The City of Virginia Beach will pay Something in the Water organizers $500,000 in three separate payments as they complete required steps to plan the festival, a newly executed contract says.
The contract, which was returned to the city last week, says organizers will receive the first $100,000 “upon full execution of this Agreement.” After that, they’ll receive $200,000 when they release the lineup and $200,000 when they apply for a Special Event Permit.
In October, city council voted to include progress payments or liquidated damages in the contract, citing past cancellations: most notably, the 2024 festival scheduled for October was canceled with less than a month’s notice because it “wasn’t ready,” according to festival founder Pharrell Williams. The contract does not include provisions for damages, but does require organizers to pay back the advance if they breach the contract.
Mayor Bobby Dyer expressed his frustration at Williams’ team when they missed a contract deadline earlier this month. He gave organizers until Nov. 15 to deliver a signed agreement.
In the new contract, the city agreed to in-kind contributions to support the festival: public safety and public works personnel based on availability, school buses for transportation, stages for concerts and maintenance of the beach.
Festival organizers agreed to “increase efforts to reasonably collaborate with City Council liaisons” and to produce a music festival that provides a positive image and economic impact to the city.
Their responsibilities also include releasing the lineup and opening ticket sales by Dec. 31, providing ticket sales and attendance information to the city, contracting with third-party public safety personnel and creating evacuation plans in case of inclement weather.
Festival organizers also agreed to produce Something in the Water in Virginia Beach in 2026 and 2027 — though a provision states that it wouldn’t be a breach of contract if they do not follow through on future festivals.
“The City is holding Something in the Water to the terms of the sponsorship agreement through progress payments and the City’s right to terminate and require repayment of the progress payments,” a city spokesperson told WHRO.
According to the contract, each party has the right to terminate if the other breaches the agreement and doesn’t fix the problem within five days. If festival organizers breach the contract, the city can terminate the agreement and require repayment of the $500,000 advance within 10 days of calling it off.
