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Sydney Creative District seeks new parent organization amid $100,000 grant liability concerns
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Summary
The Sydney Creative District told the council it will explore moving its administration off the city after liability worries tied to a $100,000 Nebraska Arts Council grant for a mobile stage; the council asked for state confirmation and documentation before any transfer.
Brandy Stone, leader of the Sydney Creative District, told the City Council on Nov. 13 that the district — designated in April 2023 to promote public art and creative industry growth — received a $100,000 development grant from the Nebraska Arts Council and raised roughly $141,000 in private donations for a mobile stage project.
Stone said the group is seeking permission to explore moving the district’s administrative home from the city to an outside nonprofit to limit the city’s potential liability related to the stage project and future activities. “We’re hoping to go find a new organization” to serve as the parent entity, Stone said, adding that the state indicated the transfer is allowable if both organizations agree.
Councilmembers pressed Stone for documentation that no other entity — identified in prior paperwork as Potter — still claimed rights to portions of the grant. Stone said Potter had stepped back from the project and that the funds were currently “free and clear,” but she agreed to secure a confirming letter from Rachel Morgan at the state and bring that documentation to the next meeting.
City staff and several councilmembers noted that even if administration shifts, project work that takes place on city property or requires permits will still involve the city. One councilmember asked how the city would be protected if funds moved to a nonprofit; Stone said the Nebraska Arts Council’s legal staff had indicated a transfer could be arranged but that it would need agreement between the two organizations.
The council did not vote to transfer funds or change the district’s status. Instead, members signaled that an exploratory process was acceptable and asked Stone to return with the Potter confirmation and any other paperwork required by state authorities. Interim City Manager Josh Hanson summarized next steps: staff and the Creative District will clarify the paperwork needed and report back so the council can consider any formal action.
