A one-year extension is being considered for a Chateau Theatre operating contract.

The Rochester City Council will be asked Monday to extend the city’s current three-year agreement with Threshold Arts, the nonprofit organization that has been operating the site since 2022.

“This extension will allow the city to complete the necessary assessments, plan for future capital improvements, and optimize the theater’s operations for the long term,” Rochester Strategic Initiatives Director Josh Johnsen wrote in a report ahead of Monday’s council meeting.

The extension would keep existing contract requirements in place until May 18, 2026.

When the city sought a private operator for the historic downtown theater in 2021, it set several priorities. They were:

• Efficient and high-quality management of day-to-day building operations.

• Achievement of high-level activation of the venue.

• Creation of a vibrant entertainment, education, and cultural hub in the heart of the city.

• Development of strategies to engage with existing community groups while attracting new partners and events.

• Maintenance and preservation of the historic theater to support the city’s investment.

“Since the agreement’s inception, Threshold Arts has successfully met these priorities, effectively managing the theater, driving community engagement, and facilitating key capital improvement projects that have contributed to the building’s preservation and functionality,” Johnson reports.

In its 2024 community report, Threshold Arts states the building was active 242 days throughout the year with more than 36,450 visitors counted. The organization claims more than 30 community partnerships, ranging from Mayo Clinic and city departments to community theater and cultural groups.

Of the visitors tallied last year, the organization reports 29,745, or 57%, attended free public events at the theater, and 7,314, or 20%, attended ticketed public events at the venue. Another 14% of the visitors were at the Chateau for activities that included private rental of the space.

Johnsen said the proposed one-year contract extension will allow Threshold Arts to keep the city-owned facility active while the city and nonprofit continue to work on plans for additional improvements and potential strategies for the nearly 100-year-old building’s long-term sustainability.

“The additional time also allows the city to complete an operations assessment to inform future programming opportunities and maximize use of the facility to increase revenues from attracting private, event clients, promoters, talent and the public,” his report states.

The city purchased the Chateau Theatre for $6 million in 2016, and a task force recommended a $27 million upgrade a year later to create performance space that could also serve other uses.

In 2018, bids for renovations exceeded funding approved by the City Council and state’s Destination Medical Center Corp. board, so efforts were scaled back to reassess options.

Since then, the Chateau’s heating and air conditioning systems have been replaced, audio-visual equipment has been upgraded and renovations have updated restrooms and the building’s parlour lounge.

Threshold Arts is the second operator to hold a city agreement related to the Chateau.

Exhibits Development Group was initially selected in 2019 to operate the site under an agreement to provide rotating educational and cultural exhibits. The EDG contract ended early in 2021.

Threshold Arts was selected to take over later that year, and its contract started in 2022 after selected renovations and agreement terms were met.

During its 6 p.m. meeting Monday, the City Council will be asked to confirm the contract extension, which largely keeps the existing terms in place.

Under the existing agreement, Threshold Arts is not charged rent, but it is required to turn over 10% of any rental revenue to the city. The funds are expected to help pay for future building enhancements.

As property owner, the city pays up to $2,900 in monthly utilities for the building, which saw an average $2,881 utility bill for electricity, natural gas, water and sewer services when unused. Threshold is billed for anything beyond the city payment.

The Chateau agreement also established Threshold’s responsibilities for maintaining the building and gives the city access to use the space without charge for up to 18 events a year.

Upcoming meetings

Meetings scheduled to be held during the week of Feb. 3 include:

Rochester

• City Council, 6 p.m. Monday in council chambers of the city-county Government Center, 151 Fourth St. SE. The meeting will livestream at www.rochestermn.gov/meetings/council-meetings and be available on Spectrum cable channel 180 or 188.

• Police Civil Service Commission, 3 p.m. Monday in room 164 of the Development Services and Infrastructure Center, 4001 West River Parkway NW.

• Airport Commission, 2 p.m. Tuesday in the administration conference room of City Hall, 201 Fourth St. SE.

• Park Board, 4:30 p.m. Tuesday in room 104 in City Hall.

• Zoning Board of Appeals, 6 p.m. Wednesday in council chambers of the Government Center.

Olmsted County

• Physical Development Committee, 8 a.m. Tuesday in conference room 1 of the Government Center.

• Health, Housing and Human Services Committee, 9:30 a.m. Tuesday in conference room 2 for the Government Center.

• Board of County Commissioners, 11 a.m. Tuesday in the board chambers of the Government Center.

• Administrative Committee, 1 p.m. Tuesday in conference room 1 of the Government Center.

• Parks Commission, 5:30 p.m. Tuesday in the Public Works conference room at 1188 50th St. SE.

Destination Medical Center

• DMC Corp. Board, 9:30 a.m. Thursday at Mayo Civic Center, 30 Civic Center Drive SE.