CHICAGO (CBS) -- Lollapalooza will be in Chicago's Grant Park for at least 10 more years after the city and event organizers announced a new agreement Sunday.
Mayor Lori Lightfoot said the deal with Organizers C3 Presents includes a 10-year extension of Lollapalooza in Grant Park and a possible five-year extension.
Lightfoot said the deal comes with an "estimated future financial impact of nearly $4 billion for the Chicago economy."
Lollapalooza, an annual four-day event, has taken place in Chicago for the last 17 years.
According to the mayor's office, since tracking the economic impact of the festival beginning in 2010, the festival has generated nearly $2 billion for the Chicago economy, including $305.1 million in 2021 alone.
Lollapalooza is one of the largest and most iconic music festivals in the world.
"Lollapalooza is not only a significant economic driver for our city, but a truly iconic Chicago summer festival," said Mayor Lightfoot. "I am thrilled to come to this agreement that will ensure Lollapalooza is here to stay for the next decade — bringing music, culture, and joy to both residents and tourists for years to come. I thank C3 Presents and our partners who made this agreement and famous festival possible."
In 2021, the festival directly generated more than $4 million in taxes for the city and $7.8 million in fees for the Park District, which supports parks and programs citywide, Lightfoot's office said.
"With Lollapalooza serving as Chicago hotels' busiest weekend of the year, IHLA and its members are excited to welcome Lolla back to our city for the next ten years. In 2021, the festival generated over $5.7 million in hotel tax revenue for the city, Cook County and the state of Illinois," said Michael Jacobson, President and CEO of Illinois Hotel and Lodging Association. "Lollapalooza also supports quality livelihoods for our valued employees, who live in every corner of Chicago. We congratulate our partners at both City Hall and C3, the producer of this event, for getting this extension across the finish line."
The deal also includes a $2.2 million commitment to Chicago Public Schools and a revenue sharing arrangement with the park district.
Lollapalooza's future had been in doubt. It was operating on a one-year extension after the deal signed in 2012 expired last year.
for more features.