Spat over Wilson Center funding delays county budget approval

Nov. 27--More than a million dollars in public money could be headed for the financially crippled August Wilson Center for African American Culture.

Allegheny County's capital budget for next year contains $500,000 for the Downtown center, stalling approval of the spending plan on Tuesday.

"That money doesn't belong in our capital budget," said Councilman Michael Finnerty, D-Scott. "It's for our roads and our bridges."

Separately, the Allegheny County Regional Asset District's board said it could still give $525,000 to the center, if the money goes toward concerts, plays and dances, and not to pay lawyers and creditors.

"If we feel the money is going to operations and not to bankruptcy court or to pay off creditors, we might feel more comfortable releasing the allocation," said Daniel J. Griffin, the board's chairman. RAD is a longtime supporter of the center.

The center is being managed by a court-appointed conservator. Dollar Bank, which holds $7 million of its debt, filed for foreclosure and the state Attorney General's office asked for a full accounting of its finances.

The bank said the center quit making mortgage payments and paying its insurance. The Attorney General's office has said $17.4 million in public money went toward construction of the center.

Mulugetta Birru, co-founder of the center, praised RAD's action. "They don't want to throw good money after bad," he said.

RAD supports parks, libraries, stadiums and cultural groups with half of the proceeds of an additional 1 percent sales tax in Allegheny County.

The county's $50.4 million capital budget failed to advance to a full vote by council when the budget and finance committee rejected it, citing funding for the center.

"I think we have to sift through this as we go," said Councilman Bill Robinson, D-Hill District, who proposed funding the center as chair of the committee. "This is uncharted territory we're in."

Council must approve a budget by Dec. 6. To meet the deadline, members must vote at their next meeting on Tuesday.

Neither the county charter nor the municipal code imposes penalties for missing the deadline, but not having a capital budget by the start of 2014 could delay the start of construction projects planned early in the year.

County Council could consider the capital budget on Tuesday if members vote to pull the unapproved budget from committee, a tactic Councilwoman Barbara Daly Danko, D-Regent Square, used to bring her proposed moratorium on drilling for natural gas in county parks before the council. The proposal failed badly.

Councilman Nick Futules, D-Oakmont, said he thinks there are enough votes to pull the capital budget from committee.

RAD's board voted to hold $300,000 in contingency money for the center for 2014 if it can show that it has turned itself around. The board voted to roll over $225,000 in 2013 money it withheld from the center if it makes a comeback.

Birru said RAD's votes show a "strong commitment" to the belief that under conservator Judith K. Fitzgerald, a former bankruptcy judge, the center will devise short-term and mid-term plans for survival.

RAD Executive Director David Donahoe said he met with Aaron Walton, chairman of the Wilson Center's board, and its attorney, Stanley Levine, to discuss the fate of the center at least six weeks ago. He said they asked RAD to hold the grants until they developed a plan for the center.

Bill Zlatos and Aaron Aupperlee are staff writers for Trib Total Media. Reach Aupperlee at 412-320-7986 or [email protected]. Reach Zlatos at 412-320-7828 or [email protected].

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