CHICAGO — Lollapalooza organizers and the Chicago Park District reached a stalemate Thursday night in crafting a new contract to keep Chicago’s largest music festival in Grant Park for years to come.
Sources with knowledge of the negotiations said the impasse is centered on the city amusement tax. The festival — which draws 100,000 attendees for each of the four days — is subject to the tax, which increased from 5% to 9% for large-scale events over the course of the existing 10-year Lollapalooza contract. Festival organizers want safeguards against the city raising the amusement tax over the life of a new agreement.
The news of the standoff came hours after Lollapalooza cofounder Perry Farrell announced in a news interview that organizers had reached a 10-year deal with the city. Representatives for Texas-based C3 Presents, which puts on the festival, were quick to say that negotiations were still ongoing.
