5 things to know about the city's agreement with the new Chateau operator

Dormant no more: the lights will go back on this fall at the Chateau. This week, the city turned the keys of the historic theater over to Exhibits Development Group. The business, which won a public RFP to use the Chateau on an interim basis, plans to bring in a rotating lineup of traveling exhibitions of art, science, history, and popular culture.

Amy Noble Seitz, founder and CEO of EDG, said the goal is to have the first exhibition up by October. What that exhibition will look like will be announced next Thursday during a community reveal event. EDG also has plans to add a café, bar, and retail shop inside the building.

This fall’s opening of the Chateau will mark the first time since 2014 — and the departure of Barnes & Noble — that the building will be open for business. (As you can tell from the photo above, the entire second floor and escalator system have been removed as part of a renovation project.)

For a better understanding of EDG’s plans for the Chateau, we sat down with Seitz on Tuesday afternoon, just as she and her team were settling into the space. Our conversation followed a council action the night before formally approving the city’s contract with EDG.

Below are five things we learned this week through our reporting.

Contract is for five years

Under the deal approved by the Rochester City Council, EDG will operate the facility for the next five years. Following that period, there will be an option to extend the agreement “upon mutual agreement on a yearly basis.”

The city, which purchased the building in 2016 with help from Mayo Clinic, will retain ownership of the Chateau — and remains responsible for “major facility and system improvements,” along with some maintenance and repairs, according to the terms of the contract.

Using Destination Medical Center funds, the city authorized up to $1.1 million in renovations to the 92-year-old building. That budget has approximately $200,000 in remaining funds, which will be used to cover alterations requested by EDG. An additional $30,000 will be allocated toward furniture and equipment. The city estimates that 60 percent of the improvements will be applicable to the long-term use of the building.

Once the space is up and running, both the city and EDG will review “key performance indicators” quarterly to track how the space is doing. The terms of the contract do not include a penalty for early termination.

City will pitch in on utilities

The city will remain on the hook for some utility expenses through the duration of EDG’s time in the Chateau.

The agreement states that the city will continue to pay $2,900 monthly toward the building’s utilities. That’s what the bill has been, on average, over the past three years while the building has been unoccupied. EDG will be responsible for covering any costs that go above the city’s contribution.

At Monday’s council meeting, Council Member Patrick Keane said he was disappointed to learn the city would still be responsible for subsidizing the utility costs. EDG, he noted, was chosen, in part, for its business acumen.

“The fact that we will continue to carry expenses on utilities … is a surprise to me,” said Keane, who represents the city’s First Ward.

Keane ultimately voted in favor of the agreement.

As part of the contract, EDG has agreed to provide the city with 10 percent of the quarterly net profits that are generated from the Chateau.

First exhibition in the fall

If all goes to plan, the first exhibition could go up in October.

New exhibitions, Seitz said, will be rotated through three months at a time. During the installation/breakdown period, EDG plans to host smaller pop-up exhibits. Some of those will be developed within the community.

While Seitz could not say which exhibitions are scheduled for 2020, she did say EDG is looking at bringing in an immersive media installation, along with a Cirque du Soleil-like exhibition that is scalable for the Chateau.

The total exhibition space in the Chateau covers 5,000 square feet.

EDG will announce its first exhibition on August 29 in conjunction with the final Thursdays Downtown of the season. That same day, the company will also offer a sneak peek in the Chateau and launch its membership drive.

While some things like outdoor seating should be available soon, other features will take some time to build out. Seitz estimated the café and bar, for instance, could take up to seven or eight months to complete.

Education is a key focus

Every exhibition at the Chateau will have an educational component to it. Already, EDG has been meeting with local learning institutions, including Rochester Public Schools and the University of Minnesota Rochester, to better understand what types of programming they are looking for.

In other cities where EDG has operated, about 30 percent of the total attendance is driven by school groups, said Seitz.

Additional programming, she said, will be offered with support from artists, cultural institutions, entrepreneurs, and other groups.

“We have two main functions,” Seitz said of EDG’s management of the Chateau. “To entertain and to drive some sort of cultural impact.”

Feedback sought

Since winning its bid with the city, EDG has been holding listening sessions with various groups across the community.

While the company does have an operators agreement with the city, Seitz said she considers EDG more of a “steward of the building.”

“This is the community’s — the taxpayer’s building,” said Seitz. “If they are interested in bringing something here, we want to hear about it.”

In addition to next Thursday’s open house, Seitz said the company will also offer opportunities on its website for public input.

Sean Baker is a Rochester journalist and the founder of Med City Beat.