Mr Alvarez said he always wanted to host a festival over the Christmas/New Year period in Mount Maunganui, as the Bay was a great summer destination.
"We get [thousands of] extra people through summertime and they all want something to do, so we are giving them what they want."
Locals had been getting excited for the festival, he said.
"We have Pendulum coming to Tauranga. They are a top-of-the-line act and they are coming to the Bay, they are huge."
Mr Alvarez said he was hoping to get between 5000 and 6000 concert-goers to Bay Dreams in its first year and turn it into an annual event.
The next announcement for the festival would be in early November, "which would be as big as the first one", while ticket sales had already started, he said. "It's going to be big, we can't wait. We have been working hard on a daily basis to deliver an awesome event."
A Bay Venues spokesperson said the festival was booked and would go ahead pending consents being approved.
Line-up (first release)
DJ Premier
Pendulum (DJ Set and Verse)
Chali 2NA (Jurassic 5) & The House of Vibe
The Black Seeds
Homebrew
Drax Project
L.A.B (Kora Brothers)
Concord Dawn
Virtual Riot
Barely Alive
Dodge and Fuski
Astronaut
Dubloadz