The Los Angeles City Council approved a $30 million loan Tuesday to partially fund renovation of the Kodak Theatre in Hollywood for a 10-year Cirque du Soleil show.

The $30 million loan, drawn from a federal Housing and Urban Development Loan program for job-creating projects, will be made to Los Angeles developer CIM Group, which leases the Kodak Theatre from the city. The loan is secured by CIM Group’s revenues from the surrounding Hollywood & Highland shopping center, which it purchased in 2004.

CIM plans to use the $30 million loan as part of a massive $50 million renovation of the Kodak Theatre, including construction of an underground rehearsal stage and a separate onsite training facility. CIM Group sought the city loan after a private financing deal fell through during last fall’s global financial meltdown.

Montreal-based Cirque du Soleil is also spending up to $50 million to prepare the show choreography, which will focus on Hollywood and entertainment themes. The show is due to open in summer 2011 and run for 11 months each year through 2021. The remaining month of each year will be spent preparing the Kodak Theatre to host the annual Academy Awards show.

The Council’s unanimous vote came after Councilman Dennis Zine expressed concerns about the city placing so much of its economic development resources on one venue.

Concerns were also raised about the loan structure and whether Cirque du Soleil would be able to make its full payments to CIM Group. While none of Cirque du Soleil’s long-running shows around the world have had to shut down, some have experienced reduced attendance due to the global recession.