Home » Economic Development » Real Estate Development » Queen Mary Updates

The City of Long Beach Queen Mary Updates

Queen Mary Critical Repair Efforts

UPDATE: September 26, 2022

On June 21, 2022, the Long Beach City Council authorized the City Manager to enter into a Hospitality Management Agreement with Evolution Hospitality, LLC., to reopen and operate the Queen Mary’s hotel, attractions, and ship-related events for a period of five years. As of September 15, 2022, the City has provided $1.5 million in funding so that Evolution can begin to operationalize and manage the Queen Mary Hotel and will provide additional funding in the amount of $1 million for pre-opening improvements aimed at ensuring amenities and guest experience are of the highest quality.

UPDATE: May 16, 2022

Twenty out of twenty-two lifeboats were removed from the ship, which also means that nearly 100 tons of weight, which was negatively impacting the ship’s structural integrity, is now gone. Out of the twenty-two lifeboats, we are going to preserve three and set aside five for future consideration. With our partners, we also reviewed all the lifeboats that were previously on the ship and salvaged a substantial number of props, rudders and other artifacts of interest from those remaining deteriorated boats that must now be safely disassembled. Details on ongoing efforts can be found here.

Our next round of critical repairs planned will include improvements to the ship’s bulkheads and bilge pump systems. Public Works staff will also continue to work on minor repairs including painting, replacement of lighting and other necessary ship maintenance. The Queen Mary remains closed to the public while critical repairs are underway but continues to be available for filming and special events, which helps generate revenue to support the ship operations.

Bid Opportunity For Museums, Preservation Groups, And/ or Developers Interested In Preserving a Piece of History

UPDATE: May 4, 2022

The City received two proposals in response to the RFP, and neither complied with the requirements of the RFP. The City contacted the two proposers to provide them each an opportunity to comply with the minimum requirements of the RFP by no later than Friday April 28. One proposer withdrew its proposal.  The other proposer did not submit any additional documentation as required by the RFP before the extended deadline. The City considers the matter closed and will move forward with the safe disassembly of the remaining lifeboats, per applicable health, safety and environmental regulations, and will work to identify potential creative solutions to repurpose elements of the lifeboats.

Information:

The City of Long Beach has solicited an opportunity for qualified museums, preservation groups and/ or developers to acquire lifeboats from the RMS Queen Mary (ED22-031 Queen Mary Lifeboat Disposition), affording them the ability to preserve and feature a piece of history at their place of choice. The City had provided the opportunity to interested entities, giving them the opportunity to preserve one or all the historic lifeboats. The electronic bidding system, PlanetBids, provided an easy and accessible way to submit proposals while ensuring fairness during the application and selection process. Registered companies and organizations have received customized emails notifying them of specific bids, the ability to search for bids, and download documents. 

Below is timeline of keymilestones for RFP ED 22-031 Queen Mary Lifeboat Disposition, and as follows:

  • Two site walkthroughs were conducted on February 25th & March 4th at 3:00 PM PST
  • Questions from vendors, have been answerded and were posted on March 16th via the PlanetBids Addenda/Emails Tab
  • RFP ED 22-031 Queen Mary Lifeboat Disposition, was extended by 31 days from its original closure of March 25th, 2022 to April 25th, 2022
  • The solicitation officially closed on April 25th, and the City will begin the process of reviewing all bids, ensuring that they meet the requirements for disposition

Please see the official posting on PlanetBids Vendor Portal.

Queen Mary - credit Long Beach Convention & Visitors Bureau
Queen Mary InfoGraphic Updates

History

The Queen Mary arrived in Long Beach in September 1967 after having carried over 2 million passengers on more than 1,000 voyages across the North Atlantic during its historic sea-going career. It is important to note that when open and operating, the Queen Mary is a major economic generator for Long Beach residents and helps to generate tax revenues that pay for important services citywide. An economic impact study completed by Beacon Economics was released in May 2020 (Queen Mary Economic Impact Report), confirming the immense economic impact that the Queen Mary has on the Long Beach economy. Some key insights for Long Beach specifically:

  • In Long Beach, spending associated with the Queen Mary supported 1,374 jobs;
  • Contributed $42.7 million in labor income;
  • Generated $93.7 million in economic output; and
  • Of the 1,365 direct jobs supported in Long Beach, 329 were at the Queen Mary

City’s Position

City leadership has proactively documented the necessary repairs to the Queen Mary, beginning with the first-ever comprehensive inspection report shared with the public in 2017. The previous operator took responsibility for beginning implementation of these repairs in 2016 pursuant to the Lease. On September 18, 2018, the City Manager detailed these repairs in a public presentation to the City Council.

On September 23, 2019, the City Manager provided another written update to the City Council regarding the status of these projects. On October 1, 2019, the City of Long Beach sent a letter to the previous operator which is detailed and attached to a written memo to the City Council on November 4, 2019, indicating that the operator was falling short of its obligations under the terms of the Lease. For more information on the repairs and public reports, please see this latest update on May 20, 2021.

Beginning with the notifications in late 2019, the City has provided numerous formal notifications of default to the previous operator regarding various failures to comply with its obligations under the Lease. These included, among others, a failure to maintain the Ship in a first-class condition, timely rental payment, and failure to provide financial details requested by the City and City Auditor. On February 26, 2021, the previous operator formally provided a Notice of Chapter 11 Bankruptcy. The bankruptcy proceedings are ongoing.

On May 14, 2021, the City of Long Beach filed an Objection to Sale of Leases with the Court administering the Queen Mary bankruptcy. In May 2021, the City and its maritime engineering experts had the opportunity to inspect the Queen Mary and have determined that the approximate cost to cure all existing noticed defaults under the Lease have increased to between approximately $41 million and $58 million. City management, together with the City Attorney’s Office, will continue to take all appropriate actions in the debtor’s bankruptcy case to protect the City’s property and achieve an outcome that will best position the Ship for long-term success.
 
On May 28, 2021, the Office of the City Manager released an official statement about the Queen Mary.

Next Steps

On June 4, 2021, the previous operator surrendered its interests in the Lease, and responsibility for operating the Queen Mary Hotel and surrounding property returned to the City effective immediately.

To protect the safety and stability of the Queen Mary, on Tuesday, June 8, 2021, the Long Beach City Council approved a short-term caretaking agreement with the current on-Ship operator Evolution Hospitality. In addition to the Queen Mary, Evolution Hospitality operates a diverse portfolio of lifestyle hotels across North America.

The council action will ensure day-to-day maintenance of the Ship and associated properties prior to a more long-term solution. The action also provides funding to prepare a plan to address the most urgent repairs on the Ship.

The City continues to hold the previous operator responsible for Shipboard repairs through the bankruptcy process and will pursue every legal avenue available to ensure the protection of the asset and address any potential wrongdoing or Lease violations. The City has also released a Study Session Report on July 20, 2021, that has outlined short-term and long term next steps: 

Short-term next steps: 

  1. Work with Harbor Department staff to complete engineering assessment of alternatives for the long-term disposition of the Queen Mary (90 days est.) and return to the City Council with updated projected costs. 
  2. Further, evaluate potential Pier H transfer to Port and return to the City Council for direction. 
  3. Complete critical repairs identified by recent inspections and reopen the Queen Mary Hotel and tours to visitors in 2022. 
  4. Work with the Harbor Department to jointly negotiate short-term agreements (1-3 years) for hotel and special event operations to reopen Queen Mary while developing long-term recommendations. 

Long-term next steps: 

  1. Work with Harbor Department to develop organizational and budget models including ongoing management of: hotel, special events, filming, and landside development. 
  2. Initiate RFP processes for long-term hotel and special events operations.  
  3. Re-establish a non-profit foundation to assist with donations and offers to assist with historic preservation, education, and art collection.  
  4. Prepare a master plan for landside development including environmental due diligence, zoning, and RFP for long-term ground lease. 

Finally, on September 14, 2021, a recommendation was made to the City Council to authorize the City Manager, or designee, to engage in negotiations with the Harbor Department for the transfer of the operation and control of “Pier H” from the City Council to the Harbor Department. 


Related Documents Timeline

06/21/2022
City to Enter Into HMA with Evolution Hospitality

05/13/2022
City Reaches Major Milestone in Critical Repairs to Queen Mary

03/11/22
Queen Mary Reopening Plan Update

01/27/22
City to Conduct Critical Repairs to the Queen Mary Beginning in February 2022

09/14/21
City Council Letter
Presentation on Pier H Transfer Negotiations

07/20/2021
Queen Mary Study Session Report

06/04/2021
City of Long Beach Regains Control of the Queen Mary for First Time in Over 40 Years

05/28/2021
Official City of Long Beach Statement Regarding the Queen Mary
 
05/20/2021
Queen Mary Inspection Report Update to City Council
 
05/12/2020
Queen Mary Economic Impact Report
 
11/04/2019
Update on Queen Mary Lease Management
 
06/23/2019
Update on Queen Mary Projects and Long Beach Cruise Terminal Dome
 
12/17/2018
Royal Treatment: How Urban Commons Is Restoring the Queen Mary
 
09/18/2018
Queen Mary Update to City Council

09/22/2016
The Future of the Queen Mary

6/30/2016
Public Invited to Provide Input on Future Development of Queen Mary Area
 
11/18/2015
City of Long Beach Welcomes New Master Lessee to the Queen Mary