Video:Joining “Chicago Tonight” to discuss Lollapalooza’s extension are Selena Fragassi, an entertainment contributor for the Chicago Sun-Times, and Michael Jacobson, president and CEO of the Illinois Hotel & Lodging Association. (Produced by Acacia Hernandez)

On Sunday night, Mayor Lori Lightfoot announced what many already suspected: Lollapalooza will return to Grant Park for another 10 years.

Lollapalooza's founder, Perry Farrell, had previously tipped news of the deal to WGN-TV. City officials and production company C3 Presents confirmed the pact on the final night of the four-day music festival, just as rapper J-Hope prepared to make history as the first South Korean artist to headline a main stage at a U.S. festival.

The new contract will be in place for 2023 and run through 2032, with the potential for a five-year extension of the same terms if mutually agreed to by C3 and the Chicago Park District.

Key points of the agreement, according to city officials, include:

—Chicago Park District receives a share of all C3 revenue streams ranging from 5% to 20%, depending on total festival revenue. Revenue streams include admission, good and services within the festival, licensing sales, sponsorships and streaming.

— Formalized C3's $2.2 million commitment to Chicago Public Schools and additional capital funding for Grant Park tennis court renovation.

—C3 guarantees a minimum payment to the Chicago Park District of $2 million if a four-day festival is held, $1.5 million for a three-day festival, and $750,000 if no festival is held. These are the same terms as the current contract.

—C3 will provide annual reporting on items such as efforts to present local Chicago artists and hire minority and women-owned business subcontractors.

— Daily attendance capped at 115,000.

— Festival to be held the last weekend of July or the first weekend in August of each year during the term. Dates for 2023 have been announced as Aug. 3-6.

According to city officials,Lollapalooza has generated nearly $2 billion for the Chicago economy since 2010, contributing $305.1 million in 2021.

J-Hope performs during day 4 of Lollapalooza at Grant Park on July 31, 2022 in Chicago, Illinois.

More #Lollapalooza https://t.co/0tB2KMYO1O #jhopeAtLollapalooza pic.twitter.com/eweVkWLgFW

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