Adopting a Resolution providing direction to advance the Chateau Theatre operating partnership and capital planning framework, including proceeding to the September 24 DMCC Board meeting to seek an Indication of Interest in advancing the proposed partnership and capital improvement framework.

The Chateau Theatre is one of Rochester's beloved cultural assets and has long served as a place for entertainment, arts, gathering, and shared community experience. As the Chateau approaches its 100th year, the City is continuing work to build on that legacy and position the publicly owned historic venue for consistent year-round use and long-term sustainability.

In January 2026, Council reviewed an operating and capital assessment completed in partnership with Destination Medical Center (DMC). The assessment evaluated the Chateau's current condition, market position, operating opportunities, and capital improvements needed to enhance the functionality of the venue. Based on that work, City staff recommended further evaluating a localized "One Roof" operating model that could better integrate management, programming, marketing, and event operations with Rochester's broader venue and destination infrastructure. Council directed staff to continue exploring potential operating partnerships, including discussions with Threshold Arts and Experience Rochester.

Following the January discussion, Threshold Arts indicated that it would not pursue an extension of its operating agreement. City staff then continued working with Experience Rochester to develop a potential operating model and associated capital plan. On August 10th, the City Team returned to Council with a concept centered on Experience Rochester as the prospective operating partner. Council generally supported continued development of the concept while emphasizing the importance of meaningful community access, strong local partnerships, a sustainable operating framework, and confidence that future capital investment would support the intended uses of the venue.

Since the August Study Session, the City Team and Experience Rochester have continued to refine a balanced operating model that builds on the Chateau's established role as an active community and cultural venue while broadening its programming and revenue potential. A dedicated Chateau Manager would provide day-to-day venue leadership and serve as a consistent point of contact for community users, supported by Experience Rochester's existing capacity in sales and marketing, event development, food and beverage, and production. This structure would preserve opportunities for local arts, cultural, and community organizations while expanding the mix of community programming, entertainment, private and ticketed events, and conferences. Increased use and earned revenue would help support affordable community access and a more sustainable long-term operation.

The proposed Festival & Events Coordinator would complement the Chateau Manager and Ambassador by providing dedicated capacity to build partnerships and support programming beyond the day-to-day operation of the venue. The position would work with local arts, cultural, downtown, and community organizations to develop events, strengthen existing partnerships, identify new programming opportunities, and coordinate community and destination activation. Together, these roles would provide both the on-the-ground management needed at the Chateau and broader capacity to grow events and partnerships that serve residents, visitors, and downtown.

With Council direction to advance the partnership, the City Team and Experience Rochester would undertake focused stakeholder engagement and further develop the operating framework. This work would include expectations for community access and affordability, local partnerships, programming, pricing and scheduling, while maintaining sufficient flexibility for professional venue management and expanded activity. Staff also anticipates incorporating performance measures and a future review of event mix, community use, affordability, attendance, and operating performance.

Capital planning would continue in parallel. Current planning identifies approximately $2.8 million in baseline facility needs to preserve the historic asset and maintain a safe, code-compliant facility, along with approximately $3.4 million in venue activation improvements to support programming, guest experience, and flexible operations. Staff will continue working with DMC, Experience Rochester, Legends Global, and project consultants to validate and prioritize the improvements, with particular attention to the capabilities created by the investment, including live entertainment and performance, audio/visual and production systems, rigging, food and beverage service, visitor experience, accessibility, communications, and security. The combined capital improvement framework, currently estimated at approximately $6.2 million, would be presented to the DMCC Board on September 24 for input and an Indication of Interest in advancing the proposed partnership.

The September 9 action would establish policy direction to advance the Experience Rochester operating partnership and capital planning framework, including proceeding to the DMCC Board on September 24 to seek input and an Indication of Interest in advancing the proposed partnership. Following the DMCC Board discussion and indication of interest, staff would continue the remaining operating, financial, engagement, and capital planning work, secure final approval from the Experience Rochester Board, and return the appropriate operating, financial, and capital items to City Council and the DMCC Board for future consideration and approval.

The proposed direction maintains the Chateau as a publicly owned community and cultural asset while expanding opportunities for year-round activation. Development of the operating framework will include expectations for meaningful and affordable community access, local partnerships, and a mix of programming that serves residents while also supporting entertainment and broader event activity. Focused stakeholder engagement will help inform these expectations before a final operating agreement is brought forward.

August 16, 2021: Chateau Operator Request for Proposals approved for release.
October 25, 2021: Chateau Operator Proposals presented at study session.
November 11, 2021: Chateau Preferred Operator presented at council meeting - Tabled.
January 19, 2022: Chateau Preferred Operator Presented, approved for contracting.
May 16, 2022: Contract with Threshold Arts Executed.
June 26, 2023: Contract awarded for Chateau Theatre restroom renovations.
July 10, 2023: Contract for design of Chateau Theatre heating, ventilation and cooling.
November 6, 2023: Contract award for heating, ventilation, and cooling.
February 3, 2025: Council Meeting for Chateau Theatre Operating Agreement Renewal
January 12, 2026: Council Study Session reviewed the Chateau operating and capital assessment and provided direction on future operating and investment options.
August 10, 2026: Council Study Session reviewed the proposed Experience Rochester operating concept and capital strategy.

No final operating or capital expenditure is authorized through this action. The proposed Festival & Events Division currently contemplates a $375,000 annual investment, including $300,000 from the City and $75,000 from Experience Rochester. The City's long-term Chateau operating contribution and funding source remain under development and would be identified as part of a future operating agreement. Capital improvements necessary to support the proposed operating model are currently estimated at approximately $6.2 million and continue to be validated with DMC and project partners. Any final City financial commitment and capital package would return to City Council for future consideration and approval.

No alternative action is suggested at this time.