Embassy performance hall CDBG funding request sent


Irregularities present in council resolution sent to state

Home in Henderson has obtained the document sent to the North Carolina Department of Commerce’s Division of Community Assistance requesting grant funding for the proposed Embassy Square Performance Hall.

The document was sent to the state on September 9, 2008.

A cover letter signed by Henderson Mayor Pete O’Geary states that the city’s intention is to amend the David Street CDBG project to include what it now terms the Embassy Square Neighborhood Facility. O’Geary also notes in the letter that the David Street project was inadvertently closed out.

The application includes a resolution by the Henderson City Council authorizing the grant “amendment”. The use of the term “amendment” is inconsistent with the term “application” which was used in the original resolution introduced by Henderson City Council member Bernard Alston during the Henderson City Council meeting of August 18, 2008. It was not until August 27, 2008 that former Interim City Manager Ed Wyatt learned that the request should have been prepared as an amendment to the David Street CDBG project rather than as a separate application.

Wyatt communicated the error to the mayor and city council in a memo dated that same day.

Also, the resolution is attested by Henderson City Clerk Pamela Glover. At the time the resolution was passed, Beverly Jackson was the acting city clerk of Henderson. Glover’s signature is dated September 9, 2008.

The council resolution also states that “…the development of the application has undergone numerous reviews by the City staff, citizen committees, Council Committees, and the general public.”

HiH is unaware of any citizen committees that reviewed the development of the application. The Henderson City Council meeting of August 18, 2008 was the only opportunity the public had to review the application which was not released until August 15, 2008 at 3:00 p.m.

At the time of the original document’s release, then Interim City Manager Ed Wyatt characterized the document as “85% complete”.

In addition to new narratives that include scenarios about how the performance hall will be used, the new document differs from the previous version with a more complete budget.

The budget in the request document totals $9,091,047 in performance hall project costs. The amount being requested for “neighborhood facility” phase of the David Street CDBG project is $1,000,000.

Monthly operational expenses for the performance hall are estimated at $20,693.40. This includes $12,000 a month in loan interest payments.

The amendment document has attached to it a document entitled “The Theatre’s Strategic Plan 2002-2009”. According to O’Geary’s cover letter, these materials are meant to address concerns outlined by the DCA in a correspondence dated July 9, 2008. The document outlines goals such as targeted artistic presentations, educational programs, rental activity, and marketing.

HiH‘s document does not include the letters of endorsement present in the first draft of the request. It is unknown if letters in opposition to the request for funds were included in the package that was sent to the Division of Community Assistance.