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Shawnee County approves $279,403.57 contingency subsidy for Stormont Vail Event Center over chair's dissent

Shawnee County Board of County Commissioners · December 19, 2024
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Summary

The Board of County Commissioners voted 2-1 to release $279,403.57 from the county contingency fund to cover the Stormont Vail Event Center's 2024 shortfall after managers said multiple contracted events underperformed. Commissioners and public commenters pressed the event center's manager and its contractor OVG 360 about shared responsibility.

The Shawnee County Board of County Commissioners on Dec. 19 approved a $279,403.57 transfer from the county contingency fund to the Stormont Vail Event Center to cover an operating shortfall for 2024, a measure that passed on a 2-1 vote with Chair Kevin Cook dissenting.

Stormont Vail representative Cowen Sites told commissioners the center missed several budgeted contracts and that some live events produced zero or negative profit, which magnified the shortfall. "When they don't produce profit, it's a double hit to the budget," Sites said, adding the center is pursuing multiyear contracts and other booking opportunities for 20252028 to stabilize revenue.

Jennifer Sauer, the county financial administrator, said the contingency line is a year-end general fund account that does not roll forward. "At the end of every year it is 0," she said, and explained recording the expense from contingency is the correct fiscal treatment for an unexpected 2024 cost.

Commissioners pressed Sites and county counsel about the relationship with the center's management contractor, OVG 360. A county adviser said the county does have contractual obligations with OVG 360 but that not all individual line items had been fully vetted in the meeting; the adviser also said invoices from OVG corporate appeared more transparent this year than under prior management. The adviser said contract performance and whether a contractor should share losses could be a matter the commission revisits if targets are missed in 2025.

Public commenters criticized repeated county subsidies for the center. Ted Endsley, who signed up to speak on the item, told the commission he was "puzzled" by repeated requests for county funds and asked whether the shortfall indicated mismanagement. Carol Marple said taxpayers had already subsidized the center and questioned how much more the county would absorb.

Commissioner Aaron Mayes moved to approve the remaining subsidy; Commissioner Bill Rippon seconded. The motion carried 2-1, with Chair Kevin Cook voting against the transfer and stating concerns about precedent and contractor accountability.

The transfer is recorded to close the county's 2024 books. County staff said they will continue to monitor Stormont Vail's bookings and contract negotiations and may return to the commission with additional information or contract-related recommendations in 2025.