Fortuna keeps River Lodge, directs marketing push and approves $190,000 exterior stain contract

The Fortuna City Council on Sept. 2 voted to keep the River Lodge in city management for now, direct staff to return with an enhanced marketing and investment plan, and authorized a city manager contract to stain the building’s exterior with a not‑to‑exceed amount of $190,000.

The River Lodge, built in 1998 and operated by the city, has drawn steady attendance but cost the general fund. City staff told the council the facility has attracted roughly 18,872 attendees in fiscal 2023–24 and about 18,628 in 2024–25 and that "over the last 5 years, it is nearly a million dollars, more in expenses than revenues from the River Lodge," according to the staff presentation.

City staff and River Lodge management described the building as a community gathering place that houses trainings, conferences, weddings and memorials. "River Lodge was built for the city of Fortuna by a group of individuals who care deeply for their community," River Lodge manager Jennifer Lorenzo said, adding that current management has worked to increase bookings and online visibility since 2021.

Why it matters: Council members framed the decision as a tradeoff between preserving a locally valued facility and reducing a long‑running draw on the general fund. Staff presented three options — maintain the status quo with marketing and fee adjustments, invest in facility upgrades and marketing, or lease the facility to a third party — and the council directed staff to pursue the second, short‑term track of enhanced investment and marketing while keeping the facility under city control.

Financial details: Staff said rental fees account for about 64% of River Lodge revenue, with kitchen and wedding packages making up additional shares; weddings were described as roughly 16% of revenue. Staff noted that recent fee increases (including a 20–30% restructuring followed by smaller increases) can take about a year to show up in actual bookings because customers often book a year in advance. The presentation estimated that roughly 5% of Fortuna hotel stays might be attributable to River Lodge events, which the staff translated to an estimated $35,000 in transient occupancy tax (TOT) revenue if that share were accurate.

Expenses driving the general fund subsidy included higher wages and benefits, increased building repairs and maintenance as the facility ages, additional parks staff time associated with events, utility and insurance inflation. Staff broke expenses into line items and said wages made up about 44% and utilities about 13% of the River Lodge budget in the most recent year shown.

Public comment and council debate: Several event organizers and longtime users urged the council not to divest. "I believe the River Lodge has a bright and productive future," said Connie DeCo Manier, president of the Veil Grand Jury Association of Humboldt County. A River Lodge conference center coordinator (who identified herself only by title) said, "I just really love being at the River Lodge," describing steady staff and personal service that she worried a private operator might not replicate. Professional development organizer Sandy Dale said conference facilities are often loss leaders but argued the River Lodge brings visitors who spend at local hotels and restaurants.

Opposing views and lease option: Some council members said the scale of the annual subsidy — staff cited roughly $275,000 in one year as an example of the current shortfall — justified exploring a lease or sale. One council member said a private operator might market and operate the facility more efficiently while keeping it available to the community. Staff and members cautioned that any third‑party operator should be carefully vetted to preserve the facility’s community role.

Immediate action: The council voted to direct staff to return with plans for enhanced investment, marketing and possible fee adjustments. Separately, the council authorized the city manager to award the River Lodge exterior staining project to Hamanaka Painting Company and establish a not‑to‑exceed contract amount of $190,000; Public Works Director Brian Issa said the project has been on the CIP since 2021 and the Measure E committee set aside $190,000 for the job. "This is not an upgrade to the facility; this is just standard maintenance to the facility," Issa said.

What’s next: Staff will prepare a more detailed proposal for upgrades, marketing and potential fee changes and return to the council. The exterior staining contractor will be scheduled around existing River Lodge events.

Ending: With the council’s direction to pursue enhanced marketing and the staining contract approved, staff said it will return with a plan and budgets that aim to reduce the River Lodge’s net cost to the general fund while maintaining its community uses.