Fair officials deny payback is being used as a reward
Forget about appearances, the leadership of the Nebraska State Fair said Saturday, because they don't square with the facts.
Adamant denials of a payback arose about as quickly as news circulated of a recent $50,000 donation to a campaign aimed at lottery money for the fair and the State Fair Board's decision to award a $1 million, no-bid carnival contract to the donating family's business.
Never mind the proximity between approval of fair board minutes in August that covered the contract with the Florida-based Mighty Bluegrass Shows and the donation in the name of co-owner Linda Murphy three days later, fair officials said.
There was no connection, no prior understanding, no behind-the-scenes deals, said Joe McDermott, interim executive director of a fair driven deep into debt by declining revenue and rising costs.
"Absolutely not," McDermott responded. The contract was not a reward for a donation to the campaign for Amendment 4 that would pump $2 million per year into the fair board's budget.
The amendment appears on Tuesday's ballot.
"Jim Murphy was born and raised in Nebraska," McDermott added. "He's been with the Nebraska State Fair for 34 years. That being his industry, he wanted to make sure that the Nebraska State Fair survived — and, therefore, the reason for his $50,000 contribution."
Questions swirl as Amendment 4 backers hit the homestretch with an effort initiated in the 2004 Legislature and aimed at easing the strains on a budget for State Fair Park that finished 2003 almost $1 million in debt.
The Journal Star was unsuccessful with several attempts to reach Jim Murphy by telephone in Florida on Saturday.
But fair board President Roger Henrichs of Blue Springs and Fair Board Member Van Neidig of Battle Creek, a member of the subcommittee that recommended the Mighty Bluegrass choice, also strenuously objected to suggestions of a payback.
"No way," Henrichs said. "That wasn't considered at all. They got the contract because they've been good to us in the declining years that we've been in."
Neidig called the contract renewal "a no-brainer for us," and said he and others on the committee recommended renewal to the rest of the board long before the Amendment 4 campaign began.
However, language in the minutes of the fair board's August meeting in Lincoln alludes to "a personal contribution of $50,000 to the Amendment 4 campaign upon approval of this proposed contract."
McDermott spoke of "upon approval" Saturday as a "a poor choice of words" and said the donation and the contract were always separate issues.
When the phrasing in the minutes was read to Neidig over the telephone, he conceded they might have contributed to wrong conclusions by anyone who didn't know all the details.
"But I will assure you that was not in any way, shape or form the context of it."
A 2002 ruling from the Nebraska Attorney General's office said the fair board is a private entity that is not bound by any requirements of seeking bids on contracts and that it is not under the jurisdiction of the Nebraska Accountability and Disclosure Commission.
Beyond that, the State Fair leaders said awarding a contract without bids is common practice with other fairs throughout the Midwest. And they say there was even more reason to choose that course in Nebraska this time.
"Being in the financial condition that it is, the future of the organization seriously in doubt, there really isn't another midway provider who would be interested in coming to the Nebraska State Fair," McDermott said.
Bearing in mind that the ranks of carnival providers are thin and most of them already would be booked for 2005, he said, "I think it was a prudent decision to sign a contract with Bluegrass Shows."
Neidig said all the negotiating leverage was on the Murphys' side as talks began to deal with the expiration of a five-year contract in 2003.
"We were scared to death that the Murphys were going to say, ‘Thanks, but no thanks.' Look at the attendance figures from 2003."
Despite that, the Murphys agreed to continue paying $200,000 per year for five years, plus a new clause that routes more money to State Fair Park any time attendance rises above 180,000.
Neidig said the Murphys, who are from Fremont, were just trying to keep the fair alive in their home state.
"Why," he asked, "is it so hard to comprehend that some people just do stuff because it's the right thing to do?"
Reach Art Hovey at (402) 523-4949 or ahovey@alltel.net.
Adamant denials of a payback arose about as quickly as news circulated of a recent $50,000 donation to a campaign aimed at lottery money for the fair and the State Fair Board's decision to award a $1 million, no-bid carnival contract to the donating family's business.
Never mind the proximity between approval of fair board minutes in August that covered the contract with the Florida-based Mighty Bluegrass Shows and the donation in the name of co-owner Linda Murphy three days later, fair officials said.
There was no connection, no prior understanding, no behind-the-scenes deals, said Joe McDermott, interim executive director of a fair driven deep into debt by declining revenue and rising costs.
"Absolutely not," McDermott responded. The contract was not a reward for a donation to the campaign for Amendment 4 that would pump $2 million per year into the fair board's budget.
The amendment appears on Tuesday's ballot.
"Jim Murphy was born and raised in Nebraska," McDermott added. "He's been with the Nebraska State Fair for 34 years. That being his industry, he wanted to make sure that the Nebraska State Fair survived — and, therefore, the reason for his $50,000 contribution."
Questions swirl as Amendment 4 backers hit the homestretch with an effort initiated in the 2004 Legislature and aimed at easing the strains on a budget for State Fair Park that finished 2003 almost $1 million in debt.
The Journal Star was unsuccessful with several attempts to reach Jim Murphy by telephone in Florida on Saturday.
But fair board President Roger Henrichs of Blue Springs and Fair Board Member Van Neidig of Battle Creek, a member of the subcommittee that recommended the Mighty Bluegrass choice, also strenuously objected to suggestions of a payback.
"No way," Henrichs said. "That wasn't considered at all. They got the contract because they've been good to us in the declining years that we've been in."
Neidig called the contract renewal "a no-brainer for us," and said he and others on the committee recommended renewal to the rest of the board long before the Amendment 4 campaign began.
However, language in the minutes of the fair board's August meeting in Lincoln alludes to "a personal contribution of $50,000 to the Amendment 4 campaign upon approval of this proposed contract."
McDermott spoke of "upon approval" Saturday as a "a poor choice of words" and said the donation and the contract were always separate issues.
When the phrasing in the minutes was read to Neidig over the telephone, he conceded they might have contributed to wrong conclusions by anyone who didn't know all the details.
"But I will assure you that was not in any way, shape or form the context of it."
A 2002 ruling from the Nebraska Attorney General's office said the fair board is a private entity that is not bound by any requirements of seeking bids on contracts and that it is not under the jurisdiction of the Nebraska Accountability and Disclosure Commission.
Beyond that, the State Fair leaders said awarding a contract without bids is common practice with other fairs throughout the Midwest. And they say there was even more reason to choose that course in Nebraska this time.
"Being in the financial condition that it is, the future of the organization seriously in doubt, there really isn't another midway provider who would be interested in coming to the Nebraska State Fair," McDermott said.
Bearing in mind that the ranks of carnival providers are thin and most of them already would be booked for 2005, he said, "I think it was a prudent decision to sign a contract with Bluegrass Shows."
Neidig said all the negotiating leverage was on the Murphys' side as talks began to deal with the expiration of a five-year contract in 2003.
"We were scared to death that the Murphys were going to say, ‘Thanks, but no thanks.' Look at the attendance figures from 2003."
Despite that, the Murphys agreed to continue paying $200,000 per year for five years, plus a new clause that routes more money to State Fair Park any time attendance rises above 180,000.
Neidig said the Murphys, who are from Fremont, were just trying to keep the fair alive in their home state.
"Why," he asked, "is it so hard to comprehend that some people just do stuff because it's the right thing to do?"
Reach Art Hovey at (402) 523-4949 or ahovey@alltel.net.
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