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Riverside County supervisors approve termination of Temecula Valley Balloon & Wine Festival contract due to unpaid bills

The Riverside County Board of Supervisors approved a termination of contract for the Temecula Valley Balloon & Wine Festival due to unpaid bills on Tuesday, potentially signaling the end of a nearly 40-year run for the wildly popular Inland Empire event spotlighting the region's vast wine industry. 

The unanimous decision came after a formal request from the Regional Parks & Open-Space District to cancel the contract that organizers of the annual event had agreed upon in 2023. 

"Termination will result in the immediate return of the Lake Skinner Recreation to public use during the annual dates previously reserved for the Temecula Valley Balloon & Wine Festival," a statement said on Tuesday's board agenda. 

Temecula Valley Balloon And Wine Festival - Day 2
General view of the atmosphere during the Balloon Glow at Temecula Valley Balloon And Wine Festival on June 3, 2017 in Temecula, California. Daniel Knighton / Getty Images

According to Riverside County officials, a multi-year agreement was reached between Balloon & Wine Festival organizers and the county in 2023. It was slated to run until 2027, but an invoice seeking $73,883 for the use of the Lake Skinner Recreation Area in 2025 went unpaid. Despite past-due invoices being sent in October and November, officials said that they never received a response. Supervisors said that the sum owed is now $76,100 after the addition of interest and penalties.

In addition to the outstanding balance, Riverside County supervisors also noted that the Regional Park and Open-Space District is "aware of outstanding balances for separate service agreements related to the Festival, including but not limited to, Riverside County Sheriff's Department, Riverside County Fire, and several other service providers."

The Ballon & Wine Festival has been an annual Temecula staple dating back to 1983, typically blending the region's renowned wineries and hot air balloons, which can be found in the Temecula skyline on any given morning, with local vendors and music acts. Past performances include The Beach Boys, Alabama, Stone Temple Pilots, Sugar Ray, Blake Shelton, Peter Frampton, The All-American Rejects, REO Speedwagon, Brad Paisley and many more. 

The event's website hasn't been updated since the 2025 event, which was held from June 20 to 22. 

"The future of the Temecula Valley Balloon & Wine Festival is unknown," said a spokesperson for Riverside County Regional Park and Open-Space District. "Termination of the agreement will take effect on April 30, 2026." 

They said that if event organizers wanted to apply for another event in the future, a new agreement would have to be negotiated and all delinquent payments would have to be resolved.

Temecula Valley Balloon And Wine Festival - Day 1
 General view of the atmosphere at Temecula Valley Balloon & Wine Festival on June 2, 2017 in Temecula, California. Daniel Knighton / Getty Images

In response to a request for comment on the decision, a spokesperson for the City of Temecula said that they were "deeply concerned" upon learning of the unpaid bills for services provided by local school organizations, law enforcement and small businesses that helped the event run smoothly in 2025. 

"The City of Temecula recognizes the essential contributions of all involved parties who help make this festival possible and expects that commitments to these service providers be honored promptly and fully. The failure to settle these obligations undermines trust and jeopardizes the collaborative relationship that has been nurtured over many years," the statement said. "In light of this ongoing issue, the City has made the difficult decision to withdraw its support from the Temecula Valley Balloon and Wine Festival until these financial matters are satisfactorily addressed. This action reflects our dedication to fiscal responsibility and the well-being of our community partners."

The Temecula Valley Balloon & Wine Festival Association has not yet responded to a request for comment on the board's decision. However, a spokesperson for Events.com, shared a statement with CBS LA regarding the unpaid dues. 

"We understand the concerns regarding the remaining payments. We want to share that these final payouts are scheduled to be completed this April," the statement said. "We are incredibly grateful for the patience of our local vendors, and our city and county partners as we finalize these matters. Their support is what has allowed this festival to thrive for four decades, and honoring those relationships is our top priority."

The statement further noted that Events.com stepped in with a $3.4 million investment to "stabilize" the festivals during a "difficult financial period and through a challenging transition."

"Looking ahead, we are shifting away from the usual early June dates. Instead, we're currently focused on a window in the late summer or early fall to keep the tradition going," the Events.com statement said. "Our goal is to find the right timing and environment—ideally staying at our home in Lake Skinner—to bring back the tradition, the wine, and the entertainment our community loves.

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