Cal Expo has ended its lease with California Dreamin’ Entertainment after an unresolved past-due balance, leaving the future of the former water park site uncertain.

SACRAMENTO, Calif — Plans to bring a new water park to Cal Expo have collapsed after the state terminated its lease agreement with California Dreamin’ Entertainment over an unresolved past-due balance.

Cal Expo confirmed Tuesday that California Dreamin’ Entertainment was in breach of its contractual obligations as of Feb. 3, 2026. The state-owned venue said it is now exploring future partnerships and opportunities for the water park site that align with its long-term vision and operational goals.

The site was previously home to Raging Waters, a regional water park that operated at Cal Expo for decades before closing in 2022. California Dreamin’ Entertainment was later selected to redevelop the property and announced plans to build a new water park, with a target opening date of 2027.

According to a termination letter included in a Cal Expo board packet, the developer owed more than $200,000 and failed to resolve the past-due balance after multiple extensions.

Cal Expo said it issued a Notice of Breach of Contract on Oct. 31, 2025, due to the unresolved balance. The initial cure deadline was set for Dec. 4, 2025, and later extended to Dec. 18, 2025, at the request of California Dreamin’ Entertainment. A subsequent extension request was denied by the Cal Expo Long-Range Planning Committee on Dec. 11, 2025. Staff later informed the Board of Directors on Jan. 23, 2026, that the contract would be terminated on Feb. 2 if the balance remained unresolved.

For families, the news marked another setback in a long wait for a regional water attraction.

“Oh, absolutely, because now I have grandbabies,” one Sacramento-area resident said when asked if she had been looking forward to the water park.

Another resident reacted to learning the developer’s name, saying, “That’s a real dream crusher.”

Economic leaders say stalled projects like this can have broader impacts.

“We have to get those things developed because, you know, that’s what’s going to keep the community sustainable over a long period of time,” Barry Broome, president and CEO of the Greater Sacramento Economic Council, said. “And not only do you have lost revenue, but you have lost momentum. And every time a project gets killed, you take a little bit of a nick, reputation-wise.”

Broome said it is not an easy time to pull off a long-term, complicated project, citing broader economic conditions that can challenge large-scale developments. He said the Cal Expo site still has long-term potential if the right project and financing come together, including the possibility of a large multi-use sports or entertainment facility.

Cal Expo said it has officially taken possession of the property and is continuing to explore future options for the site. ABC10 reached out to California Dreamin’ Entertainment for comment but did not hear back.

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