Long Beach Prepares for Global Spotlight as Host City for LA28 Olympics

In a significant development for the city, Long Beach will again be in the global spotlight as it prepares to host several events during the 2028 Summer Olympics. This follows its notable participation in the 1932 and 1984 Olympic Games.

The city is set to welcome athletes and spectators for handball, rowing and canoe sprints at established venues like the Sports Arena and Marine Stadium. Notably, a temporary pool will be constructed in a waterfront parking lot for water polo and potentially host artistic swimming and marathon swimming and sailing competitions hosted on Belmont Shore.

The city’s public affairs office has confirmed that Long Beach will host eight Olympic sporting events, making it the city with the most significant number of events outside of Los Angeles, the official host city.

Mayor Rex Richardson views the Olympics as a pivotal opportunity to redefine Long Beach’s identity and economic future, stating, “We all want to build a new economy, post-pandemic, that’s less dependent on, let’s say, office space, and in Long Beach, less dependent on oil.” This sentiment reflects a broader ambition to revitalize and reshape the city’s economic landscape.

Long Beach has unveiled a comprehensive five-year plan committing $933 million to infrastructure and public safety improvements, with over $210 million earmarked specifically for Olympic-related projects. However, these ambitious plans have raised concerns among some residents.

In response to these challenges, city officials propose that the influx of visitors during the Olympics could provide a much-needed boost to stalled city projects. The 2023 budget, named the Elevate 28 plan, includes 178 overdue maintenance initiatives to ensure the city is ready for the expected visitor surge. Director of Public Works Eric Lopez, states, “Right now, the goal is to make sure the city is ready so that visitors can get around easily.”

Approximately 23 percent of the funding will target Olympic-specific enhancements, including upgrades to the city’s pier and accommodations for the Queen Mary. This funding is expected from various sources, including city sales taxes and Port of Long Beach revenues. City leaders are actively reevaluating their economic strategies as Long Beach shifts away from its historical reliance on oil revenues, particularly in light of the pandemic and fluctuating oil prices. A Climate Action Plan has also been initiated to address these changing priorities.

Mayor Richardson emphasizes reshaping Long Beach’s tourism strategy by stating, “Think about what tourism looks like, how we can increase tourism to be a more sustainable revenue driver for our city.” While Long Beach is negotiating with the LA28 organizing committee to finalize venue usage, the City Council has already approved an initial agreement to host events.

Nearby Santa Monica is more cautious, discussing financial reimbursement from LA28 for additional city services. John Harper, chief operating officer for LA28, expresses hope that these costs will be covered, while Richardson advocates for “full cost recovery” to protect the city from financial burdens.

LA28 further states, “The arena in Long Beach is a versatile facility in the heart of Long Beach’s downtown waterfront. The venue hosts various entertainment and professional and college sporting events and staged volleyball and fencing during the 1984 Olympics Games.” In addition, it is also stated by LA28 that Long Beach’s arena will primarily be favored to host Olympic Handball matches.

Despite the optimism surrounding the Olympic Games, experts warn of potential financial pitfalls. Economist Andrew Zimbalist cautions against underestimating costs, advising cities to prepare for the possibility that LA28 may not have surplus funds for reimbursements. Richardson, however, emphasizes that the goal is not to profit from the events but to stimulate local businesses through increased tourism: “If our businesses make money because of increased tourism if our hotels make money, we get indirect benefits through sales tax and transit occupancy tax.”

Richardson confidently started working with KPMG, an assets and accounting firm, last year to tackle how they would make this event economically sustainable for the city. Promises of negotiations took place and a lot of planning was involved in teaming with KPMG. Richardson said, “This contract allows us to begin some of the really important work to getting our own internal plans together.”

Reflecting on the past decades, the only Summer Olympics to conclude with a surplus in the previous 60 years was the 1984 L.A. Games. Local leaders and voters amended the municipal charter to guarantee that no taxpayer funds would be used to support the Games.

LA28 disregarded that lesson. Instead, the state legislature and the City Council decided to contribute financially if there were any cost overruns. The first $270 million will be provided by Los Angeles, while the remaining $270 million will be covered by the state. Any further expenses are the city’s responsibility.

The long-term effects of Olympic tourism remain a point of contention among economists. Christine Jocoy, a professor of urban geography, expresses skepticism about the transformative potential of the Olympics, remarking, “The Olympics symbolizes a lot of wonderful things, but I personally would not put a lot of weight behind the idea that that’s going to help transform Long Beach.”

As Long Beach prepares for this monumental event, balancing opportunity and caution will be critical in shaping the city’s future.