Another IRS Complaint Filed Against ROC Ventures Affiliated "Engage Franklin"
Franklin Community News
Another IRS Complaint Filed Against ROC Ventures Affiliated "Engage Franklin"
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"
"Engage Franklin" allows ROC Ventures to Access Hotel Room Tax Revenue and Run Engage Franklin for Personal Gain
Franklin Community News (FCN) and Concerned Residents Affected by Sound from Ballpark Commons (CRASBC) have submitted complaints to the IRS and the Wisconsin Department of Financial Institutions. The complaints claim that ROC Ventures, LLC (Ballpark Commons) in collaboration with the Franklin Tourism Commission developed a 501(C)(4) Not for profit organization, Engage Franklin, (ROC Controlled and led) with the intent of capturing revenues from the local hotel tax to be used to pay ROC Ventures $150,000 yearly in naming rights for Milkmen Stadium (Franklin Field), these revenues specifically benefit a for profit business ROC Ventures. It is also claimed that this “scheme” allows ROC Ventures to access the hotel room tax revenue to run the ROC led and controlled Engage Franklin for personal gain and benefit.
Both parties FCN and CRASBC further alleged to the IRS Exempt Organization Classification Unit and the Wisconsin Department of Financial Institutions:
Engage Franklin was created as a “Trojan Horse” Franklin Tourism Promotion and Development organization, so the City of Franklin Tourism Commission 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 Tourism Commission to meet state statues by contracting with ROC Ventures controlled Engage Franklin.
Directors/Officers/Persons are using income/assets for personal gain.
Organization is engaged in commercial, for-profit business activity.
The earnings of Engage Franklin, a not for profit 501(c)(4), directly inure and benefit ROC Ventures (Mike Zimmerman, CEO) a for profit organization.
The organization Engage Franklin engages in an excess benefit transaction with a person (Mike Zimmerman) having substantial influence over the organization.
Franklin Community News initially reported on this issue November 26, 2023 “Franklin Residents Support Franklin Field Naming Rights 1.5 Million over 10 Years with Hotel Room Tax using Engage Franklin as "Trojan Horse". This is the second complaint that Franklin Community News and Concerned Residents Affected by Sound from Ballpark Commons have submitted against a ROC affiliated not for profit organization. The first IRS complaint was published in “This Just In…From Franklin WI on September 26, 2023 “ Complaint filed with IRS against Roc Ventures”
FCN is unable to locate a public web page or any public identification of officers or board members for Engage Franklin. Other than the "Enchant" (https://enchantchristmas.com/milwaukee-wi-franklin-field/) there is no other placement of the Engage Franklin Logo, which luck would have it, made its inaugural debut on the Enchant website. Engage Franklin, Visit Milwaukee, and Hampton are listed as “Sponsors”. According to the Franklin Tourism Commission meeting minutes of April 28, 2021, there 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.
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.
UPDATE - FCN has been informed that Engage Franklin is currently working on a web page. When this initial story was published on November 26 the following was on the “Enchant” page and has been removed as of December 1, 2023.
"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 continues to seek out 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?
FCN has been provided the current agreement between the Franklin Tourism Commission and Engage Franklin.
The Tourism Commission consists of 5 members, 1 of which is a representative of the Wisconsin hotel and motel industry. Members are appointed by the Mayor and confirmed by the Common Council. (Ord. 2016-2244 adopted December 6, 2016).
Powers and Duties: 
The Tourism Commission utilizes revenue appropriated from local room tax collections for tourism promotion and tourism development within the City as required by Wisconsin State Statute 66.0615. Tourism Promotion and Tourism Development are defined by the State as any of the following that are significantly used by transient tourists and reasonably likely to generate paid overnight stays at more than one establishment on which room tax may be imposed.
Marketing projects, including advertising media buys, creation and distribution of printed or electronic promotional tourist materials, or efforts to recruit conventions, sporting events, or motorcoach groups.
Transient tourist informational services.
Tangible municipal development, including, but not limited to, a convention center.
State Statute 66.0615 describes how the hotel room tax revenue is collected and requirements for expenditures using said funds. Specifically statue 66.0615(b)(2) indicates:
“If a single municipality imposes a room tax under par. (a), the municipality may create a commission under par. (c). The commission shall contract with another organization to perform the functions of a tourism entity if no tourism entity exists in that municipality.”
FCN previously reported 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."
FCN has become aware that Engage Franklin has a part-time Executive Director of Tourism who is paid directly by the ROC Ventures and is not paid or compensated by The City of Franklin or the Franklin Tourism Commission.
According to the current agreement, and the Minutes of the Tourism Commission the agreement is currently being updated and approved by the Franklin Tourism Commission and Engage Franklin as required in May 2023.
The current agreement indicates (highlights):
the Franklin Tourism Commission desires to license the Naming Rights (defined below) from MMB
(Milwaukee Milkmen Baseball), and, MMB desires to license the Naming Rights to the Franklin Tourism
Commission on the terms and conditions set forth in this Agreement
This Agreement shall commence on the Effective Date, and expire on the tenth anniversary of the Effective Date (the “Term”), unless terminated earlier in accordance with the terms of this Agreement.
Stadium Name. During the Term of this Agreement, the Stadium and playing surfaces therein shall be exclusively named and referred to as “Franklin Field”
Lobby Tourism Center. During the Term of the Agreement, the Franklin Tourism Commission shall have a Tourism Center in the lobby of the ROC Ventures office building located at Ballpark Commons, provided that the Franklin Tourism Commission pays all expenses related to the Tourism Center (including but not limited to its design, construction, installation, maintenance and operations). All details related to the Lobby Tourism Center must be approved by ROC before implementation, which approval shall not be unreasonably withheld. The staff for Engage Franklin (described below) will have a dedicated desk, phone, and access to certain other amenities provided by ROC (internet, conference room, coffee, etc), which may change from time to time in ROC’s discretion.
It is the intent of the Franklin Tourism Commission to create a 501(c)(6) tourism entity that spends at least 51 percent of its revenues on tourism promotion and tourism development as defined by Wis. Stat. § 66.0615(fm). The name of the 501(c)(6) is anticipated to be "Engage Franklin," (hereinafter "Engage Franklin").
ROC and MMB assert that the annual base payments are less than the value of the Naming Rights. Thus, it is anticipated that after Engage Franklin is created, Engage Franklin will make further payments to MMB as consideration for the Naming Rights.
Once Engage Franklin is an approved 501(c)(6) the Franklin Tourism Commission may assign this
agreement to Engage Franklin including all rights and obligations.
The first year of the Agreement starts July 1, 2020, ending June 30, 2021. For the period of July 1, 2020 to June 30, 2021, regardless of the amount of funds appropriated in calendar years 2020 and 2021, the Franklin Tourism Commission will pay to MMB $150,000 for the first year.
The first year of the Agreement starts July 1, 2020, ending June 30, 2021. For the period of July 1, 2020 to June 30, 2021, regardless of the amount of funds appropriated in calendar years 2020 and 2021, the
Franklin Tourism Commission will pay to MMB $150,000 for the first year.
The following according to the agreement, is what is provided in exchange and fulfillment of a $1.5 Million dollar sponsorship to the citizens of Franklin for having their city name proudly displayed on Milkmen Stadium. It appears to be a VERY WISE (sarcasm) use of the local hotel tax dollars.
During the Agreement, the additional Benefits consist of the following items:
ANCHOR ASSETS
Anchor Assets are intended to be the focal point of our Program – Identified as dominant cornerstones of our stadium/arena infrastructure and ‘Official Franklin TC’ naming rights for product category. Inspired by partner objectives, these signature assets are strategically integrated into each customized partnership to offer a large platform to create consumer awareness.
Naming Rights Launch Promotion
The Parties will cooperate in jointly planning a mutually agreeable and mutually executed public relations campaign to announce and promote publicly the Name and Primary Logo for the Stadium.
ROC Ventures to provide the following:
Develop press release on new naming rights relationship
Distribute to local press contacts and share on all applicable social channels
See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
Franklin Tourism Commission to provide the following:
Nothing additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
Dominant Outfield Wall Signage
The Franklin Tourism Commission will have dominant outfield wall signage at Franklin Field that will create positive and impactful impressions on all fans and visitors. Signage to feature the City of Franklin’s logo and new branding.
ROC Ventures to provide the following:
One (1) 6ft x 20ft premium outfield banner
See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
Franklin Tourism Commission to provide the following:
Nothing additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines
Fan Giveaway Branded Item
The Franklin Tourism Commission and ROC Ventures will collaborate on one (1) co-branded fan giveaway each year of the agreement.
ROC Ventures to provide the following
Items for fan giveaways featuring the Franklin Tourism Commission branding
Logo inclusion in mentions and promotions of the giveaway including website, signage, social media and game programs where applicable
Nothing additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
The Franklin Tourism Commission to provide the following:
See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
Milwaukee Milkmen ‘Delivery Route’ Concourse Signage
The Franklin Tourism Commission will have the rights to feature selected businesses and/or destinations in the City of Franklin on a customized post and panel concourse sign within the Venue. The ‘Milkmen Delivery Route Map’ will additionally be featured on the Milwaukee Milkmen website promoting things to do in Franklin on a game day or a visit to Franklin.
ROC Ventures to provide the following:
Ordering, production and installation of non-lit sign built from 3” square aluminum tubes direct buried. 0.125” aluminum panels painted and applied vinyl graphics included. Graphics display is 3’ x 4’
Nothing additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
The Franklin Tourism Commission to provide the following:
The Franklin Tourism Commission approved logos, artwork files and messaging
Selected business, events, destinations and dates for events to be featured on signage.
Nothing additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines
SUPPORTING ASSETS
Our well-rounded Program is balanced with a creative selection of Supporting Assets. In place to leverage our resources and experiences, Supporting Assets give us a vehicle to interact and engage with your consumers – to tell your story, communicate a specific message, and ultimately drive back a positive return on investment.
Milk on Tap! Show Sponsored Segment
The Franklin Tourism Commission will be an official milk sponsor for Milk on Tap! and will have a sponsored segment within selected episode(s). Episodes are posted on Milwaukee Milkmen Facebook page weekly and are planned throughout the season.
Related Campaign Marketing/Promotional Assets:
The Franklin Tourism Commission will be acknowledged as the sponsor for the in-show element via logo placement and call to action messaging
ROC Ventures to provide the following:
Execution of in-show element, production and posting of the show
Nothing Additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
The Franklin Tourism Commission to provide the following:
Confirmed call to action messaging
Nothing Additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
Dominant Signage in Bathrooms at Routine Field
The Franklin Tourism Commission will receive dominant branding within the stadium’s bathrooms at Routine Field. Includes 2ft x 4ft wall signage and signage above every urinal and bathroom stall door.
ROC Ventures to provide the following
Signage installation
Nothing additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
The Franklin Tourism Commission to provide the following:
See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
Milwaukee Milkmen Game Presenting Partner
The Franklin Tourism Commission to be the presenting sponsor for three (3) Milwaukee Milkmen home games during the regular season for each year of agreement.
Related Campaign Marketing/Promotional Assets:
The Franklin Tourism Commission to throw the “First Pitch” to start off the game
The Franklin Tourism Commission to have opportunity for a 10 x 10 live marketing setup during selected game
Logo inclusion on all website, social, digital and email announcements pertaining to select game
One (1) in-game activity presented by partner during timeout of select game
ROC Ventures to provide the following:
See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
The Franklin Tourism Commission to provide the following:
See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
One (1) Thirty Second (:30) PA Announcements and One (1) Thirty Second (:30) Video Board Announcements at Each Home Game and during each Milwaukee Milkmen Webcast Game
The Franklin Tourism Commission has the opportunity to provide a brief thirty (:30) second script that will be read aloud over the PA system once per Milwaukee Milkmen home game.
ROC Ventures to provide the following
PA to be read at each home game
Nothing additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
The Franklin Tourism Commission to provide the following:
Approved PA script
Nothing additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
Title Level Marketing Support
As part of this Partnership, the Franklin Tourism Commission will have access to supplemental marketing support that will be provided by ROC Ventures. When applicable, these efforts will include mutually agreed upon call to action messaging, tagging of Partners and direct links to partner website(s).
Related Campaign Marketing/Promotional Assets:
Premier Logo Placement on Website Home Page Scrolling Footer. Linked Logo Placement on Milwaukee Milkmen Website Partner Page. The Franklin Tourism Commission’s logo, linked back to their website and to be placed on our website under ‘Partner Page’ categorized under ‘Associate’ (Tier I location), and also accompanied by a 150-word company description, partnership description and quote from Partner executive on Partnership.
ROC Ventures Social Media Mentions. Utilizing mainstream B2C social channels (Facebook, Instagram, LinkedIn etc.), ROC Ventures will collaborate with the Franklin Tourism Commission to brainstorm, develop, and execute a minimum of three (3) customized Facebook and Instagram posts promoting the Franklin Tourism Commission such as: Live Marketing, promotions, presenting sponsorships, etc.
Includes: 1) ROC Ventures to tag the Franklin Tourism Commission’s brand in relevant social media posts; 2) ROC Ventures to engage (comment, share and like) the Franklin Tourism Commission’s brand relevant social media content.
ROC Ventures Email to Customer Database. At a minimum of three (3) per season, an email will be sent to our database with messaging provided by the Franklin Tourism Commission The purpose is to promote the Partnership and educate our consumers on the Partner’s product/service offerings.
ROC Ventures to provide the following:
See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
The Franklin Tourism Commission to provide the following:
Provide messaging to incorporate as part of digital mentions; ROC Ventures reserves the right to edit message as needed to align with brand voice and relevant initiatives
Nothing additional. See (Section II.9. Activation, Logos, Brand Standards & Guidelines)
Tickets and Hospitality
For each season during the Term of this Agreement, the Franklin Tourism Commission shall be provided up to eight (8) season tickets to be distributed as a part of the Franklin Tourism Commission's efforts on tourism promotion and tourism development. Included with the tickets will be access to all additional benefits outlined in the Season Ticket Holder Benefits package.
Milwaukee Milkmen – Off-site Mascot & Player Appearances
The Franklin Tourism Commission will receive two (2), one (1) hour appearance from the team mascot for a designated event. Specific date and time will need to be requested and coordinated in advance.
Franklin Field Merchandise in the Milkmen Team Store
The Parties will cooperate in jointly launching a mutually agreeable and mutually executed merchandise in the Team Store.
Activation, Logos, Brand Standards & Guidelines
In order to ensure a successful Program, ROC Ventures welcomes your cooperation and participation in regard to fulfilling the strategies that we have agreed upon. In this partnership we are determined to take on a majority role, however, your participation is essential in helping to ensure success. As a part of your collaboration, we have a few guidelines that would benefit this Program as we continue forward:
ROC Ventures to provide the following:
Create partnership activation outline to define each party’s responsibility in activating and fulfilling each task
Provide banner design guidelines and specifications
Provide P/A announcement guidelines/best practices
Install, maintain, winterize and store all applicable signage
Each Partner is responsible for the following:
Provide ROC Ventures with logos, brand standards and brand/social usage guidelines
Design signage and approve artwork for print and installation
Providing content and messaging for applicable ROC Ventures websites
Provide completed P/A reads as per provided guidelines.
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