Virginia Beach has agreed to give Something in the Water up to $500,000 for next year’s festival, but only if organizers meet specific goals and are transparent in the planning.

Details of a contract signed last week were released Tuesday after The Virginian-Pilot/Daily Press filed a Freedom of Information Act request for specifics. The contract gives an initial $100,000 to the festival, which was started by native son and music mogul Pharrell Williams. To receive the next $200,000 the festival must give the city a lineup list by Dec. 31, then complete a “promoter’s special event permit application” for the final $200,000 installment.

The city will give the festival five days’ notice if there is a breach of contract and festival organizers must remedy the problem within five days or forfeit the money.

The contract aims to ensure transparency.

In September, Williams postponed the festival from October until 2025 within hours of tickets going on sale. City leaders were blindsided as was a local business community that had banked on projected revenue related to the event. The new agreement spells out issues concerning copyrights, public safety and inclement weather procedures after weeks of delays and negotiations that frustrated city leadership.

The contract — signed last Friday by festival-authorized signatory Penni Thow and Deputy City Manager Amanda Jarratt — finalized the festival’s dates as April 26-27.

Organizers also agreed to “increase its efforts to reasonably collaborate” with City Council liaisons and staff to produce a festival “that highlights the City of Virginia Beach.”

The city agrees to provide financial sponsorship equal to tax revenue generated by the event within its “official festival grounds” at the Oceanfront, between 2nd Street and the Virginia Beach Fish Pier. The local admissions tax is 10% for concert tickets, 5.5% tax on prepared foods and drinks, and 1% of the 6% sales tax will go to the city.

The final amount of the sponsorship will be determined after the event’s conclusion.

The contract states the city has the right to audit books and records related to the agreement including those of the festival, its employees and agents. While the contract does not obligate the music festival remain in Virginia Beach, it does state that organizers must include event dates and try to provide timelines for ticket sales and artist lineups in any future agreements such as 2026 and 2027 festivals.

©2024 The Virginian-Pilot. Visit pilotonline.com. Distributed by Tribune Content Agency, LLC.