Redding Civic Auditorium: Grand Jury Scrutinizes City Funding Decisions Amid Advance Redding’s Exit and Tourism Marketing Questions
- Elisa Ballard
- 2 days ago
- 5 min read
Redding, Calif. — The Redding Civic Auditorium, a North State landmark since 1970, faces an uncertain future as operator Advance Redding winds down after 14 years. A Shasta County Grand Jury report highlights concerns over due diligence on public funding, while the City of Redding grapples with budget deficits and the effectiveness of its tourism promotion
efforts.
The venue has hosted concerts, graduations, trade shows, and community events. In 2011, the City had been struggling with operating losses associated with the Auditorium. When they were approached by Bethel Church, who had a desire to lease the facility for their School of Supernatural Ministry, Bethel Church created Advance Redding, a 501(c)(3) nonprofit, to act as the party contracting with the City. Initially, Advance Redding was staffed and managed directly by Bethel Church leadership (Kris Vallotton and Charlie Harper), and they, in turn, subleased it to Bethel Church.
At that time, Advance Redding had no experience in entertainment venue Management. They had a single client, Bethel Church, and would occasionally make the venue available on a fee basis when it did not conflict with Bethel's schedule. According to 990 filings for Advance Redding during the years 2011 - 2023, additional income not related to the Bethel sublease would range between $800K and $1M per year.
Lease History and Recent Changes
During the Bethel sublease period (2011-2023), the arrangement with Advance Redding generated revenue for the city (between $144K and $300K/year). The 2021 Amended and Restated Lease (C-5682) extended terms through 2031. The First Amendment (executed September 9, 2025) adjusted rent amid financial pressures after Bethel’s 2024 departure, which removed $650,000–$750,000 in Advance Redding annual revenue.
Financial Support and Grand Jury Findings
Post-Bethel, deficits grew due to rising costs and post-pandemic challenges. The City provided support:
$675,000 one-time grant in September 2025 from a dedicated capital fund.
Additional stopgap funding (~$464,000) in early 2026, plus reporting requirements.
Origin of the $675,000: Proceeds from the City’s 2014 sale of land to facilitate the Sheraton Redding Hotel at the Sundial Bridge. Council directed these funds specifically for Civic Auditorium capital improvements and deferred maintenance.
The May 2026 Shasta County Grand Jury report, "If You Don’t Ask, You Will Never Know: Redding City Council Grant of Civic Auditorium Capital Improvement Funds to Advance Redding: Was the Public Interest Protected?", raised issues with transparency and documentation provided to Council, but acknowledged the funding addressed real risks of closure.
The one-page document attached to the Redding City Council agenda packet for the September 2, 2025, meeting (at page 323) was a single-sheet “Quote” labeled as Exhibit A to the grant request.
Description from the Shasta County Grand Jury Report
It was the only financial document included in the agenda packet to support the $675,000 grant request.
The document listed four categories of expenses for which Advance Redding sought reimbursement from the City.
All four expense categories were items that were Advance Redding’s responsibility under the terms of the lease agreement (not the City’s direct obligations).
No receipts or invoices were attached or included in the packet.
The total amount on the Quote matched exactly (to the penny) the balance remaining in the dedicated Civic Auditorium capital improvement fund at that time. The Grand Jury noted this raised questions about how the figure was derived.
The Grand Jury later obtained the supporting invoices during its investigation, which confirmed the expenses and showed that obligations exceeded the requested amount. However, these were not provided to the Council or public at the time of the vote
Importantly, the Grand Jury examined a $49,500 donation made by Advance Redding to support Measure A (the 2025 sales tax measure). It found that the donation came from a separate Bethel-related fund and did not involve commingling with the City’s $675,000 grant money. The Grand Jury concluded the donation likely would not have changed the Council’s decision on the grant. While the report acknowledged the funding helped avert immediate closure, it underscored shortcomings in due diligence.
Advance Redding will cease operations after the July 4, 2026, Freedom Festival; the City plans an RFP for a new operator.
Broader Context: TOT Revenue, Tourism Marketing, and City Budget Pressures
Redding faces structural budget deficits (recent projections of around $5-$ 8 million), making every revenue dollar critical. The City’s 12% Transient Occupancy Tax (TOT) on hotel stays breaks down as:
10% → General Fund for core services (police, fire, streets, etc.). This is a general tax imposed on guests (transients) for the privilege of occupying any hotel, motel, inn, vacation rental, RV park, or other commercial lodging facility for 30 days or less. Lodging operators collect it from guests and remit it to the City.
2% Tourism Marketing Assessment → This is a self-assessment on lodging businesses (operators/properties) within the City of Redding. It is calculated as 2% of gross short-term room rental revenue (stays of 30 days or less). The Redding Tourism Marketing Group (RTMG), a 501(c)(6) nonprofit (EIN 27-1221226), receives half of these funds for operating as Redding’s Convention and Visitors Bureau, including running two websites: VisitRedding.com and ChooseRedding.com.
This 2% assessment was established by City Resolution 2015-066 as the Tourism Marketing Business Improvement District (TMBID) for a 10-year period ending December 31, 2025. It was renewed for another 10-year term effective January 1, 2026, pursuant to the Property and Business Improvement District Law of 1994 (Streets and Highways Code § 36600 et seq.). RTMG receives approximately $1.46 million annually from the assessment. The City of Redding retains 1% of the assessment for administration of the TMBID.
In its latest reported year, ~21% of expenses went to salaries/wages for a small staff of 3 (~$290k), with the majority directed to program services such as marketing, events, and partnerships. This overhead is reasonable for a lean destination marketing organization.
Observation on Effectiveness: As of mid-2026, the two websites run by RTMG need some updating:
VisitRedding.com does not list the daily United Airlines nonstop flights to/from Denver (launched May 2025 and actively operating).
ChooseRedding.com incorrectly lists the nonstop flights to/from Burbank (discontinued in August of 2024) and does not list the nonstop flights to/from Denver.
With Redding needing maximum tourism revenue to address budget shortfalls, keeping visitor information up to date on the official site is essential to delivering a strong ROI (Return on Investment) on the 2% assessment funds.
Public civic venues like the Auditorium typically require ongoing subsidies, as ticket/rental revenue rarely covers full operations and maintenance—especially for aging facilities. Prior to Advance Redding, the City directly subsidized it via TOT and other sources.
Looking Ahead
The Grand Jury recommendations, RFP process, and tourism marketing performance will shape the Auditorium’s next chapter. At Shasta Unfiltered, we suggest that, in the RFP process, the City focus on finding a professional entertainment venue operator and adjust its expectations away from generating revenue for the City toward minimizing the ongoing maintenance and operating costs associated with this key civic institution. Similarly, Shasta Unfiltered suggests that the City undertake an RFP process to evaluate the operators of the tourism websites that have been managed by the same organization for the past 11 years with a recent 10-year extension. Strong, up-to-date visitor promotion is vital for driving hotel stays and TOT revenue and supporting community assets.
Shasta Unfiltered will continue tracking City Council responses, the new operator search, and tourism spending outcomes. Community input welcome at contact@shastaunfiltered.com.
Sources: Shasta County Grand Jury report (May 2026), City documents/leases (including C-5682 and First Amendment), RTMG Form 990 filings, VisitRedding.com, City of Redding airport/budget materials, Resolution 2015-066 and renewal records, and prior coverage.
