The Broward Inspector General’s Office appears poised to ask Broward prosecutors to investigate a Hallandale Beach group that received at least $25,000 in city funds.
The Zamar School of Performing Arts had been slated to get another $50,000 from the city’s Community Redevelopment Agency last week. The deal fell apart, however, shortly after it was discovered that Zamar was ineligible for the funds because its status as a tax-exempt 501(c)(3) non-profit had expired.
CRA Attorney Steven Zelkowitz said the county’s Inspector General’s office has informed him investigation of Zamar by the State Attorney’s Office was “ongoing.” The Inspector General has been investigating allegations of mismanagement at the city and its CRA since last spring.
City Manager Renee Crichton Miller and CRA executive director Alvin Jackson confirmed that a the state’s investigation involving Zamar was underway, although both said Zelkowitz was the source of their information.
A spokesman for Broward State Attorney Mike Satz said Friday that the matter has had some review, but that no criminal investigation was underway.
“I’m told that we have not received anything formally on this yet,” Ron Ishoy said on Friday. “The case was apparently discussed last month at the public IG Oversight Committee meeting that (Assistant State Attorney) Tim (Donnelly) sits on.”
Inspector General Scott declined to comment.
Zamar’s president and director Deborah Brown did not respond to repeated phone messages seeking comment. A person who answered the phone at Brown’s office initially advised a reporter to hold for her. A short time later the line went dead and follow-up calls to Zamar were sent to an answering machine.
Zamar provides arts and education programs and job training and job placement, according to city documents.
County investigators are believed to be nearing the end of a months-long examination of city grants and contributions to community groups, CRA land buys and loans to local businesses. City commissioners – who do double duty at the board of directors of the CRA – and various city employees have been interviewed, and thousands of pages of city records examined.
In June, Browardbulldog.org reported those records included files on eight community-based groups that received city funds, including Zamar.
Zamar, which got $25,000 in CRA funds three years ago, operates on city property at 501 N.W. 1st Avenue – in a building once owned by a group headed by City Commissioner Anthony Sanders.
The city leased the property for a one-time payment of $10 to the Palm Center for the Arts in 2009 shortly after acquiring the property. While Palm Center was prohibited from subletting the facility, the city later modified the agreement to permit Zamar to operate a summer camp there in 2009.
When the Inspector General asked the city this year for records about Zamar and Palm Center, state corporate records listed Brown as president of Palm Center and a principal and director of Zamar. At that time, Palm Center had received at least $107,000 in CRA funds over the past three years.
The IG’s probe has also involved a review of the city’s acquisition of 501 N.W. 1st Avenue from Commissioner Sanders’ nonprofit, Higher Vision Ministries. The group purchased the property in 2001 for $45,000 and sold it to the city eight years later for $235,000. Appointed to fill a vacancy in 2008, Sanders did not vote on the purchase.
In between, the CRA gave Sanders’ group a $46,000 property improvement loan. The city only required Sanders’ group to repay $31,000 of that loan, the rest was forgiven.
The Inspector General’s office has yet to say why it is interested in Zamar and why prosecutors should look at it.
City Manager Miller said Zelkowitz was likely contacted about Zamar by the Inspector General because it involved the CRA, whose directors are the five members of the city commission. She added she has no other information on the nature of the Zamar probe.
“I’m concerned when a non-profit is under scrutiny,” said Miller.
Zelkowitz declined to elaborate.
Earlier last week, Zamar had a setback when it was announced that the group had withdrawn its request for CRA funds for this fiscal year.
Commissioners, as CRA board members, were to vote on the $50,000 GRANT on Dec. 17. Shortly before, however, city staff learned the group did not have current 501(c)(3) nonprofit status, making it ineligible for the funds.