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Redondo Beach staff urges limited fee increases, upgrades to boost Performing Arts Center revenue
Summary
City staff reported rising post-COVID revenue at the Redondo Beach Performing Arts Center but flagged $3.45 million in deferred maintenance and upgrade needs and recommended modest fee increases, continued lighting upgrades and study of new revenue streams.
City staff told the Redondo Beach City Council that the Redondo Beach Performing Arts Center (RB PAC) has returned to near pre-pandemic activity but still requires capital investment to maintain marketability and increase revenue.
The numbers: Cultural arts manager Jack Meyer told council the facility posted $1,122,000 in revenue in the 2023-24 fiscal year, its highest total since before the pandemic, and that operating subsidies have narrowed in recent years. Staff identified $2,030,000 in deferred maintenance needs (seats, uninterruptible power supply required for 90-minute egress lighting, HVAC and carpeting) and $1,420,000 in upgrades and capability improvements (projection/audio, stage house lighting, orchestra pit lift), for a combined estimate of $3,450,000.
"These numbers are among the highest we have posted as revenue thus far," Meyer said of FY23-24 revenue, while also listing necessary capital work and day-to-day improvements.
Staff recommendations and rationale: Staff recommended continuing the current rental-centric operating model (lower risk to city), implementing annual user-fee increases of 3% for three years, finishing LED stage-lighting conversions already underway, prioritizing completion of seat rehabilitation (phased), and replacing the UPS emergency-battery system for egress lighting. The report also asked council to direct staff to study additional revenue options including full-scale motion-picture presentation capability, parking-lot and daytime events (farmers markets/food trucks) and targeted marketing or a contracted operator for the venue.
Why it matters: The PAC is a signature community facility whose deferred capital needs are visible to prospective renters and audiences. Staff told council that new stage speakers and a brighter digital marquee already added value and booking inquiries; additional investments could broaden rental demand and new revenue streams but will require capital funding.
Council reaction and next steps: Council members acknowledged the facility's improved revenue performance and urged staff to return with a Budget Response Report (BRR) prioritizing projects and identifying funding sources. City staff said priority capital items likely to be requested first include the UPS emergency egress system and the next phase of seat rehabilitation. Council voted to receive and file the staff report and asked staff to provide detailed BRRs during the budget cycle.
Ending: Staff will produce a prioritized BRR with cost estimates, funding options and an analysis of revenue potential for proposed capability upgrades.
