Dream no more: Plans to rebuild Cal Expo water park collapse over developer's nonpayment

Cal Expo announced it is terminating its lease agreement with the company that promised to rebuild the old Raging Waters park due to nonpayment of hundreds of thousands of dollars.

The company California Dreamin' Entertainment had laid out plans for a destination water park for families, with a sprawling space planned for a 2027 opening.

The Sacramento site was a modern twist on the old Raging Waters that had been home at Cal Expo for three decades until its closure in 2022.

Now, a termination letter has been handed down by Cal Expo's board of directors to California Dreamin', describing a past-due payment of $200,000 and a termination of their agreement for breach of contract.

Scott Kingston is a commercial real estate agent who says the dead deal is a new opportunity to try something different for all of Sacramento.

"I think families in 2026 want a different experience than what families wanted in 1990 when I grew up," Kingston said. "Something great can be done here. We just need the state to take that next step of 'hey, what portion of Cal Expo can become something different,' and then set the vision accordingly."

Cal Expo is a state-owned property that is already in a state of transition, with the board of directors also recently ending its contracts with horse racing and partnering with Sacramento State to explore the possibility of turning the race track into a football stadium.

Now, this breach of contract with California Dreamin' is leaving Cal Expo searching for a new reality. 

According to the termination letter, Cal Expo will take possession of the water park back on February 3 and start the search for a new solution to filling that space.

Silverwood Entertainment released a statement to CBS Sacramento acknowledging the lease termination, but also taking issue with how the situation is being presented:

"Cal Expo has terminated the WaterPark lease. We don't believe it's appropriate to litigate business disputes in the media, but we acknowledge the termination and are focused on addressing matters through the appropriate channels.  We don't agree with all of the characterizations being made, but we're not going to litigate that in the press."