A recent North Florida Fair Association board decision to purchase an approximately $28,000 watch for its retiring executive director, Mark Harvey, has triggered calls for investigation and the resignation of four board members.
Leon County Commissioner Brian Welch is seeking an investigation into the North Florida Fair after learning of the purchase. Four members of the organization have resigned as a result of the purchase, including the board’s president and secretary. Watch the video to hear what ABC 27 learned from the obtained documents and hear from the new executive director.Where the Idea Began
Documents ABC 27 obtained show the idea began in a May 6th email when board member George Kolias, Jr. said he pressed Harvey to choose a retirement gift.
Harvey responded he wanted a “nice watch because he treasured his time at the North Florida Fair and that it would be an heirloom item that could be passed down.
Harvey eventually settled on Audemars Piguet Code 11.59, a Swiss watch brand, agreeing to look for a new model on eBay.
Kolias discussed using the fair associations account and non-profit status to buy the watch, believing it would be a considerable savings.
He already reported having a confirmed donation of about $10,000 from a vendor, but the rest would have to come from fair funds.
Concerns Arise Among Members
Internal emails reveal the group initially tried to take a vote using an online survey.
That raised eyebrows with members like Secretary Steve Hurm, who feared it would violate the states Sunshine Law since the organization is a registered non-profit and under a lease agreement with Leon County until 2067.
The law requires government meetings and records to be available to the public but isnt typically applied to entities that are considered private, like some non-profits.
Robbie Jones, another member, worried the nature of the gift could be seen as lavish and excessive and could violate IRS rules.
The IRS considers gifts obtained with non-profit funds a form of compensation that must be reasonable and reported by both the employer and organization.
As board members, we stand to be personally liable for our own actions that result in fraud or misuse of funds. That being said, I feel this walks too closely to this point for me to not look at this decision in a strictly business frame and in the best interest of the board and myself, the email said.
Compensation deemed excessive could be considered private inurement or an unfair benefit and put its non-profit status in jeopardy.
He recommended the board only match the donor funds at $10,000, instead, as he believed any higher amount would jeopardize their standing in the community.
The group eventually voted 5-4 to expend funds during a meeting on July 7th.
Immediately after the vote, Hurm submitted a resignation letter, believing the decision violated Florida Statue 616.07, which outlines rules for fair associations.
The law states that all money and property of the association are public property and shall be used exclusively for the legitimate purpose of the association.
Although I believe firmly in the mission of the North Florida Fair, in good conscience I cannot associate my name with the decision the board made, his letter read.
Board President Rachel Pienta didnt take a vote but resigned two days later.
Her letter states she would have voted no if asked for a tiebreaker vote.
I want to reiterate that it has been an honor and a privilege to serve on the North Florida Fair board over the years. I have stepped down from that position and will continue to focus on and strengthen our local 4-H programming and participation in the Fair moving forward, Pienta wrote in an email to ABC 27.
Members Ashley Edwards and David Gardner also resigned from their positions.
Executive Director Speaks Out Amid Controversy
ABC 27 spoke to current Executive Director Miranda Muir, who confirms the organization contributed a total of $18,000 toward the watch but reiterated the organization didnt use taxpayer funds.
She says less than 1% of funding comes from any type of governmental agency.
All of the money that we have is raised by the Fair Association, so whether that’s individuals coming and paying admission or someone hosting their wedding here at the fairgrounds and doing a rental, Muir said.
Muir says gifts of this value are uncommon in the organization, but she cited a previous member of the fair received a $10,000 gift when they retired.
We felt like this should be a little bit more than that individual just because Mark had been here longer and had done so much, so a bonus of $20,000 we didn’t think was out of touch, and it actually came in less than that, she said.
But the move is facing scrutiny among government officials.
Leon County Commissioner Brian Welch called the action inappropriate in a Facebook post after Red Tape Florida, a government accountability publication, broke the news.
I cannot believe that a non-profit board that oversees the administration of a public asset would act in such an irresponsible way, the post read.
He says he plans to have Leon County Government and Blueprint Intergovernmental Agency investigate the situation once they figure out the level of oversight they have in its management.
Blueprint approved $30 million for its Fairgrounds Beautification and Improvement project that will upgrade the grounds with new restrooms, parking improvements, new indoor meeting space, and more.
Florida Representative Allison Tant commented under Welchs post, saying the fairground authority should be audited.
Whats Next
There is a Blueprint meeting scheduled Thursday at 3 p.m., but its unclear if Welch will bring the issue before its board members.
Muir says the fair association is hoping to move forward as it prepares to host its 83rd Annual North Florida Fair, starting Nov. 6.
She says the board is hoping to fill now-open positions on the board this month.
We also reached out to Harvey about the gift, but have not heard back.
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