DAPC hands tennis center, amphitheater back to the city

By CAL BEVERLY
editor@thecitizennews.com

and By J. FRANK LYNCH
jflynch@theCitizenNews.com

Saying the operation of the Peachtree City Tennis Center and Frederick Brown Amphitheater had become too much for a part-time board to manage, the Development Authority of Peachtree City Thursday night resigned from its management contract with the city council and handed the two venues back to the city.

The DAPC also accepted the resignation of its embattled executive director, Virgil Christian, effective the end of October, when the city takes over the two operations.

Unclear is the status of an estimated $1.5 million in debt incurred by the authority during expansions and renovations of the two venues.

The city council is preparing to adopt an austere budget requiring a city tax increase, but no one on council had expected to be faced with picking up the money-losing operations of the tennis center and amphitheater.

The stunning decision ends the aggressive and often personal criticism lobbied at the authority by Mayor Steve Brown, whose insistence on "full disclosure" of the authority's finances and management practices has consumed his administration since taking office in January 2002, and divided much of the city.

"They're dumping it back on the city," Brown uttered as DAPC Chairman Tate Godfrey read a statement announcing it was quitting the venue business.

"We believe the management of these two now significant facilities is beyond the scope of a part time, volunteer Authority and and that the expertise of the City's full time employees is required to continue the ongoing operation and success of these venues," read the letter addressed to the five members of city council.

The vote was 5 to 0 in favor of getting out of the management business.

Immediately after, in executive session, the DAPC accepted Christian's resignation effective Oct. 30. Other terms of the separation have yet to be determined, said Mark Oldenburg, DAPC attorney.

Disagreement remains about what will happen to the debt. Oldenburg said it was the authority's belief that the city would "take on" the estimated $1.5 million deficit.

"City Council has said on numerous occasions they would be willing to take on the debt," said Oldenburg.

But City Manager Bernard McMullen, who was at the meeting, said that was never the case.

"What my memory of that is that city staff was advised by the council to help the DAPC find the best method to eliminate the debt," said McMullen.

The city proposed the DAPC eliminate the deficit through a bond or similar means, but that effort was stalled a couple of months ago when it was realized that the DAPC's financial records were so poor it was difficult to identify exactly where the money went, McMullen confirmed.

Most of the $1.5 million is believed to have been accrued during last year's expansion of the tennis center, which had numerous cost overruns.

Christian was the overseer of that expansion, and Brown has alleged that he mishandled the project by approving change orders and extra expenses without the OK of the authority.

Brown and McMullen were the only city officials at the meeting.

McMullen said he wasn't sure what the next move would be, but consultations with city staff -- particularly city attorney Ted Meeker -- were the immediate order on Friday.

"My perspective is you don't make knee-jerk reactions," said McMullen. "There are legalities here that need to be worked through."

Both the amphitheater and tennis center facilities are owned, or being paid for, by the city, so that's not an issue.

McMullen said what's of greatest concern, in addition to the debt, is how the city will absorb into its ranks an estimated 15 full-time employees, and at least that many more part-time workers, as well as pensions and benefits.

Also in limbo is the operation of the pro shop managed by and partly owned by Christian. The shop pays no rent for its space at the city-owned tennis center currently, but Godfrey said that will change.

Brown appeared shaken by the turn of events, precipitated by the Tuesday resignation of DAPC Vice Chairman Scott Bradshaw.

His resignation letter detailed surprise cash flow problems, undisclosed obligations to sports equipment maker Adidas and a pattern of ongoing financial accounting shortfalls.

Godfrey defended the board's handling of the cash-strapped venues, contending that fall is typically the tightest time of year for cash flow.

Godfrey also said an Adidas contract mistakenly listed DAPC as a guarantor for $366,000 in retail sales of Adidas products through the for-profit and privately-owned pro shop in the tennis center. Godfrey said that "mistake" had been rectified and that DAPC was no longer liable.