Huntington Beach City Council denies Pacific Airshow organizer subsidy

The Huntington Beach City Council has denied a parking offset subsidy to Pacific Airshow organizer Code Four for this year’s airshow, which is set to take off the weekend of Sept. 30 through Oct. 2.

In doing so with its vote at the Sept. 6 meeting, the City Council moved away from a precedent that had been established in previous years. The vote to deny the subsidy this year was 6-1, with Councilman Erik Peterson the dissenting vote.

“I’m not a big fan of subsidizing events, when we never see books,” Councilman Dan Kalmick said. “We have to take their word for it, that they’re not able to sustain this … I think that if you’re going to do a show after four or five years now, you’ve got to stand on your own two feet.”

Code Four chief executive Kevin Elliott said Tuesday’s vote is the latest City Council action that has frustrated him, with the Huntington Beach resident now questioning whether he will even continue directing the Pacific Airshow after this year.

“The City Council has been trying to chop me at the knees,” Elliott said in a phone interview Monday. “For whatever reason, I couldn’t tell you … but they’ve caused us millions and millions and millions in dollars in financial damage.

“This is about a lot more than the parking offset. That was simply just another punishment in a long line of punishments that’s been handed out by this council.”

The city has raised parking rates at the beach each year since the airshow started in 2016, to help offset the staffing costs owed by the event organizer. In 2018, the Economic Development Committee came to a consensus to again assist as Code Four took over organizing the airshow. That same year, the City Council adopted a resolution that made parking rate modifications in support of the event permanent.

In 2019, the panel unanimously approved a parking subsidy of no more than $110,000.

Photographers take aim at the pattern created by the Canadian Forces Snowbirds at the Great Pacific Airshow in 2019.

(Raul Roa)

“The only private business that we underwrite by charging more for parking to offset public safety is the airshow,” Councilman Mike Posey said. “It was my belief and understanding that 2019 was the last time we were going to do it.”

Councilwoman Kim Carr agreed it was clear to her in 2019 that the subsidy would not be a permanent thing.

“I’m somebody who’s pretty accustomed to selling sponsorships and knows a lot about this,” Carr said. “This is an event that brings 1.5 million people to Huntington Beach, and if you can’t monetize this, then I don’t know what to say. I’ve sold events that were a 10th of the size of this … We want him to be successful and we’ve done our part, but there has to be a point where you get out of the nest and learn how to fly.”

To date, the city has waived a total of $86,425 in permit-related fees and provided $296,094 in parking offset revenues, according to a presentation by Huntington Beach director of community and library services Chris Slama. But Code Four will now be on the hook for an estimated $256,963 owed to the city for this year’s show, including staffing costs, various permit fees and reserved parking space and campground sites.

Elliott sent an email Tuesday afternoon, a couple of hours before the meeting, requesting a removal of the parking offset cap that was approved in 2019. That rubbed a couple of the council members the wrong way.

“One of the things that I really dislike is getting an email at 4 o’clock on the day of a meeting,” Kalmick said. “The agenda has been out for a week, and we’re getting last-minute emails, asking for things that are different … I got no calls from Code Four talking about this issue.”

Elliott said he only sent the last-minute email because he found out that morning that the item was going to be on the agenda, when Peterson contacted him.

“The city’s modus operandi is basically to stonewall you until you’re up against a wall, then bring you in front of the council and make you look like [a jerk] for having to send an email that afternoon,” he said. “No accounting was given for the last four years that I’ve been trying to get the city to approach this event differently.”

A member of the U.S. Army Golden Knights comes in for a landing on the first day of the Pacific Airshow last year.

(Kevin Chang / Staff Photographer)

The Pacific Airshow is the No. 1 airshow in the country by attendance. In 2019 the show generated more than $105 million of economic impact in Huntington Beach alone, according to a study commissioned by Visit Huntington Beach.

But it has run into misfortune in recent years. It was canceled in 2020 due to the coronavirus pandemic.

Last year, city officials canceled the last day of the airshow after an oil spill off the coast of Huntington Beach. Elliott said the city has made no attempt to rectify the situation with him.

Additionally, the city has had five city managers or interim city managers since Elliott took over production of the airshow, which he said has made it difficult to coordinate a unified group effort. He said the Afterburner Music Festival, which was introduced last year and ran concurrently with the airshow, had to be canceled this year because the city didn’t give him final approval until June.

Elliott said that was too late to promote the multimillion-dollar festival.

“It sort of felt like I took on this airshow for the benefit of the community, when no one else wanted to,” he said. “I saved it, you know. I’m not trying to be a martyr or anything, but the City Council clearly has a very short memory … They didn’t have the authority to cancel the event, and they canceled it anyway.

“We love our ocean, I love my city, I want to do what’s right. If that means canceling the event, that’s totally cool. But you can’t make tough decisions and leave the businesses and the patrons out in the cold, and that’s what they’ve done to me,” Elliott said.

The Pacific Airshow has expanded to Australia next year, with the Pacific Airshow Gold Coast set to debut in August 2023. Additionally, the Huntington Beach event is now broadcast online due to a partnership with Hulu.

Still, Elliott said the help is needed to subsidize such a large event.

“It’s awesome what we’re doing, but admittedly, corporations aren’t exactly lining up to cut seven-figure checks right now,” he said. “It’s tough times. Automakers can’t even make cars, and there’s shelves empty at the grocery store. We’re not over this COVID situation yet, and the idea that we’re going to have companies lining up with bags of cash to subsidize this event that brings a tremendous benefit to the city is insane to me.”

In a prepared statement issued by the city of Huntington Beach Wednesday night, officials clarified their point of view on the matter:

“The Pacific Airshow is a private sector special event in the city of Huntington Beach. The city is fortunate to host many large-scale, non-city sponsored special events such as the Pacific Airshow. While we acknowledge the benefits and positive economic impact the airshow brings to the Huntington Beach community and the city, there are many other private sector-driven events, such as the Vans U.S. Open of Surfing and Premier Girl’s Fastpitch, that also provide significant benefits and positive economic impact and do not require city subsidy or financial support.

“Consistent with the city’s required specific events process, city staff maintains ongoing communication with all applicants and sponsors of special events to avoid any surprises, and to provide clear deadlines, costs, updates, and expectations along the way.

“The city of Huntington Beach was just as disappointed as our community to have to cancel the third and final day of the 2021 Pacific Airshow due to public safety concerns relating to the oil spill. During day two of the Pacific Airshow, the city remained in communication with the Code Four team as soon as we were made aware of the estimated 120,000 gallons of oil in the ocean off our coast and found evidence of oil washing up along our coastline late that evening.

“To avoid putting many Huntington Beach visitors at risk in a potentially hazardous situation and to ensure the safety of Huntington Beach residents, and in consultation with other agencies such as the U.S. Coast Guard, the city manager, fire chief, chief of police, and other executive level city staff made the decision to cancel day No. 3 of the Pacific Airshow due to the oil spill. The city notified Code Four of the decision to cancel prior to publicly announcing it.”

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