By David Slone
Times-Union

WINONA LAKE — Conflict between Winona Lake Town Council members over issues surrounding the Miller Sunset Pavilion was on display during a special meeting Tuesday, April 9.

They were able to get through it, however, to approve pavilion rental fees, a pavilion reservation form, a farmer’s market vendor application and agreement.

The first item on the agenda was Council President Jim Lancaster’s conflict of interest statement that he submitted to the town regarding his partnership in K & J Operations, which manages the pavilion.

Lancaster moved on with the agenda, but Councilman Barry Andrew brought the conflict of interest statement back up, asking, “Is that not a votable part of this? Do we not have a conversation about that?”

Town Manager Craig Allebach explained those statements only have to be submitted and reflected in the record that they were submitted.

“So we as a council don’t have a say in that or not?” Andrew asked.

Allebach said Lancaster was just declaring he had a conflict. It was not a matter of accepting or denying it. Clerk-Treasurer Heather James said conflict of interest statements have to be completed annually. Every council member has to complete one if they have a conflict, Lancaster said.

James gave the council a brief update on the ice skating season revenue.

“I have some rough numbers that I will share,” she said. “Part of the reason it has taken so long is, as I’ve mentioned before, not having the fund set up in the beginning to use and then the issue with the bank statements — the banks not being reconciled. So we’ve been going through bank account statements and identifying revenue, identifying expenses and trying to get those put into the fund where they belong.”

She said the figures presented to the council was where they are right now. Revenue includes brick sales, donations “and things like that” from previous years. James is working right now on getting a breakdown as to what each of those numbers are for each of those categories and that will take a little bit of time. At the end of the meeting, when asked for revenue figures, she said she would have those at the council’s April 16 meeting.

The council then approved the pavilion rental fees, which are available on the website. The rate ranges from a low of $1,650 for half days Sundays to Saturdays, including deposit and taxes, to a high of $2,675 for a full day Sundays to Saturdays. Saturdays from 2 to 10 p.m. are $2,140. There’s also rates for tables, chairs, heaters and the fireplace.

Councilwoman Ashley McGinnis asked if there was a special or discounted rate for nonprofits. Allebach said that was considered, but “we are a nonprofit ourselves and we decided against any not-for-profit discount, so it’s the same for everyone.”

When McGinnis asked who decided, Allebach said the committee decided when they put the fee schedule together.

The pavilion reservation form was quickly approved, but discussion on the farmer’s market vendor application, agreement and fees took almost an hour.

When the vendor application came up for the council to approve, McGinnis read two anonymous letters she received from vendors who participated in the farmer’s market who couldn’t be at Tuesday’s meeting. The letters complained about the “huge” vendor fee, the timing of the announcement of the fee and lack of marketing for the farmer’s market.

The proposed cost of the vendor fee for this season was $40 per drop-in or $1,040 for the full season.

McGinnis said she agreed the price per week — after doing market research herself — was too high. “I personally feel that $500 for the season is a much fairer price toward our vendors,” she said.

Lancaster said McGinnis was ahead of the agenda as the council was discussing the market vendor application and not the vendor agreement. McGinnis wanted to talk about the agreement first and then the application, so the council did.

A vendor in the audience said she had questions and asked if she was allowed to speak. Lancaster said the meeting wasn’t open to public discussion, but later let people speak after all the items were voted on by the council.

McGinnis reiterated she felt the vendor price was very high compared to her market research done in Indiana.

She also brought up that the second thing listed on the agreement was that market manager being K & J, or Ken Nisly and Jim Lancaster. “I’m unaware of an agreement that the town has with either to manage the market and what all that means,” she said.
Other concerns she had were regarding vendor designated sites, table size limitations and number and what “Farmers Market at Winona” was.

Lancaster stated Farmers Market at Winona was simply how the farmer’s market was branded last year by the committee when it was first getting started. McGinnis asked for committee meeting minutes but none had been taken.

Lancaster asked McGinnis, in the research she did on farmers markets, how many were in a covered pavilion. She couldn’t say but assumed most were outside. “So they’re unprotected and there’s no infrastructure in place,” he said.

Lancaster asked her if she had any research to suggest what a market that takes place in covered, protected pavilion charges. McGinnis said she didn’t have an exact comparison but she didn’t know if it was $500 more a season.

“I think one of the goals with the rate that’s been established is to find avenues as we all realize on the council for the town to generate revenue, so I think that is a big component of this, is what is the right threshold so the town can generate revenue off the pavilion,” Lancaster said.

McGinnis agreed, but she said many of the farmer’s markets she found generated revenue from private sources sponsoring the farmer’s markets weekly for advertising purposes and not making money off vendor fees.

Andrew asked what the management team was being paid to provide their service.

Allebach said the management fee is $152,800 and was part of a presentation K & J made to the council in September 2022.

The amount is based on $80,000 for the ice season; $5,600 and $40 per hour for the setup; ice tear-down fee is $8,400 for 60 hours; market management fee is $18,200, which includes five hours Saturday for a 26-week season; estimated facility rental $9,600; and facility maintenance at $21,000.

“So the actual fee that is set aside, I guess, for the market itself is $18,200,” he said.

Andrew brought up Lancaster’s conflict of interest statement again, saying, “I think as a council member and as a council we have a job to promote and uphold the independence and integrity of this council and have impartiality. And, not impropriety or the appearance of impropriety. And if we’re about generating revenue, then I think there’s other options available besides paying $152,000 a year when it comes to that.”

Lancaster said the council was presented an opportunity before the last ice season to dissolve the service agreement and go in a different direction. McGinnis said that was only three weeks before ice season.

“So since then, has there been an effort by the council to come up with a different operation?” Lancaster said. “Has there been a concerted effort by anyone on the council to come up with an alternative operating relationship as it relates to operations for the pavilion?”

McGinnis brought up that the council voted in November on advertising for other proposals but no one followed through on that council decision. She also suggested the town hire a town employee to manage the pavilion and that employee would work under the parks department.

Lancaster asked McGinnis if she had a job description for that position. She said the council could come up with one and it wasn’t her job alone to come up with a solution, it was the council’s job.

Andrew agreed that in November it was approved by the council to advertise for anyone interested in managing the pavilion’s operations. “That never happened. That advertisement was never put out to see if anybody else was interested in managing the rink,” he said.

Since then, there has been no other movement to find an alternative solution, Andrew stated.

After further back and forth by the council, the council approved the changes that K & J Operations is the market manager; the farmer’s market seasonal rate is $500, payable in two $250 installments (May 3 and balance due by Aug. 3) if not paid in full; and a drop-in rate of $30. Vendors must have certificate of insurance or indemnification. Drop-ins are limited to three times a week and a vendor must give a two-week notice if they want to drop in.

The vendor application and agreement were approved unanimously with the changes. Councilman Rick Swaim was absent.
With all matters voted on, several people spoke. The first person asked for the amount owed on the Miller Sunset Pavilion and what the plan was to get it paid and how the town was paying for it now.

Lancaster said James wasn’t probably prepared to answer that question at that meeting, but she could probably have a summary at the council’s next meeting on Tuesday. James said she didn’t have the amount that was owed, but the annual bond payment was about $585,000.