Westminster City Council
SUBJECT
Title
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 one optional three-month extension; 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 Rose Center 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 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 (Friends) do not pay facility rent, full building maintenance costs, or utility costs for their use of the Rose Center. The Friends provide custodial services for their events and contract telecommunications needed for their 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 in the fall of 2025, and a report will be provided to the City Council for direction.
Implementation of any recommendations or direction will take some time and, therefore, Staff recommends that the City extend the current term of the agreement with Friends (Attachment 1) on a short-term basis ensuring that the City and community maintain ongoing use of the property.
The proposed First Amendment (Attachment 2) extends the existing agreement through June 30, 2026, with one optional three-month extension. The amendment includes a five percent (5%) venue fee to be paid monthly following the close of the reporting period beginning in January 2026. There are no other changes to the terms of the agreement during the initial extension covered by the First Amendment and the optional three-month extension. The Friends have agreed to pay the five percent (5%) venue fee to the City for each user group during the term of the agreement concluding on June 30, 2026, and the optional extension period which concludes on September 30, 2026. The venue fee is established to offset the utility cost of operating the Rose Center.
The Friends have submitted a user group table (Attachment 3) that lists all commercial bookings for FY 2024–25. Please note that the table does not include non-profit user groups. However, the Friends will still pay the 5% venue fee for all user groups, including commercial, non-profit, resident, and non-resident bookings. Based on this table, the city is expecting the Friends to pay the City approximately $2,000 per month in venue fees. This is an estimate based on FY 2024-25 usage.
FISCAL IMPACT
Beginning at mid-year FY 2025-26, an estimated revenue increase is anticipated in the General City Revenue-Rental Income-Facilities account of $2,000 monthly, or $12,000 annually, due to the addition of the new five percent (5%) Venue Fee defined in the First Amendment to the Rose Center Theater agreement (Attachment 2).
|
Account Number |
Description |
Fee Description |
FY 2025-26 |
|
20000-33560 |
General City Revenue – Rental Income - Facilities |
$2,000 monthly for 6 months of FY 2025-26 from January to June |
$12,000 |
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.
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