Fair Park First CEO resigns amid audit of how nonprofit spends its money

DALLAS - The vision to transform Dallas's Fair Park neighborhood into a year-round destination is once again clouded in controversy.

The CEO of the nonprofit Fair Park First, which manages Fair Park, is resigning and there is an audit of how donated money is being spent.

CEO Brian Luallen was the driving force behind turning a huge parking lot by the Dos Equis Pavilion into a community park.

The plan was to break ground in November of last year, but it remains a parking lot. 

The organization is now auditing the money donated for projects to revitalize Fair Park.

"I have questioned Fair Park First Board multiple times about why this audit is taking so long," said Arun Agarwal, the president of the Dallas Park and Recreation Board.

The city has launched an audit of its own.

Agarwal says its unclear which entity is responsible for the financial issues, the nonprofit Fair Park First or the for-profit Oak View Group.

"It is important to note that all of the funds being examined have been used solely for the benefit of Fair Park, and not for any other purpose. Furthermore, any use of restricted funds to cover operating expenses was expressly directed or approved by the CEO of Fair Park First," said a spokesman for Oak View Group in a statement.

Agarwal believes there is a built-in conflict of interest with this partnership.

One group is obligated to the community, the other is obligated to the shareholders.

"I run a decent-sized business, I would never enter into a contract like this," said Agarwal. "I think this is the time as the park board, as the city, to see how to renegotiate the contract and make it better for the city."

"This was a difficult decision, but as you’re all aware, the environment has been very difficult and uncomfortable to navigate for many months. This has taken a great toll on me personally, particularly impacting my health, which I must prioritize," Luallen wrote in his resignation letter to the Fair Park Board.

Dallas City Councilman Adam Bazaldua says the city needs to get this right.

"It's an important asset, not just for our city, but for the surrounding community. And I think the future of it is still very bright," he said.

The big questions raised by all of this: Is Fair Park First struggling somehow to cover its operating expenses? Why?

That is something we hope to learn from the city's audit, which will be presented to the city council in a couple of weeks.