Four City Council members approved allowing the Friends of Hemming Park to allow grants obtained before the nonprofit received the $1 million contract to run the park to count toward fundraising goals.
The group was required to raise at least $25,000 in private funding and park revenue three months after the contract’s effective date of Sept. 1. The Oct. 1-Dec. 31 financial report submitted to the Department of Parks, Recreation and Community Services showed the nonprofit raised about $1,500 in that period.
When the nonprofit contended that $50,000 in grants received months before the contract was approved should fulfill the terms of the agreement, the parks department requested an opinion in December from the Office of General Counsel.
Assistant General Counsel John Sawyer’s opinion said the grants could be counted as meeting the contract requirements.
Chief General Counsel Jason Gabriel said Thursday at a meeting called by City Council member Denise Lee that he agrees with Sawyer’s opinion.
Lee called the meeting after she was interviewed last week about a story that was published Tuesday in the Daily Record.
When council member Don Redman said the opinion was binding, Lee at first said “That’s his opinion, not mine,” but later changed her position to support counting the grants received in February 2014 and July to meet the terms of the agreement.
Lee questioned why the council was not aware of the grants and that the funds raised before the agreement would be used to satisfy the terms.
Gabriel said a review of the Aug. 5 council Finance Committee meeting showed that Friends board member Bill Prescott ‘referenced previous fundraising” and “that fact substantiates the opinion.”
Prescott said Thursday what’s important is that the nonprofit raises $250,000 within 12 months after the effective date of the agreement.
The remaining $1 million of the Friends budget is funded by $800,000 from the Downtown Investment Authority and $200,000 from the parks department. DIA Chair Oliver Barakat said Monday he did not think the grants should count.
The nonprofit received a $300,000 initial payment and a Dec. 1 installment of $150,000 from the city. Under the terms of the agreement, if the Friends fail to achieve a fundraising performance standard, the city may withhold additional payments until the failure is resolved.
Prescott said the Friends are “very aware” of the $100,000 March 1 fundraising benchmark. “We are close to getting a grant that will take care of that,” he said.
Council member Bill Gulliford wants the Friends to report to council its progress at each future fundraising deadline and at the scheduled dates for additional city payments. “I think it would be appropriate,” he said.
Both Gulliford and Lee told the Daily Record last week the funds should not be counted toward the requirement, but said Thursday it was OK. Council member Lori Boyer also was at the meeting and approved using the grants.
Friends founder Wayne Wood said the nonprofit is surpassing all benchmarks and has promoted many events that brought thousands of people to the park.
“In a few months, we have worked miracles,” he said. “We’re going to blow you away with some of the events.”
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