[Dallas Park and Recreation Board on October 17, 2024.]
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GOOD MORNING IS 10 COMPLETE PASS ATIONS COULD BE TO WATER.
WELCOME YOU ALL FROM 80 DEGREES.
MS. RICE IS NOT, SHE IS NOT HERE.
SHE IS LISTENING TO US AS A REPORTER THAT ANY PUBLIC SPEAKERS, SIR.
I'LL READ THE SPEAKER GUIDELINES.
EACH SPEAKER WILL BE GIVEN THREE MINUTES TO SPEAK.
PLEASE DIRECT YOUR COMMENTS TO THE CHAIR.
ONLY ANY SPEAKER WHO MAKES PERSONAL PERTINENT CO OR MARK S VOICE WELL ADDRESS IN THE PARK.
YOUR FIRST SPEAKER IS CHRISTIE KERR, WHERE I, YOU CAN COME RIGHT UP TO THE TABLE, MA'AM.
IT WAS LOST IN TRAFFIC ON RIGHT HERE.
SO THANK YOU SO MUCH FOR YOUR SERVICE TO OUR CLARK SO MUCH.
UM, MY NAME IS CHRISTIE CAR LEONARD, AND I'M WITH MY COWORKER CHARLIE MARSHALL.
WE'RE BOTH CERTIFIED TEXAS MASTER NATURALIST.
CHARLIE'S A BOARD MEMBER OF TRINITY COALITION AND THAT'S WHO WE'RE REPRESENTING TODAY.
WE ARE APPLYING FOR A $200,000 GRANT FOR THE US FORESTRY DEPARTMENT, WHICH IS ADMINISTERED BY READING RESILIENCE.
THE GRANT REQUEST, THE GRANT REQUEST IS FOR PLANTING OF TREE SEEDLINGS AND SAPLINGS IN THE GREAT TRINITY FOREST AND OTHER NATURAL AREAS WITHIN THE PARK SYSTEM.
WE ARE HERE TODAY FOR THREE REASONS.
ONE TO SIMPLY MAKE YOU AWARE OF THE GRANT REQUEST, WHICH IS AN EXTENSION OF OUR EXISTING SERVICE TO THE DALLAS PARKS.
WE, THE BEAUTIFICATION AGREEMENT, AND WE WORK WITH MR. WOOD ON, UM, BLAIR WILLIAM BLAIR JUNIOR PARK, AND SPECIFICALLY THE BUCKEYE TRAIL SYSTEM.
I WAS AWARDED THE 2022, UM, PART AWARD FROM YOU DURING COVID, UH, THE TRAIL MAINTENANCE AWARD FOR THE YEAR.
UM, SO NUMBER ONE, TO MAKE YOU AWARE, NUMBER TWO, TO ASK FOR A LETTER OF SUPPORT.
AND THIS IS MOST IMPORTANT TO ASK IF YOU HAVE ANY, UH, WORKING RELATIONSHIP WITH THE CORPS OF ENGINEERS WITH WHOM WE MUST EXPEDITE APPROVAL FOR OUR PROPOSED WORK IN THE GREAT TREND COURSE.
THE GRANT APPLICATION IS DUE NEXT WEDNESDAY, 10 23.
AS YOU KNOW, THE GREAT TRINITY FOREST AND ADJOINING COMMUNITIES HAS SUFFERED FROM A LONG HISTORY OF BENIGN AND NOT SO BENIGN NEGLECT.
THE GREAT TRINITY FOREST MANAGEMENT PLAN ADOPTED 16 YEARS AGO HAS NEVER BEEN IMPLEMENTED.
THIS IS TERRIBLE FOR THE FOREST.
THAT NEGLECT IS BECOMING EXISTENTIAL LIKE LACK OF DIVERSITY, EROSION, AND THE NATION OF THE LETHAL EMERAL
AND THAT IS ESTIMATED TO CONSTITUTE 40% OF THE FOREST.
WE WILL PLANT HARDWOOD AND UNDERSTORY SEEDLINGS AS RECOMMENDED BY THE MANAGEMENT PLAN AND IN CONSULT CONSULTATION WITH THE PARKOUR DISTRICT MANAGEMENT AND THE CONSERVATIVE CONSERVATION TEAM STAFF.
WE WILL REMOVE, WE WILL OF COURSE REMOVE, UH, OF COURSE CONSULT WITH AND ABIDE BY ANY RESTRICTIONS PLACED ON EITHER DW OR
OUR NEXT SPEAKERS, MR. CHARLIE MARSHALL.
NOPE, THAT'S ALL OF OUR SPEAKERS.
WE PROBABLY DON'T FINISH MY PART.
ALL YOU TODAY, ALL THAT YOU DO FOR THE CITY.
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A, A SPECIAL FOCUS ON OUR FOREST AND THE ADJOINING UNDERSERVED NEIGHBORHOODS.UM, WHERE WERE WE NOW? WE, WE WILL OF COURSE WORK WITH WITHIN THE LEVIES WITH, UH, ANY RESTRICTIONS OF THE REGARD BY DW OR COURT FOR WHOM WE NEED TO EXPEDITE APPROVAL.
OF COURSE, WHAT WE WILL CONTINUE OUR EFFORTS TO REMOVE INVASIVE DOMESTIC SPECIES AS WE WORK WITH THE CONSERVATION STAFF.
IF, IF WE CAN'T OBTAIN THIS, UH, SUPPORT COMMUTE, WE, WE WILL WORK WITH THE ADJOINING THE NEIGHBORHOOD TO SPEND ALL OF THE MONEY THERE.
WE HAVE, UH, UH, FIRM AND LONGSTANDING RELATIONSHIPS WITH THE, UH, PR COMMUNITY CENTER, UM, AND, AND MAKE THEM ARE OUR PARTNER.
WE PREFER TO WORK IN THE FOREST WITH, WITH THE PARK SERVICE.
SO THANK YOU FOR CONSIDERING THIS REQUEST.
WE HAVE A HANDOUT, UM, WHICH, UH, WE WILL PASS OUT.
AND MR. WOOD, YOU STATE, I I JUST WANTED TO SAY THANK YOU.
I KNOW YOU GUYS DO A LOT OF WORK.
UM, THAT IS, UM, NOT ALWAYS APPRE.
I MEAN IT'S ALWAYS APPRECIATED, BUT IT'S NOT ALWAYS UNDERSTOOD.
WORK YOU GUYS THROUGH, UM, I GET EMAILS WHEN THEY'RE OUT THERE ON A REGULAR BASIS, UM, WITH, WITH VOLUNTEERS AND THEY'VE ENGAGED THE COMMUNITY AROUND THERE.
SO THANK YOU FOR YOUR SERVICE, UM, TO OUR PARK BECAUSE WE ARE, YOU KNOW, COLLECTIVELY WE'RE ALL HERE TO DO THE SAME THING, MAKE OUR PARK SYSTEM BETTER.
WHAT WOULD BE THE NEXT STEPS? INTERACTIONS, MA'AM? THANK YOU.
UM, WITH THAT, I THINK I SHOULD HAVE STARTED WITH THAT.
UH, BUT I WILL MAKE UP FOR IT.
LET'S, UH, CONGRATULATE MR. J
YOU KNOW, MR, WE ALL KNOW WHAT, SPEAK LESS, BUT WHEN HE SPEAKS, HE MAKES A POINT.
SO HONOR TO PARTNER WITH YOU, MR.
AND AGAIN, LOOK FORWARD WORKING.
ANYTHING YOU WOULD LIKE TO SEE.
AND WITH THAT, I THINK ANOTHER WELCOME, UH, GRADY TO BOARD, UH, FROM DISTRICT FIVE.
I'VE SEEN HANDLING DIFFERENT CAPACITIES, SERVING FOR THE CITY.
UH, LADY I COME YOU AND ANYTHING YOU'D LIKE TO SAY, I'M JUST VERY HAPPY TO BE HERE.
I APPRECIATE THE WARM WELCOME FROM ALL OF YOU.
UM, IT'S NICE TO SEE SOME FAMILIAR PLACES AND, UH, YEAH, I LOOK FORWARD TO THE GOOD WORK.
WELCOME WITH THAT, UH, WE GO TO OUR NEXT POINT OF BUSINESS APPROVAL OF MEETING OF SEPTEMBER 19TH, 2024.
DO I HAVE MOTION? MR. LAUGHTER? UH, SECONDED BY MS. HAS ALL IN FAVOR SAY AYE.
WE MOVE TO AGENDA, BUT WE ARE REMOVING ITEM NUMBER FIVE, UH, REQUEST OF MR. TIKI.
SO WE ARE VOTING ON 1, 2, 3, 4.
UH, DO I HAVE A MOTION? UH, MR.
A A I WILL HAVE, UH, NUMBER FIVE.
MOTION, UH, MR. DICKY, DO I HAVE A SECOND? THANK MR. SLAUGHTER.
YOU KNOW, I JUST HAD A QUICK QUESTION ABOUT THE NATURE OF BASICALLY WHAT'S IT GOING TO LOOK LIKE.
UM, SAW I ASKED FOR AND RECEIVED SOME PICTURES, AND I JUST WANT TO ASK, UH, SOMEONE WHO CAN STACK ON THIS SECTION OF THE GREEN BELT, UH, WHERE REXFORD ROAD, IT SHORE, UH, SHORT CREST.
UM, THE GREEN BELT PARK IS A LONG SEVERAL HUNDRED YARD STRETCH OF GRASS AND TREES AND CREEK ON THE NORTH.
AND I JUST WANTED TO SEE WHAT IS THIS GONNA BE LIKE A DITCH THAT PEOPLE WOULD HAVE TO CROSS IF THEY'RE GONNA GO ALONG THE GREEN BELT? UM, WHAT'S IT GONNA LOOK LIKE AND WOULD IT IMPEDE THAT? AND IF SO, WELL JUST, THAT'S WHAT I'D LIKE TO ASK.
AND THE PICTURES I WAS SENT SHOW A CHANNEL THAT COULD NOT BE EASILY CROSSED BY A PERSON STROLLING IN THE PARK.
GOOD MORNING, JASON MAY PARK, PLANNING AND ACQUISITION MANAGER.
SO THIS IS THE DW PROJECT, YOU BELIEVE STORMWATER FLOODING OF THE STREET AND THE NEIGHBORS ON REXFORD DRIVE, THEY'RE GONNA BE ADDING A NEW INLET IN THE STREET AND PUTTING A 36 INCH STORMWATER PIPE.
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AND IT WILL HAVE TWO FEET AROUND, TWO FEET OF COVER.SO ONCE THE PROJECT'S DONE, YOU WON'T KNOW THE PIPES THERE.
AND I BELIEVE THE, THE PICTURES THAT YOU WERE SENT WERE SHOWING THAT OUTFALL BECAUSE OF THE NATURAL NATURE OF THE PARK.
WE DIDN'T WANT RIB WRAP ON THAT OUTFALL.
SO THAT'S WHY WE'RE GONNA BE USING A, A GREEN ENGINEERING TECHNIQUE, WHICH IS A, A FABRIC, UH, CELLULAR FABRIC THAT THEY PUT IN AND THEN PUT SOIL IN THERE AND THAT WILL HOLD THE SOIL IN PLACE.
WE WON'T HAVE ANY EROSION, SO IT'LL ONLY BE AT THE OUTFALL.
AND THAT OUTFALL IS WHERE THEIR NATURAL DRAINAGE ALREADY GOES.
THERE IS A, A DITCH, I WOULD SAY CALL IT THROUGH THE PART, BUT IT'S VEGETATED THE WHOLE WAY THROUGH.
THERE'S NO EROSION ON THAT, SO WE DIDN'T WANT TO HAVE THE MOTION IN THE OUTFALL.
SO NO, ONCE IT'S DONE, YOU WON'T NOTICE ANYTHING UNLESS YOU GET TO THAT OUTFALL, WHICH IS ALL THERE.
AND, UH, IT'S GOOD TO HEAR NO RIP WRAP.
SO THAT'S, THAT'S ALL I WANTED TO DO.
ANY OTHER COMMENTS OR QUESTIONS WITH THAT? ALL IN FAVOR SAY AYE.
WE MOVE TO, WE GOING TO NOW TO EXECUTIVE SECTION TO TAKE OH, ONE MORE ITEM.
WE HAVE INDIVIDUAL CONSIDERATION ITEM FOR ENCOURAGMENT POLICY.
YOU HAVE A MOTION FOR THAT? UH, MS. NELSON TO HAVE SECOND MS. MR. NER, ANY DISCUSSIONS? ANY QUESTIONS? UH, WITH THAT, ALL IN FAVOR SAY AYE.
WITH THAT, I THINK MAYBE WE GO INTO EXECUTIVE SESSION TO DISCUSS POINT NUMBER TWO AND THREE.
UH, THE PROPERTY, REAL ESTATE PROPERTY.
SO IT IS, UH, 10 13 ON OCTOBER 17TH, 2024.
PARK AND RECREATION BOARD NOW WILL GO INTO A CLOSED SESSION UNDER SECTION 5 5, 1 0 7, MARK OF THE TEXAS OPEN MEETINGS ACT, RECEIVED ADVICE OF THE CITY ATTORNEY, CITY MANAGEMENT CONTRACT, READ THE IT.
WHERE ARE WE GONNA DO ALL THE WHOLE THING ALL AT ONCE? YOU COULD JUST TALK ABOUT THE REAL ESTATE.
WITH THIS WE'RE GONNA DO FAIR PARK FIRST UNDER SECTION A PROPERTY LOCATED ON 1 0 8 1 8 CF ON FREEWAY.
AND TO DELIBERATE ON THE PURCHASE OF VALUE OF REAL PROPERTY LOCATED AT 1 7 7 1 7.
SO THAT WE ARE, I THOUGHT WE SKIP NUMBER SEVEN.
NO, WE ARE GOING TO COME BACK TO THE BRIEFING, UH, BECAUSE COUPLE OF MEMBERS HAVE RECUSE, SO WE'LL TAKE CARE OF THAT.
THEN GO TO THE, SO THAT, HERE WE GO.
IT IS 1152, WE CAN POSSESSION OF
AND WE WILL GO FOR THE LUNCH RECESS FOR 30 MINUTES AND THEN COME BACK AND AFTERNOON 37 DALLAS PARK WITH OUR NEXT POINT OF BUSINESS.
SO, UH, WE WILL BE, UH, SHARING, UH, FINDINGS FROM THE REPORT THAT HAS, AND I WOULD LIKE TO INTRODUCE A LETTER, FORSYTH LITTLE, WHO IS THE CHAIR OF THE FAIR MARKETERS BOARD, AND SHE WILL INTRODUCE HER AUDITOR.
THANK YOU FOR HAVING US HERE TODAY.
THAT THE RECENTLY COMPLETED INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AND AGREED UPON PROCEDURES.
MELOR MCKEAL MCNEAL HAS COMPLETED THE FINANCIAL STATEMENT ODDS FOR THE LAST FIVE YEARS AND COMPLETED THE 2023 AUDIT EARLIER THIS YEAR, LATE LAST
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YEAR, FAIR PARK FIRST BEGAN TO SEPARATE PROFESSIONAL SERVICES FROM OUR PARTNERS AT LG.WE HIRED OUR OWN SEPARATE ATTORNEY.
AT ONE ONE POINT IN EARLY 2024, WE WERE APPROACHED BY SOMEONE FROM OBG WHO RAISED CONCERNS ABOUT A LACK OF PROBLEMS. THERE HAD BEEN A WHIRLWIND OF ACTIVITY FROM 2224 WITH PROPOSITIONS, A FIFA COTTON BOWL RENOVATION AND SO ON.
SO WE DECIDED THAT IT WAS A GOOD IDEA TO VERIFY THE LOCATION.
TOGETHER WE HAVE A COLLECTIVE INTEREST IN THE IZATION OF THEIR PART.
AND THE REALIZATION OF THIS, THE TWO ENTITIES HAVE A SLIGHTLY DIFFERENT FOCUS, THEIR PART.
FIRST, THE NON-PROFIT CREATES THIS PRODUCT
IE THE COMMUNITY PARK, FARMERS MARKETING, YOGA CLASSES, ET CETERA.
OBG, THE FOR-PROFIT WORKS ON REVENUE GENERATING PROGRAMS SPACE.
SO THEY GO, THEY, THEY OPERATE THE COTTON BOWL, THE POLICY ON THE OWNER BILL, THE CONTROL OF PARKING LEASES, STOCK GAINS, NAMING RIDES, ET CETERA.
THEY DO THE SALES AND MARKETING.
AND EVEN WITH THAT DIVISION AND EVERYTHING THAT'S DONE AT THE PARK IS DONE IN MAY FAIR PARK AND IT'S NOT.
IN FEBRUARY WE CONTRACTED THE ACCOUNT FOR A NARROW SCOPE OF QUESTIONS.
WE ENGAGE THEM TO IDENTIFY DONOR RESTRICTED COLLECTIONS AND DETERMINE WHETHER OR NOT THE EXPENDITURES DONOR
THIS IS NOT WHAT YOU WOULD CALL THE TRUE AUDIT.
AND IT'S CERTAINLY NOT A FORENSIC AUDIT.
IT, ONCE SOMETHING IS IN THE PRESS, IT ROLLS FORWARD.
WE TALK ABOUT ONE THING THAT I WANT
GRANTED ADMINISTRATION, A APPLICATION AND MANAGEMENT MANAGEMENT THREE FOUR
MANAGER WILL HAVE THE EXCLUSIVE DRIVE DURING THE TERM TO APPLY FOR AND ACCEPT, RECEIVE AND MANAGE ALL FINANCIAL GRANTS FOR OTHER DONATIONS FROM NON CITY WITH REGARD TO FAIR PROPERTY PROCEED.
ALL SUCH
THE REALITY IS IN THE LAST FIVE YEARS THAT ALL ACTIONS TAKEN
SO WHETHER IT IS THE LEASE AGREEMENTS, THE BANK ACCOUNTS, THE OFFICE, THEY WERE ALL NAMED DONE IN THE NAME OF THE MANAGER, PETER HARFORD.
THE REALITY WAS THE LEASES AND AGREEMENTS WERE NEGOTIATED BY THE OPERATOR'S ATTORNEY.
THE REALITY WAS THE BANK ACCOUNTS WERE HELD IN THE NAME, BUT THE BANK STATEMENTS AND THE INVOICES WERE DELIVERED TO THE OPERATOR AND OVERSEE BY THE DIRECTOR OF FINANCE, EVEN THE MANAGER'S EMPLOYEES WERE PAID TO THE OPERATOR.
SO WE HAVE DONE THAT SEPARATION AS OF THIS MONTH.
SO SEPARATING THE, ANY FUNDS THAT WERE RAISED, PRIVATE TRANS LAND ACCOUNT THAT ONLY HAS OUR SIGNATURES ON IT AND IT AN INVESTMENT ACCOUNT THAT TAX THE DONORS GOING FOR.
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THE SCENARIO.NOW WE WILL DO ALL PAYROLL AND WE WILL DO HAVE A FRACTIONAL DIRECT
SO ALL THINGS SEPARATELY
AND WITH THAT, I AM GOING TO TURN IT OVER TO MARK.
AS I SAID, MR. MELOR HAS DONE ON
I'M WITH MALORY MCNEIL AND COMPANY IN CPA AND WE HAVE PERFORMED, UH, THE TECHNICAL TERM FOR THIS TYPE OF ATTESTATION ENGAGEMENT IS KNOWN AS AN AGREED UPON PROCEDURES ENGAGEMENT.
AND BASICALLY THAT IS TO PERFORM AUDIT PROCEDURES THAT ADDRESS SPECIFIC ISSUES, UH, WITH THE, UH, MANAGER FAIR PARK FIRST HAD RAISED AND THE LETTER HAS ALLUDED TO THOSE SPECIFICALLY.
UH, WE WERE CHARGED WITH IDENTIFYING DONOR RESTRICTED COLLECTIONS OF PROMISES TO GIVE AND FURTHER IDENTIFYING WHAT THOSE RESTRICTIONS WERE.
AND SECONDLY, TO IDENTIFY FROM A REPORTED SCHEDULE OF EXPENDITURES THAT MET THOSE RESTRICTIONS, WHAT WERE IN FACT QUALIFYING MEANING THEY DID MAKE THE DONORS RESTRICTIONS OR NON-QUALIFYING, MEANING THAT THEY WERE EXTENDED FOR SOME TYPE OF ACTIVITY OR THAT DID NOT MEET THE DON.
SO IT, THEY, UH, DID OR IT DID NOT TYPE OF AN ISSUE ON THE EXPENSE.
WELL, WE INITIALLY, UH, OBTAINED WITH RESPECT TO THE COLLECTIONS, WE OBTAINED A, UH, SCHEDULES OF UNCONDITIONAL TO GIVE WITH DONOR RESTRICTIONS FOR THE PERIOD OF OCTOBER 1ST, 2020, WHICH WAS BASICALLY THE INCEPTION OF THE CAMPAIGN.
AND THROUGH THE PERIOD APRIL 30TH, 2024, WE, UH, TRACED AND AGREED THOSE PROMISES TO GIVE TO THE UNDERLYING GOVERNOR'S AGREEMENTS NOTED THAT THERE WERE RESTRICTIONS IN THE AGREEMENTS, FOR EXAMPLE, TOWARDS THE CAPITAL CAMPAIGN FOR A NEW COMMUNITY PARK.
WE TRACED AND AGREED THAT UNCONDITIONAL PROMISE TO GIVE WITH DONOR RESTRICTIONS, INSTALLMENTS, OR COLLECTIONS RECEIVED TO THE BANK ACTIVITY TRANSACTION DETAILS FROM THE BANK NOTED WHICH BANK ACCOUNT THE, UH, AMOUNT FOR DEPOSITED TO HAS BETA POINTED OUT.
SECTION 4.12 OF THE GRANT ADMINISTRATION SAYS THAT THE MANAGER WILL HAVE THE RIGHT TO, UH, APPLY FOR AND RECEIVE GRANTS AND THAT THEY WILL ALSO SHOULD SEGREGATE THOSE GRANTS EITHER INTO RESTRICTED OR SEGREGATE THE PROCEEDS COLLECTED FROM THOSE GRANTS, EITHER INTO RESTRICTED OR UNRESTRICTED ACCOUNTS BASED ON THE PURPOSE AND THE REQUIREMENTS OF THE GRANTS.
SO DURING THAT PERIOD, 17 BILLION $115,626 OF DONOR RESTRICTED RECEIPTS WERE COLLECTED.
11,358,000 WERE DEPOSITED INTO THE BANK OF AMERICAN OPERATING ACCOUNT.
ENDED IN 9 3 3 5, THE GENERAL OPERATOR NON-RESTRICTED ACCOUNT.
SO BASED ON THE ABOVE PROCEDURES, WE CONCLUDED THAT COMPLIANCE WITH THE REQUIREMENTS OF THE SECTION 4.12 GRANT ADMINISTRATION FAILED AND THAT THEY WERE NOT MAINTAIN INTO SEGREGATED ACCOUNT.
NOW, WE DID NOTE THAT AT TIMES CERTAIN AMOUNTS OF THESE COLLECTIONS WERE TRANSFERRED INTO A RESTRICTED ACCOUNT, BUT NOT NECESSARILY ALWAYS THE CASE.
ALRIGHT, SO THAT WAS THE RECEIPT SIDE OF THE EQUATION.
THE SECOND SET OF PROCEDURES WAS TO OBTAIN THE SCHEDULE THAT HAD BEEN PROVIDED FROM THE OPERATOR AS BEING REPORTED AS MEETING DONOR RESTRICTIONS AND THEREFORE QUALIFYING TO BE RELEASED AS NET ASSETS WITH RESTRICTIONS.
WE HELD A SERIES OF COLLABORATIVE MEETINGS WITH BOTH THE OPERATOR AND THE MANAGER TO GO THROUGH THE 2000 PLUS EXPENSE LINE ITEMS ON A ITEM BY ITEM BASIS TO DETERMINE WHAT PROJECT THE EXPENSE SHOULD BE ALLOCATED TO AND THEREBY DETERMINING WHETHER OR NOT IT'S GONNA MEET THE TEST OF IS IT QUALIFIED OR IS IT NOT? SO WE WENT THROUGH THAT.
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NOW, THERE WAS ONE PROJECT THAT WAS SPECIFIED AS A PART OF THE COMMUNITY PARK THAT WAS THE PARKING GARAGE.THE PARKING GARAGE PLANNING AND DESIGN WENT THROUGH SOME UNUSUAL SCENARIO.
AND SO CONSEQUENTLY THERE WAS A ABOUT $4.2 MILLION IN TOTAL EXPENSES MADE TOWARDS THE PARKING GARAGE.
SO THERE WAS, UH, NOT AGREEMENT AS TO HOW MUCH OF THIS REALLY SHOULD BE ALLOCATED TO THE DONOR'S INTENTIONS AND HOW MUCH OF THIS WAS OUTSIDE OF WHAT THE DONOR'S INTENTIONS AND THEREFORE MAY NOT QUALIFY.
SO AFTER EXTENSIVE DISCUSSION, WE, AND THERE WAS AN ALLOCATION MADE OF THE 4.2 MILLION IN THE REPORT, AND THE ALLOCATION WAS 50 50, 50% WOULD BE DETERMINED TO BE QUALIFIED.
50% WERE DETERMINED NOT TO BE QUALIFIED.
THE OPERATOR ACCEPTED THAT, BUT THEY DO NOT AGREE THAT THAT IS THE CORRECT ALLEGATION.
SO WANT TO GO AHEAD AND LAY THAT ON THE TABLE BECAUSE THIS CAME UP YESTERDAY AND I FAILED TO DISCLOSE THERE WAS AN ALLOCATION AT THE ONSET, BUT WE'RE LAYING IT IN.
UH, SO WE, UH, AS A PART OF THAT PROCESS, AS I SAID, WE WENT THROUGH, WE IDENTIFIED THE EXPENSES.
WE, UH, COLLABORATIVELY DISCUSSED AND DECIDED WHAT CATEGORY OR WHAT PROJECT THAT THEY SHOULD GO INTO.
WE NOTED THAT ON THE EXPENSES THAT WERE REPORTED AS QUALIFYING, THAT THERE WERE VARIOUS ACCOUNTS FROM THE GENERAL LEDGER ACCOUNTS INCLUDING PAYROLL, SALARIES, BONUS, GENERAL ADMINISTRATIVE, EMPLOYEE BENEFITS, TRAVEL, ENTERTAINMENT, OTHER TRAVEL EXPENSE, AND THE TOTAL AMOUNT OF 1,100,400 AND DOLLARS FOR THE PERIOD OF OCTOBER 1 22 THROUGH THE END OF THE REPORTING PERIOD OF APRIL 30TH, 24.
WE ALSO NOTED THAT THERE WERE NO EXPENSES REPORTED FROM THESE ADMINISTRATIVE TYPE OF CATEGORIES FROM THE ONSET OF OCTOBER 1ST, 2020 THROUGH SEPTEMBER 30TH, THE FIRST HALF.
NOW, WE DETERMINED, OR IT WAS BROUGHT TO OUR ATTENTION THAT THERE WERE TWO GIFT POLICIES ADOPTED BY THE FAIR PARK BOARD AND INCLUDED IN THE GIFT POLICY WAS THE ALLOWANCE FOR AN ADMINISTRATIVE FEE PER THE RESPECTIVE SCHEDULE POLICY HAD A GRADUATED FEE.
UH, DEPENDING ON THE SIZE OF THE GIFT RECEIPT, IT WOULD BE A FEE ASSESSMENT OF EITHER TWO, THREE OR FOUR.
AND THEN EFFECTIVE, I THINK IT WAS THERE WAS THE SECOND AUGUST 23, THERE WAS THE SECOND GIFT POLICY ADOPTED THAT CHANGED THE FEE FROM THAT GRADUATING STRUCTURE TO THE
SO, AND THIS WAS MADE KNOWN TO THE DONORS AND IT WAS APPLIED TO, UNLESS THE DONORS SPECIFICALLY PROHIBITED IT FEE ASSESSMENT OR IF IT WAS A GOVERNMENTAL GRANT, THEN THERE WOULD BE A FEE ASSESSED.
SO IT BE THEN PROCEEDED TO CALCULATE BASED ON THE COLLECTIONS, WHAT WOULD THE ALLOWABLE FEE BE COMPUTED UNDER THE SCHEDULE.
AND SO WE NOTED THAT THERE WERE 1 MILLION 102,000 WAS CHARGED BASED ON THE RECALCULATION.
WE DETERMINED THAT THERE WAS AN EXCESS
WE FURTHER NOTED THAT THE DIRECT EXPENSES THAT DID NOT QUALIFY AS EXPENDITURES FOR THE CAPITAL CAMPAIGN FOR RESTRICTION RELEASE WAS A TOTAL AMOUNT OF $6,000,766, $766,074.
AGAIN, WANT TO POINT OUT THAT APPROXIMATELY 2 MILLION OF THAT WAS IS AN ESTIMATE OR IS AN ALLOCATION OF THESE PARKING GARAGE CHARGES THAT ARE AT THIS POINT INCLUDED AS NOT BEING ELIGIBLE FOR RELEASE.
THAT WAS, I WON'T SAY IT'S ARBITRARY, BUT IT WAS AN ALLOCATION THAT WE HAD TO ACCEPT AND, AND COME TO CONCLUSION ON IT.
SO IF I COULD, WE THEN PREPARED A SCHEDULE IN COLLABORATION WITH THE OPERATOR AND THE MANAGER OF THE DONATED RECEIPTS THAT AND ALLOCATED SO WE COULD DEMONSTRATE IT BY PROJECT.
SO IF YOU HAVE A COPY OF THIS, IT LOOKS LIKE YOU DO, IF YOU'LL GO TO THE LAST SCHEDULE, PAGE TWO, PAGE ONE IS, OR THE SCHEDULE ONE SUMMARY OF THIS.
SO WE MIGHT JUST GO TO THE DETAILS, BUT THESE WERE THE PROJECT
THE FIRST ONE IS THE COTTON GOLD PLAZA, AND THEY, IT'S A $5 MILLION PROMISE TO GIVE OF WHICH A MILLION DOLLARS HAS BEEN COLLECTING THE ADMIN
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FEE.DOES EVERYBODY HAVE THAT ACCESS TO THAT? NO.
SEE IT ON THERE? I'M SEEING IT ON MONITOR.
OH, CAN YOU GO BACKWARDS? COMPLETED? WE'RE PRINTING IT OUT FOR YOU RIGHT NOW.
IT SAYS THAT WE'VE COMPLETED THE, I I DIDN'T KNOW IT WASN'T COMING UP, BUT I'LL PRINT IT OUT FOR EVERYBODY.
SO WHILE SHE'S PRINTING THAT OUT, WE'LL JUST, UH, SPEAK GENERALLY TO THE, UM, TO THE VARIOUS PROJECTS.
THERE WERE ACTUALLY, I SAID FOUR, THERE WERE ACTUALLY FIVE PROJECTS FOR WHICH THE, UH, FAIR PARK FIRST HAD SOLICITED AND RECEIVED PROMISES TO GIVE COLLECTIONS OF WHICH HAD BEEN MADE TO THE TUNE OF THAT 17 MILLION.
AND THEY INCLUDED, UH, IMPROVEMENTS AND, AND RENOVATIONS TO THE COTTON BOWL PLAZA ART REGI ART RESTORATION TO VARIOUS DESIGNATED BUILDINGS IN THE FAIR PARK PROPERTIES, IMPROVEMENTS TO THE KNOWN, UH, TO THE AREA KNOWN AS THE CULTURAL DISTRICT, THE IMPROVEMENTS TO THE MAGNOLIA LOUNGE.
AND THEN THE, THE VAST MAJORITY OF THE COLLECTIONS WERE RELATED TO THE DE DESIGN DEVELOPMENT AND CONSTRUCTION OF THE, THE NEW PROPOSED COMMUNITY PARK.
SPECIFICALLY THE, UH, COTTON BOWL WE HAD COLLECTED, OR THE FAIR PARK FIRST HAD COLLECTED A MILLION DOLLARS FOR THE COTTON BOWL PLAZA.
THE, THE FEE ASSESSMENT OF A HUNDRED THOUSAND DOLLARS WAS APPLIED TO THE COTTON BOWL FUNDS, WHICH WOULD LEAD $900,000 OF CASH RESTRICTED AND DEDICATED FOR THE IMPROVEMENTS TO THE COTTON BOWL PLAZA.
THE SECOND PROJECT WAS THE ARC RESTORATION PROJECT.
1,000,320 1000 WAS COLLECTED THROUGH THE PERIOD THERE, $98,000 WORTH OF DIRECT EXPENSES FOR PROJECTS IN THAT ARENA.
THE FEE ASSESSMENT OF THE ADMIN FEE ASSESSMENT OF 158,000 WAS CHARGED AGAINST THE ART RESTORATION MONIES LEAVING 1,000,060 4,000 OF CASH THAT SHOULD BE ON HAND FOR THE RESTRICTED PROJECTS.
NEXT PROJECT, THE CULTURAL DISTRICT 325,000 HAD BEEN RECEIVED.
THIS MONEY WAS RECEIVED FROM THE, UH, FROM A GOVERNMENTAL JURISDICTION.
AND SO THEREFORE NO ADMIN FEE WAS ASSESSED.
THERE WAS 256,000 DIRECT EXPENSES.
SO THERE SHOULD BE $68,000 OF CASH AVAILABLE TO COMPLETE THAT PROJECT.
THE MAGNOLIA LOUNGE, 200 OR 2 MILLION, EXCUSE ME, WAS COLLECTED FOR MAGNOLIA LOUNGE IMPROVEMENTS.
THERE WERE DIRECT EXPENSES OF $2,109.
THE ADMIN FEE OF 2 MILLION OR 200,000 WAS ASSESSED AGAINST THE
SO THAT LEFT A BALANCE OF CASH THAT SHOULD BE ON HAND AS A FOUR $31,797,891.
AND WE SAID THE VAST MAJORITY OF THE COLLECTIONS WERE RELATED TO THE COMMUNITY PARK PROJECT THAT INCLUDED 12,469,000.
THERE WERE DIRECT EXPENSES OF 8,016,000.
AGAIN, GRANTED THAT 2 MILLION OF THAT WAS AN ALLOCATION OF THE PARKING GARAGE.
THERE'S ANOTHER 2 MILLION OUT THERE THAT AT THIS POINT ARE IN THE UNQUALIFIED BUCKET.
BUT THIS 8 MILLION INCLUDES 50% OF THE COST INCURRED FROM THE PARKING GARAGE.
THE ADMIN FEE OF 386,000 WAS ASSESSED AGAINST THOSE COLLECTIONS.
SO THERE SHOULD BE $4,066,000 OF CASH AVAILABLE TO, AS THEY CONTINUE WORK ON THE COMMUNITY PROJECT OR COMMUNITY PARK PROJECT.
SO IF YOU'LL SCAN TO THE LEFT AND GO TO THE TOTAL COLUMN THAT SAYS, BASED ON THE CASH COLLECTIONS, THE QUALIFYING EXPENSES, AND AGAIN, MORE TO DISTINGUISH, JUST BECAUSE IT'S UNQUALIFIED DOESN'T MEAN THAT, UH, THIS MEANS THAT IT WAS NOT SPENT ON A, A PROJECT SPECIFICALLY DESIGNATED BY THE DONER.
THAT'S WHAT UNQUALIFIED MEANS.
SO WE SHOULD HAVE A TOTAL OF $7,897,000 OF DONOR RESTRICTED CASH ON HAND HELD IN SEGREGATED ACCOUNTS OF THAT AMOUNT.
WE'VE GOT 1,000,839 THAT WAS SPENT THAT IS IN THE UNQUALIFIED BUCKET FOR
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THAT IS REIMBURSABLE BY THE CITY OF DALLAS.AND IT WAS RELATED TO THE LIN, IT'S IT'S RELATED TO THE FACILITY.
ASSESSMENTS, FACILITIES ASSESSMENTS OUTSIDE OF THE, UH, THE SCOPE OF THESE FIVE PROJECT.
SO THAT LEAVES US WITH CASH OF 6,058,000 AT APRIL 30TH THAT WE SHOULD HAVE IN THESE RESTRICTED ACCOUNTS.
IN FACT, THE FUNDRAISING ACCOUNT THAT IS THE DEDICATED ACCOUNT TO HOLD THE RESTRICTED CASH HAS $353,823.
SO BASED ON ALL OF THE PROCEDURES, THE ANALYSIS AND THE ALLOCATIONS, THERE IS A DEFICIENCY IN THE RESTRICTED CASH ACCOUNT BALANCES TO THE TUNE OF $5,704,652.
SO THAT WAS THE EXTENT OF WHAT THE AGREED UPON PROCEDURES ENGAGED TO IDENTIFY THE RECEIPTS, IDENTIFY THE QUALIFYING EXPENSES AND INCLUDE, DO WE, WHERE'S THAT? IS IT IN THE BANK ACCOUNT AND WHERE IS IT? AND THAT CONCLUSION? I, I I WOULD SAY WHICH THERE IS NO INDICATION THAT ANY MONEY LEFT THE CAR ONE AND NUMBER TWO, THERE'S NO, THERE IS NO INDICATION OF FRAUD.
IS IT IN ACCOUNTING IS THE BIG ONE, EXECUTIVE SESSION, UH, TO HAVE THE
UH, 1301 ON OCTOBER 17TH, 2024.
THE PARTS, NOW WE GO INTO CLOSED SESSION AT THE SECTION 5 5 1, THE SEEK
IF YOU WANTED TO READ STATEMENT TO BACK
OPEN SESSION AND WE RESUME A MEETING WITH THAT.
UH, I THINK WE HAVE A CLOSED SESSION WITH OUR ATTORNEYS IN BRIEFING FROM MS. LE, UH, BY NOW OPEN UP FOR ANY QUESTIONS OR COMMENTS FROM OUR BOARD, ANY, UH, KNOW
UH, SO A COUPLE QUICK QUESTIONS.
UH, FIRST, UM, I'VE BEEN HEARING ABOUT, YOU KNOW, UNPAID OVERDUE INVOICES AND, AND WOULD LOVE TO KNOW WHAT THE STATUS OF ALL THOSE ARE AND WHAT THE PLAN IS TO GET THOSE PAID.
I WOULD INVITE TO, I I I WILL GIVE MY SPECIFIC ANSWER ON ANY OUTSTANDING.
UM, I THINK THOSE TWO MIGHT BE TOO CLOSE TO EACH OTHER.
I'LL GIVE MY SPECIFIC ANSWER ON ANY FUNDS RELATED.
UM, SPECIFIC TO FUND RAISING, WHAT'S, WHAT'S GOING ON IS ABOUT THE 6 MILLION OR SO, ABOUT A MILLION OF THOSE ARE FAIR PART FIRST DONOR RESTRICTED FUNDS THAT WE NEED TO PAY.
WE NEED TO PAY THOSE INVOICES AND WE'LL BE PAYING THOSE.
WE DEPOSITED MONEY AND THE DALLAS FOUNDATION, BECAUSE REMEMBER WE COLLECTED 17 MILLION, BUT WE ALSO HAVE, UH, IT'S $44 MILLION
[00:40:02]
TO BE RAISED.SO MONEY CONTINUES TO COME IN THAT THAT WILL BE AT THE DALLAS FOUNDATION AND INVOICES THAT ARE OUTSTANDING OR COMING IN AND THEY DID DO A CAPITAL PROJECT.
THE RESTRICTED WILL BE PAID FROM, FROM THAT ACCOUNT.
THAT'S ABOUT 1 MILLION THE BALANCE.
I'M GONNA TURN IT OVER TO MR.
CAN I, CAN I JUST ASK SOME CLARIFY.
YOU CAN, YOU RAISED UP THE QUESTION THAT I, THAT I'VE, THAT YOU SAID THAT PAYMENT DONOR RESTRICTED FUNDS, CAN YOU CLARIFY WHAT THAT MEANS EXACTLY? UM, SOME OF THE, THOSE INVOICES THAT, THAT I AM REFERENCING THAT ARE, THEY WERE EITHER FOR AN ENGINEER OR AN ARCHITECT OR AN ART STORE OR SOMETHING LIKE THAT, THAT'S OUTSTANDING.
AND THEN MONEY IS COMING IN, THAT'S THE REST OF THE PLEDGE.
AND THAT MONEY, WHICH IT WILL BE RESTRICTED, WILL PAY FOR THAT SPECIFIC QUALIFYING FEES.
SO IF THERE'S A, AND THIS MAY BE A QUESTION FOR OBT, BUT IF THERE'S AN EXTERNAL VENDOR WHO IS OWED MONEY BY FAIR PARK FIRST OR OBT 360, WHAT IS THE PLAN TO GET ALL OF THOSE UNPAID INVOICES PAID? THANK YOU FOR THE QUESTION.
MY NAME IS GREG OELL, UH, FROM
UM, SO WE CERTAINLY, UM, SHARE THE CONCERN AND APPRECIATE, UM, YOU KNOW, THE, THE CONCERN FOR GETTING THE INVOICES PAID, JUST TO GIVE A BALANCE OF WHAT THEY ARE.
RIGHT NOW, IT'S ABOUT $6 MILLION IN PAYMENT THAT ARE OUTSTANDING.
UM, A COUPLE THINGS THAT, THAT WE, UM, WOULD REFERENCE THAT WE'RE WORKING ON IN TERMS OF THE PLAN TO TRY TO GET THOSE, THOSE PAID
WE HAVE AN OUTSTANDING REQUEST AND WE RECOGNIZE WE'VE NOT GOTTEN ANY APPROVAL AND, AND KNOW THAT PART OF THAT, UM, REQUEST FOR THE CITY IS SUBJECT TO HAVING MORE DIALOGUE WITH THAT, THAT OUTSTANDING REQUEST ABOUT WHEN WE NEED KNOWLEDGE.
UM, THE OTHER COMPONENT RIGHT NOW IS WE HAVE SOME CASH ON HAND.
WE'RE OBVIOUSLY TRYING TO MANAGE AND PAY EXPENSES AS, AS BEST WE CAN.
THERE ARE SOME UPCOMING EXPENSE, EXCUSE ME, UPCOMING, UH, SUBJECT PAYMENTS IN SUBJECT TO THE, TO THE APPROVAL OF THIS BOARD AND THE STAFF THAT WE WERE TO RECEIVE THAT.
I THINK THAT WOULD ALSO ALLOW US TO PROBABLY GENERATE, UH, MAYBE ANOTHER HALF A MILLION DOLLARS THAT WE CAN PAY DOWN IN SOME EXPENSES, HOPEFULLY THROUGH JUST THE OPERATIONS AND WITH THAT SUBSIDY, RECOGNIZING THAT WITH THAT SUBSIDY ALSO COMES SOME PAYMENT FOR THE TEAMS AND SOME OTHER THINGS SO IT'S NOT OBVIOUSLY FREE AND CLEAR MONEY.
SO THAT COUPLED THOSE TWO TOGETHER, THAT'S, YOU KNOW, 1.8 PLUS ANOTHER HALF A MILLION DOLLARS, THAT'S ABOUT 2.3.
THE OTHER $2.3 MILLION OF THAT ARE PAYABLES THAT ACTUALLY ARE DUE TO, TO
UM, AS I'VE SAID WHEN WE WERE LAST HERE, WE CERTAINLY WOULD, UM, DEFER THOSE PAYMENTS AND WE WOULD DO THAT OBVIOUSLY, UM, YEAH, IN CONJUNCTION WITH WORKING WITH THE STAFF TO, UM, TO SOME AGREEABLE PLAN WHEN IN FACT THERE WAS, UH, FINANCIAL SUSTAINABILITY THAT WOULD BE ELIGIBLE FOR THAT.
SO THAT'S ANOTHER, UM, THING THAT WE WOULD, WE WOULD WANT TO DO TO, TO CONTRIBUTE IN TRYING TO MAKE SURE WE RESOLVE THOSE TABLES.
SO THOSE TWO NEVER COUPLED TOGETHER, IT'S ABOUT, YOU KNOW, $4.6 MILLION OF THE SIX.
SO THAT'S A, A CHUNK, UH, THAT WE, YOU KNOW, WE THINK WE CAN CLOSE PRETTY QUICKLY.
THE OTHER COMPONENT OF THAT, UM, WHEN WE HOPEFULLY WE'LL HAVE A CONVERSATION ALSO ABOUT, UM, JUST HOW WE CAN, UH, GET BUDGET NEUTRAL.
UH, WE'RE GONNA, UM, CONTINUE TO WORK WITH THE CITY STAFF AND TRY TO, UM, CRAFT A PLAN WHERE WE WOULD HAVE, UH, A CHANGE IN REDUCTION SCOPE AND ALSO WOULD REQUIRE, UM, CONSIDERATION OF REDUCTION IN STAFF THAT WE WOULD HAVE TO ADDRESS.
UM, AND OBVIOUSLY THE SENSITIVE WE AS WE CAN.
UM, IN THAT, UH, WE ALSO FORESEE THAT WE'D BE ABLE TO DRIVE SOME INCREMENTAL REVENUE.
SO THERE'S OBVIOUSLY A TIMING ISSUE OF HOW QUICKLY WE COULD DROP THAT REVENUE.
SOME OF THE, THE, UM, COMPONENTS WOULD BE, UH, PARTICULARLY AROUND NAMING RIGHTS THAT WE THINK IS A PRETTY BIG OPPORTUNITY.
AND SO WE WOULD HOPE THAT WE COULD PURSUE, UM, SOME WAY WITH THE CITY TO GET SOME WAY THAT WE COULD, YOU KNOW, GET ADVANCEMENT OR STIPEND OR TO SUPPORT MAYBE THAT GAP AND THEN MAYBE WE COULD PLEDGE REVENUES TO COVER THAT GAP TO OFFSET THAT.
SO THAT WOULD BE OUR, OUR PLAN THAT WE'RE WORKING ON TRYING TO CLOSE THAT GAP.
BUT OBVIOUSLY WE KNOW IT'S VERY IMPORTANT WE EXPEDITE TRYING TO PAY DOWN THESE EXPENDITURES AS QUICKLY AS POSSIBLE FOR SURE, BECAUSE I'M HEARING FROM VENDORS AND FOLKS THAT THEY'RE NOT GETTING PAID, THEY WANT TO GET PAID AND THAT'S A, THAT'S A BIG CONCERN.
UM, SO, BUT WE'RE STILL, SO EVEN IF YOU'VE GOT A PLAN TO PAY DOWN, IF OBG DOESN'T WA SINCE 2.3 MILLION OR FOUR SECONDS RESOLVED SOMEHOW, THERE'S STILL GONNA BE INCURRING EXPENSES THROUGHOUT.
SO THAT NUMBER'S GONNA GO UP, ISN'T IT?
[00:45:01]
YOU'RE GONNA HAVE TO PLAN TO PAY THAT TOO.OUR HOPE IS, SO THE RIGHT NOW IN OUR CURRENT 8 25 PROPOSED BUDGET, UM, WITH, WITH NO REDUCTION YET IS ABOUT TWO, $2 MILLION IN, UM, DEFICIT.
YOU BELIEVE THE EXPENSES, UH, EXCUSE ME, THE SCOPE REDUCTION WITH OTHER REDUCTIONS THAT WILL ACTUALLY GET TO THE BUDGET NEUTRAL.
SO WE WILL REMOVE, UM, THAT DEFICIT FOR THE CURRENT BUDGET.
SO TO YOUR QUESTION THAT WE'RE ONLY DEALING WITH THE PAYABLES AND WE WOULD BE OPERATING, UM, AT, AT A
AGAIN, SUBJECT TO THE APPROVAL, UM, YOU KNOW, OF THIS BOARD AND, AND THE STAFF, JUST THE ISSUE THAT LASTS PROBABLY A MILLION DOLLARS, 1,000,003 OR FOUR IS, IS A TIMING ISSUE OF DRIVING REVENUE.
AGAIN, IF THERE'S A WAY THAT, THAT THERE COULD BE SOME ADVANCEMENT, UM, AND
BUT AGAIN, THAT WOULD BE SUBJECT TO, TO NEGOTIATION OR TO THE DESIRE AND, AND APPROVAL OF THIS FORM AND STAFF.
UM, CO COUPLE OTHER QUICK QUESTIONS.
UH, I THINK THIS MIGHT PREPARE MY FIRST, HAVE Y'ALL, HAVE Y'ALL BEEN IN TOUCH WITH THE DONORS ABOUT THE FUNDS AND WHERE THEY WERE ALLOCATED AND WHAT, WHAT'S THE REACTION FROM THE DONOR SPEND? UM, WHAT WE HAVE DONE IS PROVIDE SORT OF A NEWSLETTER, IF YOU WILL, REGULAR UPDATE WHAT'S, WHAT'S HAPPENING, UM, WITH SCOTT MURRAY, I I DID A FIRESIDE CHAT WITH THE ADVISORY COUNCIL WHERE PEOPLE ASKED ME QUESTIONS ABOUT IT AND THEN OTHER FOLKS I HAVE INDIVIDUALLY WENT TO MEET WITH 'EM IF THAT WAS, IF THAT WAS THEIR REQUEST OR THEIR DESIRE.
UM, SO, SO FAR THE PLEDGES PEOPLE THAT HAVE, HAVE PLEDGES ARE CONTINUING TO COME ALONG.
UM, I'M JUST TRYING TO MAKE SURE WE'RE VERY RESPECTFUL OF THEM AND HEAR ALL THEIR CONCERNS UNTIL WE SENT THEM A COPY OF THIS.
UM, WE'VE SENT 'EM ALL AUDITS, ANY, ANY, ANY OUTSTANDING CORRESPONDENCE WE SEND TO THEM TO KEEP, KEEP, ALL OF THESE DONORS ARE EXTREMELY COMMITTED TO FAIR PART.
THEY BELIEVE THEY NEED TO INVEST IN A FAIR PARK.
THEY BELIEVE THEY NEED TO INVEST IN THE SOUTHERN SECTOR.
BUT SO FAR THE DONORS HAVE STAYED WITH US AND CONTINUE TO PAY THEIR PLEDGES.
SO WE FAIR PARK FIRST HASN'T LOST ANY DONORS BECAUSE OF THIS.
WE, NOT AT THIS POINT WE HAVE NOT.
AND SO JUST SO I CAN, JUST TO CLARIFY, SO I UNDERSTAND THIS, IS IT THE POSITION FPF AND OVG THAT ALL THE DONOR FUNDS THAT HAVE COME IN, THEY'RE ALL SOMEWHERE AT FAIR PARK AND JUST TRYING TO FIGURE OUT WHERE EXACTLY THEY WERE LOCATED? THAT THAT IS CORRECT.
NOT NOTHING I STATED EARLIER, NOTHING'S LEFT OF THE PARK AND THERE, THERE THERE IS FRAUD.
SO THEN HOW, THEN HOW DO YOU THEN, HOW DO WE EXPLAIN THE, THE 5.7 MILLION DEFICIT THAT THE PARTNER CAME UP WITH? JUST BASICALLY, UM, THEY ENDED UP IN OPERATING IN SOME WAY OF THE FARM IN, OR THEY MAY HAVE IN A CAPITAL PROJECT, THEY MAY HAVE ENDED UP IN A CAPITAL PROJECT THAT WASN'T, THAT WE HADN'T RAISED MONEY FOR AT THAT POINT.
UM, I'M, I'M TRYING TO THINK OF ONE NOTE.
THE, YEAH, THE VISITORS CENTER IS ONE.
SO THERE'S THE MONEY THAT WENT IN TO CREATE A DONOR LOUNGE AND THAT SORT OF THING IN THE VISITOR CENTER, BUT WE DON'T HAVE A, WE HAVE A DONATION FOR, FOR THE VISITOR CENTER, BUT IT IS TIED TO A SURE.
SO, UM, ALRIGHT, THAT'S ALL I HAVE FOR NOW.
UH, MR. FIRST OF ALL, MS. LI, THANK YOU FOR WHAT YOU ARE DOING.
YOU REALLY, TRULY, YOU ARE TRYING TO RECORD SOMETHING YOU'VE INHERITED.
SO ANY QUESTIONS, THEY'RE NOT DIRECTED AT YOU.
IT'S ABOUT THE PROCESS AND IT'S ABOUT, I'M SAYING MR. SAME WITH YOU, MR.
[00:50:01]
SO ADD TO, UH, JEFF'S QUESTION.SO I HAD THIS REPORT IN ONE OF THE PAPERS BY A SMALL VENDOR THAT AFTER MULTIPLE FOLLOWUP,
WE HAVE ORDERED NEW CHECKS AND I'M EXPECTING THEM TO ARRIVE TODAY SO WE CAN RESUME OUR BUSINESS AND SEND YOU A CHECK.
DO YOU KNOW WHAT THIS FRAUDULENT ACTIVITY WAS? IS THAT LETTER FROM OPG? YES.
SORRY, I JUST DIDN'T KNOW WHO IT CAME FROM.
I ASSUMING FROM HI, UH, STACY, CHURCH GENERAL MANAGER, UM, AT THE PARK WE DID HAVE SOME CHECKS PRESENTED ON OUR ACCOUNT THAT WERE FRAUDULENT.
UM, BECAUSE OF THAT WE HAD TO CLOSE OUR CHECKING ACCOUNT WITH BANK OF AMERICA AND REOPEN A NEW ACCOUNT.
AND SO THAT IS PROBABLY WHAT, UM, BUT THAT EMAIL WAS REFERENCING.
SO YOU, I MEAN THE LETTER WAS LOOPED IN.
WE HAD TO WORK WITH, UM, RYAN, WITH THE FORMER CEO TO GO AND QUOTE, WELL TO, UM, OPEN THE NEW ACCOUNT.
SO WE DID HAVE FRAUDULENT CHECKS PRESENTED.
WE HAD TO, YOU KNOW, PAUSE THE ACCOUNT AND OPEN PENDING ACCOUNTS.
DID WE LOSE ANY MONEY? AND DO YOU KNOW WHO THOSE FRAUD LAND CHECKS? DID WE GET TO THE ROOT CAUSE OF THOSE FRAUDULENT CHECKS? WE DID NOT LOSE ANY MONEY BECAUSE THEY WERE TRULY FRAUDULENT.
SO EVERYTHING THAT WAS, UM, PRESENTED AND PAID WAS REIMBURSED BY THE BANK.
UM, I DO IT, IT WAS NOT ANYONE LOCAL.
IT WAS JUST, I MEAN, LIKE CHECKS THAT WERE DRAWN FROM CASH IN LIKE ALABAMA, FLORIDA, SOMETHING, UM, REALLY STRANGE.
WE ARE WORKING WITH BANK OF AMERICA TO MOVE OUR ACCOUNT TO, UM, A, UM, PRIVATE SERVICES CLIENT ACCOUNT SO WE CAN START USING POSITIVE PAY TO KEEP THINGS LIKE THAT FROM HAPPENING IN THE FUTURE.
AND, UH, MR. DE, I THINK JEFF ASKED YOU ABOUT, YOU KNOW, WHEN WILL THAT GET PAID? ONLY THING I HEARD IS, IS A BAILOUT FROM THE CITY AND I THINK OVG OR THERE WERE LOTS OF THINGS.
YOU WERE SUPPOSED TO RAISE FUNDS TO THE ACTIVITIES, LEASE OUT THE BUILDINGS, BLAH, BLAH, BLAH.
NONE OF THEM HAVE BEEN PERFORMED.
AND EVEN AFTER THE BAILOUT, YOU SAY, WE THINK IT'LL BE QUICK IN A YEAR FOR A SMALL BUSINESS, YOU KNOW, THEY CAN CLOSE IN A YEAR.
NO, I, I APPRECIATE PARTICULARLY THE LATTER POINT, MR. PRESIDENT, I, I'M SENSITIVE TO, TO, UM, SMALL BUSINESS NOT GETTING PAID AND WE'LL TRY TO EXPEDITE THOSE BUSINESSES, UM, AND, AND PAY THEM.
WE JUST HAVE TO MAKE SURE WE MANAGE CASH TO, TO STAY SOLID TO DO THAT.
AND, AND WE WILL DO THAT AS IT RELATES TO THE, UM, THE, THE CASH.
LIKE AS AN OPERATOR WE WERE DRIVING REVENUE AS, AS YOU KNOW, AS PART OF OUR RESPONSIBILITY AND OUR DUTIES, UM, FOR THE OPERATIONS OF THE PARK.
YOU KNOW, WHAT'S HAPPENED TRANSPIRED IS THAT FOR ALL THE PROJECTS THAT WE'RE DISCUSSING AND, AND WHAT WENT REFERENCED, LIKE SOME FUNDS WERE, YOU KNOW, SPENT AND REALLOCATED TO PAY FOR OTHER EXPENDITURES.
AND THAT WAS ANTICIPATED NOT BY VALLETTA, BUT WHEN WE WERE WORKING WITH THE FORMER LEADERSHIP ABOUT OTHER FUNDS COMING IN TO PAY FOR IT.
SO WE WERE GETTING SOME DIRECTION TO MOVE SOME FUNDS AROUND AND PAY FOR BILLS.
AND THOSE PAY, NOT ONLY WERE THEY PAYMENTS MADE, BUT ACTUALLY, UH, APPROVALS AS REVIEW AND APPROVALS FOR PAYMENTS FOR THOSE FUNDS.
AND SO FRANKLY, SOME FUNDS JUST DID NOT MATERIALIZE TO COVER, WHICH IS WHY WE HAVE THIS GAP RIGHT NOW.
BUT, BUT WE HAD GENERATED REVENUE, PARTICULARLY FROM THE OPERATIONS THAT WE SAID RECOGNIZE, WE MAY HAVE MET, NOT MET ALL THE PROJECTIONS THAT YOU SPOKE OF ORIGINALLY, BUT WE WERE DRIVING SOME REVENUE, BUT WE HAD ALSO MORE CAPITAL PROJECTS THAT WERE ALSO GETTING FUNDED.
WELL, I THINK IT'S NOT SOME MATERIALS, THERE'S NOT ONE BUILDING WHICH HAS BEEN LEASED OUT.
WE HAVE AN ASSET, DALLAS HAS THE SHORTAGE OF THE, YOU KNOW, BUILDINGS, WHICH WE HAVE HAD.
ONLY ONE BUILDING WAS LEASED OUT THAT WAS ALSO NOT OB G THAT WAS ALSO NOT DONE BY SPECTRA.
I THINK WE HAVE ASSETS OTHER, BUT THEY WENT TO NON-PROFITS, WHICH ARE PARTNERS LIKE SPORTS COMMISSION AND ALL FOR ZERO REVENUE.
UM, I THINK IN OTHER, SO CLEARLY, AND WHEN YOU SAY IT WELL COMBINE TWO THINGS AT THE SAME TIME.
AND THEN YOU SAY YOU WERE AUTHORIZED BY SOMEONE OBG WAS DOING THE PAYROLL TO PRETTY MUCH YOU WERE COVERING UP BY SAYING I THINK MAYBE IT'S EASIER, BRIAN
SO, AND I'M NOT TRYING TO BE A DEVIL'S ADVOCATE, BUT SEEMS LIKE THAT WAS A COVER UP IN TERMS OF, HEY BRIAN, CAN WE USE IT? HE SENT THE MAIL AND NOW YOU ARE SHOWING THAT MAIL TO US.
SOMEONE SHOULD HAVE BEEN SMART ENOUGH IN OBG 360 TO ALSO KNOW HE WHAT THE FUNDS WHICH ARE ALLOCATED.
WELL, I MEAN, RESPECTFULLY, MR. PRESIDENT,
[00:55:01]
IT WASN'T OUR, OUR ROLE IN, IN MANY RESPECTS LIKE WE WERE.SO WHAT IS YOUR ROLE? JUST TO TAKE OUR ASSETS AND MONETIZE THAT AND NOT BRING ANY REVENUE, WHICH YOU PROMISED US.
NO, OUR ROLE WAS TO SERVE AS AN OPERATOR, BUT WE WERE ACTING ON BEHALF OPERATOR TO GIVE THE BUILDINGS AWAY WITHOUT ANY PUBLIC CONTRACTS TO TAKE OUR ASSETS, NOT HAVE ANY PUBLIC BIDDING, GIVE IT TO YOU AND TAKE THE PROFITS TO PHILADELPHIA.
UH, SIR, WE DID GO THROUGH PUBLIC BUILDING WHEN APPROPRIATE.
WE DID IT DID THAT IN CONJUNCTION WITH THE PRIOR LEADERSHIP OF CAREMARK FIRST, UH, CAN YOU NAME WHICH ONE YOU WENT WITH? PUBLIC BIDDING, OLD MILL PARK, GOLD MILL RESTAURANT.
DID YOU GO PUBLIC BID WHERE OUR FUNDS WERE USED TO RESTORE THOSE AS IT RELATES TO, WELL, I WAS REFERRING TO SOME OF THE CONTRACTS THAT WE ACTUALLY BID WITH THEM.
I CAN, WE CAN PROVIDE A LIST OF, OF WHAT WAS BID AND WHAT WAS NOT FOR YOU.
I DON'T HAVE, WE CAN GET THAT FOR YOU.
OKAY, SO NOW STAY YOUR PLAN IS THAT YOU SAY IT'LL DO IT QUICK AND IT'LL BE ONE YEAR BEFORE WE PAY THE VENDORS.
IS THAT WHAT I'M HEARING? IF CITI BAILS YOU OUT, I WAS SUGGESTING WE WOULD HAVE TO WORK, YOU KNOW, WITH THE, WITH YOUR STAFF.
BUT I'M SUGGESTING THAT WE THINK THERE'S A PATH THAT WE CAN EXPEDITE AND TRY TO GET SOME OF THESE OR GET ALL OF 'EM PAID FOR AND THAT WOULD REQUIRE SOME ADDITIONAL SUBSIDY, BUT MAYBE IN THE FORM OF ADVANCE IF WE'RE GONNA DRIVE MORE REVENUE THROUGH SOME OTHER OPPORTUNITIES.
SO WHY CAN'T YOU PROJECT YOUR REVENUES AND BE YOURSELF? YOU ARE A BILLION DOLLAR COMPANY.
WHY DO YOU WANT MONEY FROM CITI? SO OUR OUR JOB AS AN OPERATOR, WE'RE NOT, IT'S NOT OBLIGATED FOR US TO PAY FOR THESE.
IT'S NOT OBG, IT'S OBG MANAGING THE FACILITY.
SO THE REVENUES ARE ALL COMING FROM THE FACILITY AND FROM THE OPERATIONS, NOT FROM OBG.
LIKE WE, WE ARE ACTUALLY, WE'RE NOT, WE'RE GONNA DEFER OUR PAYMENT FOR ANY FEES THAT WE WOULD RECEIVE.
AND, UH, AND CAN YOU TELL ME HOW MUCH OVER WHEN THESE VENDORS HAVE NOT BEEN PAID, HOW MUCH OVG HAS BEEN PAID FOR THE SERVICES? UH, I MEAN, I I WE CAN CERTAINLY PROVIDE THAT FOR YOU.
YEAH, I CAN FIND OUT HOW MUCH WE'VE HAD, WE'VE BEEN PAID OVER THE LIFE OF OUR CONTRACT.
I JUST KNOW WHAT WE HAVEN'T BEEN PAID IN THE LAST AS PART OF THIS PAPER'S DISCUSSION, BUT I CAN GET THAT FOR YOU, SIR.
I THINK I WOULD LIKE TO SEE THAT IF OB G HAS BEEN PLAYED BY MY SMALL VENDOR, SMALL VENDORS WHO CAN GO OUT OF BUSINESS AND TODAY ALSO WHAT THEY'RE HEARING IS THAT BE YOU'LL EXP EXPECT EXPEDITE IT AND IT'LL BE AN CLEAR YES.
UH, MY QUESTIONS, UH, ARE ABOUT AN EMAIL SENT BY, UH, MR. UM, AHERN, UH, I HOPE I SAID HIS LAST NAME PROPERLY.
UH, SSVP, UH, OBG, UH, OCTOBER 15TH.
UM, IN THIS EMAIL, UH, IT, IT INCLUDED SEVERAL RECEIPTS OR INVOICES PERTAINING TO, UH, MR. BRIAN BRIAN'S, UH, INVOLVEMENT IN, IN THE APPROVAL OF, OF SOME OF THESE EXPENSES.
NOW WITH, WITHOUT ANY CONTEXT OR HISTORY OF THESE, ONE WOULD THINK ONLY FROM ONE SIDE.
SO, SO TO BETTER UNDERSTAND THIS MORE COMPREHENSIVELY, UM, I'D LIKE TO ASK MS. LIL, AND, AND, AND MR. DALE, I'M GONNA START WITH MS. LITTLE FIRST TWO, TWO SIMPLE QUESTIONS.
UM, NUMBER ONE, ARE THERE ANY INDICATIONS THAT ANOTHER AUTHORITY WOULD'VE BEEN INSTRUCTING MR. LOYN TO APPROVE THESE MISCLASSIFICATION OF FUNDS? AND THE SECOND QUESTION IS, IF IT WAS AN OBVIOUS MISCLASSIFICATION OF FUNDS, WHY WAS IT NOT STOPPED BEFORE BEING PAID? UM, YOUR FIRST QUESTION GOES TO, WOULD THERE BE ANYONE ELSE DIRECTING MR. WELLEN? DO I, DID I UNDERSTAND IT? CORRECT.
UM, THERE WOULD'VE BEEN DISCUSSIONS WITH PERHAPS THE, THE BOARD CHAIR AND PERHAPS THE, UM, GENERAL MANAGER NOT KNOWING A SPECIFIC, SO THE GENERAL MANAGER, THE OBG GENERAL MANAGER WOULD ALSO HAVE BEEN PRIVY TO THIS.
AND ONE, ONE OF THE CHALLENGES RELATED TO SOME OF THOSE INVOICE THAT, THAT DISTRIBUTED, IT'S HARD TO TELL THE CONTEXT.
AND YOU, YOU INDICATED THAT MR. VALLAN DID NOT HAVE SIGNATORY ON AN ACCOUNT OKAY.
WITH THE EXCEPTION OF IF THERE WAS A CREDIT LINE ISSUE NOW.
SO HE DID NOT HAVE CREDIT, HE DID NOT HAVE SIGNATORY ON THE ACCOUNT.
THE OTHER QUESTION IS, AFTER YOU ASK FOR THIS, THERE ARE TWO COMPONENTS THERE.
THERE IS ALSO THE DONOR AGREEMENT WHICH SAYS, THIS IS HOW I WOULD LIKE MY, MY FUNDS TO EXPECT.
AND THAT IS TURNED IN WHEN THE CHECK THE A CH COMES IN AS WELL.
SO ONE, ONE WOULD ASSUME WHEN YOU ARE BEING INSTRUCTED TO PAY, YOU WOULD ALSO CHECK A DONOR AGREEMENT AS IT WOULD USUALLY BE A LARGE, A SPECIFIC PROJECT THAT YOU MIGHT WANNA KNOW.
[01:00:01]
THANK YOU.THANK YOU MS. UH, MR. DEL? ANY, I'LL REPEAT THE QUESTION, UH, IF IT HELPS, UH, ARE THERE ANY INDICATIONS THAT ANOTHER AUTHORITY WOULD'VE BEEN INSTRUCTING MR. WELLEN TO APPROVE THE MISCLASSIFICATION OF THE FUNDS? AND, AND NUMBER TWO, UH, IF IT WAS A MISCLASSIFICATION, WHY WAS IT NOT STOPPED? YES.
SO I THINK JUST TO TAKE A A STEP BACK, I MEAN, FIRST AS I SUGGESTED WHAT OUR ROLES WERE, PARTICULARLY AS IT RELATES TO, UH, RESTRICTED FUNDS, UH, AS IT RELATES TO THE CAPITAL CAMPAIGN AND IT RELATES TO THESE CAPITAL PROJECTS, WE ARE NOT AUTHORIZING OR OR INITIATING THESE CAPITAL PROJECTS.
WE ARE IN A CONFLICT MANAGEMENT CAPACITY AND WE'RE ALSO IN A ADMINISTRATIVE CAPACITY AS IT RELATES TO ADMINISTRATIVE FINANCES.
SO EITHER IT WAS EITHER BRIAN LU WELLON OR DARREN, THE CHAIR THAT GAVE US, UM, DIRECTION.
I CAN'T SPEAK TO WHAT DARREN MAY HAVE DELEGATED TO BRIAN OR OR WHAT HAVE YOU.
BUT I CAN TELL YOU IN OUR DOCUMENTATION, EVEN BEFORE YOU, YOU GO BACK AND REVIEW THE INVOICES IN TERMS OF REVIEW AND APPROVAL, THERE'S EVEN CLEAR, UM, EXPECTATIONS, UH, THAT WERE GIVEN TO US ABOUT EVEN HOW EXPENDITURES SHOULD BE CATEGORIZED.
AND SO I WILL TELL YOU IS IN A, UM, EMAIL EXCHANGE AS IT RELATES TO THE 2022 AUDIT, THE AUDITORS WERE ASKING ABOUT HOW TO, TO CLASSIFY OR CATEGORIZE CERTAIN EXPENDITURE.
UH, BRIAN GAVE US VERY CLEAR DIRECTION, AND I CAN READ PARTS OF IT TO, TO BE CLEAR, THE FIRST STATED THAT, YOU KNOW, CAPITAL FUNDS ARE NOT TO BE DISPERSED WITHOUT THE APPROVAL OF THE CEO AND OUR BOARD CHAIR OR REFERENCES THE TREASURER AS WELL.
THE SECOND THING IS HE THEN SAYS THOSE VENDORS, MERCHANTS, CONSULTANTS, WORKING IN THE CAPITAL CAMPAIGN ARE NOT WORKING ON GENERAL AREAS OF OPERATIONS AND, AND WOULD PRIMARILY INCLUDE THE FOLLOWING, THOUGH NOT NECESSARILY LIMITED TO, AND THEN IT LISTS ALL OF THE VENDORS THAT WOULD THEN QUALIFY FOR THAT.
SO THAT'S NOT, TO ME, OUT OF CONTEXT LIKE THAT IS SETTING THE, THE CONTEXT FOR HOW ALL OF THOSE VENDORS ARE NOW BEING QUALIFIED AND THAT DIRECTION WAS GIVEN CLEARLY TO US.
IT MAY BE THE CASE AFTER THE FACT NOW THAT THEY MAY NEED TO BE RECLASSED, BUT THAT WAS CLEAR IN THE CASE TO US, BUT WE WERE SEEKING DIRECTION AND THE AUDITORS WERE ASKING FOR, FOR WHICH THE AUDITOR THEN ISSUED A CLEAN OPINION BASED ON THIS CHARACTERIZATION.
SO I, I JUST, I I HOPE THAT ANSWERS YOUR QUESTION.
THAT THAT WAS NOT ONLY OUT OF JUST IN THE CONTEXT OF REVIEW AND APPROVAL, BUT ALSO DIRECTLY TO CHARACTER CATEGORIZE THOSE EXPENDITURES.
I WOULD ALSO ADD THAT THERE, WHAT HAS BEEN ONE RECLASSIFICATION IN A PARTICULAR YEAR, AND MR. MALOR WILL, WILL KNOW THAT MR. MALOR IN, IN WORKING ON THE AUDIT IN 22, DISCOVERED THAT AND REALIZED THERE HAVE BEEN FOUR CFOS IN FIVE YEARS.
AND SO YOU HAD A, YOU LACKED INSTITUTIONAL MEMORY WITH REGARD TO THIS.
IT HAD TO BE A RECLASSIFICATION OF, I THINK IT'S $953,000 AND MR. MALOR, YOU KNOW, IT IS 9 53.
AND WE DISCOVERED WE HAD, WE HAD RECEIVED NOTIFICATION THAT THEY WEREN'T RESTRICTED THEN FROM THE CFO AND THEN WE REALIZED, THEN YOU LOOKED IT UP, I'M GONNA ASK MARK TO RESPOND TO THIS, BUT WE HAD TO RECLASSIFY IN THE FOLLOW NINE 90, CORRECT? THAT WAS A PART OF THE FINANCIAL STATEMENT AUDIT PROCESS FISCAL YEAR, SEPTEMBER 30TH, 2021.
WE ARE ENGAGING IN OUR FIELD WORK AND OUR INQUIRIES OF MANAGEMENT AND SO ON A NON-PROFIT FINANCIAL STATEMENT PRESENTATION IN THE STATEMENT OF ACTIVITIES WE'RE REQUIRED TO PRESENT NET ASSETS WITH DONOR RESTRICTIONS AND NET ASSETS WITHOUT RESTRICTIONS.
AND SO JUST A ROUTINE INQUIRY WAS, UH, MADE OF LISA AMANDA, WHO WAS THE FINANCIAL OFFICER AT THE TIME FOR OGB.
WE ASKED, UH, IS THERE ANY FUNDRAISING INCOME THAT'S TEMPORARILY RESTRICTED? DO YOU HAVE GRANT AGREEMENTS FOR ME? AND THIS WAS A PART OF THE AUDIT PROCESS.
AND THEN SHE RESPONDED, NO FUNDRAISING INCOME THAT WAS TEMPORARILY RESTRICTED.
AND SO WE TOOK IT INTO SPACE VALUE AND WE MOVED ON.
WELL, WE ULTIMATELY LEARNED THAT IN FACT THERE WAS A CAPITAL CAMPAIGN IN PROGRESS THAT WAS INITIATED AT THE BEGINNING OF 21 AND THERE WAS IN FACT 952 OR $982,000 OF COL OF PROMISES TO GIVE AND COLLECTIONS DURING THAT PERIOD UNDER AUDIT.
IT ENDED UP GETTING MISCLASSIFIED AND
[01:05:01]
REPORTED AS UNRESTRICTED CONTRIBUTIONS.AND THEN THERE WERE NO, UH, ASSOCIATED EXPENDITURES WITH THAT BECAUSE WE AS OFFICERS WERE NOT AWARE OF THAT JUST BASED ON REPRESENTATION OF MANAGEMENT.
SO, AND THEN TO THE, SPEAK TO THE SECOND QUESTION, THE, THE FOLLOWING YEAR, THE AUDIT, WE WE'RE AWARE OF THE CAPITAL CAMPAIGN.
WE KNOW WE'RE GONNA HAVE TO RESTATE THE 21 FINANCIAL STATEMENTS AND WE ARE TRYING TO HEAD THIS ISSUE OFF THE 22 FINANCIAL STATEMENT AUDIT.
AND SO WE ASKED, UH, DWAYNE, WHAT'S DWAYNE'S LAST NAME? BLANK, DWAYNE BLANK, WHO HAD BEEN BROUGHT IN TO TELL LISA'S POSITION WHEN SHE, UH, LEFT THE COMPANY.
AND SO DWAYNE, TO HIS DEFENSE, HE WAS NOT, I MEAN HE DIDN'T HAVE FEET ON THE GROUND FOR A LONG TIME BEFORE HE GOT THRUST INTO THE AUDIT PROCESS.
AND SO WE SAY, MORNING, DWAYNE, HOW DO WE DETERMINE AMOUNTS? AND THIS IS FROM THE SAME EMAIL THAT GREG'S REFERRING TO, HOW DO WE DETERMINE AMOUNTS FOR QUALIFYING EXPENDITURES MAY MEET THE RESTRICTION REQUIREMENTS OF THE COMMUNITY PARK CONTRIBUTIONS RECEIVED, AND AS SUCH, MAKE CONTRIBUTIONS ELIGIBLE FOR RESTRICTION RELIEF.
SO THAT WAS THE AUDITOR'S QUESTION TO MANAGEMENT OPERATOR.
SO, AND I DID NOT KNOW THIS AT THE TIME, BUT THIS EMAIL GETS FORWARDED TO BRIAN ON FEBRUARY 23 AND HE SAYS, HI BRIAN, HOW WOULD YOU LIKE FOR ME TO ANSWER THE QUESTION BELOW FROM THE AUDITORS? WELL, HAD I SEEN THAT RESPONSE AT THE TIME, THE RED FLAG WOULD'VE GONE UP IN TERMS OF IF MANY OF US NOT EVEN AWARE THAT THEY'RE EXPENDED EXPENDITURES FOR RESTRICTED ACTIVITIES BEING MADE, HOW IN THE WORLD ARE THEY GONNA BE ABLE TO ACCOUNT? AND THEN BRIAN'S RESPONSE IS BASICALLY TO THAT POINT, WELL, IT'S NOT THE EASIEST THING AT THE MOMENT, GIVEN THE LIMITATIONS WITH OUR ACCOUNTING TOOLS AND HOW EXPENSE SHEETS WERE BUILT AGAINST CONVERSATIONS, WE'VE BEEN HAVING SEPARATE FUNDING AND EXPENSE CATEGORIES, AGAIN, FROM THAT SAME EMAIL THAT WE'RE TALKING ABOUT, RIGHT GREG? AND THEN BRIAN DOES GO ON TO SAY THAT THESE VENDORS, JUST LIKE GREG SAID, ALL THIS MISSED VENDORS WOULD, UH, NOT BE WORKING ON GENERAL AREAS OF OPERATION AND WOULD PRIMARILY INCLUDE THE FOLLOWING.
WELL, AND FACT THAT TURNS OUT TO BE INCORRECT BECAUSE THE, UH, ONE OF THE VENDORS HE LISTED WAS OVERLAND PARTNERS IN THAT, AND OPERATOR INCLUDED ALL THE VENDORS THAT HE LISTED AS QUALIFYING EXPENSES, WHICH GAVE US THAT INITIAL LIST OF EXPENSES THAT WE STARTED FROM ON THE AGREED UPON PROCEDURES INCLUDED OVERLAND PARTNERS, WELL, OVERLAND PARTNERS WAS ALSO ENGAGED TO CONDUCT THE PROP, A MAYOR PARK FACILITY ASSESSMENT.
IT HAS NOTHING TO DO WITH THE DONOR MONEY.
THAT'S THE 1.86 MILLION THAT WE TALKED ABOUT THAT SHOULD HAVE BEEN REQUESTED REIMBURSEMENT FROM THE CITY BECAUSE THE CITY IS THE ONE THAT INSTRUCTED, AS I UNDERSTAND IT, FAIR PART FIRST TO UNDERTAKE THIS IN, UH, STUDY TO BEGIN WITH.
SO IT IS, DOES THAT ANSWER YOUR QUESTION? YEAH, I'M GOOD FOR NOW.
I'M SURE YOU'RE GONNA SLEEP REALLY GOOD.
I HAVE ONE VERY EASY QUESTION.
HOW MANY PEOPLE ARE EMPLOYED BY FAIR PARK? FIRST? HOW MANY EMPLOYEES DOES FAIR PARK FIRST HAVE AT THE MOMENT WITH THE CEO POSITION OPEN? WE HAVE TWO FULL-TIME EMPLOYEES AND, AND THREE PART-TIME.
I LOVE NUMBERS AND I'VE BEEN LOOKING AT ALL THESE NUMBERS AND I THINK, YOU KNOW, MY TAKEAWAY FROM ALL OF THIS WAS JUST SOME INCREDIBLY SLOPPY BOOKKEEPING FINANCIAL OVERSIGHT.
I MEAN, AT THE END OF THE DAY, THAT'S WHERE WE ARE.
YOU'VE GOT, YOU KNOW, 5.7 THAT WAS USED IN A WAY THAT IT SHOULDN'T HAVE BEEN USED, UM, OVER FOUR YEARS BASICALLY.
PLUS YOU'VE GOT THIS ADMINISTRATION FEE OF $844,000 THAT WAS USED, UH, OVER THOSE FOUR YEARS FOR PROJECTS THAT ARE NOT COMPLETE.
SO TO ME, THAT'S ANOTHER 800 OVER FOUR YEARS.
SO IF YOU ADD ALL THAT UP AND YOU DIVIDE IT BY FOUR YEARS, IT'S $1.6 MILLION THAT WAS USED THAT WAS NOT AVAILABLE.
PLUS WE HAVE OUR $6 MILLION IN OUTSTANDING PAYMENTS THAT NEED TO BE.
SO IF YOU ADD ALL THAT UP, WE'RE AT ABOUT $8 MILLION IN OUR RUN RATE THAT WE DON'T HAVE.
SO MY QUESTION TO OBG IS, IS THIS SUB, IS IT SUSTAINABLE GOING FORWARD? ARE
[01:10:01]
YOU GUYS GONNA BE ABLE TO, TO OPERATE THE PARK IF YOU'RE AT A $8 MILLION ANNUAL ALL AND WHAT YOU NEED TO, TO DO WHAT YOU NEED TO DO? UM, THANK YOU FOR THE QUESTION.I, I DON'T, I I THINK THE, UM, SOME OF THE PROPOSED CHANGES THAT WE TALKED ABOUT IN TERMS OF REDUCTION, UH, IN SERVICES AND ALSO, UM, YOU KNOW, THE EFFORTS FOR OPPORTUNITIES FOR, FOR INCREMENTAL REVENUE, WE THINK IT IS SUSTAINABLE.
AND THEN HAS TALKED, UM, ABOUT ALSO ON HER END, UM, HOW THEY'RE MANAGING WHAT WILL NOW BE THEIR MILLION DOLLAR BUDGET.
BUT FOR THE $2 MILLION, AGAIN, ADDRESSING THE SPECIFIC, UM, PAYABLES OBVIOUSLY WE, WE ALL HAVE TO DEAL WITH, BUT WE BELIEVE IT IS SUSTAINABLE, UM, ON FOUR BASIS.
SO YOU THINK NEXT YEAR YOU CAN, YOU CAN MAKE $8 MILLION BEYOND WHAT YOU'RE ALREADY MAKING BECAUSE IT, I, YOU KNOW, I'M NOT SUPER FAMILIAR WITH YOUR ORIGINAL CONTRACT, BUT THERE WAS SOME COMPONENT OF FUNDRAISING THAT WAS KIND OF ON PART OF OBS AND THE ORIGINAL PITCH THAT YOU MADE TO THE CITY.
I KNOW WHEN THERE WAS A BIDDING PROCESS, THERE WERE MULTIPLE PEOPLE THAT WERE BIDDING AND THE, THE QUESTION CAME UP, WELL, HOW MUCH DOES THE CITY NEED TO GIVE A STIPEND? AND YOU GUYS CAME OUT SMELLING LIKE ROSES AND WON THE, WON IT AND LIKE, YOU KNOW, BECAUSE YOU WERE GONNA BE ABLE TO USE FUNDRAISING AND NOT ASK FOR STIPEND FROM THE CITY.
AND HERE WE ARE FAST FORWARD AND IT'S LIKE WHOOPSY GYPSY, I GUESS WE COULD KIND OF DID NEED THAT STIPEND.
SO HOW DO YOU ANSWER THAT? SO I MEAN, AS IT RELATES TO THE 8.6, I THINK 8.6, AS YOU MENTIONED, PART OF THAT IS THE OUTSTANDING PAYS.
AND IF WE RESOLVE THAT PAYS ON A GO FORWARD BASIS, I DO THINK THE OPERATIONS THAT WE WILL HAVE WILL DRIVE ENOUGH REVENUE TO SUSTAIN IT.
WE DO HAVE TO ADDRESS SEPARATE PART.
I WILL SAY THAT FROM THE FUNDING PERSPECTIVE, UM, I KNOW, UH, VAL HAS TALKED ABOUT WHAT THEY'RE DOING THAT CAN SUSTAIN THEIR FUNDRAISING OPERATIONS FOR, FOR THE COMMUNITY PARK ASPECT.
BUT WE DO HAVE TO, TO ADDRESS THE, THE, UM, AS WELL.
THAT'S, THERE'S NO GETTING ON THAT.
I'M, I'M STILL PERPLEXED ON HOW WE'RE GONNA GO FROM BEING $8 MILLION SHY TO, TO BEING IN THE BLACK, BUT, ALRIGHTY.
UM, THE LAST QUESTION I HAVE IS, IT LOOKS LIKE, UM, OVER THE COURSE OF THE LAST COUPLE YEARS, WE'VE SPENT, UH, ALMOST $6 MILLION ON A, A PARKING LOT THAT I DON'T THINK WE'VE BUILT.
AND, UM, $4 MILLION OR, OR $6 MILLION WAS SPENT TOWARDS THE PARK.
IS THAT RIGHT? AND 4 MILLION ON OVER THE GARAGE.
WHAT, WHAT DID, WHAT DID WE SPEND ALL THAT MONEY ON? JUST CURIOUS.
UM, AS PART OF THE DEVELOPMENT OF THE PARK, THERE WAS ORIGINALLY TO BE PARKING GARAGE OR DISPLACED PARKING, WHICH WAS UTILIZED FOR THE STATE OF TEXAS AND BY NATURE.
AND SO THAT NEEDED TO BE REPLACED.
SO THERE WAS ALWAYS A PARKING GARAGE CONTEMPLATED.
AND IT, THAT PARKING GARAGE, WHICH WAS IN THE ORIGINAL BUDGET AS $30 MILLION, THERE WAS SCOPE CREEP AND THERE WAS DECISIONS MADE TO DO MORE THAN A PARKING GARAGE WAS AN EVENT SPACE MAINTENANCE SPACE.
AND WE HAD A SIMILAR PROBLEM ON THE PARK.
IT STARTED OUT AS A, ABOUT A ACRE PARK.
AT SOME POINT IN THE DISCUSSIONS WITH FIFA AND SO FORTH, IT TURNED INTO 15,000 LAWN SEAT AND A SCHULER SHARP DESIGN STAGE WITH GREEN ROOMS. THAT HAD TO BE, THAT WAS QUITE FRANKLY RIDICULOUS.
I THINK THE PERCEPTION THAT MR. SULLIVAN HAD WAS THAT WOULD BE ANOTHER FIFA VENUE FOR FANFEST, AND THAT'S HOW THAT SCOPE CREEP OCCURRED.
UM, THE FUNDS HAVE BEEN SPENT ON TRAFFIC STUDIES, ARCHITECTS, ENGINEERS, THAT SORT OF THING.
AND WHO GOING FORWARD SINCE, TO ME THAT'S $10 MILLION.
ABSOLUTELY NOTHING IS MOVED FORWARD.
SO GOING FORWARD BETWEEN OB G AND FAIR PARK FIRST, WHO, WHO IS GONNA BE THE PERSON RESPONSIBLE FOR OVERSIGHT OF THOSE TYPE OF PROJECTS? YOUR HONOR? WELL, I'LL JUST SAY, I MEAN, AS IT RELATES TO HOW WE BELIEVE IT, IT WAS MANAGED CURRENTLY OR PREVIOUSLY, WAS THAT, YOU KNOW, UM, THAT PARTICULAR PROJECT THAT YOU ASKED ABOUT, UM, UH, DARREN, THE CHAIR WAS, WAS PRETTY INTIMATE INVOLVED IN TERMS OF THAT SCOPE.
UM, AND SO I THINK ON A GO FORWARD BASIS, WE'LL CONTINUE TO SUPPORT, UH, FAIR PARK FIRST TO, TO MANAGE OR PERFORM PROJECT MANAGEMENT.
[01:15:01]
AS IT RELATES TO THE SCOPE OR OR DIRECTION, WE WILL FOLLOW THEIR DIRECTION IF WE'RE CURRENTLY STRUCTURED.SO IT IS A DRIVEN PRO, UH, PROCESS? WELL, YES AND NO.
I, I I, I SHOULD SAY THAT MR. SULLIVAN SIGNED ALL THE CONTRACTS ORIGINALLY, ESPECIALLY WHETHER IT WAS COMMUNITY PARK, WERE COTTON BOWL, UM, THOSE WERE ALL SIGNED BY HIM ADMITTING THOSE INVOICES AND HIS GOING FORWARD.
OBG HIRED A PROJECT MANAGER, MR. GUY, IN THE BUDGET PROCESS FOR THIS YEAR.
THE REQUEST AND DISCUSSION BETWEEN STACY AND MELISSA ARNOLD, OUR INTERIM CEO, WAS THAT WE WOULD SHARE THE EXPENSE OF MR. GUIDANCE AS A PROJECT MANAGER.
SO THERE, UH, OBVIOUSLY RIGHT NOW COTTON BOLT IS BEING REED, AND SO THE ONLY INTEREST OF FAIR PARK, FIRST IN THE COTTON BOWL, PER SE, IS THE COTTON BOWL PLAZA FOR WHICH WE'VE RECEIVED A DONATION.
AND SO WE WILL HAVE REPRESENTATION AT THE TABLE ON THAT.
BUT THE REALITY IS, IS IT GOES FORWARD INSIDE, THAT WILL BE OBG AND MR. GUIDE BECAUSE THAT IS A CAPITAL PROJECT THAT YOU DO HAVE SCOPE FOR, DON'T.
SO, YEAH, AND I GUESS JUST TO BE CLEAR, WE WILL PERFORM OUR PROJECT MANAGEMENT AND DUTIES, BUT WE WILL DO SO AT THE DIRECTION OF FAIR PART FIRST WHEN YOU AUTHORIZE US ON THOSE CHEMICAL PROJECTS AS, AS WITH OTHERS.
AND I JUST WANNA BE CLEAR ABOUT THAT.
WE WILL BE FROM OUR DUTIES, BUT IT WON'T BE IN A VACUUM AND IT WON'T BE WITHOUT YOUR, YOUR DIRECTION AND AUTHORIZATION.
THAT'S BE CLEAR IN THAT ICONTINUE AND, AND, AND I JUST WANT TO BE CLEAR, YOU HAVE CAPITAL PROJECTS THAT YOU ARE OVERSEEING OF WHICH WE DON'T SIGN OFF ON.
AND THAT SPECIFICALLY WOULD BE, WOULD BE THE COTTON BALL.
SO EXCEPT FOR WE DON'T HAVE A DIRECT FINANCIAL INTEREST IN THAT, AND THEREFORE, MR. GUIDE US IS ACTING ON YOUR BEHALF IN THAT, IN THAT SCENARIO, IF WE ARE LOOKING AT THE COMMUNITY OF POWER, MR. ES IS ACTING ON OUR BEHALF.
CORRECT? IF YOU'RE REFERRING TO OPERATIONS, YES.
BUT AS IT RELATES TO THE CAPITAL PROJECT, WE KNOW FOR COTTON, WE, WE ARE NOT MAKING THAT PROJECT.
WELL, HE WOULD NOT MANAGING THE PROJECT, BUT MS. S IS IN ALL THE MEETINGS.
IS SHE NOT? WE'RE THE MEETINGS, BUT WE'RE NOT, I DON'T WANT TO GO TICKET TECH, BUT I I, I APPRECIATE YOU.
WE WILL SUPPORT, WE ARE IN THE MEETINGS AND WE'LL SUPPORT, BUT WE'RE, WE'RE NOT JUST TRYING THE PROJECT.
5.7 MILLION, THAT'S WHAT
SO WE AS A BODY NEED TO TELL COUNCIL WHAT WE THINK.
THIS THIS CLEARLY DEFINES MR. DELL.
ONE QUESTION TO FOLLOW THROUGH WHAT MS HAS BEEN ASKED.
SO FOUR YEARS BACK WHEN THIS CONTRACT WAS SIGNED, EXACTLY WHAT YOU SAID TODAY WAS SAID, WE WILL BE SUSTAINABLE.
YOU HAVE BEEN ON THE HELM OF AFFAIRS FOR TWO YEARS NOW, IF I'M NOT WRONG.
SO WHAT WOULD CHANGE NOW WHY YOU HAVE NOT DONE IT FOR THE LAST TWO YEARS? I'LL GIVE IT AWAY FOR SPECTRA AND LET YOU TAKE THE EXCUSE OF WHAT THEY DIDN'T DO.
THEY JUST SOLD YOU A YOU CREDIT CONTRACT.
SO WHY DIDN'T YOU DO ANYTHING FOR TWO YEARS FOR REVENUE? NO, I, IT WASN'T THAT WE WEREN'T DOING ANYTHING.
WE WERE TRYING TO DRIVE MORE REVENUE THROUGH OPERATIONS, BUT WE ALSO HAD THESE CAPITAL CAPITAL PROJECTS THAT WE WERE DISCUSSING AT OTHER COSTS ARE MUTUALLY EXCLUSIVE.
I'M SORRY, THOSE ARE MUTUALLY EXCLUSIVE.
THEY WERE ALL RENT OUR BUILDINGS TO, THEY COULD HAVE DONE BEEN DONE SIMULTANEOUSLY.
OUR EVENTS WOULD'VE BEEN BROUGHT SIMULTANEOUSLY.
AND I WOULD SUBMIT MR. PRESIDENT THAT WE, WE WERE DOING THAT.
WE ACTUALLY DID DRIVE AN INCREASED REVENUE THROUGH MORE EVENTS.
AND UH, I DON'T THINK IT'S THE RIGHT TIME, BUT WE STILL DON'T HAVE TRANSPARENCY OF THOSE REVENUES THAT HOW MUCH I'VE BEEN ASKING FOR ROLLING STONES ACCOUNTING, THAT HOW MUCH WAS ROLLING STONE, UH, HIGH FOR HOW MUCH OF THAT HAS BEEN COMING.
I STILL DON'T HAVE THAT ACCOUNTING FOR IT.
UH, WE BENEFITING CITIES BENEFITING, BUT WHICH IS BENEFITING MR. PRESIDENT.
WE'LL MAKE SURE WE GET THAT TO YOU.
IF YOU HAVE NOT RECEIVED IT, WE WILL GET THAT FOR YOU.
I ASKED YOU PERSONALLY, TWO YEARS BACK IN OUR FIRST MEETING, THAT THING AND YOU SAID SAME THING.
HAVE NEW, UH, LET ME COUPLE SUGGESTIONS OF WHY I DO HAVE A QUESTION.
[01:20:01]
EVERYONE KNOWS THAT I AM A PRODUCT OF THE STATE FAIR IN THAT COMMUNITY AND WHAT I DON'T WANT RIGHT NOW, STILL OVER, YOU KNOW, WE'VE HAD SO PROBLEMS, EVERYTHING OVER THE COMMUNITY, UH, MISS LEO, I REALLY WANTTHE $5.7 MILLION DID NOT LEAVE THE FIRST REPORT.
BUT WHAT I BOUGHT A GULF STREAM OR A YACHT, UH, THING WAS SET UP.
UH, BUT WHAT I'M HEARING THAT OBG IS WILLING TO WORK AND GIVE, UH, WHAT SHOULD HAVE BEEN ALL THE RESPONSIBILITIES TO THE FIRE PART FIRST.
AND SO WE HAVE A CONTRACT WITH IT.
SO MY QUESTION IS TO OBG 360, IS THIS GROUP WILLING TO AMEND THE CONTRACT AND PUT IT TO WORK WITH THIS DEPARTMENT? WHICH I DON'T, WHAT I'VE BEEN HEARING IS HASN'T BEEN DONE.
BUT I DON'T WANT THIS PROCESS TO DO SOMETHING DETRIMENTAL TO THAT COMMUNITY THAT I CAN GREW UP IN.
AND I'M A PRODUCT OF THE STATE FIRE WITH THE STATE.
AND FROM INCEPTION WE HAD EVERYBODY WAS GLEEFUL AND WAS GONNA BE REALLY A SHOT IN THE HOME FOR THAT COMMUNITY.
AND THERE'S NO ONE THAT LIVES IN THIS TOWN THAT DOESN'T WANT THE VERY PART TO BE SUCCESSFUL.
SO WE'RE AT THIS POINT NOW WHERE THINK THAT WE NEED GO BACK AND WE DO THIS CONTRACT AND GET THESE PARTIES WHERE WE'RE ALL ON THE SAME THING.
AND I, I DON'T THINK YOU FOR BEING HERE, YOU, YOU GOING, UH, UH, DO SOME STUFF, BUT, UH, HOPEFULLY YOU TO SIT HERE.
UH, I'M INVITED A HAPPY HOUR LATER.
THANK YOU FOR THE COMMENTS, SIR.
I QUESTION AND, AND I, UM, LOOK, WE, WE HERE, WE KNOW HOW IMPORTANTS MARK THIS TO YOU AND HOW IMPORTANTS MARK THIS TO THE COMMUNITY, UH, TO THE CITY.
SO WE ARE HAPPY TO ANSWER OUR QUESTIONS AND ROLL UP SLEEVES TO, TO RESOLVE THIS TO YOUR DIRECT QUESTION ABOUT OUR WILLINGNESS.
WE ARE, UM, MORE THAN WILLING WELCOME THE OPPORTUNITY TO RESTRUCTURE IN THE BEST INTEREST OF, OF THIS BOARD, OF THE COMMUNITY, UM, TO MAKE SURE THERE'S A LINE OF SIGHT, THERE'S DIFFERENT RESPONSIBILITIES, WE'RE CLEAR IF IT'S NOT CLEAR TO OTHERS.
AND WE, WE WELCOME, YOU KNOW, THE PARTNERSHIP.
I HAVE TREMENDOUS RESPECT FOR BRILINTA AND WE WANT TO MAKE SURE THAT, UM, WE COME TO RESOLUTION, UM, TO GET THIS DONE AND THE BEST INTEREST OF THE MARKET.
UM, I HAVE A QUESTION IN REGARDS TO, UM, SOME OF YOUR CHANGES THAT YOU'VE BEEN MAKING.
UM, HOW DID THE CHANGE FOR PARK AND REC, UM, TO DO YOUR MAINTENANCE OF THE BUILDINGS AND THE LAWN CARE, UM, HOW DID THAT COME ABOUT? SO, UM, MY UNDERSTANDING IS WE'VE HAD, WE WERE UM, I GUESS HAD DISCUSSIONS WITH, UM, MR. JENKINS AND HIS TEAM ABOUT THIS.
I'M NOT SURE WHO INITIATED THE WORK, BUT WE WERE CERTAINLY WILLING TO DO THAT.
WE'VE ONLY, I THINK, STARTED THE, THE CONVERSATIONS.
AND I THINK IF THE REQUEST GAVE THEM A SPECIFIC SCOPE AS TO WHAT WE WE DO, THEY HAVE NOT GIVEN US ANY YET.
LISTENING TO YOU COUNSEL YESTERDAY, YOU SAID THAT THAT WAS YOUR, UM, INITIATION, UM, BUT IT HONESTLY WAS MR. JENKINS WHEN YOU GUYS, UM, CAME TO US WITH A STIPEND REQUEST, UM, FOR A YEARLY STIPEND.
SO I JUST WANTED TO MAKE THAT CLARIFICATION.
SO NOW YOU'RE SAYING YOU DON'T KNOW WHERE IT REALLY CAME FROM.
IT WASN'T, UM, AND IN REGARDS TO THAT, UM, WHEN DID THEY START TAKING OVER? WHEN DID THEY START TAKING OVER? SO I I, I'M AWARE THAT, UM, THE STAFF HAS BEEN PROVIDING SERVICES, UM, PARTICULARLY AS IT RELATES I THINK TO THE PREPARATION FOR THE FAIR.
WE HAVE NOT HAD FORMAL TRANSITION, BUT I KNOW THEY, THEY'VE STARTED AND I, I CAN'T SPEAK TO THE FULL SCOPE OF WHAT THEY'RE DOING.
WHAT MORE FORMAL TRANSITION, UM, HAVE YOU MADE CHANGES IN YOUR STAFFING? BECAUSE YOU SAID YOU, YOU SAID THAT YOU HAVE BEEN MAKING, UM, DOLLAR OR SAVINGS, COST SAVINGS, UM, TO INITIATE.
HAVE YOU INITIATED ANY OF THOSE YET? I DON'T, I,
[01:25:01]
THE WAY I UNDERSTAND IS YOU HAVEN'T CUT ANY STAFF AS OF YET, AND IT'S BEEN OVER A MONTH THAT OUR PEOPLE HAVE BEEN DOING THE WORK, BUT YOU STILL HAVE THEM ON THE STAFF.WE, WE HAVEN'T CUT ANY STAFF YET.
AND I'M, I WANT TO BE SENSITIVE 'CAUSE OBVIOUSLY THERE ARE STAFF ARE, ARE NOT AWARE OF THAT PROCESS.
SO WE WANNA MAKE SURE THERE'S A WAY THAT WE ADDRESS THE, THE STAFF.
BUT, BUT, UM, IN FULL TRANSPARENCY, KNOWING THAT WE WERE HAVING THIS ONGOING DIALOGUE, UM, WE HAVEN'T FINALIZED AND FORMALIZED THAT, BUT WE WELCOME THAT AND WANT TO DO THAT IMMEDIATELY.
I, I DO BELIEVE THAT THERE'S A GOOD DIALOGUE AND I DO THINK THAT THE STAFF IS ACTUALLY AWARE OF IT BECAUSE YOU HEAR RUMBLINGS.
UM, I THINK THAT WE COULD ACTUALLY DO A VERY GOOD SEAMLESS TRANSITION AND HELP WITH WORKING WITH PARKS AND REC TO HOPEFULLY GET, BECAUSE SOME OF THEM FOLKS ACTUALLY TRANSITION FROM PARK AND REC TO OBG OR SPECTRUM AND, AND THEY CAN HOPEFULLY MAKE A SEAMLESS TRANSITION BACK.
WE, WE WOULD LOVE THAT, UM, BECAUSE THEY KNOW OUR PART BEST.
UM, AND MY SECOND QUESTION IS, YOU WERE, UM, IN THE CONTRACT ORIGINALLY, UM, TO RAISE $3 MILLION IN CONJUNCTION, UM, WITH, UM, FAIR PARK FIRST HAD OBLIGATIONS TO RAISE SO MUCH MONEY.
YOU GUYS HAD OBLIGATIONS YOU ACTUALLY HIRED DEVELOP OUR
UM, BUT OVER FIVE YEARS, THAT'S NEVER HAPPENED.
IT SEEMS TO BE, IF YOU GUYS WOULD'VE MET THAT, WE PROBABLY WOULDN'T BE HERE TODAY, UM, BECAUSE WE WOULDN'T HAVE A PLEATHER OF MONEY.
SO, UM, ARE YOU COMMITTED TO RAISING THAT MONEY OR WHAT, WHY DID WE NOT GET THAT MONEY? YEAH, I, I GUESS TWO A COUPLE THINGS I WOULD SAY FOR CLARIFICATION, UH, THE, THE, UM, NOT DISPUTING, UM, AT THE ONSET OF THE PROCESS THAT WE HAD HIRED, UM, MR. BEMAN TO PROVIDE FUNDRAISING, IT WASN'T ACTUALLY PART OF OUR CONTRACT.
IT STILL ISN'T TODAY THAT, THAT, THAT IT'S IN OUR CONTRACT TO DO THE FUNDRAISING.
BUT THAT EXPECTATION, UH, WAS THAT, AND CREATED, AS I'VE SHARED, I THINK MAYBE PREVIOUSLY THE LAST DISCUSSION WE HAD HERE, UM, YOU KNOW, WE HAD HAD SOME DISCUSSIONS, UM, WITH PARTICULARLY MR. BRIAN DEWELL ABOUT FUNDRAISING EFFORTS.
AND ONE OF THE CONCERNS WAS ABOUT HAVING TWO DIFFERENT FUNDRAISING, UH, APPARATUS, UH, IN THE, IN THE MARKETPLACE.
AND SO AT THE TIME WE WERE DIRECTED NOT TO HAVE ANY, ANY ADDITIONAL FUNDRAISING FOR OPERATIONS SO THAT THERE WOULDN'T BE CONFUSION IN THE MARKET.
UH, UM, I I CAN'T IMAGINE ANYBODY SAYING THAT TO RAISE MONEY.
UM, AND ONE OF MY FINAL QUESTIONS, UM, THE FUNDRAISING OR THE NAMING OPPORTUNITIES THAT YOU GUYS ARE SPEAKING OF FOR, UM, THE, UM, PARK ARE FOR THE COTTON BOWL, WHERE DID YOU GET A LOT OF THOSE LEADS FROM? WHERE DID THAT GENERATE FROM? IS THAT YOUR WORK OR IS THAT SOMEBODY ELSE'S WORK? MAYBE PERHAPS, UM, THE CONSULTANT THAT IS HIRED BY AIRMARK FIRST, UM, THAT ACTUALLY DROVE THEM LEADS TO YOU.
SO AS IT RELATES TO NAMING RIGHTS, UM, WE COULD HAVE RECEIVED LEADS FROM OTHERS.
I, YOU CAN SEE THAT WE ALSO HAVE A FULL-TIME DEDICATED TEAM WHO STARTS WITH LEADS FOR ALL THE CORPORATIONS THAT WE NEED
SO WE, WE GET LEADS FROM MULTIPLE THOSE STATES,
I, I DO BELIEVE THAT WE, WE WILL GET, WE'LL BE ABLE TO SECURE NAME RIGHT DEAL.
I REALLY DO CAN HAVE THAT TO KEN NOW.
I MEAN, I DON'T, I DON'T WANNA BE SKEPTICAL AND I DON'T WANNA GO ON THE, THE ANTI TRAIN BECAUSE I AM ALL ABOUT FAIR PARK AND THE SUCCESS OF EVERYBODY.
THAT'S YOUR THREE MINUTE, WE CAN'T DO THE TIP THE TAT.
I JUST WANNA MAKE A CLARIFICATION BETWEEN FUNDRAISING FOR OPERATIONS, RIGHT? AND, AND, AND THE PHILANTHROPIC VERSUS SPONSORSHIP AND COMMERCIAL RIGHTS AND NAMING RIGHTS.
SO, YOU KNOW, I I FEEL VERY COMFORTABLE THAT WE'LL BE ABLE TO GENERATE NAMING RIGHTS AND THROUGH THE COMMERCIAL THAT PROCESS OF, AS OPPOSED TO THE FUND RIGHTS FUNDRAISING.
MR THANKS FOR CLARIFYING HERE.
THAT FUNDRAISING IS TOTALLY DIFFERENT THAN REVENUE GENERATION THROUGH OPERATIONS, THROUGH EVENTS, THROUGH, UH, LEASING OF OUR BUILDINGS.
THAT'S WHAT OBG 360 WAS SUPPOSED TO DO.
FUNDRAISING WAS FAIR PARK FIRST, AND THEY FOUND HAVE A DECENT JOB.
I THINK THAT, I THINK WHERE IT HAS FAILED IS OG 360 BY NOT HAVING EVENTS, BY NOT LEASING OUR BUILDINGS, BY NOT BRINGING REVENUES FROM THE RESTAURANTS.
SO YOU, THANKS FOR IDENTIFYING THERE'S A DIFFERENCE BETWEEN THAT IF THAT REVENUE DO MORE FUNDRAISING, WE DO NAMING RIGHTS, WE CAN'T USE THAT FOR OPERATIONS.
[01:30:01]
YOU'LL HAVE TO BRING THAT REVENUE, WHICH WAS PROMISED FOUR YEARS BACK TO THE CITY.SO, MR. PRESIDENT, I, I, I UNDERSTAND YOUR YOUR POINT.
I I DO BELIEVE, AND, AND IF WE HAVEN'T SHOWED YOU THAT WE'VE DRIVEN MORE REVENUE, I THINK WE'VE OBVIOUSLY HAD INCREASE EXPENDITURES AND, AND WE'VE HAD TO COVER THE GAP FOR, FOR THE FUNDRAISING THAT DIDN'T OCCUR.
BUT WE HAVE DRIVEN MORE REVENUE.
WE, WE'VE INCREASED THE, THE EVENT COUNT, BUT WE ALSO CHANGED THE EVENT MIX.
AND SO WE WERE DRIVING MORE REVENUE, ADVANCE THE REVENUE, LIKE FOOD AND BEVERAGE AND OTHERWISE FOR THAT.
THE EVEN COUNT, WHICH YOU ARE SAYING IS YOUR SAME NUMBERS BY FEWER EVENTS, BY LARGER
BUT YOU ADDED TO THE, SO NO, I'M TALKING ABOUT THE S I'M TALKING ABOUT, TELL ME HOW MANY BUILDING THAT WE LIST EXCEPT THAT
I DON'T THINK THAT ONE BUILDING WHICH HAS BEEN LEASED.
UH, WE ACTUALLY DID SHARE THAT WE HOSTED 54 NEW EVENTS IN THIS CURRENT FISCAL LAST FISCAL YEAR, WHICH DID NOT INCLUDE FAIR PARK FOURTH, WHICH IS A LOST LEADER, RIGHT? LIKE, SO THAT EVENT DOESN'T MAKE MONEY.
IT DID MAKE MONEY FOR THE CITY AND IT DOESN'T MAKE MONEY NOW, BUT WE HOSTED AS A COMMUNITY EVENT, WE DID, UM, HOST, WE'VE HOSTED A TON OF FESTIVALS, SOCCER MATCHES, COMMERCIAL SHOOTS, AND ALL OF THOSE THINGS THAT WE TALKED ABOUT.
AND WE ARE DRIVING MORE REVENUE ON THE EVENT SIDE THAN THE CITY WAS WHEN THE CITY OPERATED THE CLUB.
SO THAT'S NO BENCHMARK WHEN CITY OPERATED, TRUST ME, IF C COULD HAVE DONE IT RIGHT, THEY WOULD NOT HAVE HIRED YOU.
SO WHAT I'M JUST SAYING IS WE TALKED ABOUT DRIVING REVENUE, I MEAN MEAN WE, WE HAVE MORE REVENUE.
JUST, UH, ONE OTHER THING THAT I JUST, I APPRECIATE YOUR, YOUR POINT AND I, WE NEED TO DO A BETTER JOB OF BENCHMARKING AND EXPLAINING TO YOU WHAT OUR FORECASTS ARE.
THE, THE THING I WOULD SAY THAT AS IT RELATES TO THE NUMBER AND THE QUALITY, THATS JUST TO PUT A LITTLE MORE CONTEXT, BUT WE WANT TO BE INTENTIONAL ABOUT DRIVING BIGGER AND LARGER COMMERCIAL EVENTS, CAMPUS AND CONCERTS.
WE WON'T EVER PRODUCE 10 S THERE, BUT WE'LL INCREASE THE NUMBER OF CONSTITUTION
AND WE SHOULD DO MORE OF THAT.
WE WE'LL LEVERAGE THE, UM, THE, CERTAINLY THE RENOVATIONS AND ALSO AS, AS WE'VE ALL TALKED ABOUT THE PREMIUM EXPERIENCE AND ELEVATING THE EXPERIENCE THAT WILL ALSO DRIVE MORE REVENUE.
SO I, I DO THINK THERE IS GONNA BE OPPORTUNITY FOR MORE REVENUE AND IT WILL BE INCREMENTING SOME MORE EVENTS, BUT ALSO WILL BE JUST DIFFERENT TYPE OF EVENTS THAT WILL DROP THERE.
PI GOTTA CLEAR UP SOMETHING, UH, THAT WAS SAID EARLIER, AND IT WAS MENTIONED YESTERDAY AT THE COUNCIL MEETING.
I DON'T WANT THE PUBLIC TO, UH, HAVE A WRONG UNDERSTANDING HERE.
UH, THE ADDITIONAL MONEY WE RECEIVED FROM THE CITY TO MAKE YOUR ADJUSTMENT, $1.7 MILLION.
IT WAS NOT FOR US JUST TO SPEND FOR STATE FAIR, STATE FAIR MAY GRADE.
WE HAD FOR THAT MIDYEAR ADJUSTMENT BECAUSE WE HAD A REQUEST FROM OBG TO ADDRESS A BUDGET DEFICIT BECAUSE OF US DEALING WITH, WE'VE BEEN DEALING WITH, UH, QUESTIONS SURROUNDING THE FINANCES.
I FELT LIKE IN MY BEST JUDGMENT, WE COULD NOT GIVE FAIR PARK FIRST OR OVG ANY ADDITIONAL FUNDS UNTIL AUGUST WAS CLEARED UP.
SO IN EXCHANGE WE OFFERED TO PERFORM MAINTENANCE.
WE WAS STILL TRYING TO GO THROUGH THAT PROCESS.
WE GOT CLOSER TO THE FAIR AND THE FAIR HAS A LEASED WITH US, AND THERE'S AN EXPECTATION THAT THE GROUNDS ARE SUPPOSED TO BE AT A CERTAIN LEVEL BECAUSE THEY'RE NOW LEASING THE GROUNDS FROM US.
BUT WE, BUT THE MONEY WAS ALSO SPENT ON DEFERRED MAINTENANCE THAT WASN'T HAPPENING.
AND MY STEP HAD TO COME IN AND, AND ADDRESS TREE WORK.
THEY HAD TO COME IN ADDRESS IRRIGATION.
THEY HAD TO COME IN AND ADDRESS FOUNTAIN WORK.
IT WAS DEFERRED MAINTENANCE THAT WASN'T HAPPENING.
BUT TO CREDIT TO STACY AND I MEAN TO, UH, MR. CHURCH AND TO GREG ODELL, THEY'VE BEEN HAVING A WILLINGNESS TO WORK WITH US TO MAKE SURE THEY ARE ADDRESSING THOSE ISSUES.
SO I WANT TO GIVE THEM CREDIT FOR THAT, BUT I WANNA MAKE SURE THE PUBLIC UNDERSTAND.
NO, WE DIDN'T SPEND THE MONEY $1.7 MILLION JUST TO, UH, TO, TO MAKE SURE THE FAIR WAS RUTHIE.
THANKS FOR CLEAR MR. GOLDSTEIN.
[01:35:01]
QUESTION'S PROBABLY BEST ANSWERED BY THE AUDITOR.WAS IT PART OF YOUR SCOPE OF THIS REPORT TO DETERMINE CONCLUSIVELY WHETHER ANY FRAUD OR MALFEASANCE? I THINK WERE, IT WASN'T A SPECIFIC OBJECTIVE, BUT AS A ROUTINE PART OF CONDUCTING AN AUDIT, IF ANY FRAUD COMES TO OUR ATTENTION, WE CERTAINLY BRING IT TO THE ATTENTION OF MANAGING.
SO CAN YOU SAY CONCLUSIVELY THAT FROM WHAT YOU'VE SEEN, UM, THAT THERE'S CONCLUSIVELY NO FRAUD.
UM, I I STILL FEEL LIKE WE'RE, I MEAN, THIS WAS ORIGINALLY CALLED A FORENSIC AUDIT THAT IT WAS CALLED AN AUDIT, THAT IT WAS NOT CALLED AUDIT.
SO I'M CONCERNED THAT WE'RE STILL ON SURFACE IN TERMS OF WHAT THE, THE MONEY WAS SPENT ON AND KIND OF WHAT WENT WRONG.
AND I THINK IT'S REALLY IMPORTANT THAT WE UNDERSTAND THAT MORE FULLY.
SO I JUST, THIS ISN'T A QUESTION, I JUST FEEL LIKE THERE'S A LOT MORE TO KNOW ABOUT HOW THIS ALL WENT DOWN SO WE CAN BETTER PREPARE TO, TO FIX IT IN THE FUTURE.
UM, AND I JUST WANT TO ASK BOTH
ARE YOU COMMITTED TO DOING REPAIR THIS RELATIONSHIP TO MAKE YOU COMFORTABLE GOING FORWARD ABOVE THESE? UM, WE'RE COMMITTED TO GETTING, GETTING IN THE ROOM TO MAKE SURE THAT FAIR PARK IS PROTECTED AND REVITALIZE.
THAT MEANS THAT WE'RE A WILLING PARTNER TO, BUT WE CANNOT CONTINUE.
OUR FIRST CANNOT CONTINUE IN A SUBORDINATE POSITION IN A CONTRACTUAL
OTHERWISE THE
I I, I DON'T KNOW THAT I HAVE ANYTHING DIFFERENT TO SAY.
UM, BUT THE WILLINGNESS AND THE STEPS THAT WE'RE WILLING TO TAKE TO ADDRESS THE OUTSTANDING ISSUES, BUT ALSO OUR WILLINGNESS TO, TO RESTRUCTURE CONTRACTUALLY, UM, IN THE BEST INTEREST OF THIS MARK AND, AND MAKE SURE THAT, UM, THIS BOARD IS COMFORTABLE WITH, WITH THOSE CHANGES.
AND I HAD A POINT TO, UM, YOUR QUESTION IN TERMS OF CONCERN, WHERE THE MONEY WAS SPENT.
SO $16,000,270,768 WAS INITIALLY REPORTED AS QUALIFYING EXPENSES.
WE'VE GOT 2014 LINE ITEMS THAT MAKE UP THAT TOTAL NUMBER.
EACH ONE OF THOSE LINE ITEMS HAS BEEN ANALYZED AND CLASSIFIED IN TERMS OF WHAT TYPE OF A PROJECT AND WHAT IT WAS CHARGED OUT TO.
AND SO WE DO KNOW WHERE THE MONEY WAS SPENT.
NOW, UH, LET ME GET BACK UP HERE AND TO SUMMARIZE, THERE WERE OF THAT $5 MILLION DEFICIT NUMBER THAT WE'RE LOOKING AT, IT WAS QUOTE UNQUALIFIED, BUT WAS SPENT ON ACTIVITIES IN THE PARK.
$2 MILLION OF THAT NUMBER, IT WAS SPENT ON THE COTTON BOWL.
AND I, AND I DON'T QUITE UNDERSTAND THE TRANSITION OF, INITIALLY IT WAS UNDER THE SCOPE OF FAIR PARK AND THEN IT, THEN IT CHANGED, AND MAYBE SOMEBODY CAN SPEAK TO THAT.
BUT THAT MONEY THAT WAS INITIALLY SPENT ON THE COTTON BOWL WAS ULTIMATELY DETERMINED TO NOT QUALIFY AS MEETING DONOR DESIGNATED RESTRICTIONS.
AND SO THAT'S WHY THAT MONEY WENT INTO THE UNQUALIFIED BUCK.
ADDITIONALLY, THERE WAS SEVEN HUNDRED AND TWO, SEVEN HUNDRED TWENTY $3,413 THAT WAS SPENT ON ACTIVITIES RELATED TO PROP.
AGAIN, PROP WAS NOT MONIES THAT WAS DESIGNATED BY THE DONORS FOR BEING A QUALIFYING EXPENSE.
IT GOT SPENT ON PROP A ACTIVITIES.
THERE WAS A LINE OF CREDIT THAT WAS UNDERTAKEN IN THIS PROCESS TO FINANCE ACTIVITIES.
THE LINE OF CREDIT WAS SECURED BY DONOR UNCONDITIONAL PROMISES TO GIVE.
THERE WAS INTEREST RELATED TO THE, ACTUALLY THERE WERE TWO LINES OF CREDITS, UH, REGENTS BANK AND A TEXAS CAPITAL BANK, UH, IN THE AMOUNT OF $541,663 OF INTEREST CHARGES RELATED TO THE DRAWS ON THOSE LINES OF CREDIT UP THROUGH APRIL THE 30TH.
THAT WAS NOT INCLUDED IN THE DONOR RESTRICTED PIECES OF FUNDS.
THEY DIDN'T SAY WE WANNA PAY FOR ENTRANCE EXPENSE.
SO THAT WAS EXCLUDED THIS ALLOCATION OF THE PARKING GARAGE, THAT'S 2.1 MILLION.
AGAIN, IN ORDER TO, IN THE SPIRIT OF GETTING THE PROJECT COMPLETE, OBG SAYS, WE WILL ACCEPT THAT.
BUT WE'RE NOT SAYING THAT WE AGREE WITH THAT ALLOCATION.
I DON'T KNOW WHAT THE ULTIMATE RESOLUTION OF, OF HOW THAT MONEY IS GONNA BE CHARGED OUT IN TERMS OF DOES IT QUALIFY OR DOES IT
[01:40:01]
NOT QUALIFY THAT, I THINK THAT IS THE SUBJECT OF THE NEGOTIATED AGREEMENT.THERE WAS $803,641 OF THAT COLLECTIONS THAT WERE SPENT ON THE VISITOR CENTER.
THE VISITOR CENTER WAS NOT A PART OF THE DONOR DESIGNATED QUALIFYING EXPENSES.
SO THEREFORE IT WENT INTO THE UNQUALIFIED FUND.
THERE WAS $461,573 OF MONIES THAT WERE SPENT THAT WERE ULTIMATELY AGREED TO BETWEEN THE OPERATOR AND MANAGER IS THESE ARE REALLY OVG RESPONSIBILITY.
AND SO THOSE MONIES WERE CARVED IN.
SO THAT'S WHERE THE MONEY WAS SPENT.
I, I'LL JUST QUICKLY ADD, LIKE I, I'M NOT SURE I WILL SAY WE WORK IN A SPIRIT OF COLLABORATION TO REVIEW THEM.
I'M NOT SURE WE AGREED AT EVERY INSTANCE OF ALLOCATION, BUT, BUT THAT'S NOT, THAT'S NEITHER HERE AND THERE IN TERMS OF THIS CONVERSATION.
I THINK THAT THE POINT WAS MADE ABOUT THE FACT THAT MONIES WERE SPENT INSIDE OF FAIR PARK FIRST, BUT THEY WERE SPENT ON OTHER PROJECTS OTHER THAN DONOR RESTRICTED.
SO I, I JUST WANNA REITERATE, UM, I DON'T WANT GO TAKE FOR TACK ON ON WHETHER WE AGREE THAT THIS ALLOCATION OR NOT.
'CAUSE I DON'T THINK IT'S PRODUCTIVE, BUT JUST, YEAH, THANK YOU.
I JUST DON'T UNDERSTAND HOW WE CAN SAY WITH UNDER CERTAINTY THAT THERE WASN'T, NOT NECESSARILY FRAUD, BUT MALFEASANCE.
I MEAN, EVEN IF IT'S ALLOCATED WITHIN FAIR PARK, I STILL FEEL LIKE WE DON'T KNOW ENOUGH TO UNDERSTAND, WHAT WAS THAT SEVEN, 800,000 ON PROP A, WHAT, WHAT DOES THAT COTTON LIKE? I JUST, AND MAYBE YOU HAVE IT THERE.
I'M NOT ASKING FOR ALL THOSE ANSWERS TODAY.
I JUST THINK WE NEED TO KNOW MORE TO, TO REALLY HAVE CONFIDENCE IN ALL THAT LED UP.
MR. STEIN, CAN I MAKE A SUGGESTION? CONTRACT, YOU WERE ALLOWED ONE ADDITIONAL AUDIT PER YEAR, I BELIEVE IF I CORRECT IN YOUR CONTRACT.
AND YOU'VE EXERCISED THAT OPPORTUNITY MONTHS, WHICH WAS A CONTRACT OR AUDIT RELATED TO COLDPLAY ROLLING STONE.
AND SO YOU, YOU HAVE AN OPPORTUNITY GOING FORWARD TO CONTINUE TO DO DIFFERENT KINDS OF AUDITS IN THE PARK FOR THINGS THAT YOU WANNA BE COMFORTABLE WITH.
AND I I I THINK WE WOULD YOU BOTH WELCOME THAT.
I I THINK OUR CONCERN, ALL OF OUR CONCERN IS THAT WE BE A TRANSPARENT AND BE EFFICIENT AND EFFECTIVE WITH THE FUNDS THAT WE RAISE, GET TO THE, THE STATE FAIR RENT FOR THE CITY OF DALLAS STIPEND.
WE NEED FAIR PARK TO FUNCTION AND BE SUSTAINABLE.
AND SO CORRECTING A LOT OF THE PROBLEMS CONTRACTUALLY AND HELP US AND MEASURABLE, BECAUSE I DO NOT BELIEVE IN YOUR EXISTING CONTRACT THAT YOU HAVE SUFFICIENT MEASUREMENT AND SUFFICIENT EVALUATION TO DETERMINE GETTING WHAT YOU WANT FOR RAISING MONEY.
THANK, UH, MR. MELANIE TO, UH, ADD TO WHICH MR. GOLDSTEIN ASKED, YOU HAD MENTIONED THAT THIS WAS A AGREED UPON PROCEDURE FUND.
SO YOUR PROCEDURE, I'M ASSUMING, WAS DEFINED TO, FOR THE DONOR DEFINED FUND AND WHERE THEY HAVE BEEN SPENT.
AM I CORRECT IN ASSUMING THAT? YES, SIR.
SO THAT WAS THE ONLY SCOPE OF YOUR AUDIT.
YOUR AUDIT WON'T EXPLAIN WHAT HAPPENED TO $1.1 MILLION OF TRAVEL TRAVEL EXPENSES IN LITTLE MORE THAN A YEAR OR SO, THAT THERE WOULD NOT BE ANY EXPLANATION FOR THAT, RIGHT, SIR, IN YOUR AUDIT? NO, SIR.
AND THEN THERE IS, I SEE ONE POINT, UH, ONE $5 MILLION OF TRAVEL EXPENSES BETWEEN OCTOBER 1ST AND APRIL 30TH, YOUR HONOR, THAT'S APPARENTLY MISLEADING.
SO, UH, YEAH, THAT'S IN YOUR REPORT I'M READING, SIR.
THAT'S ACTUALLY, THAT'S ACTUALLY THE SUMMATION OF SEVERAL GENERAL LEDGER ACCOUNT IN THE, UH, CHART OF ACCOUNTS THAT INCLUDES TRAVEL EXPENSE, BUT IT ALSO INCLUDES PAYROLL BENEFITS AND G AND A PAYROLL AND, AND GENERAL SALARIES, PAYROLL, JUST A GROUPING OF ACCOUNTS THAT WOULD TRADITIONALLY BE CLASSIFIED AS OVERAGE.
AND THE PURPOSE OF THAT WAS THAT BASED ON THE GIFT ACCEPTANCE POLICY, THERE WAS A PROVISION FOR OVERAGE ALLOCATION OR ADMINISTRATION EXPENSE.
[01:45:01]
AND SO THOSE WERE THE CATEGORIES OR ACCOUNTS THAT WERE SELECTED BY THE OPERATOR AS QUALIFYING FOR THE ADMINISTRATIVE FEE ALLOCATION.SO THE REPORT WAS NOT INTENDED TO SAY THAT THERE, THERE WAS A MILLION, UH, 152,000 OF TRAVEL EXPENSE EXCLUSIVELY, BUT IT WAS THAT GROUP OF ACCOUNTS THAT ACCOUNTED FOR THAT 1 MILLION, ONE 52,000.
SO, SO CLEARLY, SO THERE WAS, THERE'S NO CLARIFICATION ON THAT.
AND THERE WAS, YOUR SCOPE DID NOT, UH, INCLUDE THAT 6 MILLION WHICH WAS SPENT ON THE PARK, YOU KNOW, WHERE WAS IT SPENT AND ALL.
SO REALLY SCOPE WAS ONLY FOR THE TWO DEFINED FUND.
SO I, I THINK THAT GIVEN WHERE, WHERE IT IS, I THINK WE NEED, AND, UH,
SO I, I URGE CITY MANAGER, UH, CITY ATTORNEY, THAT THERE SHOULD BE ANOTHER FORENSIC AUDIT TO GET INTO DETAILS OF ALL THESE EXPENSE ACCOUNTS.
IF ALL THOSE, WHAT YOU'RE SEEING, SIR, WAS CLUBBED UNDER TRAVEL EXPENSES THAT SHOWS THERE WAS A FAULT ACCOUNTING.
SO I'M NOT SAYING THERE WAS A FRAUD, BUT THERE MIGHT BE, UH, YOU KNOW, THERE MIGHT BE THE THINGS WHICH WE NEED TO FIND OUT AND MORE LAYERS WE NEED TO SCRATCH AT THIS POINT OF TIME.
SO I'M, I DON'T KNOW IF WE CAN MAKE THAT DECISION, BUT I THINK I'M MAKING THAT RECOMMENDATION TO CITY, CITY ATTORNEY IF SHE'S LISTENING, THAT WE SHOULD DO ANOTHER FORENSIC AUDIT FOR THE FAIR PAC ACCOUNT SO THAT WE GET TO, YOU KNOW, WHAT WE NEED TO WRITE AT THIS TIME.
AND WE ARE TRYING TO CORRECT THE THINGS.
MR. DICKEY NO, IS YOUR THANK YOU MR. PRESIDENT.
UM, ONE OF THE THINGS THAT'S ALWAYS PROMPTED ME, AND I MENTIONED THIS THE LAST TIME WE SPOKE, UM, HAD A MEETING ABOUT THIS, WAS THE FACT THAT THE PARK BOARD WAS ASSURED ON THE SECOND AUGUST 2ND, 2018 MEETING THAT MANY THINGS WOULD HAPPEN, MOST OF WHICH HAS TO DO WITH OUR ABILITY TO HAVE APPROVAL OF THE THINGS, FOR EXAMPLE, THE, LIKE THE SCOPE AND PLANS FOR THE PARK, THE COMMUNITY PARK.
AND THEN WE HEARD THE SCOPE GREATLY INCREASED.
WE WEREN'T CONSULTED AND APPROVAL OF CAPITAL EXPENDITURES OVER 250,000.
SO ONE OF THE ONGOING THEMES IN THIS, MOST IMPORTANT, THE PROMISE THAT WAS MADE THAT WE WOULD HAVE ABILITY TO SEE THE DRAFT SUB MANAGEMENT AGREEMENT BEFORE WE DID APPROVE THE FAIR PARK FIRST AGREEMENT.
NOW THAT WASN'T ON OBG OR FAIR PARK FIRST.
THAT WAS A DECISION MADE BY THE CITY, BY THE CHIEF FINANCIAL OFFICER IN THE CITY ATTORNEY, AS I UNDERSTAND.
SO THAT'S NOT ON YOU GUYS, BUT THE ONGOING THING SEE IS, IS FOR LESSONS GOING FORWARD WAS THE EXTENT TO WHICH THIS BOARD, THIS DEPARTMENT WERE KIND OF CUT OUT OF ANYTHING THAT HAPPENED.
AND I THINK DIRECTOR JENKINS HAD A VERY GOOD MEMO THAT SPOKE TO THAT.
BUT, UM, TO GET BACK TO, UM, THIS $3 MILLION, FOR EXAMPLE, IT WAS PROMISED TO BE RAISED, IT WAS, CORRECT ME IF I'M WRONG, BUT THAT WAS IN THE PROFORMA, WHICH WAS BASICALLY A PROMISE THAT WHEN WE WERE BEING ENCOURAGED TO APPROVE SPECTRUM, THAT THIS WOULD BE SOMETHING THAT THE 3 MILLION A YEAR RAISE FOR OPERATIONS.
SO THAT THOUGH, AM I WRONG? IT DID NOT GET INTO THE CONTRACT AS AN OBLIGATION TO THINK MR. W JUST PREFERRED TO THAT.
HOW, HOW DID THAT HAPPEN? BECAUSE I WANT, DON'T WANNA SAY IT'S A BATED SWITCH, BUT IT'S THE KIND OF THING THAT MAKES ONE WONDER LIKE WHAT, WELL, THAT'S A HUGE THING BECAUSE THAT 3 MILLION, AS IT TURNS OUT, AS MR. WOODS SAID, THAT KIND OF GETS TO THE CRUX WHERE ALL OUR PROBLEMS ARE THAT SHORTFALL OF A HUGE AMOUNT OF MONEY FOR OPERATIONS.
HOW DID, WHY DID THAT NOT END UP IN THE CONTRACT AS AN OBLIGATION OF YOU ALL TO RAISE THAT MONEY? I'LL ASK OUR, UH, RYAN
SO I LOOKED THROUGH THE PROCESS, I WAS PART OF THE CONTRACT NEGOTIATION, SO THAT TAKE
UM, AND I CAN'T SPEAK TO THE CITY'S LEGAL AND THEIR APPROACH, BUT THAT WAS NOT A PART OUR CONTRACT, BUT IT WAS FACTORED IN TO THE STIPEND THAT WE PROJECTED WE WOULD NEED TO OPERATE.
SO THE, THE, THERE WAS NOT A COMMITMENT IN THE CONTRACT READ,
[01:50:01]
HOWEVER, THE STIPEND WAS BASED UPON THOSE FUNDS BEING RAISED.AND THAT'S THE PRIMARY REASON I THINK WE'RE HERE TODAY AND WE HAVE THAT FUNDING GAP BECAUSE THOSE FUNDS DID NOT MATERIALIZE.
THE REASONS THAT, UH, GREG, MY COLLEAGUE MENTIONED PRIOR, WHICH WAS AS WE, AS WE WORKED WITH MR. ERMAN WENT INTO THE MARKET TO FUNDRAISE, WE WERE TOLD BY THE FORMER LEADERSHIP OF FAIR PARK FIRST THIS CREATES CONFUSION IN THE MARKETPLACE.
WE CAN'T HAVE TWO DIFFERENT PARTIES SEEKING FUNDRAISING FROM THE SAME PROSPECTS.
STAND DOWN OVG, STAND DOWN, MR. PETER, MR. PETERMAN AND FUNDRAISING WILL BE HANDLED BY FAIR PARK FIRST THROUGH THEIR, THEIR INFRASTRUCTURE, THEIR, THEIR BRIAN HIMSELF, WELL, AND THE OUTSIDE CONSULTANT THAT WAS ENGAGED.
SO THAT'S AN ENORMOUS CHANGE IN THE D SO IS IT, WAS IT A MEMO? WAS IT, IS IT, WAS IT AN EMAIL OR WHERE'S THE PROOF THAT, THAT THAT WAS SAID FROM MR. LU ALLEN'S DIRECTION? WAS THAT A, WAS IT A CONVERSATION OR IS THERE ANY, ANY PAPER TO PROVE THAT THAT ACTUALLY HAPPENED? IT WAS SAID, IT WAS COPY MY NAME.
IT'S NOT IN THE WRITING, IT'S NOT IN IN WRITTEN FORM.
IT WAS DONE AT A MEETING ATTENDED BY MYSELF, BRIAN
SO YOUR REPRESENTATIVE, PETER SULLIVAN WAS IN THAT MEETING, UH, A FORMER CEO OF FAIR PARK.
AND I, I HAVE A QUESTION FOR MS. LIL FROM CONVERSATIONS WE HAD WHEN THINGS STARTED SPINNING OUT OF CONTROL, I GOT THE IMPRESSION THAT DESPITE WHAT'S BEING REPRESENTED HERE, THAT YOU AND YOUR TEAM ACTUALLY TRIED TO HELP MR. PETERMAN WITH FUNDRAISING.
CAN YOU TELL ME IF THAT'S TRUE AND LIKE, WHAT, WHAT WAS, WHAT PROBLEMS WAS HE HAVING AND WHY MR. PETERMAN IS IS NOT HERE SINCE DIFFICULT YOU TWO, BUT I'LL, I'LL, I'LL MAKE SOME SUPPOSITIONS HERE.
UH, AND YOU HAVE PEOPLE IN THIS ROOM WHO HAVE RAISED FUNDS BEFORE MR. DERMAN WAS SUPPOSED TO RAISE HIS UNRESTRICTED FUNDS.
UNRESTRICTED FUNDING AT THREE $9 LEVEL FOR AN INSTITUTION IS FAIRLY DIFFICULT.
AND, UH, MS.
HEATHER STEVENS, WHO IS OUR FUNDRAISING CONSULT, HAVE A DISCUSSION, WAS OFFERING HER ASSISTANCE IN HELPING IDENTIFY WAYS OF RAISING RACIST FUNDS, WE'RE RAISING CAPITAL.
DAN WAS, GOES TO RACE OPERATING.
AND THE REALITY IS, MR. PETERMAN FOR HIS MANY, MANY, MANY TALENTS, FUNDRAISING IS NOT ONE OF THAT.
AND SO HIS ABILITY TO RAISE FUNDS WAS PROBABLY OVERSTATED, AND I DON'T KNOW WHY, BUT I WOULD SAY HIS ABILITY TO RAISE 3 MILLION AND RESTRICTED FUNDS WOULD BE DIFFICULT.
GO BACK TO, WE OFFERED ASSISTANCE.
WHATEVER ASSISTANCE WE, WE JUST NEEDED TO DEF DEFINE WHO DID WHAT.
SO IF WE WERE GOING TO PROSPECT A, WE CERTAINLY WOULDN'T.
BUT THAT'S A VERY, VERY NARROW SCOPE THAT WE'RE TALKING ABOUT.
OR WE WERE MORE THAN WILLING AND OFFERED ASSISTANCE TO HELP DEFINE WAYS OF FUNDRAISING SIDE.
AND THAT INCLUDED NAMING RIGHTS IN THE COTTON BOARDS.
BUT AS MR. ELL AND MR.
SO THAT COULD HAVE BEEN DONE ON THAT SIDE OF THE
DOES THAT ANSWER YOUR QUESTION, MR. UH, YES.
UM, SO IS IT TRUE THAT DESPITE THE APPEARANCE, THE A THIS WOULD NOT HAPPEN FOR WHATEVER REASON,
[01:55:01]
WHAT'S NOT THAT 3 MILLION CONTINUED TO BE PUT INTO THE BUDGET OF, OF, DIDN'T THAT NUMBER GO INTO THE BUDGET? IT DID.WHY WOULD THAT GO INTO THE BUDGET KNEW YOU WEREN'T GONNA BE ABLE TO RAISE? WELL, AGAIN, WE WERE GIVEN DIRECTION FOR SETTING THAT BUDGET WITH, WITH THE BOARD ACTUALLY ULTIMATE APPROVED THAT BUDGET.
SO THE FORMER LEADERSHIP, THE CHAIR AND THE, AND THE CEO FILED THAT BUDGET WITH THAT NUMBER IN, IN THERE.
AND, AND OBG WASN'T AWARE THAT YOU WERE BASICALLY COUNTING ON MONEY THAT YOU KNEW WOULD NEVER COME.
WE WERE NO LONGER RESPONSIBLE FOR THE FUND FOR THAT FUNDRAISING CATCH.
THE, THE FUNDRAISING FOR OPERATIONS IS DIFFERENT FROM THE SPONSORSHIP ACTIVITIES THAT WE JUST SPOKE OF.
LIKE WE'RE STILL ON THE HOOK TO PROVIDE SPONSORSHIP AND HAND RIGHTS AND, AND WE WERE PURSUING THAT AND WE STILL ARE.
BUT THE FUNDRAISING, AS WE'VE JUST DESCRIBED, WE WERE NO LONGER PERFORMING THAT ACTIVITY AS YOU, NOT, IT WASN'T IN OUR CONTRACT, BUT IT WAS YOU, YOU CONTINUED TO PUT IT IN THE BUDGET.
SO WHEN, SO THIS GETS TO THE NEXT POINT OF THIS.
WHEN THE SHORT, WHEN DID THE SHORTFALLS AGAIN, WHEN WERE YOU AWARE THAT THE PLAN WOULDN'T WORK? YOU KNOW, THE PARK WORK, I, ON AUGUST 2ND, UM, SEVERAL MEMBERS SAID, HOW ARE YOU GONNA DO THIS? FOUR AND A HALF MILLION? HOW, HOW CAN YOU EVEN DO IT? GREAT ASSURANCES WERE MADE THAT YOU COULD DO IT BECAUSE YOU'RE RESPECT FOR YOU DEAL IN 150 CITIES, DO THIS ALL THE TIME WHERE WE KNOW THIS BETTER THAN YOU.
THESE PEOPLE THAT, YOU KNOW, THE PEOPLE SAID THAT, UH, MR. A HEARN WAS IN THE ROOM.
SO HOW DOES IT COME ABOUT, I GUESS YOU COULD SAY, HOW DOES IT COME ABOUT THAT THERE'S NO, UH, THERE'S, THERE'S NO AWARENESS THAT IT, WHEN IT, WHEN IT, YOU DID BECOME AWARE THAT IT, THAT WASN'T WORKING.
WHEN WAS THAT AND THAT YOU WERE AWARE OF SHORTFALLS? THAT'S, THAT'S A STRAIGHT QUESTION.
AWARE OF SHORTFALLS? NO, I I WAS SAYING IN, IN WORKING ON THIS PROJECT, OUR TEAM AND COLLECTIVELY WORKING FAIR PARK FIRST COLLECTIVELY, LIKE WE WERE ALL SEEKING OTHER SOURCES AND OPPORTUNITIES TO, TO ACTUALLY MAKE THAT BUDGET WHOLE.
SO IT WASN'T, IT WASN'T ONLY PREDICATED ON ON JUST WHETHER THAT FUNDRAISING WAS THERE OR NOT.
I THINK THERE WAS ACKNOWLEDGEMENT THAT PREVIOUSLY THAT FUND FUNDRAISING WAS GONNA HAPPEN.
I CAN'T SPEAK TO, TO BRIAN LU WELL, AND OUR OTHERS WHO, WHO MAY HAVE THOUGHT THEY STILL WERE GONNA RAISE THAT FUNDRAISING.
'CAUSE WE, THEY DID ALSO SEEK OTHER SOURCES WHEN WE WERE ACTUALLY MAKING PAYMENT AT THEIR DIRECTION.
THEY ALSO REFERENCED, AND WE HAVE EMAILS THAT SAY THEY ANTICIPATED FUNDING SOURCES TO ACTUALLY OFFSET, YOU KNOW, AND PAY FOR SOME OF THESE OTHER THINGS.
SO, SO IT WASN'T IN A VACUUM THAT WAS ONLY, YOU KNOW, UH, RELIANCE ON JUST A $3 MILLION.
THERE WAS OFTEN, UM, CONSTANTLY SEEKING OTHER OPPORTUNITIES TO RAISE OTHER FUNDS TO MAKE THE BUDGET WHOLE.
SO I GUESS WHEN YOU, WHEN YOU DID FIND THAT THAT WASN'T WORKING AND IT WASN'T ENOUGH, UM, AND THE 3 MILLION STAYED ON IS MONEY THAT WAS EXPECTED, IS THAT WHEN IT WAS NECESSARY INSTEAD OF COMING TO THE CITY AS YOU COULD HAVE DONE UNDER THE CONTRACT TO ASK FOR MORE MONEY OR TO GIVE THE CITY A HEADS UP? 'CAUSE ALSO IN THE CONTRACTOR'S REQUIREMENT TO HAVE QUARTERLY MEETINGS TO, TO FORCE TO SEE IF THERE WAS GOING TO BE A SHORTFALL? THAT NEVER HAPPENED AS FAR AS I UNDERSTAND.
WELL, I WANT TO CLARIFY ONE THING HERE.
NOW, UH, HAVE THERE BEEN DISCUSSIONS IN THE PAST WITH THEM TALKING ABOUT, HEY, WE NEED ADDITIONAL FINANCES? YES.
AND MY ANSWER HAS ALWAYS BEEN THE SAME.
WE DID NEGOTIATE THE CONTRACT, MR. B, Y'ALL SUBMITTED AND GO TALK TO THE FOLKS WHO NEGOTIATED A CONTRACT, THE CFO AND THE OTHER SIDE OF THE CITY.
WE DID NEGOTIATE THAT CONTRACT.
SO AS A TAXPAYER, UM, THAT'S, THAT'S A GOOD EXPLANATION FOR HOW IT HAPPENS.
BUT I HOPE YOU CAN UNDERSTAND EVERYONE.
THAT'S VERY DISAPPOINTING BECAUSE, WELL, AT THE END OF THE DAY, WE'RE STUCK HERE AND THERE'S 6 MILLION OF PEOPLE NOT GETTING PAID 5.7 MILLION THAT IT'S GOTTA COME FROM SOMEWHERE.
AND SO NOT TO BEAT A DEAD HORSE, BUT I JUST THINK THAT THESE ARE VERY GOOD LESSONS GOING FORWARD FOR THE FUTURE.
AND UM, I WOULD SAY BACK TO MY ORIGINAL POINT ABOUT HOW THIS BOARD WAS SORT OF CUT OUT AND NOT KEPT THE PROMISES TO US WEREN'T KEPT, UH, AN IMPORTANT ONE FOR AS A POINT LESSONS LEARNED FOR WHEN WE DO THIS AGAIN, UH, ROBERT'S RULES STATES THAT EX-OFFICIO OFFICERS OF A BOARD SHALL HAVE THE ABILITY TO MAKE MOTIONS AND TO VOTE, BUT NONE OF THE OBLIGATIONS, FOR EXAMPLE, TO BE COUNTED FOR FORM.
WELL, WHEN THIS CONTRACT WAS DONE, YOU ALL CHANGED THAT SO THAT THE REPRESENTATIVES FROM THIS PARK BOARD WOULD NOT HAVE A VOTE AND WOULD NOT BE ABLE TO MAKE MOTIONS.
[02:00:01]
I'M NOT AWARE THAT WE DID, BUT I'LL ASK BRIAN TO ADDRESS THAT TO THESO I, I WOULD NEED SOME ADDITIONAL INFORMATION.
WE REQUESTED THAT AS SPECTER BEING THE OPERATOR OR, UM, WOULD YOU, WOULD YOU PLEASE FIND OUT, UH, BECAUSE THIS IS AN IMPORTANT POINT AND GOING FORWARD, CAN, WE CAN SEE THAT THIS IS A CONTINUATION? WHY WOULD YOU NOT WANT US TO HAVE, SINCE WE'VE BEEN CUT OUT, ABILITY TO OVERSEE THE CONTRACT OR HAVE ANY, OR EVEN SEE THE MANAGE SUB MANAGEMENT AGREEMENT BEING THAT WE WOULD THEN HAVE REPRESENTATION ON THE BOARD THAT WAS TOO EFFECT? I, I AGREE.
WE, WE HAD NOTHING TO DO WITH THE MAKEUP OF THE BOARD.
WELL, YOU ALL SIGNED THE, YOU ALL WERE, YOUR ATTORNEY REPRESENTED BOTH FAIR PARK FIRST AND YOU TOOK, HE DIDN'T DO THAT ON HIS OWN.
CAN YOU FIND OUT HOW THAT HAPPENED? WE'LL LOOK INTO IT.
THAT'S ALL I HAVE FOUND TO ADD TO THAT, WHAT HAPPENS TO THE STRUCTURE OF THIS CONTRACT? THERE NEEDS TO BE A FINANCIAL CUSTODIAN FROM THE CITY OF DALLAS TO OVERSEE THAT ANY CHANGE HAPPENS.
AND THAT'S WHAT I WOULD URGE THIS TO CITY COUNCIL AS WELL.
IF NOT, I THINK WE'LL BE REPEATING THIS.
A FEW HAS TO BE ABOVE A CERTAIN AMOUNT TODAY.
OUR STAFF, THEY CAN'T MAKE ANY DECISION ABOUT $50,000.
I THINK IT COMES TO THE BOARD.
SO, YOU KNOW, HERE, THERE ARE MILLIONS OF PEOPLE WHICH ARE BEING SIGNED BY FOR PROFIT MAKING,
UM, VALLETTA OR OR MARK REED, DO YOU KNOW OF THE 17 MILLION IN RECEIPTS, HOW MANY GIFTS THAT WAS, HOW MANY DONORS YOU'RE TALKING ABOUT THAT, OR I GUESS MAYBE IT'S REALLY THE 5.7, BUT I DON'T KNOW IF YOU COULD DISTILL THAT DOWN.
HAVE, I GUESS HAVE, AND HAVE THOSE DONORS BEEN NOTIFIED THAT THERE'S OKAY, THERE'S OR REPURPOSED OR GIFTS WERE
FOR, FOR LARGER DONORS, THEY SHOULD HAVE HAVE BEEN UNDER FIVE MONTHS AND WE'VE BEEN SETTING OUT HESITATE TO USE THE TERM NEWSLETTER, BUT WE'RE SENDING OUT PERIODIC CORRESPONDENCE TO EVERYBODY SAYING, THIS IS WHERE WE ARE.
UM, SO THAT WE KEEP THEM INFORMED, YOU KNOW, THAN
WE, WE NEED TO BE HONEST WITH OUR DONORS OBVIOUSLY, BUT WE HAVE TO CONSIDER WHAT'S GONNA HAPPEN GOING FORWARD.
AND THERE ARE PLENTY OF FOLKS WHO GAVE MONEY, BUT THAT, THAT WAS THE FIRST CONTRIBUTION, RIGHT? SO FOR THE PLAZA IT WAS THE FIRST CONTRIBUTION OF A MILLION DOLLARS.
I SO, ESPECIALLY FOR AN CERTAIN DOES KNOW, BUT I WOULD BE DISHONEST IF I CAN TELL YOU THAT, AM I WORRIED GOING FORWARD AND MAKING SURE THE
WELL, I MEAN, AS JOHN SAID EARLIER, IT IS, YOU ALL WERE THE FIRST NONPROFIT AND REALLY ORGANIZATION TO PROVE THAT THERE WAS PHILANTHROPIC INTEREST IN FAIR PARK AT, AT A MEANINGFUL AMOUNT AND MEANINGFUL LEVEL.
YOU ALL WERE THE FIRST TO PROVE THAT PEOPLE DID CARE ABOUT FAIR PARK AND REALLY WANTED TO INVEST.
AND THERE WERE A LOT OF DETRACTORS WHO NEVER THOUGHT THAT, UM, OR NEVER BELIEVED THAT, YOU KNOW, SEVEN, EIGHT FIGURES COULD REALLY COME INTO FAIR PARK.
SO, YOU KNOW, THAT IS IMPORTANT, RESTORING TRUST WITH THE DONOR COMMUNITY AND I'M GLAD TO HEAR THAT NONE HAVE ASKED FOR THEIR MONEY BACK.
'CAUSE I THINK THEY BELIEVE IN YOU.
THEY BELIEVE IN THE BOARD AND THEY BELIEVE THAT WE'LL REMEDY THIS.
SO, UM, I'M PLEASED TO HEAR THAT, OBVIOUSLY WITH A LOT MORE CONTROLS PUT IN PLACE, WHATEVER THE NEXT ITERATION IS.
[02:05:01]
TO MY SECOND PART OF MY QUESTION TO MR. O'DELL.I'M FOLLOWING UP ON WHAT TIM SAID.
I WOULD LIKE FOR US TO REALLY HEAR BEYOND THE NUMBERS, WHAT, WHAT DIDN'T WORK, WHAT FELL SHORT.
WAS IT LIKE, I MEAN, I KNEW PETER WELL, WE HAD MANY CANDID CONVERSATIONS ABOUT WE HAD, LOOK, WE HAD CRAPPY OLD BUILDING, WE HAD HVAC SYSTEMS THAT AND ROOTS THAT HAD TO BE REPLACED.
DID YOU ALL NOT KIND OF GO IN EYES WIDE OPEN TO WHAT THE FACILITY, WHAT THE 2 77 ACRE CAMPUS REALLY WAS AND ITS CHALLENGES? DID THINGS JUST FALL SHORT? I MEAN, YOU HAVE A LOT OF BUYING POWER IN THE MARKETPLACE.
WE FELT LIKE YOU WERE THE BEST OPTION AND OPERATOR BECAUSE OF YOUR, UM, STANDARD ACROSS THE COUNTRY RUNNING MUNICIPAL VENUES.
SO TELL US, LIKE HONESTLY, WHAT, WHAT DID WE NOT KNOW? WHAT DID YOU ALL NOT KNOW? WHERE DID WE FALL SHORT? WHERE, WHERE DID YOU ALL FALL SHORT? YOU I APPRECIATE THE QUESTION.
I, I THINK, YOU KNOW, WHEN YOU LOOK AT OUR EVENT OPERATIONS, AND AGAIN, IF WE HAVEN'T BEEN, UM, TRANSPARENT ENOUGH TO SHOW THAT TO YOU, WE'VE ACTUALLY PERFORMED AND INCREASED REVENUES PRETTY SIGNIFICANTLY.
UM, I THINK THERE, THERE IS, UM, THERE'S EXPECTATION THAT THERE WOULD BE FUNDING, UM, THROUGH THESE PROJECTS AND THROUGH THE OTHER FUNDING SOURCES THAT WE REFERENCED THAT, THAT THERE WILL BE SOME, UH, INVESTMENT IN THESE FACILITIES.
SO THAT IS STILL GOING TO, TO, TO COME.
SO I DO THINK THERE WILL BE, UH, OTHER REVENUE OPPORTUNITIES THAT WILL CONTINUE TO DRIVE.
I WILL SAY WE HAVE ALL ACCUMULATED THESE CAPITAL PROJECTS FOR GOOD REASON, BUT I ALSO THINK THERE'S EXPECTATION THAT FUNDING SOURCES, WERE GONNA COME WITH SOME OF THESE AND THEY DID NOT HAPPEN.
SO I THINK THAT IS A, THAT IS A CHALLENGE THAT WE FACE TO, TO LET US CREDIT AND THE, THE TEAM, LIKE THEY HAVE GROWN, UM, YOU KNOW, AS YOU JUST MENTIONED, INCREDIBLE, UM, OPPORTUNITIES IN TERMS OF FUNDRAISING, BUT ALSO WE'VE INCURRED, YOU KNOW, THE COST TO ACTUALLY GROW THEIR ORGANIZATION ON IT.
IT'S ALSO BEEN SOMETHING THAT WE DIDN'T, AGAIN, COLLECTIVELY GET ENOUGH FUNDING TO SUPPORT EVERYTHING.
I THINK THEY'VE DONE AMAZING JOBS TO SUPPORT THE, THE PHILANTHROPIC EFFORT.
BUT WHEN YOU COUPLE ALL THE EXPENDITURES THAT WE'VE HAD AND, AND THE UPKEEP OF THE BUILDING, WE JUST HAVE NOT HAD THE FUNDING SOURCES THAT WE THOUGHT WERE GONNA MATERIALIZE.
DO YOU CREDIT THAT TO SALESMANSHIP? DO YOU CREDIT IT TO BUILDINGS INFRASTRUCTURE? I MEAN, HAD TO DO A LOT OF TRANSPORTATION CHALLENGES.
LIKE I'M NOT LOOKING FOR EXCUSES NECESSARILY.
I'M JUST SAYING LIKE WE AS A BOARD ARE GONNA HAVE TO, WE'RE GONNA LOOK AT THE NEXT ITERATION OF THIS CONTRACT AND THE FUTURE OPERATOR FAIR PARK.
WE NEED TO HAVE EYES WIDE OPEN TO THAT.
YEAH, I THINK, UM, LOOK, AS I'VE SAID, WE HAVE, WE'VE INCREASED REVENUE.
WE CERTAINLY CAN INCREASE MORE REVENUE AND I THINK AS I'VE SHARED WITH SOME OF THE OPPORTUNITIES, WE'RE GONNA DRIVE MORE REVENUE.
I DO THINK WE HAVE TO FIND A, A, UM, REALISTIC PLAN.
SOME OF THESE PROJECTS ARE IN PLACE, BUT HOW WE'RE GOING TO UPKEEP AND MAINTAIN THESE FACILITIES, IT IS PRETTY SIGNIFICANT.
AND, AND I WASN'T HERE, BUT AS I SHARED WITH THE GLASS BOARD, I DON'T REMEMBER EVERYTHING I READ.
I, I HOPE, AND I WOULD SAY ABLY, I DON'T THINK WE EVER SUGGESTED THAT WE WERE GONNA MAINTAIN OR AT LEAST PUT THE, THE SIGNIFICANT INVESTMENT IN THESE BUILDINGS GIVEN THE NUMBER OF BUILDINGS AND THE, THE AGE OF THESE BUILDINGS.
SO I, I DON'T THINK WE EVER REPRESENTED AS SUCH.
AND THAT'S SOMETHING THAT, THAT I THINK IT ALSO JUST HAD TO BE ADDRESSED.
I MEAN, YOU, WE HAD THE HALL OF STATE $14 MILLION OF IMPROVEMENTS AND THEN, YOU KNOW, THE SNOW APOCALYPSE.
I MEAN, WE COULDN'T HAVE PREDICTED THAT.
I, I I THINK THAT IS IT, IS IT IMPORTANT THAT AFTER I LOOKED AT MEAN, I'VE SPENT PRETTY MUCH A LIFETIME TRYING TO FIGURE OUT HOW TO GET MORE MONEY, UM, OR AT LEAST THE LAST 30 SO YEARS.
THE BUILDINGS ARE IN DIS REPAIR AND BOND PROGRAMS DO NOT KEEP UP WITH THAT.
50 MILLION SOUNDS LIKE A LOT, BUT FOR THE FOUR BUILDINGS, IT'S NOT VERY MUCH.
THE STATE FAIR IS GENEROUS IN TERMS OF WHAT THEY GIVE BACK FOR FOUR AND A HALF MILLION DOLLARS PER YEAR.
WE HOPED AND RIGHT THAT PROP A WOULD BE AN ANSWER FOR SOME OF THIS IN TERMS OF PRODUCING THOSE ARE REVENUE PRODUCING BUILDINGS, IS THAT WE INVEST IN THEM.
THE UNFORTUNATE PIECE IS WE'RE SORT OF WAITING FOR THAT REVENUE THAT IS PLEDGED AGAINST THE BONDS TO ACCUMULATE.
SO THE 300 MILLION OR 500 MILLION WHATEVER CONVICTION AND EVENT SERVICES SAID THAT WE, YEAH, WE, WE DIDN'T GET, WE DIDN'T GET THAT.
AND SO THERE'S STILL AN ONGOING ISSUE.
I'M FAMILIAR WITH MOST ECONOMIC DEVELOPMENT TOOL THAT REPRESENTED DISTRICT, THAT
[02:10:01]
INCLUDED MUCH OF THAT.I'VE SPENT A LOT OF TIME DOING THAT.
YOU HAVE VERY FEW ECONOMIC DEVELOPMENT TOOLS AVAILABLE TO YOU TO UTILIZE IN THIS PARK.
YOU DO NOT USE TAX INCREMENT FINANCING ZONE MONEY BECAUSE BASICALLY YOU WOULD BE FORCING GENTRIFICATION INTO THE COMMUNITY TO DRIVE REVENUE IN THE PARK.
YOU CAN'T USE A PUBLIC IMPROVEMENT INDUSTRY, WHICH CAN PROVIDE YOU WITH FLOWERS THAN AND, AND LIGHTING AND STUFF BECAUSE BASICALLY YOU WOULD BE TAXING AN UNDER-RESOURCED NEIGHBORHOOD THAT IS AROUND HERE.
WE HAD HOPED THAT AN MMD MIGHT BE A POSSIBILITY THAT WAS, THAT WAS REMOVED.
UH, THERE IS A POSSIBILITY TO BUILD A HOTEL.
THERE'S A POSSIBILITY IF WE CAN FIND A WAY TO HISTORIC TAX CREDITS, PROBABLY THE RICHEST VEIN THAT THEY REQUIRE THAT YOU TURN OVER THE BUILDINGS FOR AN EXTENDED PERIOD OF TIME AND YOU NEED TO THINK ON LAW ABOUT THAT.
'CAUSE IT'S ABOUT A 39 YEAR LEASE.
BUT YOU COULD GET HUNDREDS OF MILLIONS OF DOLLARS TO INVEST IN THE PARK VICTIM LIFE BECAUSE YOU CAN SUB THOSE.
FINALLY WE WORKED WITH RYAN, CONNOR, STACEY, AND MYSELF.
THE $2 FEE ON THE TICKETS WILL ASSIST US WITH A LITTLE, IT'LL ASSIST US WITH SOME BACKFILL TO MAINTENANCE.
WON'T BE A HUGE AMOUNT, BUT I DON'T REMEMBER.
MR. O'CONNOR IS ABOUT $2 MILLION A YEAR.
SO YOU CAN, YOU CAN TAKE THAT IN.
STACEY AND I HAVE HAD EXTENSIVE CONVERSATIONS AS THE LEASES MOVE FORWARD, YOU HAVE ALMOST NO LEASE PAYERS IN THIS PART.
SO YOU ONLY HAVE LIVE NATION AND ON THE STATE FAIR OF TEXAS, ALL THE OTHER BUILDINGS ARE OCCUPIED WITHOUT RENT PAYMENTS, ESSENTIALLY.
I I SHOULD SAY CHILDREN'S AQUARIUM.
I'VE ALL THAT, BUT YOU DON'T HAVE A LOT
SO YOU NEED TO THINK ABOUT, AND WE'RE TRYING TO BUILD THAT SMALL AS IT IS INTO THAT.
AND I FINALLY, YOU KNOW, THIS PROBLEM, IF IT WERE HERE TODAY, I WOULD SAY TO YOU, YOU NEED TO INCREASE THE STIPEND AND, AND YOU KNOW, I COULD GIVE YOU NOW, BUT YOU NEED A LITTLE MORE STIPEND INTO THIS PRODUCT THAT'S REALITY.
UM, THE FIXING THE BUILDINGS SO COMPLEX AND DANIEL HAS HEARD BY EXAMPLE.
I THINK YOU HAVE WHAT IT TAKES TO FIX ONE THING IN THIS PARK.
I NEED TO GO THROUGH 16 DIFFERENT STEPS IN ORDER TO GET A CHILL.
I WAS HERE AND WE TALKED ABOUT IT IN AUGUST.
ONCE IT'S STORED AND ITS VALUE TO YOU IS GREAT.
SO THINK ABOUT HOW WE INVEST IN THIS PART WITH UNIQUE WAYS AND I WILL TRY TO RAISE THE MONEY AND I WILL TRY TO ENSURE THAT THESE GUYS DO SOME MORE REVENUE, BUT IT'S GONNA TAKE A BIGGER SCOPE AND I'M, I'M PREACHING TO THE FIRE.
I KNOW I'M ABOUT TO TEAR UP, SO THANK YOU.
UM, WE LET, UH, MR. WOODS THANK YOU MR. PRESIDENTS.
RON, UH, THAT PICTURE, HOW, HOW, WHAT'S THE BEST TASK? UM, WE OBVIOUSLY NEED TO WORK TOGETHER.
WHAT, WHAT'S YOUR, WHAT'S YOUR PLAN TO BE ABLE TO WORK TOGETHER AND BOTH DO? UM, WHERE IS IT BEST TO PART WAYS, UM, IF YOU CAN'T COMMIT TO WORKING TOGETHER? WHAT'S THAT? UM, AND I'D LIKE TO HEAR THAT I GUESS FROM BOTH SIDES.
UM, HOW MR. ADELE, HOW DO YOU, HOW DO YOU, UM, WHAT'S THE BEST PATH FORWARD? YEAH, LOOK, I, UH, I MEAN WE ARE, UM, WE ARE ANXIOUS TO, TO, UM, ROLL UP OUR SLEEVES AND, AND GET TO WORK.
I THINK IT REQUIRES US TO SIT IN THE ROOM WITH, UH, OBVIOUSLY THE, UM, MR. JENKINS
[02:15:01]
AND HIS TEAM TO FOCUS SPECIFICALLY ON, UM, YOU KNOW, ADDRESSING NOT ONLY OBVIOUSLY THE THEUM, THAT GIVES VISIBILITY, UM, TO THIS BOARD AND MR. JENKINSON, HIS TEAM, UM, RESTRUCTURE AND WORK CLOSELY WITH, UM, WITH THE LETTER TO STRUCTURE, UM, SCOPES, UH, THAT EVERYONE HAS A CLEAR UNDERSTANDING LINE OF SIGHT OF WHO'S DOING WHAT.
UM, AND SO THAT, UM, THERE'S NO AMBIGUITY, BUT, BUT WE'RE WILLING TO, TO DO THAT IMMEDIATELY.
YOU'VE LOST TRUST WITH THE COMMUNITY.
HOW, HOW ARE YOU GOING TO REGAIN THAT TRUST WITH THE COMMUNITY AT LARGE AND HOW CAN THEY TRUST YOU FORWARD? SO, I, I MEAN, I'M A FIRM BELIEVER, LOOK, WE, WE, UM, WE KNOW THAT THE, THE MOST IMPORTANT STAKEHOLDER IS THE COMMUNITY AND THIS, THIS PART.
SO, UM, I THINK STACY AND HER TEAM DO A VERY GOOD JOB STAYING CONNECTED, UH, OPERATIONALLY ALREADY AND OBVIOUSLY IN CONCERT WITH, WITH
WE WILL ONE, MAKE SURE THROUGH THIS PROCESS EVERYONE UNDERSTANDS THE RESOLUTION OF WHAT WE'RE SEEKING AND WORKING IN CONER WITH, WITH THIS BOARD AND WITH THIRD PART FIRST.
BUT I ALSO THINK, UM, WE'LL STAY TRUE TO, TO, TO PROVIDING A PROGRAM THAT WE'VE BEEN DOING TO WHAT WE THINK IS, IS ON THE PATH AND TRAJECTORY OF ENHANCING THE EXPERIENCE FOR, FOR THE PATIENTS IN THAT COMMUNITY.
SO WE WILL DO THAT AND WE'LL, WE'LL, WE'LL MAKE OURSELVES AVAILABLE AS WE HAVE, BUT WE'LL DO THAT, UH, IN MORE.
SO, AND WITH THAT BEING SAID, WE CAN, WE GET A COMMITMENT THAT WE'RE NOT GONNA GO TIP FOR TAT THAT WE'RE GONNA GONNA RECEIVE SIX MISCELLANEOUS EMAILS, UM, IN A EMAIL DEFENDING AND COUNTERACTING.
I MEAN, YOU GUYS WERE ALL COMING HERE TO DEFEND THE AUDIT.
WE HAD
NONE OF US WERE IN THERE ON THAT EMAIL CHAIN.
FOR EXAMPLE, I'VE HEARD WHERE PETER SULLIVAN SAID, HEY, SEND ME AN EMAIL THAT SAYS THIS SO THAT WE CAN MOVE THIS PROCESS FORWARD.
WE WERE ALL INVOLVED IN THOSE CONVERSATIONS.
SO WE DON'T KNOW WHAT THOSE ALL, YOU KNOW, WE CAN PAINT PICTURES THE WAY WE WANT FROM THE PAST, BUT WE WEREN'T THERE.
UM, HOW DO WE GET THAT COMMITMENT? CAN WE GET A COMMITMENT THAT WE'RE GONNA STAY OUTTA THE MEETING? 'CAUSE I'VE NEVER HEARD, NOT TO BE DEFENDING, BUT I HAVEN'T HEARD NEGATIVE STUFF COMING OTHER THAN WE'RE WAITING FOR THE AUDIT.
SO WE, WE'VE GOTTA STAND, WE'VE GOTTA GET OUT OF THE MEDIA IF WE'RE GONNA BE MOVED.
ONE, I AGREE A HUNDRED PERCENT.
AND LET ME JUST SAY IT IS, IT WAS NEVER OUR DESIRE, STILL NOT OUR DESIRE TO BE IN THE MEDIA.
AND I HOPE IF YOU GO BACK AND LOOK FOR THE LAST SEVERAL MONTHS AS STORY UNFOLD OR WERE UNFOLDING, WE WERE CONSISTENT TO NOT BE IN THE MEDIA.
WE WERE NOT, NOT UNTIL RECENTLY WHEN THIS AUDIT WAS COMING ABOUT AND, AND FRANKLY, OUR CONCERNS THAT WE HAD PUT FORTH TO THE AUDIT WERE NOT NECESSARILY ADDRESSED.
SO THAT'S WHY WE FELT COMPELLED TO SHARE.
BUT YOU CAN CHECK ANY OF THE MEDIA OUTLETS.
WE WERE VERY CONSISTENT ABOUT OUR CONCERNS OF WANTING TO MOVE FORWARD, BUT ALSO ADDRESSING THE ISSUES, UH, IN RESPONDING WHEN WE NEEDED TO.
BUT HAVING SAID THAT, YOU HAVE OUR COMMITMENT.
WE DO NOT WANT TO GO TICK FOR TECH.
WE WANT TO BE GOOD PARTNERS, AND THAT'S WHY WE'RE HERE AND THAT'S WHAT WE THINK IS MOST IMPORTANT TO DO.
YOU WANT ME TO RESPOND TO THE FIRST QUESTION THAT YOU IT WAS FOR BOTH.
WHAT YOU COMMITTED TO YOUR TERMS COURSE.
HOW DID WE MOVE FORWARD? OUR COMMITMENT OF HOW WE MOVE FORWARD? HOW DOES THAT LOOK LIKE? ARE YOU COMMITTED TO THAT OR IS IT BEST OF PURPOSE? HOW ABOUT FIRST IN THIS DISCUSSION IS THE WEAKEST.
SO WE, WE, WE ARE BETWEEN MUL, MULTIBILLION DOLLAR INSTITUTIONS,
BUT FAIR PARK NEEDS A PUBLIC PRIVATE PARTNERSHIP, MEANS THAT BECAUSE THE MUNICIPALITY CAN NOT INVEST THE 17, $18 MILLION IN REQUIRE.
[02:20:01]
PARTNERSHIP AND YOU, YOU KNOW THAT BECAUSE YOU PAID IF YOU PARTNERSHIP.WE ARE WILLING TO BE THE NON-PROFIT.
WE ARE WILLING TO WORK TOGETHER WITH OTHER ENTITIES TO ENSURE THAT WE ARE MOST, WE HOPE EVERYONE COMES TO THE TABLE WITH THAT INVESTMENT, INVESTMENT IN THIS COMMUNITY AND INVESTMENT.
THANK, UH, I WANT TO THANK, UH, OPG AND ESPECIALLY FIRST PART, FIRST YEAR TODAY, SPENDING ALL DAY WITH US TODAY AND WAITING FOR THE PATIENT TO BE, TO ANSWER QUESTIONS.
UH, OUR NEXT MEETING IS, UH, SPECIAL CALL MEETING ON OCTOBER 31ST AT 10:00 AM UH, SEE IF THERE'S NO OTHER BUSINESS.
I ADJOURN THE MEETING AT 4:17 PM TODAY.