Report alleges $5.7M donated for Fair Park improvement was misused
DALLAS - About 24 hours after Fair Park First released a long-awaited accountant’s report, FOX 4 is learning more about the financial mess delaying promises to the community.
On Thursday, Dallas Parks and Recreation Board President Arun Agarwal said the report shows the need for a management overhaul.
It claims $5.7 million from private donors that was restricted for specific Fair Park projects was used by OVG360 for operating expenses and unqualified projects.
That’s about a third of the total money raised in the six years since the city awarded the deal to the odd partnership between Fair Park First, a nonprofit organization, and Oak View Group, OVG360’s for-profit umbrella company.
Six years is a long time for the community around Fair Park to wait for promised improvements, including a green space that would replace part of the huge parking lot near the Dos Equis Pavilion.
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"What appalls me more is, you know, the blame game going on between Fair Park First and OVG. They are treating it as if this is some Monopoly money. And that truly is faffling," Agarwal said.
Agarwal said the report is worse than he expected both in the amount misspent – $5.7 million – and in the revelation that the money raised to date for Fair Park – $17 million – is far less than promised.
"$17 million. I’m not going to undermine what was raised, but the promise which was made to the city was much bigger than that," he said.
The promise was to raise $85 million with $35 million for the community park.
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"Fair Park is an amazing asset," Agarwal said. "Dallas is one of the most philanthropic cities that we know. So absolutely, we could have raised much more than that."
The parks board president said he has questioned the contractual relationship between the city, Fair Park First, and Oak View Group.
"I’ve been screaming at the top of my voice. How can we have a nonprofit body who is raising the funds and it is accessible by a for-profit body? It is a total conflict of interest," Agarwal said. "If anyone on park staff or a city employee would have done it, right now people would be screaming for heads to roll."
He thinks the city needs to overhaul the contract, perhaps using its leverage with the Kay Bailey Hutchinson Center contract, which was also given to the Oak View Group.
For-profit managing Fair Park reveals $2 million shortfall, may need city bailout
Oak View Group, the for-profit managing Fair Park for the city, revealed on Monday its operating expenses are $2 million more than the park is expected to bring in. The organization is likely going to need a bailout from the city.
"People say it’s a wake-up time. I say it’s a shake-up time," he said.
The full Dallas City Council will be briefed on the accounting report at its meeting on Wednesday.
While the accountants hired by Fair Park First clarified they did not perform an audit, the city does have an audit underway. It’s unclear when that will be completed.
Editor's Note: It is important to note the State Fair of Texas is a tenant of Oak View Group, the for-profit managing Fair Park, and is not in any way involved in this situation.