The longtime dream of reviving the Royal Theater in downtown Guadalupe won’t become reality after the City Council unanimously voted Tuesday to terminate construction due to costs and financial woes.
According to City Manager David Trujillo, if Guadalupe didn’t stop the project, the agency would be forced to cut 15 more staff members within the next six months, leaving no one to respond to fires or medical emergencies.
“I feel like if I were to tell you to continue construction, I would be doing a disservice to this community,” Trujillo said.
The city started the $12-million Royal Theater restoration project in December with a $3-million funding deficit. Despite receiving $10.5 million in state and federal grants, the project has a funding gap that could increase by millions due to inspections, fees and other construction expenses, according to the city.
Trujillo described trying to restore the theater as “trying to buy a Ferrari off minimum wage.”
At the city’s July 14 meeting, staff said that Guadalupe was unable to stop construction due to the project being funded by grants.
But Trujillo clarified this week that $4.8 million in federal funds from the Economic Development Administration has “never been touched.”
The city also received $5 million from the California Arts Council, and Finance Director Eli Martinez estimates that $2.5 million of that amount has already been spent on construction.
The city’s contract with the California Arts Council does not require a completed project to keep the money, if the Guadalupe proves the funds were spent on eligible costs. However, Trujillo said he would contact the group to guarantee the money can be reimbursed.
For the project to reach a hard stop, Trujillo said it would take at least 30 days to notify the different contractors and reconcile their final invoices.
The council’s resolution on Tuesday’s agenda called to “terminate the project, but preserve the building to the effect we can.”
Councilwoman Whitney Furness said she viewed termination as the only option.
“I think we’re all probably in agreement based on the hard facts,” Furness added.
Mayor Ariston Julian directed staff to ensure that despite the termination of the project, that “no further harm comes to the building” as it sits unfinished, such as putting a roof to protect what’s already been built.
Furness also requested the idea of a “lessons learned discussion,” where the city can discuss how to prevent unsuccessful projects like this in the future.
The mood Tuesday night differed dramatically from the celebratory groundbreaking ceremony held less than a year ago.
At the time of the December ceremony Trujillo said the project represented “both the preservation of our history and the promise of the future.”
In 2022, officials had gathered to celebrate securing $10.5 million in state and federal grants, boosting belief the project could get completed.
But the first proposal included restoration of the historic theater and the addition of ambitious three-story structure that pushed the price to $16 million and led to discussions of a tax hike to help cover the gap. The council narrowly voted against putting a bond measure on the 2024 ballot.
A revised design called for a one-story addition as the project’s costs for the architect rose dramatically well before any work began at the site.
More than five years ago, Guadalupe issued a request for proposals in an attempt to secure a developer from the private sector to revive and run the theater. That RFP had zero responses, leading the city to spearhead the renovation project.
