The annual three-day Lollapalooza Festival will be held in Chicago, IL, for the next 10 years. Lollapalooza used to be a traveling festival playing...

The annual three-day Lollapalooza Festival will be held in Chicago, IL, for the next 10 years. Lollapalooza used to be a traveling festival playing many sheds across North America before settling in Chicago in 2005.

The success of Lollapalooza, staged in Chicago’s Grant Park by Austin, Texas-based promoter C3 Presents since 2005, has resulted in a 10-year extension agreement between the promoter, the Chicago Park District and Parkways Foundation that is expected to bring a minimum of $12.3 million to benefit Chicago’s parks. In 2007, the Chicago Park District and Parkways Foundation signed a five-year contract with C3 based on the festival’s initial success. Last summer’s event sold out in advance.

“We look forward to continuing to invest into our parks through the partnership with Lollapalooza. The festival has already supported capital projects and launched new programs throughout the city,” said Brenda Palm, Parkways Foundation executive director, in a statement.

Under the new deal, Parkways will receive the greater of an annual guarantee or 10.25 percent of the festival’s gross revenue, plus 8.5 percent of the festival’s sponsorship revenue, according to a statement from the park district.

If Chicago is selected as the host city for the 2016 Olympics, Lollapalooza will skip a year, and the agreement will be extended until 2019.

Since its founding in 1991 by Perry Farrell, lead singer of Jane’s Addiction, the traveling music festival morphed into a destination festival after C3 Presents took over in 2005.

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