Mayor proposes new nonprofit to centralize city events as council considers governance reform ordinance

Mayor Finkham proposed creating a new independent nonprofit, described during council remarks on May 5 as "Experience Carmel," that would centralize management of public events, philanthropic relationships and city-owned public spaces.

The mayor said the new organization would have co-equal governance representing both the legislative and executive branches and could manage public-space operations, arts grants and shared staff to realize operational efficiencies. The proposal was presented as a forward-looking alternative to ad-hoc affiliate management and was introduced in the mayor’s comments; no ordinance creating the nonprofit was presented for a vote at the meeting.

Separately, the council added an ordinance to the meeting agenda on May 5 that would adopt requirements for nonprofit organizations that receive city support. Corporation Counsel and staff said the draft ordinance (added as an agenda add-on) would require at least one council-appointed member on the governing body of each qualifying affiliate, require mayoral appointees to be approved by the council, and set annual budget-review obligations for affiliated entities that receive public funds or in-kind support. The ordinance’s supporters said the rule would tie the governance change to receipt of public support and would apply to a defined class of "affiliated entities;" attorneys noted the council should examine whether the proposal conflicts with state law and suggested additional review.

Councilors agreed to send the draft ordinance to the Finance, Utilities and Rules Committee for more review. Corporation Counsel told the council her office had received the text late in the afternoon and said at first glance it raised “concerns” that warranted a legal review; she asked staff time to check for possible conflicts with state statute. Councilors also asked staff for a comprehensive list of all nonprofit affiliates that receive city support so committees can identify which organizations would be affected.

Supporters of stronger oversight said the measure would create clearer accountability and improve transparency after the recent affiliate-review process and the Christkindlmarkt dispute. Opponents and some counsel staff urged caution and additional legal review; they noted the difference between standard grant payments and formal affiliate relationships that include city appointees and long-term operating agreements.

The ordinance would also require that organizations receiving grants follow a council-established grant process; the draft language provides a carve-out so widely supported community groups (for example, volunteer-led organizations that receive occasional sponsorships) would not be reclassified as affiliated entities. Councilors asked for clarifications on thresholds, which draft language sets at $25,000 per year for an organization to be considered an "affiliate." The item was referred to committee for further drafting, legal review and stakeholder outreach.