Fair Park improvement plans for new park facing financial woes
DALLAS - 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.
Fair Park First’s board of directors received a long-awaited audit report on Wednesday, alleging the misuse of $5.7 million in funds donated to the nonprofit.
For the community around Fair Park, the promise of a new green space inside Fair Park could once again be an empty one.
"You have an area that once was a thriving minority community taken away through eminent domain. It was bulldozed to create these parking lots," Brian Luallen, the former CEO of the nonprofit Fair Park First, told FOX 4 in 2020.
Brian Luallen in 2020
He said the huge parking lot near the Dos Equis Pavilion would be transformed in five years.
"We will be coming in here with a green space that is really built on the idea of the southern tradition of the front porch, a transitional area that connects to your home, affords connections to nature, affords opportunities for people to gather and be together as a community," he said.
Sneak Peek: Here's what the new 18-acre park at Fair Park will look like
Updated plans for the new 18-acre community park at Fair Park include one of the largest playgrounds in the metro area and much more.
The goal was to turn the space into a large lawn, children’s play area, a water feature, and a pavilion for gatherings, everything from fitness classes to outdoor movies.
Construction was supposed to begin nearly a year ago in November 2023.
But things have been on hold for months because a whistleblower alleged money that was supposed to go toward capital projects like venues and the park was instead being used for operating expenses.
With an audit underway, Luallen resigned in July.
Fair Park First CEO resigns amid audit of how nonprofit spends its money
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.
OVG360, an umbrella of Oak View Group, is the for-profit that manages the operations of Fair Park.
Late Wednesday, the new CEO of Fair Park First revealed financial auditors uncovered that Oak View Group used $5.7 million from private donors that it should not have.
Fair Park First CEO Alyssa Arnold issued a statement saying $5.7 million was restricted for specific Fair Park projects, but OVG360 used those dollars for operating expenses and unqualified projects.
Arnold’s statement went on to say, "While there is no question the funds were spent on and at Fair Park, they were not spent on the specific Fair Park projects restricted by our donors."
In response to the audit's finding, Greg O'Dell with Oak View Group released a statement saying, "Oak View Group is not responsible for any deficiency in the fundraising cash account balance at Fair Park. More importantly, the audit report confirms there has been no fraud or misuse of funds. OVG executed its responsibilities according to our contract. All fundraising cash was spent on Fair Park and Fair Park First exclusively, and all uses of donated funds were directed or approved by Fair Park First in writing. We have not received a demand from Fair Park First for payment of any amounts, but if received, we will respond accordingly."
Before the audit was released, Arnold said in a Monday meeting that improvement plans could be changing.
"Right now, our budget for the community park is being finessed, I will say. Part of our direction was to redesign. That's a scary word, but we are incorporating some more parking spaces per our contractual agreement with Live Nation and the State Fair. So, we are reconfiguring some of the site. We look to start that up again once we conclude the audit. We have been on a bit of a pause from a fundraising standpoint."
The new CEO said the goal is to deliver by 2026.
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.
The city of Dallas has its own audit underway.
"I am very disappointed with the way this process has gone. Our citizens deserve more transparency than this. This has gone on for too long. Fair Park needs a major shakeup and changes. Our city deserves better," said Arun Argarwal, the president of the Dallas Parks and Recreation Board.
Next week, Fair Park First and Oak View Group executives will be part of an open session briefing on the audit in front of the full Dallas City Council.