Fair Park First — a nonprofit that manages the park on behalf of the City of Dallas — misallocated $5.7 million in restricted donor funds managed by Oak View Group, according to an independent audit released Wednesday.
Restricted donor funds are donations given to Fair Park First for specific purposes. The audit looked at donor funds for the Cotton Bowl Plaza, art restoration, the Cultural District, the Magnolia Lounge, and the Community Park.
Between Oct. 1, 2020 and April 30, 2024, Fair Park First received more than $17 million in donor funds. But $5.7 million was used for park operations and unqualified projects, Veletta Forsythe-Lill, Fair Park First Board Chair, said in a letter obtained by KERA addressed to the mayor and city council.
“While there is no question the funds were spent on and at Fair Park, the determined amount misallocated was not spent on the specific Fair Park projects restricted by our donors," Forsythe-Lill said in the letter. "Oakview Group has previously pledged that if it was determined it utilized restricted donor funds for operations, it would refund those funds for the designated projects."
Forsythe-Lill added that Fair Park First would work with Dallas Parks and Recreation and Oak View Group to review and amend the contracts to better manage Fair Park.
Greg O’Dell, president of venue management for Oak View Group, said in a statement OVG was not responsible for any deficiency in funds for Fair Park.
"More importantly, the audit report confirms there has been no fraud or misuse of funds," O'Dell said. "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."
O'Dell added that OVG had not received a demand from Fair Park First for payment of any amounts as of Wednesday evening, but would respond accordingly.
Fair Park First began an investigation into a possible mismanagement of funds by OVG earlier this year, but it's not the first.
A 2022 audit of the park found OVG360, a division of OVG, and Fair Park First failed to properly monitor revenue from parking, merchandise and food and beverage sales, according to documents obtained by the Dallas Morning News. In response to the audit, former CEO Brian Luallen submitted a letter in July 2023 which said Fair Park First would work with OVG360 to take all necessary steps to improve audit and compliance policies.
Luallen announced his resignation a year later, citing an environment that was "very difficult and uncomfortable to navigate."
"This has taken a great toll on me personally, particularly impacting my health which I must prioritize," Luallen said in his resignation letter.
The audit was mentioned during Monday’s City Council Parks, Trails, & the Environment Committee meeting. But council members were not able to ask questions because it had not been released at the time.
During the meeting, committee member Carolyn King Arnold said she felt "bound and gagged" because she was not allowed to ask questions.
"We should have weighed in on it before it was posted,” Arnold said. “We might have had a better opportunity to kind of shape this conversation this morning, because it's been a long conversation and we've not gotten far.”
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