In August, the Fortuna City Council had three offers to take the River Lodge off the city's books. It picked the one that pays the least rent. The Fortuna Chamber of Commerce plans to take over the building on Nov. 1 at $1 a year for its first two years. It won because the Chamber's bid was the only one built around the Lodge staying what most of Fortuna knows it as: the place for craft fairs, holiday concerts, receptions and big community dinners. At that rent, the Lodge has to cover its costs with bookings and paying crowds, and this holiday season is its first test.
Why the city had to let go
The River Lodge has lost money for years. According to the city manager's Aug. 17 staff report, the city subsidized the facility by almost $1,000,000 over five fiscal years. In FY 2024-25 the Lodge brought in $209,402 and cost $376,082 to run. The FY 2025-26 budget projected a gap of $275,439, the biggest in the five-year table.
In September 2025, the Council chose to keep the Lodge and try marketing its way out of the deficit. The city's numbers then got worse. At the April 27, 2026 budget workshop, staff pointed to three problems. Sales tax revenue had fallen about $1,000,000 behind inflation. Hotel tax revenue had fallen $400,000 behind. Liability insurance had gone up by more than $500,000. The proposed cuts eliminated the full-time River Lodge Manager and River Lodge Coordinator jobs and called for leasing the building to another public agency.
From there, things moved quickly:
- June 15, 2026: Council told staff to issue a request for proposals and open it to private groups as well as public agencies.
- June 18: The RFP went out, with a July 7 deadline.
- By July 7: The city received three proposals. City staff reviewed them, and the Redwood Region Economic Development Commission ran a separate financial review. That review looked only at the money. It did not weigh programming or community benefit.
- Aug. 17: Council voted 4-0 to negotiate with the Chamber. Councilmember Kyle Conley was absent.
- Oct. 5: The final lease is set for a Council vote at Monday's meeting.
Three bids, three different buildings
The three proposals would have turned the Lodge into three different places.
| Bidder | Proposed rent to the city | What the Lodge would become |
|---|---|---|
| Fortuna Union High School District | $25,000 a year | A space for educational conferences, youth programs and civic events, plus about $40,000 in technology upgrades |
| CAL FIRE | About $50,000 a year | A regional public safety training and conference center and new home of the Humboldt-Del Norte Unit Training Bureau |
| Fortuna Chamber of Commerce | $1 a year for two years, $24,000 in year three, $36,000 in year four | Chamber office, visitor center, and a continued conference and event venue |
City staff recommended the high school district, citing its financial capacity and its commitment to maintain the building. According to KMUD's report, the Chamber's proposal ranked lower largely because the staff report found it had "inadequate revenue capability."
The room changed the outcome. KMUD reported an unusually large crowd at the meeting, and a speaker asked Chamber supporters to raise their hands so the Council could see them. Second District Supervisor Michelle Bushnell spoke to why the building matters beyond Fortuna:
"Throughout my district, the River Lodge is used and utilized as a venue space. There aren't many venue spaces that are anywhere south of here and very few north of here that can accommodate the kinds of activities that happen."
Councilmember Tammy Trent said only one proposal "wholly meets the intent of what the River Lodge was built for." She tied that to hotel stays and work for local caterers. Mayor Mike Johnson said he expected the business and civic leaders in the audience to keep showing up if the Chamber needs help.
What a $1 lease actually asks of the community
Under the proposal, the city gets almost no rent for two years. That makes those two years a runway for the Chamber. The building has to earn enough from events to cover its own costs before rent reaches $24,000 in year three. Chamber CEO Felicia Thomsson told the Council the Chamber was in talks with community investors to cover extra startup and operating costs. Lost Coast Outpost reported that the proposal also cited a one-time $100,000 commitment from the Humboldt Lodging Alliance.
The building also needs work. The city's September Parks and Recreation report lists earthquake damage in the foyer, repainting, failing windowpanes, and a kitchen drain that needs maintenance every week. At the Chamber's Sept. 1 luncheon at the Monday Club, Thomsson said Chamber members would get the first chance to bid on contracted maintenance work. She added that several contractors had already toured the building to look at energy efficiency and operations.
The current pace of use gives a starting point. The city reported nine events, 338 attendees and 12 occupied days at the Lodge in August 2026. The Chamber's plan to raise those numbers has three parts. It will contact past event hosts directly, add weekday entertainment, and bring in live music, comedy and plays. Each of those depends on local organizations booking dates and local people buying tickets.
The holiday season is the first test
If the lease is approved and the Nov. 1 target holds, the Chamber takes over just before the Lodge's busiest stretch. Here is what is confirmed so far and what is still open:
- Holiday Craft Faire: The city's events page describes it as a two-day fair held the weekend before Thanksgiving. The River Lodge page still says "2026 Information TBD." If it follows that pattern, it will be the Chamber's first big public weekend in the building.
- Fortuna Christmas Music Festival: The Scotia Band's calendar lists it at the River Lodge on Dec. 13, 2026, with times still to be announced.
- Downtown Holiday Open House: The Fortuna Downtown Business Association lists it as "TBD in November." It's a Main Street event, but it falls in the same weeks.
Before the handoff, the downtown calendar has Main Street Trick or Treat on Friday, Oct. 30, from 3 to 6 p.m.
How booking works now, and what's planned
If you're planning a reception, memorial, club banquet or fundraiser at the Lodge, there are two sets of rules depending on the date.
Through October, the city's Parks and Recreation Department is still taking reservations. The city's River Lodge page says to call the Park Office, submit an application and deposit, and arrange event details with city staff. That page may not stay accurate for long once the handoff happens.
From the planned Nov. 1 takeover, the Chamber's proposal describes an online booking calendar, electronic contracts and deposits, and replies to inquiries within one business day. Thomsson said the Chamber's office will move into the Lodge office and another part of the building will become a visitor center. "We will continue to operate it as normal as a conference and event venue," she said.
Staffing is not settled yet. Thomsson said the Chamber wants to keep current Lodge staff and would interview them after the lease is signed. The written proposal lists an office manager, a part-time marketing coordinator and two part-time conference workers as positions "to be hired." Board chair Cody Hurst said a small advisory committee of board members and Chamber members would help with the transition, which he estimated at about six months.
If you already have a date booked for November or later, the safest step is to confirm it in writing with the city before the handoff. Then confirm it again with the Chamber once it is running the building.
What Monday's vote settles
The Oct. 5 agenda doesn't spell out the lease length, rent, maintenance responsibilities, or public-use requirements. So the $1, $24,000 and $36,000 figures are still the Chamber's proposed terms, not a signed contract, and Nov. 1 is still a target. Once the lease is approved, it will show whether the final terms keep the two-year runway the Chamber proposed and who pays for repairs like the foyer and the windows.
Questions about how changes like this affect property and business around Fortuna come up at our office too. The team at The Land Man Office follows Fortuna's council decisions as they happen, and we're happy to talk through what they mean for your plans. Contact Us.
