Terance Frazier had a definitive response when asked if his nonprofit will vacate the Granite Park sports complex.

“Hell no, I’m not giving it up. I may give up all my real estate and all my investments, but my purpose is to save these kids’ lives because that’s what God did for me,” Frazier said during a news conference at the complex on Friday afternoon.

The city said the Central Valley Sports Foundation led by Frazier owes the city $1.3 million in unpaid rent, utilities, and profit sharing from a digital billboard on the property. Fresno City Manager Georgeanne White sent the nonprofit a letter Wednesday with a three-day termination notice.

“When people don’t pay their bills, then we have to move forward. I mean, this is going on for years now,” White told GV Wire.

This now sets up a showdown likely to be decided in court. If CVCSF does not vacate by Saturday, the city could sue for an unlawful detainer.

Frazier talked about how parks and playing baseball growing up in Oakland kept him off the streets. He played college ball with Fresno State and a few years of pro ball.

“I didn’t go to this park to make money. I’m a developer. I’m an investor. I put my heart and my soul in these parks because I want another kid to come out of here and be like a Terance Frazier,” he said.

It is up to White to enforce city leases. The action does not require a vote of the city council, she said. The city council has discussed litigation involving Frazier and CVCSF several times in closed session agendas show, without any public reporting of an action or vote.

Councilmember Tyler Maxwell, who represents Granite Park, declined comment because of the pending litigation.

Related Story: Fresno Breaks Up with Park Operator Over Alleged Million Dollar Miss

PG&E Bills

In tears at one point, Frazier and his attorney David Weiland argued they are in compliance with the lease, originally signed in 2015. Yearly rent? Weiland said it is offset by the millions in improvements CVCSF invested in the park.

Weiland called White’s letter “lies.”

The city paid $263,000 in PG&E bills, even though they were not obligated to. White said they wanted to keep the lights on for the kids.

Weiland and Frazier said they are current with the bill, and the city never had to pay.

“Why the city chose to make what we consider to be a gratuitous payment to PG&E, we have no idea. It made no sense at the time. It makes no sense today,” Weiland said.

In a letter to the city in August, Weiland said the city should “demand a refund” from PG&E.

“That’s contrary to the begging phone calls that he made to the councilmembers and mayor,” White said.

Weiland said he had “no knowledge” of Frazier asking or begging.

What Happens Next?

If the city takes control of the park, White said the city will use the next 30 days to formulate a plan.

Either way, White said the city would honor any group — such as baseball and soccer teams and tournaments — with previous reservations.

“We can operate (the park) ourselves. We can find a different operator. We can look at doing something different with the property there. I think we’ll cross that bridge when we get to it,” White said.

It is possible to use Measure P money — a city sales tax for parks — to help operate the sports complex.

CVCSF has operated the park since 2015, providing recreational youth and adult sports. But, the city and CVCSF have been at odds since 2018, when the nonprofit asked for an increase of its annual $150,000 subsidy.

The city responded with an audit that found financial irregularities.

Frazier sued the city and several officials in federal court, alleging civil rights violations. He claimed the audit’s findings were false, and making the audit public violated the law. Filed in 2020, the defendants’ motion to dismiss remains pending. It returns to court March 11.

Frazier on Why City Wants Park Back

Frazier and his attorney Weiland speculated as to why the city is terminating the lease.

Frazier said the park’s appraised value increased from $2 million to $9 million.

“Instead of negotiating in good faith by the city, they’re attempting to seize our improvements for free,” Frazier said.

Just as the city is accusing CVCSF not living up to the lease, Frazier and Weiland said the city is not.

The foundation said the city has not used the park for any recreational programming, nor has the city provided “purple pipe” recycled water.

Lender: Where are the Documents?

CVCSF borrowed money to help expand and operate the park.

Developer James Huelskamp holds a note of more than $1.3 million. The city is giving him 30 days notice to cure any back rent or leave.

“We requested documents to back up what they said was in default so that as a lender, we could cure it if we wanted. And we haven’t seen anything. But maybe that will get worked out this time,” Huelskamp said.

Huelskamp didn’t say how he will respond.

“I’ll let the legal process carry itself out,” Huelskamp said. “Obviously, we’re going to vigorously defend our position as a lender. But yeah, I don’t know. The city … they seem like, I don’t know exactly if they’re focused.”

“It seems like they’re being a little messy. They should provide the information. It would be easier to solve the problem. But that’s really all I have to say. I think everyone’s working hard.”

Huelskamp called CVCSF a good borrower, praising the foundation for helping young people.

Sides Disagree About Violations

The city and CVCSF attorneys have communicated by letter several times since May over the lease. CVCSF argues that by terms of the lease, it is not delinquent on rent or any other violations.

“I completely disagree with their assertion that they’re not in violation of their lease terms. They are in violation of several of the lease terms. And enough is enough. We can’t continue to subsidize the park,” White told GV Wire.

Among the terms, CVCSF would pay an annual $62,500 rent, improve the park, and share billboard revenue. The city would provide a $150,000 yearly subsidy, last paid in March.

In a letter to the city, CVCSF said it has made made more than $2 million in improvements. Those improvements should be considered credit against the yearly rent according to the lease.

“Have they made improvements to the park? Yes. Were all of those improvements authorized? No. Per the lease terms, were they supposed to make other improvements? Yes. Did they? No,” White said.

Weiland said White’s comments were “nutty.”

The lease called for construction of volleyball and basketball courts, as a well as a restaurant. Those have not been built.

Weiland explained those were just “examples” in the lease contract. There has not been money to build a restaurant, he said.

Frazier told GV Wire that in the past he has lost money operating the park. He estimates spending $110,000 a month. White has doubts.

“We’ve seen documents that (CVCSF) has provided, financial statements that show that that’s not true. So it’s hard to figure out what the real numbers are, but we’ll put together what it’s going to cost us to operate the plan and the park and move forward,” White said.

According to CVCSF 2022 tax filing (Form 990), reported revenues outpaced expenses by $93,000, but was in a $510,000 negative net asset fund balance.

Frazier, as the foundation’s president, received $120,016 in compensation.

CVCSF is also engaged in litigation with its Granite Park neighbors over parking. Currently, the nonprofit and a corporation linked to Club One Casino are suing each other over the right to use the spaces.

White said she wants to work with the parking space owners for a solution.

Grizzlies Comparison

Frazier also has raised the point that when the Fresno Grizzlies minor league baseball team asked for financial help, the city cut the lease payments. The team leases city-owned Chukchansi Park. When he asked for help, he received an audit, and now an eviction notice.

He said that Granite Park, at 300,000 yearly visitors, outdraws the Grizzlies.

“Granite Park … deserve the same respect and consideration,” Frazier said.

White explained the differences.

“I think that when you have an entity that operates in good faith and compliance, then there’s a process that you go through. Every time that we have asked CVCSF to operate in accordance with the terms of his lease, it’s either met with silence or defiance,” White said.