By: Diane Benjamin
Part #2 – see part #1 here: https://blnnews.com/2016/09/19/coliseum-david-hales-failed-taxpayers/
The Renner/Hales talking points are they didn’t know what was going on at the Coliseum until VenuWorks took over. They should have known!
Keep in mind the City was negotiating a new contract with CIAM – it was CIAM that backed out. The City planned to sweep the past under the proverbial rug and start over. Taxpayers will be shocked, appalled, and furious when some of the things being uncovered are revealed.
The old management contract is frequently blamed by City officials. It was a bad contract, but it had plenty of provisions the City could have used instead of pretending they were locked out of their own building. Don’t forget the City wrote a huge check to John Butler for $299,999 AFTER he left the building. http://www.pantagraph.com/entertainment/ciam-sells-concession-equipment-fixtures-for-nearly/article_fe0a1ceb-0fbc-5ec3-aa7f-522c224bcecc.html (VenuWorks wrote the check, the City has to pay them back)
The City knew my lawsuit was still pending, obviously they thought nothing was amiss.
Here’s the CIAM Management agreement: Management Agreement CIAM
Below is a partial list of items in the contract David Hales could have used but didn’t:
1) The City did have the right to inspect anything they wanted to – including the books.
The definition of “Revenues” included concessions.
2) If CIAM’s reports differed from the audited statements by more than 5%, CIAM should have paid the audit expenses:
For FY 2015, CIAM reported a loss of almost $500,000. The audited reported shows a loss of almost $700,000.
THOUSANDS of dollars were paid by taxpayers for the annual audit – did the City get their money back?
4) Did CIAM have a bond?