Can the city recover from First America?

Editorial: St. Augustine has reached an interesting point in the First America saga.

Thursday afternoon, in a special meeting that lasted well beyond 5:00 p.m., Chairman Donald W. Wallis addressed the First America Foundation board for the last time in that capacity.

When Historic City News received word from a prominent local attraction owner about the meeting, earlier Thursday morning, the phone had already been ringing with questions about the controversial foundation, its two boards of directors and its so-called “oppressive” leader.

Of course, the Thursday meeting was held “in executive session” according to Executive Director Jamie E. Alvarez; meaning that only members of the Board are present. “No guests, no staff and no employees. Just Directors,” Alvarez said.

One of the biggest criticisms of the Foundation among members of the community is Wallis’ apparent obsession with secrecy. Concerns were intensified because of the hastened creation of the organization, delay in seating others to the board, and, refusal to allow “outsiders” to attend meetings where decisions are being made — when it is City tax money that the board is spending. Even city commissioners are denied an opportunity to attend, not even to silently observe.

In published news reports today, Wallis has announced that he is remaining on the board but has stepped down as its chairman. Reportedly, Wallis resigned the chairmanship because he wanted the foundation to hire an executive director and a fundraiser, but the group didn’t want to go in that direction.

Historic City News obtained and published several e-mail communications from Wallis that show a different side of the Upchurch, Bailey and Upchurch attorney who, with local resident Colin A. Bingham, incorporated the Foundation on July 13, 2010. In less than thirty days, the City of St. Augustine executed a contract with the hastily created entity and, against all standard protocol for payment of government obligations, issued them a check, in advance, to perform vaguely defined services over the next four years in the amount of $275,000. That initial “seed money” was followed by an additional contribution of $25,000 from the City, shortly thereafter, bringing the City’s contribution in First America Foundation, Inc. to $300,000.

Donald Crichlow held Seat 4 on the commission that agreed to make the contract with the Foundation, however, Crichlow is gone now and Bill Leary holds that seat today. Leary has been an outspoken objector to Wallis’ administration of the Foundation in terms of secrecy, cooperation and measurable results.

Leary wrote in a “Letter to the Editor” published by Historic City News on May 30th, “Nine days ago I asked the FAF chair to resign for the good of the foundation and the 450th effort because the FAF had, in my opinion, become irrelevant. I said the FAF needs a new head coach. He refused and said he would “not make it easy for me.””

This may be the first time that Leary has served as an elected public official, but I give him credit for interceding on behalf of local taxpayers — instead of, as he put it, “digging the hole deeper”.

In his letter to Historic City News, Leary wrote, “But as a city commissioner, I am obligated to the citizens of St. Augustine to ensure that city tax dollars are properly spent. In this case, they have not been. Absent a change in FAF leadership and subsequent demonstration of real progress, I believe we must ask for what remains of your money back.”

So, here we are. No “deliverables” delivered. Less than six months away from the first commemorative year of the First America Foundation contract and the organization’s founder has resigned, there is no Chairman, they have one employee whose title is in flux, and no final strategic plan. Oh, and they have spent $100,000 getting to this point, we are told.

Concerns over the requirements of Florida’s “Government in the Sunshine” law, had the City Commission attempted to manage the City’s 450th commemoration directly, were peddled as a hindrance to efficient and effective progress towards the planning goals.

Sources close to the decision making process tell Historic City News that it was felt that what was sacrificed in public access was more than offset by the ability of a third-party foundation to be nimble, be better able to negotiate with potential vendors and to accomplish the City’s goals more quickly. It was never contemplated, according to our source, that the ability of the private Foundation to avoid public scrutiny would be used to withdraw into a black hole with public money and produce nothing.

In a step of great leadership, the City Manager, John Regan, saw the handwriting on the wall; calling a public workshop where he won the support of the current commission to use City staff to accelerate the process.

The question to be answered is will the City see a return of all or part of the money squandered by First America Foundation, Inc., now that Wallis is no longer in charge?

I suppose another question might be is the City willing to put their own plans on hold to allow First America Foundation to re-group, again?

Photo credits: © 2011 Historic City News staff photographer