Redding officials are seeking a new operator for the Civic Auditorium after the nonprofit managing the venue said it could not find a financially sustainable path forward without ongoing city support.
The nonprofit Advance Redding has struggled financially since the pandemic. The city council gave Advance Redding $464,000 in February to keep the venue open.
The city previously managed the Civic Auditorium itself but transferred operations to Advance Redding in 2011 after earlier financial challenges.
Travis Menne, Redding's director of community services, said discussions between the city and Advance Redding did not produce a solution.
“After months of business plan permutations, cost-cutting endeavors, Advance Redding’s board did not find a low-risk, sustainable model that does not rely on continued funding or fits within our current financial situation,” Menne said.
He said the organization will likely begin winding down operations after city funding runs out at the end of June.
The City Council considered providing up to $400,000 in transition funding to keep operations running temporarily but ultimately declined.
"Committing that large ongoing sum now when we don't have a clear financial picture risks undermining our ability to preserve core services and protect the city assets at this time," Mayor Mike Littau said. "We cannot let pride or good intentions push us on to a path that could lead to insolvency later."
The city is facing a multimillion-dollar budget deficit. Littau said future funding for the auditorium could come from reallocating hotel tax revenue, a method commonly used to support city-owned event venues elsewhere.
The council approved a request for proposals seeking a new operator. The proposed agreement includes several changes, including eliminating monthly rent payments, reducing required event minimums and allowing applicants to propose their own operations and maintenance budgets.
Redding Chamber of Commerce CEO Todd Jones questioned whether another organization could make the venue financially viable.
“I don't believe anyone's going to come forward," Jones said. "Certainly, if Advance Redding can't figure it out, I don't think anybody else will either.”
In a statement, Advance Redding said it plans to provide more information next week about the transition and possible impacts on future events.
“We are incredibly proud of what we’ve accomplished together and remain hopeful about the role the Civic will continue to play in serving the community," Advance Redding Board President Eric Hiatt said in the statement.
The city plans to select a new operator by the end of July and transition operations by October.
