The city of Fresno wants the operators of the Granite Park sports complex out for allegedly breaking its lease.

Meanwhile, attorneys for the Central Valley Community Sports Foundation said its in compliance.

And, the nonprofit group’s president is being coy on his next move.

It sets up a showdown as to whether CVCSF will pack its bags from the once-dilapidated park it operates, or the city follows through on its threat to evict.

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

The city said CVCSF owes the city $1.3 million in unpaid rent, utilities, and profit from a digital billboard on the property. White sent the nonprofit a letter Wednesday, providing a three-day termination notice. If the nonprofit foundation doesn’t pay its bill, White said, the city will engage in legal eviction proceedings.

As of Friday morning, CVCSF had not responded to the city’s letter.

Terance Frazier, president of CVCSF, would not directly answer GV Wire’s questions about his next move. He deflected, alleging the city is lying about him. Messages to his attorneys also went unanswered.

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.

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.

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.

CVCSF said the city did not need to pay any delinquent PG&E bills because it has a payment plan in place.

“The council and the administration at that time wanted to make sure that kids weren’t left in the dark. And we just continue to put the operator on notice. And you need to pay your bills. You need to pay your bills. This last time, we did not step in and pay the bill and the park did go dark for a couple hours,” White said in explanation of why the city paid the bill.

Frazier told GV Wire that in the past he has lost money operating the park. 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. When he asked for help, he received an audit, and now an eviction notice.

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.