An investigation into Dallas’ Fair Park has exposed more challenges for Fair Park First, the nonprofit tasked with overseeing the park’s operations.
The current contractual arrangement between the City, Fair Park First, and the Oak View Group (OVG) allegedly restricts the nonprofit’s ability to manage funds and oversee general operations, raising concerns about the park’s future, according to a recent report by The Dallas Morning News.
Earlier this year, allegations surfaced about the mismanagement of funds at Fair Park First, as previously reported by The Dallas Express.
The allegations prompted an internal review that revealed the nonprofit had limited control over financial decisions due to the contract terms with OVG, the park’s for-profit operator. This agreement grants OVG authority over all funds related to the park, reported DMN.
Discussions on potential contract changes took place during a closed session with the Dallas City Council and the City Attorney’s Office on August 8. However, specific details about the proposed changes have not been disclosed.
Fair Park, a 277-acre historic site, has long been a focal point for revitalization efforts. The City had hoped that combining a nonprofit with a for-profit management model would breathe new life into the area.
Yet, the current arrangement has led to operational and financial conflicts, endangering plans to secure $85 million for park upgrades and community projects, reported DMN.
The original 98-page management agreement signed on October 22, 2018, gave Fair Park First the role of property manager with the expectation of fundraising and overseeing subcontractors. OVG, on the other hand, was tasked with daily operations.
However, the structure has proven problematic.
Board members have consistently identified gaps in the contract that have limited Fair Park First’s authority. One major issue is OVG’s control over financial accounts, including those holding restricted donor funds.
The problem of managing funds from variously sourced grants and donations has further complicated the issue. Recent audits revealed that neither Fair Park First nor OVG was adequately monitoring revenues from park events.
The park board’s role in the contract’s creation has also come under scrutiny.
According to a previous report by The Dallas Express in July, an audit into Fair Park First and OVG’s handling of donations was initiated following a whistleblower’s tip.
Brian Luallen, CEO of Fair Park First, expressed concern over allegations that OVG might have improperly used restricted funds.
Fair Park First allegedly lacks access to account statements, as OVG360, OVG’s hospitality division, manages the accounts.
Dallas-based Malnory, McNeal & Company was hired for the audit, which revealed that up to $17.3 million in private donations may have been misused for operational costs rather than their intended purposes, like capital improvements.