California Construction News staff writer
Less than eight months after breaking ground on the long-awaited restoration of the historic Royal Theater, the Guadalupe City Council has voted to cancel the project, citing rising construction costs and budget concerns.
The 85-year-old theater has been vacant for more than three decades after it was damaged by a fire in 1991 and later red-tagged.
The Guadalupe City Council awarded the construction contract to Pre Con Industries in October 2025 after the original low bidder, AMG and Associates, withdrew its bid because of an error.
“I know it’s a tough one. . . the writing’s on the wall in terms of where we are with with uh what we’re going to do in the future in terms of our of our resources that we have to run the city,” Mayor Arriston Julian said at the council meeting. “We’re caught between a rock and a hard place.
“Our general fund is just going to be hurting if we if we continue with this with the Royal Theater.”
The restoration project carried an estimated $13.4 million price tag and was supported by $5 million from the California Arts Council and $4.8 million from the U.S. Economic Development Administration. City officials also launched a capital campaign earlier this year with a goal of raising an additional $3 million.
“We went for something super amazing because, you know, it was nice and shiny and fancy and it would have been great on the street,” said City Administrator David Trujillo. “But, you know, we were just trying to live outside our means.
According to the City Council, increasing construction costs would have required the city to use general fund dollars to complete the project, potentially forcing cuts to other municipal services. As a result, officials voted to halt the restoration.
The project had advanced significantly before its cancellation. Plans called for restoring the historic theater while adding a new performing arts building, amphitheater, plaza and parking.
Construction has now been suspended.
