Westminster City Council
SUBJECT
Title
Consideration of a First Amendment for the Theater Operation and Cultural Programming of the Rose Center with the Friends of the Abbey Center, dba Friends of the Rose Center Theater, a California Non-Profit 501 (c)(3) Corporation.
End
From: Christine Cordon, City Manager
Requested by: Administration
Prepared by: Shaunna Hunter, Senior Management Analyst
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RECOMMENDED ACTION
Recommendation
A. Approve the First Amendment to the Theater Facility Management Services Agreement for the Operation of the Rose Center Theater with Friends of the Rose Center Theater for a term to conclude on June 30, 2026, with three optional six-month extensions; and
B. Authorize the City Manager to execute the agreement on behalf of the City in a form approved by the City Attorney.
BACKGROUND
Built in 2006, the Rose Center Theater was designed to increase community access to high-quality performance arts and cultural experiences while providing a much-needed venue for corporate networking, holiday gatherings, weddings, and other events. The Rose Center is part of a lively civic core that includes City Hall, Westminster Senior Center, Orange County Public Library, West Orange County Municipal Courthouse, Coastline Community College, and Sid Goldstein Freedom Park and Vietnam War Memorial.
Since the theater’s opening in 2006, the Friends of the Abbey Center, Inc., dba Friends of the Rose Center Theater, a California non-profit 501 (c)(3) corporation has operated the Rose Center Theater, offering a year-round cultural arts programming including live theater, musicals, and youth-centered theater, in addition to booking, managing, and staffing for rental use of the Rose Center Theater. Currently, the Friends of Rose Center Theater does not pay facility rent, building maintenance costs, or utility payments for use of the Rose Center Theater, but maintains custodial services for events and contracts telecommunications needed for business operation.
In May 2025, the City contracted with a consultant to provide a feasibility study of the Rose Center to evaluate alternative management opportunities, assess market rates, evaluate competition, evaluate overall facility usage, review Request for Proposals for venue operator services, and provide a recommendation based on their findings. Staff retained TheatreDNA, a Los Angeles-based theater consulting firm specializing in performing arts venues. It is anticipated that TheatreDNA’s study will be completed by September 2025.
Staff recommends that the City extend the current term of the agreement with the Rose Center Theatre, Attachment 1, on a short-term basis. This will ensure that the City and community maintain ongoing use of the property until the City determines the next steps based upon the outcome from TheatreDNA’s study.
The proposed First Amendment, Attachment 2, extends the existing agreement through June 30, 2026, with three (3) six (6)-month extension options. There are no other changes to the terms during the initial extension. However, for any extension to the agreement, beginning July 1, 2026, the Friends of the Rose Center Theater has agreed to a 5% venue fee to the City to be added to each rental to offset the utility cost of operating the Rose Center. The Friends of the Rose Center has provided a table, Attachment 3, identifying the anticipated increase in revenue the city can expect from for-profit user groups in FY 2026-27 from the venue fee based on Rose Center Theater booking in FY 2024-25. Note that non-profit user groups have not been included in the attached table. However, they will also be assigned the 5% venue fee.
FISCAL IMPACT
No fiscal impact is expected in FY 2025-26, but beginning in FY 2026-27, an estimated revenue increase of $24,000 annually, or $2,000 monthly increase, is anticipated due to the addition of the new 5% Venue Fee, which is defined in the First Amendment to the Rose Center Theater agreement, Attachment 2.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
Approval of the amendment to the Friends of the Abbey Center, dba Friends of the Rose Center Theater, will secure cultural arts programming and venue usage through June 30, 2026, while the city conducts the feasibility study. TheatreDNA and staff will return in late October or early November 2025, based on the completion of the final report, to provide a full report of the findings from the feasibility study.
ATTACHMENTS
1. Original Agreement for the Operation of the Rose Center Theater with Friends of the Rose Center
2. First Amendment to the agreement for the Operation of the Rose Center Theater with Friends of the Rose Center for a term to conclude on June 30, 2026, with optional six-month extensions through December 31, 2027.
3. Friends of the Rose Center Venue Service Charge Table
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager