the cleanup. Code Four, which operates the annual airshow, sued for breach of contract. The city of Huntington Beach announced that it had agreed to pay Code Four up to $7 million, but refused to release the full details of the settlement.
The payout and the secrecy infuriated some taxpayers, who believed the settlement amounted to an unnecessary giveaway of taxpayer dollars. A local school board member fought to have the details made public, and the document was finally released late Wednesday afternoon.
So what does the agreement actually say?
LAist's initial review of the settlement shows that, besides the $7 million, the city agreed to:
- Waive all fees for security and police for the airshow, which critics say amounts to hundreds of thousands of dollars a year.
- Turn over all parking revenue from the airshow to Code Four — up to 3,500 spaces, plus RV parking spots. Critics say this could amount to several million dollars a year.
- A 10-year exclusive contract that only Code Four can cancel. The contract also includes the option for three, 10-year extensions — so, 40 years in all.
Why it matters
The details of the settlement agreement have been roiling Huntington Beach politics for months now. You can expect to hear more in the weeks and months ahead as the details are dissected and analyzed. Earlier this year, the State Auditor agreed to investigate the airshow settlement.
What's next
Critics want the California Attorney General to also investigate. Huntington Beach City Councilmembers Rhonda Bolton, Dan Kalmick and Natalie Moser, who have been critical of the agreement, issued this statement: “This no-bid contract, resulting from a lawsuit and lacking public scrutiny, represents a giveaway of public funds and resources... We call on the Attorney General to investigate this agreement for potential a gift of public funds.”
The city also issued a statement defending the settlement and the decision to keep it secret until now. The city also said the language in the agreement referring to a long-term contract with the airshow operator included only "potential terms and conditions" that were still subject to city council approval for future air shows. "No commitment has been made by either party," the statement added.
How to attend the next city council meeting
Time: Tuesday, July 16 at 6 p.m. (agenda)
In person: 2000 Main Street Huntington Beach
Remote viewing:
Note: You can also download the Cablecast Screenweave App and searching for the City of Huntington Beach channel from any Roku, Fire TV or Apple device.
