News
Fair Park First reinstates CEO Brian Luallen, audit of its finances not yet released
Turmoil over Fair Park First’s leadership ended Monday when the board of the nonprofit that runs Fair Park voted to reinstate its CEO, Brian Luallen, after a closed meeting that lasted four hours.
Fair Park First board members voted to end Luallen’s suspension effective June 19. Members said they would conduct a review of Luallen’s performance by September 15. There was no public discussion about the vote.
“After careful and thoughtful review of the data and information before the board, we determined that our CEO’s leave of absence should come to an end,” said a statement released Tuesday by the Fair Park First Board of Directors. “While we cannot elaborate further as this is a personnel matter, we sincerely hope that Mr. Luallen will return to his role and continue Fair Park’s positive trajectory of growth and redevelopment.”
Luallen did not respond to a text message Tuesday morning seeking comment.
Luallen’s employment situation had remained uncertain since May 1, when city officials received a message that Luallen was no longer with the nonprofit and chief impact officer Alyssa Arnold would take on the role of interim CEO.
That move was later reversed during a board meeting on May 5, where members voted to place Luallen on 45 days of paid leave and conduct a performance evaluation. The news repeatedly asked board members why the initial notification was sent and received no response.
Related:What we know about the allegations surrounding possible mismanagement of funds at Fair Park
The message about Luallen’s departure came after the nonprofit began a forensic audit of the park’s finances, after Luallen said park operator Oak View Group may have used restricted donor funds for daily operations. Fair Park First raised $48 million in private funds for renovations and improvements.
Emails obtained by The news Through an open records request, Parks Department Director John Jenkins asked Luallen to create a new bank account for donor funds shortly before word of the audit became public. The results of the forensic audit have not been released.
In a June 17 letter obtained by Dallas Morning NewsPark board chairman Arun Agarwal asked Fair Park First board members to release the audit.
“This board has met several times and I really appreciate your service and time, but people are losing patience,” Agarwal said.
On Monday, former Park Board presidents, elected officials and business leaders wrote letters in support of Luallen keeping his job.
State Rep. Venton Jones, D-Dallas, spoke personally at the start of the meeting and praised Luallen’s performance as CEO of the nonprofit.
“Mr. Luallen has consistently demonstrated that he is a tried and tested community leader and public servant,” Jones said. “His abrupt and frankly concerning removal has raised red flags. Luallen has spent the last five years of his life proving that he is not just seeking praise or titles, he is dedicated to the success of Fair Park.”
Jones called for Luallen’s full reinstatement, adding that anything less from the board without a full explanation would be disappointing.
“He was able to make the community feel heard, which many felt was impossible for South Dallas residents. Mr. Luallen’s character is unparalleled as he demonstrated that his heart is in the right place. Finding someone with his work ethic will be a real challenge to replicate,” he said.
Calvert Collins-Bratton, former Park Board chairman and current Park Board representative, alluded to a somewhat shaky relationship between Luallen, Fair Park First Board chairman Darren James and former park general manager Peter Sullivan of the Oak View Group.
However, Parks department officials identified changes to the contract between Fair Park First and Oak View Group and a lack of transparency in vendor contracts in 2019. Bratton said some issues have not yet been resolved.
“We always knew there would be problems in the system, as this is the first agreement of its kind and Fair Park is an extraordinary and complex asset,” Collins-Bratton said in her letter.
Collins-Bratton credited Luallen for the park’s success in expanding community giving and raising nearly $48 million during its capital campaign — an unexpected feat, she said.
“Almost all of this should be attributed to Brian Luallen and the relationships he built,” Collins-Bratton said.
Luallen raised the issue of possible mismanagement of funds in April.
“If an inaccurate and unauthorized reallocation of funds occurred, it is a significant matter and shakes our confidence,” Luallen said in a statement at the time. “If we discover that any restricted funds donated to Fair Park First have been misused, we will do everything in our power, in partnership with the City of Dallas, to ensure those funds are returned and redirected as intended by donors.”
Meanwhile, Oak View Group has denied any wrongdoing. “We are confident – and have documentation to prove it – that all uses of the donated funds were with the full knowledge and approval of Mr. Luallen, acting on behalf of Fair Park First,” said Brian Rothenberg, attorney for OVG360, Oak View Group’s hospitality that oversees Fair Park operations.
The city has for years envisioned redeveloping the site to revive South Dallas and repair your history with the community residentswho longed to see economic progress in their neighborhoods.
In 2019, the City Council decided to maintain ownership of Fair Park, but handed over management of the site to the non-profit organization Fair Park First. Efforts to bring the park under private leadership came after the city spent millions of dollars to preserve the site but continually struggled to make progress on improvements.
Fair Park First then signed a contract with Spectra, a venue management and hospitality group, to manage the day-to-day operations of the park. Two years later, Spectra was purchased by OVG360. The contract was maintained despite the change of ownership.
The city handed over control of Kay Bailey Hutchison Convention Center in downtown Dallas for Spectra in February 2019, weeks after the Fair Park deal was finalized. Since then, the Oak View Group has been a key player in the city’s plans and has also been partially involved in the city’s efforts to move the WNBA’s Dallas Wings to Memorial Auditorium.