Management group disputes claim that $5.7M donated to Fair Park was misspent
DALLAS - After allegations that $5.7 million donated to Fair Park was misspent Dallas City Council members want changes.
The president of Oak View Group, the for-profit who manages Fair Park for the City of Dallas, told council members he disputed the findings.
"Fundamentally, we don’t agree with the report and the $5.7 million misallocation," said Greg O'Dell, the President of Venue Management, Oak View Group 360.
The accountant for Fair Park First explained why his report found the deficiency.
"Does it meet one of the specified projects that the donors intended the use for? And if it doesn’t, by default, it is unqualified. It is just that simple," said Mark Malnory, the CPA with Malnory McNeal and Company.
Fair Park First's new board chair, Veletta Lill, argued Oak View Group is the reason it is not black and white.
"[There are] several challenges here. One was funds were indeed co-mingled. Invoices were also co-mingled," Lill said.
O'Dell said one example of donated funds that are now in question was $2 million that went towards plans for a parking garage.
Initially, the garage was considered part of the community park expense to replace parking lost by the park, but Lill says Oak View Group evolved the plans into a revenue-generating event center.
Lill explained that the new scope of the garage meant $2 million in expenses for it should not have been taken from donations made for the community park.
Lill said the way the contract is set up between the nonprofit and the for-profit created a power struggle.
"It is obviously uncomfortable to be in a relationship where you're supposed to be the dominant partner and you are the subordinate partner," she said.
Oak View Group is also operating at a deficit, with operating expenses exceeding revenue by an estimated $2 million.
After a FOX 4 story Tuesday about a Fair Park vendor who remains unpaid more than four months after the event her company worked, a council member asked how many vendors have outstanding invoices.
Security company still awaiting payment months after Fair Park event
The Oak View Group, the for-profit company managing Fair Park for the City of Dallas, is having trouble paying its third-party vendors. K9 Security Detection Services says it has not been paid after working a Memorial Day event.
Leaders did not have the number of vendors, but said the total in unpaid expenses is $6 million.
"What we shared with the council today is that we've been making requests with Fair Park First and the city to make sure we get funding as soon as possible. There's already some outstanding requests, we think there is a path to getting some additional stipend," O'Dell said after the meeting in response to a question from FOX 4.
O'Dell said the outstanding request from the City of Dallas is for $8 million.
During the two and a half hour meeting, city council members expressed concern about the current structure of the contracts between the city, Fair Park First and Oak View Group.
Both Fair Park First and the Oak View Group will answer questions from the parks board tomorrow.