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Fair Park has $2M shortfall, may need bailout
Oak View Group, the for-profit managing Fair Park, revealed it has a $2 million shortfall. The group may need a bailout from the City of Dallas.
DALLAS - Dallas city leaders have recently learned Fair Park is not generating enough revenue to cover its expenses.
The news comes days before an audit is set to be released that will show donor money intended for capital projects was mishandled.
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.
With Fair Park's signature event in full swing, the State Fair of Texas, the atmosphere talking about the park's operations was far less festive.
"You are upside down. How are you justifying being upside down two years into this," asked Dallas City Councilwoman Paula Blackmon.
"I'm not justifying being upside down," said Oak View Group General Manager Stacey Church.
Outside of the state fair's three-week run each year, the city struggles to make Fair Park a viable year-round attraction.
The property is managed by OVG360, a division of Oak View Group, and Fair Park First, a non-profit that raises money for capital projects.
"We’ve been saddled with inclement weather and emergency repairs. It’s caused us to overspend," Church said.
OVG360 President Greg O'Dell circled around the deficit question but eventually said Fair Park is short $3 million for fiscal year 2025. Most of that is related to operating expenses.
The organization’s president told the council they will likely require an additional subsidy from the city until they’re able to drive in more revenue.
"We have no money," Blackmon told O’Dell.
OVG360 said the closure of the Cotton Bowl for renovations has hurt revenue.
The stadium typically brings in $800,000 a year in revenue for the park. However, there are also questions about how the money is being used.
Fair Park First Board Chair Veletta Lill addressed that.
Texas Supreme Court denies Ken Paxton's latest attempt to block state fair gun ban
"This Court cannot possibly order the State Fair to allow handguns to be carried at this year’s Fair when the party seeking that relief does not even argue that Texas law obligates the Fair to do so," one of the justices wrote in a legal opinion.
"There was a question brought up by a whistleblower, questioning if some donor funds were used for operating," she said.
Lill says Fair Park First's audit of how donor money was spent will be released on Wednesday.
"There’s no question. There was no money that left the park or anything like that. There’s no fraud," she said. "It was, ‘Were donor funds for restricted used for operations?’"
Lill says there will need to be changes made going forward.
"We are all trying to work together to make that happen," she said.
Fair Park First is expected to release an audit prompted by a whistleblower after its meeting on Wednesday.
There is a second audit by the city of Dallas that is also expected to be released soon.
Oak View Group executives will be back in Dallas to face the full city council next Wednesday.