The California Oil Museum in Santa Paula has been temporarily closed for more than a year as the city tries to determine its next move for the building under a looming deadline.
The lease between the city and building owner Chevron expires July 1 unless Santa Paula gives the oil company written notice to extend six months beforehand, which is December, city officials said.
On Wednesday, the Santa Paula City Council requested staff members gather more information about potentially extending the lease agreement with Chevron. However, the building requires costly upgrades and which party is responsible is under dispute.
“We all love the building, we all love the history, the importance of it, but we have to be financially responsible,” said Councilwoman Leslie Cornejo.
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The lease agreement with Chevron began in July 1993 and ends July 2023, with an option to extend it for another 15 years.
The museum first opened in June 1950 in the nearly 130-year-old building at 1001 E. Main St. The city leases the building for $1 per year. The museum closed on Sept. 13, 2021 due to costs.
The nonprofit California Oil Museum Foundation had run the daily programming and staffing for the museum. Justin Campbell, president of the museum’s foundation board, said the museum’s annual budget was about $150,000.
City staff members have concerns about the current lease structure, primarily involving liability and maintenance responsibilities and the lack of a supporting budget for needed repairs and upkeep, according to a staff report.
Major maintenance is required for the building, including replacing the current roof, which leaks when it rains, according to the staff report. Heating, ventilation and cooling units also need to be replaced, the basement is prone to flooding and the floors and walls have water damage.
In 2018, the city attempted to assign the lease to the foundation, but, according to city officials, Chevron did not agree and the transfer was not completed.
The museum was closed from approximately March 2020 through April 2021 because of COVID-19. It reopened in April but closed again on Sept. 13, 2021.
In April 2020, the museum received a federal Paycheck Protection Program loan of $16,207 that was used for operating expenses, Campbell said.
Councilman Rick Araiza said the city had not completed museum repairs over the previous 30-year lease, and it was not clear anything would change with months to go before a new lease potentially gets signed.
“Shame on us for doing that,” Araiza said.
Past coverage:Santa Paula California Oil Museum closes with future unknown
Jeff Moore, a public affairs adviser for Chevron, said the company met with city officials and the California Oil Museum president in December 2021 and May 2022 to discuss the city’s lease and its vision for future museum operations.
“We look forward to continuing those discussions with the city,” Moore said in a statement.
Staff members have attempted to contact and schedule meetings with Chevron and start negotiations around the terms of the lease and discuss the future of the building, according to a staff report.
Staff members said outside of the May virtual meeting and a verbal commitment from Chevron to continue discussions by the end of the summer, they have not heard back and have been unable to solicit any response.
Chevron officials made it clear during the May meeting that they are not interested in funding anything related to the Union Oil Building, but are willing to allow the city to exercise the third and final 15-year term of the lease, according to the city.
City Manager Dan Singer said it was difficult to make a budget decision about the museum because the city has an aging community center and city hall as well.
“When can you ever have the money for a truly aged, beautiful, architecturally significant building that sits in a prominent place? We’re kind of in a tough spot,” Singer said. “Chevron is unresponsive.”
The city manager said the oil company doesn’t want to put any money toward the building and will hold Santa Paula accountable if it doesn’t. Singer estimated the city would need to budget at least $100,000 a year just to begin addressing all the deferred maintenance.
Wes Woods II covers West County for the Ventura County Star. Reach him at wesley.woodsii@vcstar.com, 805-437-
