HomeMy WebLinkAboutResolution No. 172-26 - Resolution - Chateau Theater Operating Partnership
COUNCIL RESOLUTION NO. ______
Rochester City Council
County of Olmsted, State of Minnesota
Approving Experience Rochester as the Preferred Operating Partner for the
Chateau Theatre and Authorizing Advancement of the Operating Partnership and
Capital Improvement Framework
WHEREAS, the Chateau Theatre (“Chateau”) is a historic and publicly owned
community asset located within the Heart of the City subdistrict of the Destination
Medical Center (“DMC”) Development District and has long served as an important
cultural, gathering, and community venue in downtown Rochester; and
WHEREAS, the City of Rochester (“City”) and Destination Medical Center (“DMC”)
shared a collective goal to acquire and preserve the Chateau as part of the broader
Heart of the City investment and activation effort, with DMC supporting investment and
activation capital improvements to the historic building and the City providing for its
ongoing operation and stewardship, while maintaining community access, supporting
arts, cultural and community programming, and contributing to the activation and vitality
of downtown Rochester; and
WHEREAS, since acquiring the Chateau in 2016, the City, DMC, and community
partners have made significant investments to preserve, stabilize, and improve the
building, including capital improvements supporting its preservation, functionality, and
activation, while the City and its operating partners have supported its ongoing
operation and programming; and
WHEREAS, the City has continued to evaluate operating approaches that can
preserve the Chateau's community and cultural role while establishing a sustainable
operating model that increases use of the venue, expands programming and
partnerships, generates earned revenue, and provides the professional venue
management necessary to support long-term operations to realize the activation vision
from 2016; and
WHEREAS, in January 2026, the City Council reviewed an operating and capital
assessment completed in partnership with DMC and directed City staff to further
evaluate potential operating partnerships and models for the Chateau; and
WHEREAS, following that direction, the City and Experience Rochester have
developed an operating partnership framework that would provide dedicated Chateau
management while leveraging Experience Rochester's existing capacity in venue
management, sales and marketing, event development, food and beverage, production
support, and coordination with Rochester's broader event infrastructure; and
WHEREAS, the proposed operating model is intended to build upon the Chateau's
established community foundation by preserving opportunities for local arts, cultural,
and community organizations while expanding the mix of community programming,
entertainment, private and ticketed events, conferences, and other activities that
increase use of the venue and support a more sustainable long-term operation; and
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WHEREAS, the proposed partnership would also provide dedicated Festival &
Events capacity to work with local arts, cultural, downtown, and community
organizations to strengthen partnerships, support programming and community
engagement, develop events, and identify opportunities to further activate the Chateau
and downtown Rochester; and
WHEREAS, continued engagement with local arts, cultural, downtown, and
community organizations is an important component of developing the Chateau's future
operating model, including informing the appropriate event and programming mix,
community access, pricing, and booking strategies; and
WHEREAS, current planning identifies approximately $6.2 million in capital
improvements to support the proposed operating model, including approximately $2.8
million in baseline facility needs and $3.4 million in venue activation improvements
intended to increase the functionality and flexibility of the Chateau, expand its ability to
host a broader range of programming and events, support continued activation of the
Heart of the City, and protect the City's and DMC's previous investments in the building;
and
WHEREAS, the proposed capital improvement framework is intended to complete
the planned DMC investment in stabilizing and activating the Chateau for long-term use,
with the City responsible for ongoing operations, maintenance, lifecycle needs, and
stewardship of the publicly owned facility; and
WHEREAS, the City Council desires to identify Experience Rochester as the
preferred operating partner for the Chateau and advance the proposed operating
partnership, community engagement process, and capital improvement framework for
further development and consideration by the Destination Medical Center Corporation
(“DMCC”) Board and the Experience Rochester Board.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Rochester, Minnesota, as follows:
Section 1. Preferred Operating Partner.
1.01. The Council hereby identifies Experience Rochester as the preferred operating
partner for the Chateau Theatre and directs City staff and Experience Rochester to
continue development of the proposed operating partnership and related operating,
financial, programming, and capital planning framework.
Section 2. DMCC Board Review.
2.01. The Council directs City staff to proceed to the Destination Medical Center
Corporation Board on September 24, 2026, to present the proposed Chateau
operating partnership and strategy and the associated DMC capital improvement
infrastructure funding framework, currently estimated at approximately $6.2 million,
and to seek DMCC input and indication of interest in advancing the proposed
partnership
Section 3. Community Engagement and Programming Strategy.
3.01. As part of continued development of the operating model, Experience Rochester
shall engage local community organizations, including the Rochester Downtown
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Alliance and other Chateau partners to help inform the future event and
programming mix, community access, pricing, booking strategy, partnerships, and
other elements of the Chateau's operating approach.
3.02. The engagement process shall support an operating model that maintains
meaningful opportunities for community use while expanding programming,
partnerships, events, and revenue-generating activity necessary to support the
Chateau's long-term sustainability.
3.03. The operating framework shall include appropriate measures to evaluate
utilization, community access, programming, attendance, revenues, expenses, and
overall operating performance.
Section 4. Further Approvals.
4.01. This Resolution establishes policy direction to advance Experience Rochester as
the preferred operating partner and to continue development of the operating
partnership and capital improvement framework. This Resolution does not approve a
final operating agreement, City financial commitment, or final capital improvement
package.
4.02. Following the September 24, 2026, DMCC Board discussion and indication of
interest in advancing the proposed partnership, continued operating and financial
planning and engagement, and final approval by the Experience Rochester Board,
City staff shall return the appropriate operating, financial, and capital items to the
City Council for future consideration and approval.
4.03. City officers and employees are hereby authorized and directed to take such
actions as may be necessary to carry out the direction established by this
Resolution.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2026.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2026.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
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Rochester, Minnesota)
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