The Redding City Council on Tuesday, May 19, will consider re-upping its financial lifeline to Civic Auditorium operator Advance Redding to help keep the doors of the entertainment and event center open.
The five-month, $400,000 contract would be five equal monthly payments of $80,000 that would start in July and end in November.
It would be the second grant from the city to Advance Redding this year, bringing the total to $864,000 should the council approve the proposal.
The council at its Feb. 3 meeting unanimously approved funding for a fourth-month contract for the Civic totaling $464,000 to keep the doors open. Four equal monthly payments of $116,000 started in March and will end in June. The stop-gap funding is financed from money available from the Stillwater Business Park land sale.
It is not known where the city would draw from for this latest stop-gap funding.
“If authorized, staff will return at a future meeting with an agreement and proposed funding source(s),” Community Services Director Travis Menne stated in the staff report to council.
In his report to council, Menne said the $400,000 would be considered transitional funding as the city looks for a new operator at the Civic.
Menne and the council ad hoc committee consisting of Mayor Pro Tempore Erin Resner and Councilwoman Tenessa Audette met twice in May with Advance Redding. At the meetings, Advance Redding went over details of its revised business plan with feedback from the ad hoc committee and Menne’s staff.
“Unfortunately, after months of business plan permutations and cost cutting, Advance Redding’s Board did not find a low-risk sustainable model that does not rely on continued” funding from the city “or fits within the city’s current financial restrictions,” Menne said in his report.
So, the city will consider moving forward to solicit bids by sending out a request for proposal (RFP) from entities that are interested in running the Civic. Menne would ask the council for direction on the details of the RFP.
Menne recommends that any new lease agreement be closely aligned with the current lease agreement, with some “key modifications” that would require input from council members.
Among the changes Menne recommends is not charging the new operator rent. Currently, Advance Redding pays $5,000 a month in rent. There also would be an opportunity for someone bidding for the new contract “to make a compensation request” for operations and maintenance costs, if needed.
Other things the RFP could include is a financial statement from the bidder to ensure it operates the facility without relying on the city, and a transition plan to move operations from Advance Redding to the new operator.
Advance Redding is expected to be one of the bidders for the new contract. The nonprofit was created by megachurch Bethel Church in 2011 to take over operations of the ailing Civic Auditorium.
David Benda covers business, development and anything else that comes up for the USA TODAY Network in Redding. He also writes the weekly “Buzz on the Street” column. He’s part of a team of dedicated reporters that investigate wrongdoing, cover breaking news and tell other stories about your community. Reach him on Twitter @DavidBenda_RS or by phone at 1-530-338-8323. To support and sustain this work, please subscribe today.
This article originally appeared on Redding Record Searchlight: More money for Redding Civic could bring stopgap funding to $864K
Reporting by David Benda, Redding Record Searchlight / Redding Record Searchlight
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