Oxnard Council extends Sterling Venue contract for performing arts center; orders negotiated side agreement with nonprofit

The Oxnard City Council on Feb. 18 voted to extend Sterling Venue Ventures’ management contract for the Oxnard Performing Arts & Convention Center (OPAC) for five years while directing city staff to negotiate a separate agreement with the OPAC nonprofit and report back within a year.

The council’s action came after more than 50 members of the public — including nonprofit staff, community artists, and Sterling employees — made lengthy public comments, many urging the council either to retain the professional theater operator (Sterling) or to restore management rights for the longtime OPAC nonprofit. Council members debated competing claims about community programming, financial performance and whether a nonprofit or for‑profit operator was best suited to run the center.

OPAC nonprofit leaders and longtime staff described the nonprofit’s 27‑year record producing free youth and community arts programs, murals and festivals and said the nonprofit had consistently exceeded the city’s rental revenue targets for meeting rooms. "The last five years have been very challenging, but OPAC remained resilient," OPAC executive director Carolyn Mullen told the council, summarizing the nonprofit’s work during the pandemic and since. Board chair Gary Davis urged the council to give the nonprofit a separate contract to operate the two ballrooms and five meeting rooms and said the nonprofit was willing to increase its annual revenue target to the city and to submit annual audits.

Sterling Venue Ventures’ CEO Lance Sterling defended his company’s record running the center’s auditorium, citing improved safety and a wider range of paid performances and local hires. "We didn't ask them to leave," Sterling said of the nonprofit, and urged the council to keep the professional operator in place to ensure the facility attracts larger, revenue‑generating shows.

Several speakers urged a middle path. Manuel Herrera, a community advocate, proposed starting the process “from scratch” — continuing current operations while issuing a new request for proposals — but others, including dozens of nonprofit supporters, urged the council to immediately restore the nonprofit’s management rights for the ballrooms and meeting rooms.

Mayor Pro Tem Teran offered a compromise motion (adopted by the council) that extended Sterling’s current facility‑management agreement for five years and required the parties to reach a signed side agreement within 12 months; staff must provide a six‑month status update. The council also directed staff to revise contract language on concessions revenue (clarifying that Sterling pay 15% of concession gross margin, excluding taxes and gratuities).

Council debate at times was sharply divided. Supporters of Sterling emphasized the operator’s ability to book concerts and manage large‑scale events, while nonprofit supporters and arts allies emphasized the nonprofit’s community programming, youth arts classes, free family nights and partnerships with schools. Dozens of speakers — from teen artists to nonprofit leaders and union representatives — said the nonprofit’s programs could not be easily replaced by a for‑profit operator.

The council’s vote followed an extended public comment period and multiple amendments on the floor. The final motion to extend and require the negotiated side agreement passed 6–1.

What’s next: staff will finalize the amended facility‑management agreement and begin negotiating the side agreement between the nonprofit and Sterling; staff must provide a six‑month progress update to the council. If the parties reach a separate management arrangement, staff said the city may need to adjust contract terms and insurance/permit arrangements to reflect changes in who operates the ballrooms and meeting rooms.

Community context: The OPAC campus contains the auditorium and several smaller ballrooms and meeting rooms that local groups use for classes, meetings and cultural events in addition to paid concerts in the auditorium. The dispute centered on whether a single professional operator should manage the full campus or whether the community nonprofit should have direct management rights for the non‑auditorium rooms while a professional operator continues to run the auditorium.

Council action summary: council approved a five‑year extension of Sterling Venue Ventures' facility management agreement, added modified concession payment language (15% gross margin less cost of sales) and directed staff to achieve a signed side agreement between Sterling and the OPAC nonprofit within 12 months. The vote carried 6–1.

End notes: The council also heard extensive public testimony and received multiple written submissions prior to the meeting. The council postponed other agenda items to conclude the OPAC discussion and later returned to other business.