Franklin Residents Support Franklin Field Naming Rights 1.5 Million over 10 Years with Hotel Room Tax using Engage Franklin as "Trojan Horse"
Franklin Community News
1.5 Million of Hotel Room Tax Revenue used to pay Naming Rights of "Franklin Field"
"Engage Franklin"established as "Social Welfare"503(c)(4) and used as "Trojan Horse" to allow payment of Naming Rights to ROC Enterprises for"Franklin Field"
The following post is making its way around Franklin Social Media Sites.
Franklin Community News (FCN) has confirmed that this is an OLD post. FCN has also confirmed that the current Tourism Director has resigned from Engage Franklin last Friday November 24, 2023 full-time and is continuing on in employment part-time. The Tourism Director has accepted a full-time position with Visit Milwaukee with agreement to stay on with Engage Franklin part-time. FCN also confirmed the staff member is paid wholly from ROC Enterprises and NOT from the city of Franklin as indicated in the post.
The ROC Sponsored "Enchant" now displays on its website both logos for Visit Milwaukee and Engage Franklin that proclaims
"Visit Milwaukee And Franklin"
"Enchant Christmas is happy to partner with Visit Milwaukee and Engage Franklin to elevate your guest experience by providing information about the city and the variety of local to-do’s."
FCN is unable locate a public web page or any public identification of officers or board members for Engage Franklin. Other than the "Enchant" page there is no other placement of the Engage Franklin Logo, which luck would have it, made its inaugural debut on the Enchant website. According the the Franklin Tourism Commission meeting minutes of April 28, 2021, their is a mention of www.engagefranklin.com. However when that url is entered it is redirected to https://celebratefranklin.com/. This page is the Tourism Page for the Franklin Tourism Commission with no mention of Engage Franklin.
The IRS does indicate Engage Franklin is a "Social Welfare" Not for profit 501(C)(4) established May 21, 2021 and formally approved by the IRS this past September 21, 2023 according to the IRS determination letter. According to the IRS:
"To be tax-exempt as a social welfare organization described in Internal Revenue Code (IRC) section 501(c)(4), an organization must not be organized for profit and must be operated exclusively to promote social welfare. The earnings of a section 501(c)(4) organization may not inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any managers agreeing to the transaction."
The Wisconsin Department of Financial Institutions lists Engage Franklin as being incorporated in Wisconsin on May 20, 2021. The initial registered agent listed when the organization was incorporated is Joe Alivo at 7044 South Ballpark Drive, Floor 3, Franklin, WI 53132. An online search for Joe Alivo on rocketreach indicates:
"Joseph Alivo, based in Franklin, WI, US, is currently a President at Prospect Training Academy and Rock Tournaments, bringing experience from previous roles at PNC Bank, Wells Fargo and Family Mortgage, LLC. Joseph Alivo holds a 2000 - 2001 MBA in Business Administration @ University of Wisconsin-Parkside. With a robust skill set that includes Banking, Finance, Cash Flow, Accounting, Budgets and more, Joseph Alivo contributes valuable insights to the industry."
The information also identifies that Engage Franklin was delinquent in filing the annual reports with the state thru April 1, 2023. There was a change of the registered agent on May 5, 2023 and Engage Franklin was Restored to Good Standing. FCN is obtaining records of who is the current registered agent .
"Director Greving provided an update on the Naming Rights Agreement for Franklin Field. The Agreement is signed and the check will be delivered on May 5, 2021."
Note - Engage Franklin filed as a "Social Welfare" Not for profit 501(C)(4) May 21, 2021 with the IRS and formally incorporated in Wisconsin on May 20, 2021. "The Agreement is signed and the check will be delivered on May 5, 2021." Could this timing all be an alignment of the planets......"The Agreement is signed and the check will be delivered on May 5, 2021." ?
The Franklin Tourism Commission allegedly pays the annual $150,000 sponsorship payment to Engage Franklin and allegedly Engage Franklin pays ROC Enterprises. It is questionable what the ROI is to the residents of Franklin for that $$$. Is that the best use of the hotel tax and why have a local government be a major naming sponsor for a for profit organization? Could ROC Ventures not find a corporate naming sponsor willing to pay $1.5 Million for the Naming Rights? Why is the Naming Right of "Franklin Field" a concern to Franklin City Officials or to the citizens and taxpayers of Franklin?
Did executives at ROC Enterprises search out a for-profit business that could use the naming rights opportunity for name recognition in front of thousands of attendees, product exposure, brand recognition, sampling, couponing, social media awareness etc, at all events and games at Ballpark Commons? Were they not able to obtain a corporate $1.5 Million Naming Rights Sponsor? At the very least a study should be completed from a third party on the local economic impact, if any, as a result of increased activity at the Rock. Other than hotels, do local restaurants, entertainment facilities, bars, taverns see any increase of revenue as a result of Rock events and sports? If so, what is the increased or decreased revenue to businesses other than the Rock.
According to WI Statute 66.0615, Tourism Entity
“a nonprofit organization that came into existence before January 1, 1992, spends at least 51% of its revenues on tourism promotion and tourism development, and provides destination marketing staff and services for the tourism industry in a municipality. Exception: If no such organization exists in a municipality on January 1, 2016, a municipality may contract with such an organization if one is created in the municipality.” - Enter Mike Zimmerman and ROC Enterprises.
It now is very clear that the City of Franklin Tourism Commission has contracted with ROC Enterprises for the city's tourism promotion and tourism development. This again appears to be a self-serving conflict of interest between the City of Franklin and ROC Enterprises.
Through a Google search and search on the City of Franklin Website there appears to be NO TRANSPARENCY of Board Members, Officers, Mission, Agendas, or Minutes publicly available for Engage Franklin.
What has Engage Franklin done since May 21, 2021 for tourism promotion and tourism development for all other businesses excluding ROC Enterprises? How has the ROI of Engage Franklin been measured? The City of Franklin apparently has its very own "Visitors Center" located inside Ballpark Commons, how convenient. How many residents are aware of this so they could utilize it when they have visitors in from out of town?
It is also interesting that just about the same time Engage Franklin came into existence is abut the same time frame that the ROC started to receive the $150,000 yearly Sponsorship for Naming Rights from the Franklin Tourism Commission.
For some of us that may have a short memory, remember back in September 2919 Ballpark Commons announced that it had secured the naming rights of a sponsor for the stadium “Routine” Field. According to the July 3, 2019 Biz Times it was a “10-year, seven-figure agreement that was not disclosed”.
According to a Milwaukee Journal Sentinel article on September 6, 2019
“The company for which Routine Field is named is suing the developer of that Franklin baseball park, claiming it is using its name and logo without approval.”
“However, a naming rights contract hasn't been "fully negotiated or signed by any of the necessary parties," says the lawsuit, filed in U.S. District Court.”
“Also, Zimmerman said his companies paid to install signs and logos at Routine Field, and invested additional money in connection with Routine Baseball, without being compensated.”
“The suit says ROC Ventures, Ballpark Commons and another Zimmerman company, Lifestyle Sports Apparel LLC, in July 2018 entered into a nonbinding letter of intent with Routine Baseball, Complex Solutions LLC and DeGrave, who operates both companies.”
“The five-year deal called for Routine to pay $150,000 annually for the naming rights.”
“That agreement included provisions for Routine Baseball to buy 85% of Lifestyle Sports Apparel, in exchange for ROC Ventures buying 15% of both Routine Baseball and Complex Solutions, a merchandising company.”
“After signing the letter of intent, the suit says, DeGrave learned that Lifestyle Sports Apparel owes $100,000 to an unnamed third party, and that Zimmerman was considering closing the business.”
“Also, DeGrave found that other companies owned by Zimmerman, including the Milwaukee Wave indoor soccer club and Kokomo (Indiana) Jackrabbits baseball team, had hired vendors other than Routine Baseball to provide merchandise — contradicting the letter of intent.”
“Meanwhile, signs with Routine's name were installed at the stadium without DeGrave's approval, the lawsuit says.”
“Also, Zimmerman's companies eventually owed $100,000 to DeGrave's companies for unpaid merchandise.”
It appears in May 2021 Engage Franklin was created as a “Trojan Horse” Franklin Tourism Promotion and Development organization, so the City of Franklin could contract with Engage Franklin and allow $150,000 a year to be paid to ROC Enterprises for the naming rights “Franklin Field”. This then allowed the City of Franklin to meet state statues by contracting with ROC Ventures controlled Engage Franklin. Franklin taxpayers should be pleased that the Franklin Tourism Commission and the City of Franklin is using revenue from local hotel tax in a very efficient and creative manner.
More to come.
Comments
Post a Comment