Item No. 23.
STAFF REPORT
DATE:
August 24, 2026
TO:
Honorable Mayor and City Council
FROM:
Dr. Sean M. Moore, City Manager
PREPARED
Megan Wolfe, Director of Community Services
BY:
SUBJECT:
YPAC Negotiations Update
RECOMMENDATION:
That the City Council:
1. Establish a timeline limitation on the contract negotiations with Props AV, or
2. Provide further direction to staff.
BACKGROUND/DISCUSSION:
The City has been evaluating alternative operating models for the Yucaipa Performing Arts Center (YPAC) as part of its ongoing efforts to reduce the facility's financial impact on the General Fund while maintaining the YPAC as an active community amenity.
On April 27, 2026, the City Council considered the YPAC Transition Plan, which presented several potential operating models for the facility. These included continued City operation, a rental -focused public -private partnership, private management through a competitive solicitation process, and closure of the facility. Following discussion, the City Council directed staff to pursue a rental -focused public -private partnership with Props AV.
Under that model, Props AV would assist with rental sales, booking, production and technical services, and client acquisition while the City retained ownership and overall control of the facility.
The rental -focused model was intended to increase facility utilization and cost recovery while reducing the General Fund contribution associated with YPAC operations. At the time, the model contemplated a goal of reducing the annual net General Fund cost of operating the YPAC to approximately $100,000.
On June 22, 2026, the City Council considered a proposed agreement with Props AV for rental sales and booking support. The City would continue to retain ownership and operational control of the facility, including authority over rentals, rental rates, facility policies, and scheduling priorities. The contract was not approved by City Council. As a result, as part of the City's Fiscal Year 2026-27 budget discussions on July 27, 2026, the City Council further considered the financial impact of continued City operation of the YPAC. Following discussion, the City Council directed the City Manager to work with Props AV toward an agreement for Props AV to operate the YPAC.
Following the City Council meeting, the City Manager initiated negotiations with Props AV regarding the structure of a potential operating agreement. Formal negotiation meetings were held on the following dates:
• August 4,
• August 11,
• August 17, and
• August/September 2026 (Next meetings TBD).
The negotiations have addressed the financial and operational responsibilities that would be assumed by Props AV as the operator of the facility, as well as those responsibilities that would remain with the City as the owner of the YPAC.
To date, progress has been made in the negotiations, and the parties continue to discuss and refine the final contract terms and operational details necessary to develop a mutually acceptable agreement.
Following City Council direction, the City Manager will continue negotiations with Props AV. Should the parties reach mutually acceptable terms, a final operating agreement will be brought back to the City Council for consideration and approval at a future meeting.
FISCAL IMPACT:
The recommendations do not result in a fiscal impact.