Loading...
HomeMy WebLinkAboutPress storiesLIS •2 ^ $1.75 0161CORP2003 • LOCALLY OWNED www.ib.com 1 VOL. 24 N0:20 52 PAGES JULY 28=AU6U8T8.:2005 31 small Business: Sen. Evan Bayh has proposed a measure that would aid smaller manufacturers by letting them double . what they can borrow through a federal lending program. 19-28 ®CUS Banking & Finance head than hosting either the Indianapolis 500 See BRICKYARD page 48 See 8HELTER page 48 Earlham makes .moves at museum Despite probe, college hires consultants to find CEO, eye finances at Conner Prairie By Andrea Mulrragul Davls adavis@ibj.com Even as Attomey.General Steve Carter probes its fiscal relation- ship with Conner Prairie, Earlham College is proceeding with plans to bring new management to the Fishers fiYitrg history museum. Eazlham President Douglas. C. Bennett, who became interim president at Conner Prairie after firing .the museum's .CEO and -most of its boazd of directors last --month, said a Boston-based search firm has beep hued to find a new leader. He and' [he other remaining Conner Prairie directors-all appointed by Eazlham=also are Some observers question launching the seazch during the attomey general's investigation. And.they question the wisdom of hiring a president before rebuild- ing the boazd. Others wonder why anyone :would want the job: `The precedent has been set," said one Conner Prairie employee, who spoke with IBJ on the condi- fion he not be identified. "Tf you don't agree [with Eazlham], See CONNER PRAIRIE page 49 INDIANAPOLIS BUSINESS JOURNAL JULY 28-AUGUST 3, 2003 • 49 CONNER PRAIRIE. Continued from page 1 you're out" College officials cleaned house at Con- ner Prairie on June 11,.citing whahthey 'said was a $4.5 million deficit that had accumulated oven, period of years. .Ousted board members and former CEO John Herbs[, on [hebther hand,~say the shortfall was expec[ed..The real issue, they said, is questions.they raised about [he value of [he museum's endowment. Earlhsm has been Conner Prairie's trustee since 1964, when local philanthro- pist Eli Lilly gave-the college more than 1,000 acres of Hamilton County property, including the historic William Conner estate. For years afterward, Lilly donated mil- lions of dollars worth of Eli Lilly and Co. stock to support the museum and some Earlham programs. Former Conner Prairie board members say the museum's share of the endow- ment should- be a[ leas[ $100 million. Eazlham, on the other hand, says it's clos- er to $65 trillion. Tue endowment debate simmered for. years before boiling over last month as part of a discussion about splitting Con- ner Prairie off from the college. Carter got involved June 24, when he agreed [o ousted boazd members' requests that he look into how Eazlham handled [he Lilly: donations. Ma[edals are still ~~ being-collected fmm [he college. "The attomey general's staff made a very detailed information request and we are complying with it," Bennett said. "I don't think everything is in their hands yet." . Carter spokeswoman Staci Schneider said the review is ongding, but she couldn't provide a timetable forits completion. Both sides of the dispute aze confident Carter will see it their way it the end. Former museum board Chairman Berkley Duck, now leading ,not-for- Cinergy .awards $700,000 in grants "we're.committed to a .longterm; thriving Conner Prairie. we .did not want to wait to get started:'. Douglas C. Bennett Earlham College jiresiden[ profit;. organization called :Save [he Prairie, said mbmenmm has picked up in the weeks since June 11. "People I mn into seem [o be more energized and have a better bnderstanding - of the simafion today than [hey did when ~' all~thiswas new;' tie said. "We continue to feel strongly about .the issues .we've iaised and believethey're fully supported by both [he facts and the law." Bennett is equally sure Eazlham will emerge unscathed from the controversy. "We're not terribly-concerned that the attomey general will do anything other than find what we've done falls fully. within dte parameters of Mr. Lilly's in[en- tions," he said. So the college is moving ahead with plans to strengthen the organization. Boston-based Auerbach & Associates has been hired to find a replacement for Herbs[, and museum professional Harold Skrams[ad has been retained as a fnan- cial consultant. Skramstad, former .president of [he Henry Ford Iviuseum and Greenfield Vil- lage, will concentrate his scrutiny ~ on Conner Prairie, business operations: - - - "He's-; going to help ` us understand whether he museum has a viable fman- cial model;' Bennett said. "And if not, he'll tell .us what steps we'll have to take to get one:' - ~ - Bennett has assured Conner. Prairie employees and the public time and again R1 P8 •"•""`•`"CAR-RT LOT'"Cg1A ~zazez oeioe/o~ pEPT OF COMMUNITY SERVICES 1 CIVIC SQ that. the mtmoil will not affect staffmg levels or programs-even .though the museum.went into the. year expecting a $268,000 operating deficit. "That's something we're working hard on;' hesaid.~"I'm sure we'llfind a way to sustain the current programming and see to it that no current staff members .lose their jobs as a consequence of the steps we took in June :' - ~ - . Still, the 5nancial situation appeazs to .have gone downhill. Donors -and sponsors pulled nearly . $250,000 in support iq the week follow- ing the management overhaul, and this mouth the Conner Prairie Alliance-voted [o suspend fund ~ raising 'and volunteer activities on behalf of [he museum. The, Alliance raises about $100,000 each year and contributes about 15,000 volunteer horns to. Conner. Prairie: Mem- bers said they were crncemed about the museum's mission and purpose given the leadership change. Bennett said he doesn't have a cleaz picture yet on how the changes will affect Conner Prairie's 2003 budge[. But employees were told a[.a staff meeting that [he deficit could reach $800,000 this year and even more in 2004. And the newly hired consultants have to:be paid. Bennett said [he museum will "find a way" [o cover their fees, which aze still being determined. ; "We don't have a final price tag yet;' he said. "I:don't want to speculate." . Despite the problems,'museum atten- dance has remained strong, Bennett said, crediting [he professionalism of employ- ees amid the.uncertainty. But professionalism does not necessaz- ily translate to satisfaction, according to several employees who spoke to IBJ on the condition they notbe identified: Ben- nett has said he is to be the sole spokesman for Conner Prairie.. Those employees, whose duties take them everywhere from the ~ museum ~:groundsto the:administratiye offices, said they and many of .their co-woikers are discouraged: ~ . They say some of their cos[-saving gug- gestions have been rejected withort dis- cussion-, claim Bennett -denies-and improvements at the 1886 farm have stalled. "'We have empty buildings they're not 9llowing.us to.fill;' one employee said. . Bennet[ said all wrrk included in Con- ner. Prairie's five-year strategic plan, including the 1886 aze,, will be com- pleted. "Some things have yet to be done, but I -don't know the timetable," he said. Despite thew commitment to sustaining Conner Prairie, -the employees !BJ talked to said they support the actions taken by the Alliance and others who have taken a step-back from [he museum during [he . controversy.. "If good people like Them don't stand up and take action, nobody will knowthe seriousness of the simation," one staff member said, `"I'hey'rd helping;' another agreed. - - "Our hands aze tied. We can't fight for ourselves."• - la Is I6 Pi Il be 'rhe star ,p Innty'S s had tin w mel s, . Here ier. ~1:: ~ ~, el, Conner Prairie agree to delay the issue B, By Bill Ruthhart hlll.ruthhart@indystancom Carmel Mayor Jim Brainazd and Eazlham College have reached an agreement that both sides believe will help in a zoning dispute over 646.8 acres of land owned by Conner Prairie. The clash comes after Eazlham College; which operates the living history museum, recently fired most of the museum's boazd over CARMEL . lion and then seam proper boundaries. funding and control issues. Since claims rezoni ttie firings, there has been specu- depreciate its lation about the college's plans for ' affeM bond ra the land, which is currently While the farmed. recommender Brainazd asked the Carmel classification Clay Plan Commission,on Tues- tided to table day night to create a new pazks for 30 days. A and recreation zoning classifica- and Eazlham ~~~ ~~ Fear of virus~arrying mosquitoes . prompts precautions; special tests nE apply: it to the my- agreement reached orally during.- to y within Cazmel's the meeting, Earlham College Earlham asked.. the city for. lai aB the land would. „ more ttn value, wbiE:h could .'zoning.. dngs in the future. any , rez Plan :Commission. . Martha ffie new zoning sell:or p rya 12-1 vote; it de- .nearly b the rezoning;isstie "This. that time, the city sion aba will present an r Prairie v .~.. ~...b...,J a ...... dollar match to provide vision screening services for elderly County residents. ^ $1,000 to Gregory Hancock Dance Theatre for scholazships fcr Seven low-income students to attend the Summer Academy. ^ $1,000 to the Choices Pro- gram at Prevail Inc ^ $750 , to Joy's House for printing of brochures to inform the community of Joy's House services. Wednesday were Brooks School Road at Ind. 23S and I-69, Gray Road between 146th and 156th streets, and Ind. 19 at the en- trance to Forest Pazk Further north, the deepening water kept Riverwood and Edith avenues dosed south of 206th Street.neaz White River. East of Arcadia, offidals con- tinued to watch Cicero Creek, where flooding Tuesday had temporarily dosed 266th Street and intersecting Crooked Creek and Mount Pleasant roads. ^ Call Star reporter lim Gillaspy a[ 1-317-444-2606. vvau lcucu~jivc tog an updat By James A. Gillaspy jim.gil lazpy@indystar.com The wunty's 12-year-old comprehensive land-use plan has been eclipsed by the rapid pace of development in some of the state's fastest-growing. com- munifles. Now, area planning. officials want to catchup and prepaze for the yeazs ahead. Members of the County Plan Commission agreed Tuesday that an updateis needed; and the commission's director should provide recommendations at the next meeting for getting one started. "That's quite a long time for a comprehensiye plan," said mem- ber Kenton VJazd, who said the .spread of munidpalities into ru- ral county territories needs at- tention to ensure a proper blending of residential, commer- dal and agricultural develop- ment. Ward said eland-use consult-. ant could aid future planning, which would focus on changes in ]and use that have made com- 60 strategically located traps sit- ting in weedy patches and hang- ing from trees or gazages. They grindup the mosquitoes, deposit them in a solution and ex- amine an indicator strip. One pink stripe gt means the mosquitoes. d~ I aze dean. Ttvo means they'cazry the disease. ;per Two .mosquito th@P8 groups have tested positive for the virus in y bags Marion County this yeaz I, W®re Each time biologists d u find an infected mos- quito .group, the _ Health Department ock, launches an attack Bi- le resident ologists spray insecti- ddes through streets and alleyways to knock adult mosquitoes out of the aia They apply larvicides to standing wa- ter inditches and sewage areas td suffocate or cripple developing mosquitoes.. Sometimes, .they even place mosquito fish who feed on the insects into gazden ponds. Vector control programs in Hamilton, Madison and Boone counties focus only oa eliminat- )TO BE SIFIPLE. 4Y. ing infected mosquitoes rather than tazgeting mosquitoes, over- all. Striking the insects when they are most vulnerable, as larvae, is the key to Hamilton County's program, said biologist Dan Walker. The department cur- rently spreads larvicide across potential mosquito breeding grounds. If the department finds an in- fected mosquito group, it will spread more larvicide in the azea and spray insecticides. -Stephen Ford, administrator of Madison County's 27-year-old program, has spent. yeazs squint- ingthrough a microscope to iden- tify potentially threatening mos- gvitoes -from the masses of nuisance insects. He is well acquainted with the types of mosquitoes that might carry the disease, and his team is prepazed to meet infected mos- quitoeswith larvicides and insec- tiddes. Boone County's program, in its second year, spreads larvicides, but does not spray insectiddes, according to Shazon Adams, di- rector of the department's en- vironmental division ila~au-uac Nr e, .panel deces . HAMILTON COUNTY inanities such- as Carmel, Fishers, Noblesville and West- field among the fastest growing in the state.: "Lots of things have changed," said member Jim Galloway, who thinks the comprehensive plan should have been revisited long ago. "We just don't want to do it," said Galloway. "That's the prob- lem. It does need to be done." Galloway and Wald -were among five members present for the meeting. Four others, includ- lag vacationing Duector Chuck I{iphart, were absent. The -absences didn't deter those on hand from .moving ahead. "It definitely ~ needs ~ some revamping," Commissioner Frank Habig said of the plan "I think everybody that is not here tonight would feel the same way, too.' ^ Call Star reporter Jim Gillaspy at 1-317-444-2608: . Boone, Marion, Hamilton and Madison counties all distribute fliers to educate people how to protect themselves. Health officials urge residents to eliminate standing pools of wa- ter neaz their homes. Mosquitoes will breed in the murky water that often collects in tires, flower- pots, gutters, birdbaths and gaz- bage containers. People also can reduce the risk of contracting the disease by min- imizing outdoor activities be- tween dusk and dawn, when mos- quitoes aze most active. Those who venture outdoors aze en- couraged to weaz long sleeves and pants and apply insect repel- lent containing DEFT. "We want people to protect themselves;' said John Althazdt, spokesman for the Mazion County Health Department. "We don't want anyone to let down their guazd. ".These precautions should be apart of the routine when you go outside at night, just like locking your door and turning off the lights." s Call Star reporter Mary Steffel at 1-317-444-2fi12. . n....-v-..-~ r-..~~____ ~__-__ ..__~_..._..- ^ Mayor and Eariham chief don't agree on trust factor. From N1 eye with the current council for the past four yeazs. While the delay may make it easier for Brainazd to push the re- zoning effort through the system; it also gives Eazlham College the time it desired to persuade the city otherwise. Eariham President Doug Ben- nett told the commission that the college never intended to change the way Conner Prairie operates or to develop its undeveloped land west of the White River. "For over 40 yeazs, we've acted in ways we think deserve your trust," Bennett said. Brainard countered that Eari- ham has not acted like a partner with the community, citing the college's dedsioa not to grant the city land for a trail along the White River as an example. He also said if Eazlham had ao plans to develop its 646.8 acres, then he didn't understand why it would object to a zoning classifi- cation that allows the land to be used as it is now. Eazlham's attorney, William E. Wendling Jn, said such a rezoning would depreciate the land's value. "Why aze we being picked on? Because the mayor says he has a better agenda, that he-has some- thing better in mind?" Wendling said. "What is being developed on that land? Who is out there with a development proposal? This is spot zoning and confiscation of property. It's not appropriate." Brainazd cited alleged discus- sions between Eariham and Maz- tin Marietta Materials about fu- turemining onthe land as another reason not to trust the college. Bennett said-he had a lunch meeting with the mining company because it is one of the museum's largest supporters. He said Martin Marietta did bring up the possibil- ity of mining on the land, but Ben- nett said he did not respond to that suggestion. Waiting until March to resolve the zoning dispute may benefit Brainazd because of the council's changing of the guazd. But Eazl- ham offidals think it could help them, tao. "We were well aware there will be a change on the council, but we felt the mayor made a good faith effort to open the lines of commu- nication bssed on trust," said spokesman Lou Gerig. "By that time we will have. a new (museum) boazd in place, and the circumstances will be dif- ferent " - ^ Call Star reporter Bill Ruthhart at 1-317-444-2606. BZ WEDNESDAY, JULY 9, 2003 ~ vio ' >Compiled from stories appearing in The Stars metro editions. NTY E ~ Several residents ofthemeigh- C U U U U~Y BOUN borhoods attended the City Council meeting Monday night ZiOIISViile Starts Steps' to voice doubts about whether i to-sell eurrellt Town Hall the benefits outweighed- the costs. Zlon'svllla =The days of Zions- .Council members listened to a villa's curxen4 Town Hall-maybe steady stream of residents con- . numbered= at least as a munici- earned about a perceived : in- pally owned property. ..crease in lases and tra$-ic, prop- Zionsville's new Town Hall at arty devaluation and 4100 W Oak St. is scheduled to , -sewer/water hookup costs. open for tiusiaess Aug. 25. With The azeas in question' ale that in mind the Town Council Lakewood Gardens, northeast of voted 5-0 Monday night to begin geystone Avenue and 98th the procedure necessary to sell Street;`. and Northwood .I3i1Ls, the current Towq Hall at 110 S. north of llGth-Street and west of ' FourthSt. River Road. Ed Mitro; Zionsville's dueMOr ` , Council member John Bovea of planning and administration,' .:tried to ease concerns by point- .- said the conversion of the new lag; out that officials ace 'con- Town Hall, a former United sidering ways to fund the sewer/ Methodist' Church, is on scaed- 'water 'expansion that would ale. spread the cost out Querns many ' "Work an -the building is es- . as 30 yeazs to mitigate the finan-, sentially complete," Mitro said ab tins burden oshomeowners.' Monday-night's Town Council meeting: "At this point,-we're HENDRICKS COUNTY ` down.to crossing the is and dot- ting the i's." - When the council decided to pUI111C VOICES Concerns buy the former church building ,.about Steed' mill reopening.' for $2 million, there were discus- sions.about selling the current Ptttsboro - AbouY35 people aY -Town Hall and using :the money. tended a hearing this week on to help pay for the new: facility. whether Steel Dynamics should Richard .Crane, the council .-receive an.air pollution control president, said Monday's vote ,permit to reopen the mothballed authorizes only the fast: steps Qualitech steel mill. towazd a possible sale. Someat the meeting appeazed Yesigned to the fact that the mill HAMILTON COUNTY would reopen. They expressed concerns about the tons of .air .pollution themill will emit annu- Clay Township resident's ~x skeptical of annexation Nnrthem Indiana-bases steel Dynamics purchased .the steel Carmel -Many residents in at ,mill for $45 million last year and least two older Clay Township pans to invest. about $75 million neighborhoods apparently would rather live with their septic sys- City&State r.'`"i3; ~ i gyp, ~•- . ~Y ~THEINDIANAPOLISSTAR- ACROSS OUR REGION ~;~ ~~~~,~ ~~,; iaa, ~~,--~, a in equipment"and modifications HAMILTON. COUNTY: ~ ~' _ °~ c ~~_ . CITY~STA to get it back into steel produc- ~~\ tionbyMazcli:: ®\s_ ir' 2 1'Onnfl Sl1 The mill; renamed Steel Dy- ~~~~ in van aftt namics Inc: Bar.Products Divi- sion, is slated to employ. about Two men 290 workers to make 125 tons of van that cr steel an hour. ~' ~®' Southsidepn Before it can operate, how-, oo~the men ever, it needs an air pollution: ' Mem H< control permit from the Indiana By Bill Ruthhart Eazlham College President Doug 1tvel Department of Environmental bill.rurhhart~indystar.com Bennett, claim/ng.Conner Prairie van and hai Management: Flshers -The TowsCouncil will would remain the. same, :allayed said Mazion If the permit is approved;. nol amres' a 265-acre parcel of the council's concerns. puties. ' Steel .Dynamics .could ;legally- „Conner Prairie - at least for now "We're very encouraged by re- .fie shoos .emit about 2.2 tons a year of air The ..council decided against cent comments made by the y -m, Tuesd pollutants, `:including sulfur .taking the first step towardan ia- president of the Eazlham boazd of South Me dioxide, carbon monoxide, ni: voluntary annexation of Conner and we're looking foiwazd to ac- the van swe trogen oxides andfine, dustlike - .Prairie .property between White 'lions Shat will support his com- _.and hit a pol particles. `- River and Allisonville Road. meats;'. said" council. member Investigab -The environmental agency is "It was our way of saying we're Stuart Easley... mediately ce 'accepting. written public -com- watching themand we don't want Easley and Faultless' aze en- :the shooting meat until July26. anything to change;': said council couraging Conner Prairie fo peti- The name President Scott Faultless. lion voluntarily for the 265 acres man and the MORGAN COUNTY Eazlliam College's fuing of the to be annexed into the town. immediately majority of the Conner Prairie Eazlham spokesman Lou Gerig iffs detective - Inc. boazd neazly a month ago has applauded she decision not to COUnty 0~ COn1n11SSionerS Urge • eft the future of the ;living-his- move forward with annexation. O~ICIBIS tO piOCh peM18S tory museum in question. Tuesday night, ,the .Cannel- taX-reaSS Faultless said he grew con- -Clay Plan Commission was glop on . Mardmtvlge - The Morgan earned about Comre>• Prairie's fu- scheduled to discuss iezoning tide all. County Commissioners stopped luxe alter reading comments from more than -690 acres of unde- offici to short of a hiring freeze Monday an Earlham boazd member that veloped , Conner , .Prairie land meat error t but have asked county officials to -the museum could be scaled back within Carmel city limits, from gered an $8 -try to save money where possi- ~ to just the Conner House and not -residential to a choice of agricul= .After sea ble, at least until the crisis in : be aliving-history museum. turns, park or living-history mu- Monroe Cc state andiocal government fund- That prompted the council to 'seam. That would require treat- ' covered that ing has eased. ' contemplate annexing: the land. ing a new zoning classification, gas stations Commissioner Jeff Quyle pro- mosEof which is in a flood plain Eazlham College has requested had bees posed a freeze on new hiring to and currently used foi farming. the heazing be delayed:. meant prop fill county jobs as a way'to save - More recent comments by in- ^ Call Star reporter Bill Ru[hhart set lowei ttlluu - money, at .least for the neat terim museum president and ~ at-1317-444-260G That. mtst month until homeowners get a million shor look at their new tax bills.. revenue. C However, the county plan di- mail to all residentizl and Council in the 5th Wazd and will might have rector's job has been vacant for ,business property owners in the oppose James Sleeth, the Demo- row the mol neazly a month and could be county by the end of July or eazly . crafic incuutbent, in the Novem- ference. Tha ~ filled in July if the Plan Commis- August. bar election.. cision by ! Sion fords a worthy `candidate. Because Seaton is building a Indrana lo< le askedthat the oli be ex- home in another wazd, he with- nonce cc j empt from the freeze.l SHELBY COUNTY drew his candidacy, said Shelby. have obotr 1~1 ~~ ~C~~ //~ ~+~ !~ ~~ _ R~-G~`g~o ~3 ~~~ a~~s • • ono WEDNESDAY, JULY 9, 2003 BJ ®p--~io picks mimed date cumbents against each othen The .union threw its support to both Democrat Mary Moriarty Adams and Republican Jody Tilford. Peterson,. who said it would have been a cleaz conflict of in- terest to interview for the police'. endorsement while contract ne- gotiations. continue; is not too womed .about Tuesday's an- nouncement "As the mayor said in 1999 when the FOR endorsed (Repub= lican) Sue Anne Gilroy, :his job will be to work with them,".said Chief Deputy Mayor Michael B. O'Gonnot . The union endorsed Republi- cans for the four at-large council . seats. Other Republican council.' candidates endorsed -were; Isaac " Randolph, .Elizabeth Kazlson, Lynn McWhirter,i Eazl Salisbury, Marilyn Pfisterer, Roger Bowser,-. Lance Langsford, Bob-Coclahm, Phil Borst and LincohtPlowman. ' Democratsendorsed were Kip.. -. Tew, MarkSullivan, Jaclde 1Vytes, Sharron Franklin and Laurie Lay- ton. v Call Star reporter Matthew Tully at -, 1-317-327-4484... - . , i h~M $e~ ®Re ublicans, Dems. ~ p said: i i l i U ff LaK s Onique Woodson ;29; ~ -o~; -and Libertarian get ic a s unveiled a tr - n on o i n ' l f d d , , , 7 p part sa ate o en City- s orse peacefully."made""the nOd; preliminarywote ~ . . enunrycnuncil candidates that. -- x transtnon from .life x earthto tifeever- o On COIltraCttO be tOda 3'• mdudes 15 Republicans, sin t n . Democrats and one Libertarian - •? .lasting, oh Sunday, D3. ` .. . .Brad Klopfenstein. - .. --July.6, 2003:. LaKi-- ' .. By Matthew lYllly - Fraternal Order of Police - sha worked for eld Pazkside Medical matthew.tully@iedystaccom - Lodge 86 President V"mce Huber a 8 . Center. She.-was a ~ the ci s olice officers re- ~ P. P said the candidates will "ensure student at NPLTI School. of Nuts Paze to oast a preliminary vote to- public safety issues aze explored ing,:in preparation for admissiori day on Mayor Bart Peterson's lot- to the fullest possibility." into the School of Medicine; with est contract offer, their union on The announcement capped the 7 , plans of becoming a doctor. A. Tuesday. announced an eclectic union's controversial endorse-. ~~ .true child of God, LaKisha was a mix of endorsements for the Nov meat process. Many candidates -member of the 9t Luke;Mission- 4 eleMion: refused to participate, complain- ary Baptist Church. Services: Sad The union ttJrneii its back on ing about the union's plan to tape urday, July 12 at 2 p.ta at Flan- 03 Peterson, just as it did during his interviews. and. conduct: back- . tier 8c Ehrcltanart FYmeral Center - initial run for mayor in 1999, and is ground checks. _ Washington Park Nott2y with ' , yupporting Republican candidate It' also came with police offs- calling firm 12 p.m., Lwo hoots t ~ ' ~ ord ~ J ~' cars set to vote today on whether prior to the services: Burial: ?rt, Washington' Park North Came- .The decision was not. ones- :the union should even consider . ' tery. Survivors: husband Kevin L pected: After months of strained - Peterson'slatest -contraM offer.- . - Woodson; .mother Charlotte A relations between the administra- 'Tallcs have been stalled for Harris; father Donald.G. Esttidge; tion and Uie union during con- months as the two sides work to 03. 'Jr.;''step-parents, Steven D. Har- tract talks, Peterson skipped the replace a pact that expired Dec.31: :ral zis, Sr.' and-Kevin J. Weatherby; .endorsement process. Still, Jor- La the end, the union declined iel, ,grandpaients, Peazline Belcher, danwas quick to.play up the sig-. to pick candidates in seven of the James Belcher and Christine Es- nificance of the endorsement 25 races for a council district seat. .fridge; siblings Com and Danielle "Its important that people The union.also essentially stayed Estridge and Brianna Weatherby, ' lmow their public officials" aze , out of the city's 17th Distrito race, lis, mother and father-in-law; Wil- ~ supportedbylawenfocement,he :the only district pittingtwo. in- 03. ~ ]tam and Bothnia Shoulders; and - on ~ a host of. -other ~relahves. he www.flamterbuchanan.com J.S. Mi uel An el Juarez Zarate 18, 17,91ndianapolis, died July 6, 20, ..2003: Services: Private. Atrange- 01e meats: Alpha FSuteral Service. Im-.. ~. Ind ~(%f /~~ IJ2 ~e/yli0i~ ~' . -ise and lm Ce- 'To our readers ron ant ' Commemomle your friendeand loved-ones who have passed away with'e memoriam in- [his section. To Place Yom niWte, ar far -. mar infarmacidn, email dissifiedsQindp- ' mccam or cx113ViC4]2]6.. vay CHURCH ~. azd In Loving Memory of r in My Parents.. be -Bobbie Riddle & 10 - John Clrurcli. _ yk_ `. 7uly 9, 2003.. - lere ntil.- Even [hough we can'[ be ved together on days like these, ite- I just wanted you both to Imow our how proud I am to be your daughter aid- ~ and how much I miss youso. Thank ~d_ you both for loving me so much! , ~, Love always,~Melissa~Moore LISTON hi Loving Memory of _ - Rashad L. Liston Conner Prairie land rez®nin o ®ld By Bill Rlrthhart Commission to recommend cre- . meeting,. the city. agreed not to - biuiruthhan@indystar.com sting anew parks and recreation continue its rezoning efforts as The city of Carmel likely won't 'zoning classification that.:would long as Eazllram doesn't sell-or decide - until ~at least Mazch applytothe museum property. propose new uses~for the land. A whether to rezone more than 640 Since the firings, there has written agreement will be con- '- acres of land owned ~by Conner been speculation abonfEazlham's sidered at the ~aext commission Prairie. - plans for the land, which is now meeting,-in August - Earlliam College; which oper- farmed. Brainazd said he felt it Earlham President Doug Ben- ates the .living-history museum, was necessary to consider rezon- nett fold the commission that the. decently fired most of the. mu- . tag the land after 4alking wiUr college did' not intend to change seam's boazd is an ongoing dis- oustedboazd members and read- the way Conner Prairie, operates pate over. facility funding. tag reports that Eazlham may de- or to develop the acreage: Catmel .Mayor ` Jim Brainazd velop-it. ~ ~ ^ Call Star reportef Bill Ruthhart at had asked the Carmel Ciay Plan At ltresday nights commission 1-317-444-2606. Tuesday's defeat isn't a complete sifles, now piovide benefits to Leave ,loss for gays and lesbians, same-sea domesflc partners." "The court recognized that Any effort to expand rights and - we're in the 21st century, and protections to gays and lesbians in to JOdgeS HCknOWledge that families are changing. That's sig- Indiana has met with resistance families are different today. nificant," said Falk, who azgued from conservatives lathe Indiana . PPOIn Bt that the state's policy violated the General Assembly. ~ . Indiana Constitution. State Sea Michael Young, R-Indi- lesbian community momentum as k the decision, the three-judge anapolis, said that allowing. unmaF it fights to be included in antidis- appeals panel ruled that because tied people -,mcludtng gays and: crimination andmarriage laws. the state policy treats all unmaz-; lesbians - to,:.„take advaufageoff, ' ° And. Canada announced last tied people alike, it passes consti- vyould policies such as fimexai Leave month that it would soon legalize tutionalmuster. The judges wrote open the door for people in a~rela-~~ ' gay mazriage. that it is irrelevant to this consti- tionship to take paid time oS , ", Indtana is far from :reaching tutional argument Utat Cornell Young joined state Rep. Woody -that point. cannot legally marry her partner.. Burton, R-Greenwood,. and state ._ __..__._ ,. _.__.. .. _. ~. .ra_ _..1 __r____r_.r__~.r-_-_ c.... i..t.., \xl te...,~n A_Chnlhnm Liilig, Laurence M From: Heck, Nancy S Sent: Tuesday, July 01, 2003 3:26 PM To: 'nehck@ci.carmel.in.us' Subject: News Release regarding rezone of Conner Prairie land City of Carmei One Civic Square Carmel, IN 46032 NEWS RELEASE _-- Date: July 1, 2003 'O~ O~ " Contact: Nancy Heck (317) 571-2494 Release: Immediate Conner Prairie Land in Carmel to be Rezoned Carmel, IN -Carmel Mayor James Brainard has asked the Carmel Clay Plan Commission and the Cith Council to rezone 690 acres of land owned by Eaxlham College from S-1 Residential District to P-2. The new P-2 zone will only allow fox three uses, which axe agricultural, parkland ox a living history museum. For years the City of Carmel has relied on Conner Prairie's plans to develop this land as part of its living history museum. "Now that this land has been annexed into Carmel, we need to protect ouxseh~es from potential threat of having this land developed into a residential project. Carmel has not planned for the kind of cost burdens that more houses would create for the City," said Mayor Brainard. A residential community would xequixe~millions in unplanned investment and an increased need for ambulance, paramedic and fire service, police protection, road construction and maintenance, an additional elementary school, as well as up-sizing sewer and water lines. The P zone type was created to protect parkland and other open land from development. T he Conncx Prairie/Eaxlham land in Carmel is cuxxendy zoned S-1, which would allow fox single-family residential subdivisions. "'Phe instability that we see in the way that Eatlham College is serving as trustee for Conner Prairie and its assets at this time lead me to believe that the undeveloped land Eaxlham owns on this side of the river might be in jeopardy," Mavox Brainard added. Indiana's Attorney General, Steve Carter, announced a few days ago that he was initiating an investigation into F_arlham College's actions as trustee of more than $100 million left in trust fox Conner Prairie by Eli Lilly. 30 - • LOCALLY OWNED $1.75 ©IBJ CORP P-1 P8 """""""CAR-RT LOT"C014 729282 O6/A6/05 DEPT OF COMMUNITY SERVICES t civic scl VOL. 24 N0. 15 52 PAGES THIS ~IiEEK 3 Crawford's Bakery & Deli is opening a new plant and new retail outlets to cater to the big market for lowcarb baked goods. 3 The RCA Championships . tennis tournament is ftnding its new Juty date Is more popular than expected with players, sponsors and network television. 3 Harold Oarrlson, who spilt up with developmenYpartner Lee Alig three years ago, has amassed a $2.7 billion property portfolio and is launching a $300 million project lh . Bdstol, England. . 5 The state Is building its economic development war chest at the expense of smoking cessation and prevention programs. 21- 27 ' Ct1~ Global Strategies Battle drenched Control of museum,. money ` . an old issue at Conner Prairie By Andrea Mulrragul Davis adavis@IbJ.com Conner Prairie wanted to be free. For three long years, museum leaders have worked to negofiate a declaration of independence from Eazlham College, the keeper.of the facility for nearly four decades. The task was daunting. Eazlham holds title to the land ; where Cotmer Prairie sits and con= trols a multimillion-dollaz endow- . went established on its behalf. And it doesn't intend [o relinquish either. Still, the Go toFommat museum and tmww.lbJ.can the Richmond- to comment on based college Conner Prairie. engaged in mend after round of give and take. They drafted proposals and counter- proposals, on their own and with the help of mediators. They made progress, but noth- ing passed the necessary "win- win" threshold. This sprang, Eazlham drafted an agreement that would give Conner Prairie a large chunk of lahd and a management role at the museum, .though tbe college wouldke~p tide to die museum property itself: Earl- ham also would retain control of Conner ]'refrie's endowment, the See' CONNER page 48 2003 in his#ory Letter stirs former. board members' ire By Scott Olson solson@fbj.com Conner Prairie's ousted boazd members, still reeling from their forced removal, say a letter encouraging them to. continue giving to the ]iv- hig history museum adds further insult to injury. Eazlham College President Douglas Bennett dismissed the 27 directors and toirmq~ted CEO John Herbs[ over a budget dispute June 11. John. Young, interim chairman of the Conner Prairie board, penned a letter the fallowing day, telling members of the. William Conner Society Eazlham's side of the story and asking for their continued support of Conner Prairie. "VVe appreciate your past contributions and will strive to continue to be worthy of your, tmst and support in the future," Young wrote. The society is a group of about 40 lazge- money donors who contribute at least $1,000 annually to the museum. Many of the 27 removed duec[ors are members of the society See~PLAYERS page 44 Early retirees feel burned by brokers Merrill says claims by 85 workers lack merit By Brag Andrews gandrews@Ibj.com Ted Beny said he liked his $55,000-a-yeaz job a[ the Maiathon Refinery, one of the [op-paying employers in nual southeastern llli- nois. But he lilted the pitch from die Indianapolis-based Merrill Lynch broker even more. Retire early and roll over your retirement account to Menill Lynch, he said the broker suggested. According to Bevy, die broker said he could withdrew 10 percent of his $340,000 in retirement savings each yeaz for living expenses and still grow his nest egg. But that was in the late 1990s, before stocks plummeted. Twenty months after retiring in January 2000, Beny was back at die refin- ery-tttis time working for acon- tractorpaying half as much. Even that didn't last. Ih May, Beny was laid off. Now, die 57- year-old is scrambling to find new work and wondering how he'll bridge the gap until full Social Security kicks in at age 65. "I will be lucky to find some- thing for $7 or $8 an hour now," Berry said. '°Ilie refinery is die lifeblood of the whole area." Florida. attomcy Peter Mougey said Berry's troubles aren't unusu- al. Mougey said he represents 85 former workers at the refinery who were clients of Jason Murdock or Shawn Sorrells, brokers in Merrill Lynch's Caimel office. In presentations at the refinery and in individual meetings wide workers, Mougey said, the brokers told employees in their mid-SOs and older they had ample retire- ment assets [o quit [heir jobs. See BROKERS page 14 AA T RECEIVED J8~1 ~~a?~03 Ex-Conner Prairie boartl chairman Berkley Duck is leading a group of cents[ Indiana residents seeking to free the museum from Earlliam. . Conner Prairie introduces visitors to the 1800s. F,arlham Presrdent Doug Bennett fired Conner Prairie's board. 44 • JUNE 23-29, 2003 • INDIANAPOLIS BUSINESS JOURNAL PLAYERS -Continued frompage 1 and are appalled by the letter. "Yes, I am very displeased about it," Pat Gamtt Rooney said. "I almost have to laugh because it's so preposterous and in such temble taste:' Bennett said he andYoung made the deci- sion to send the letter to all society mem- bers, including former directors, because they didn't want to exclude anyone. "I know some of them have taken offense, and I have apologized to one;' Bennett said 'But we did it because we wanted to communicate to everyone." Bennett declined to name the board member to whom he apologized and said he has no plans to give a blanket apology to the full board. Bennett fired the- directors and Herbst over what the college terms a $4.5 million deficit Conner Prairie has amassed duffing the past -five years, for which Eazlham is liable. The former boazd members contend, however, that Eazlham has hampered the Hamilton County museum's fiscal well- being byhelping itself to millions of dollars of proceeds from Eli Lilly and Co. stock, which was donated by the late Eli Lilly and was intended for Conner Prairie. Conner Prairie Inc. exists as a separate corporation; but Barlham Still maintains substantial control of the museum's finan- cial matters. The college operated the insti- tution from its 1964 inception to 1993. Earlham's inability to mach an agrce- ment torectify the budget shortfall, aceord- ing to Young's letter to society members, prompted Bannett's decision to dissolve the present board, to terminate Herbst and to return management of Conner Prairie to the college. But many former directors said they won'[ contribute'to the museum until they're reinstated to the boazd. Inane-mail to Bennett and Young, Gay Dwyer said she refuses to support an insti- tution that is trying to label her and other boazd members as irresponsible. Said Susan Polack: "We are not under- writing EazWam in any way. If this isn't rectified, a lot of financial support will go to someone else:' Therein lies the straggle Eazlitam could face in raising future money. A study by an outside consulting faro completed eazly last year highlights the difficulties already con- fronting the museum's fitnd-raising efforts. ~. Conner Prairie projects neazly $1.1 mil lion in contributions and grants this year, up from $879,237 in 2002. However, the . study, completed in January of 2002 by Woodburn Kyle & Co. in Madison, indi- cates asignificant number of the 42 partic- ipants won't give to the museum because it has no control over its governance or the administration of its endowment. The study's conclusion: "Many feel the college has a conflict of interest with regazd to its responsibilities to Conner Prairie.... These beliefs undermine the ability of the board and leadership to make a case to the community for the support of the museum. ... This complication impacts Conner Prairie's capabilities to raise funds:' -The latest turmoil won't help matters said David Sternberg, past president of the Indiana chapter of the Association of .Fundraising Professionals, because the museum's leadership will seem flawed. Than there's the task of rebuilding the board. The only remaining members, besides Bennett and Young, are Conner Prairie Alliance President Nancy Burton, Indiana Tax Court Judge Thomas Fisher and retired State. Sen. Morris Mills. Based on what Brian Payne, execufive director of the Central Indiana Community Foundation, has gathered from the situa- tion, he said most people wouldn't accept an invitation to sit on the board out of respect for the former members. He's con- cerned the board will be restocked with people from outside the area. George Sweet, a partner at Brenwick Development Co. Inc. in Carmel, sat on the Conner Prairie boazd for nine years, exiting in the' eazly 1990s. Prior to the recent upheaval; he had accepted an invitation to join a steering committee charged with helping the boazd guide Conner Prairie into the future. The group convened June 13 fora meet- ing scheduled before the directors and Herbst were fired. Sweet attended and questioned Bennett about the logic behind the firings. ~ - He then mazched out of the meeting. 'T decided I wasn't going to stay and partici- pate in a breakout," Sweet said, "when the elephant was in the room."• Conner Prairie board, members fired June 11 John Ackerman, Indianapolis Nancy Ayres, Indianapolis Jack Bailey, Carmel Steve Baker, Noblesville Mary E. Busch, Indianapolis Robert C. Campbell, Indianapolis Douglas Church, Noblesville J. Christopher Cooke, Indianapolis Berkley W. Duck, Carmel Gay Dwyer, Fishers Murvin S. Enders, Indianapolis Otto N. Frenzel N, Indianapolis David Fronek, Indianapolis Lynnette K. Hanes, Pendleton Steven Holt, Noblesville Barry Hudson, Portland Stan C. Hurt, Indianapolis Wafter F. Kelleg Fishers William Neale, Fishers Pat A. Payne, Indianapolis Susan Polack, Indianapolis John J. Quinn, Indianapolis Pat Garrett Rooney, Indianapolis Philip Scarpino, Indianapolis Jacob Secor, Zionsville JanetThyeri, Carmel JulieViellieu Thompson, Fishers Source: IBJ rereareh 46 • JUNE 23-29, 2003 ~ INDIANAPOLIS BUSINESS JOURNAL CONNER Continued from page 1 result of donations late local philanthropist Eli Lilly made to benefit the museum. Conner Prairie made cdncessions and demands and fired back a counter offer. The two sides convened June 11, but the expected negoflations didn't materialize. Eazlham's last proposal was its final proposal. "It was atake-it,or-leave-it simafion;' .said Berkley Duck; Conner Prairie's ex- boazd chairman. He' and his colleagues asked for time to confefprivately, and retumed a few min- utes later tp reject the offer. Earlham's response? "They said; `You're ,feed,"' Duck recalled. The college summarily dismissed Presi- dent and CE0 John Herbst and 27 mem- bers of the 30.person boazd. Members appointed by Eazllram were spared. "We made one last try-and failed," said Earllram President Douglas Bennett. "We weren't prepared to continue working with that board." The incident is but the latest salvo fired in a decades-old straggle over power and money. Until now, it has been a battle waged quietly, with the decorpm befitting an insti- tutionfounded by the pacifist Quakers. But Eazlham's aggressive move brought the fight into the public eye, and fallout has .been swift. In just one week, the gutted Comer Prairie saw neazly a quarter of a million dollars. in revenue disappeaz as donors withdrew support and sponsors canceled commitments. The message is cleaz: Central Indiana has circled its wagons. B-rth of a museum The problems between Comer Prairie and Eazlltam run deep, gathering strength and venom as the museum has risen from , the dust of the Hamilton County fields where it was fomded in 1964. -Eli Lilly purchased the William Comer farm and some surroording property as a hobby, and later decided to give it away. Enter Eazlham, which accepted- Lilly's gift of more than 1,400 acres of land- including 58 acres that was to be preserved "in perpetuity for the enjmyment and edifi- cation of the public;' according tb a 1963 letter from Lilly to the college. By 1968, an Eazlltam advisory council had begin to discuss how to develop the museum, already operating at a loss. Earlham Vice President Hazold Cope gave Lilly a written update that yeaz. "We doubt that the museum can be prof- itably operated on a modest or middle ground levelj' he wrote, ".:. we must develop the resource to its fullest potential or else not keep it open at all:' Excerpts from Cope's letter are included in a report prepazed in 2001 by local law firm Ice Miller. The report documents much of the.eazly history bf the museum, its relationship with the college and the role Lilly played as a benefactor. , Beginning in 1969, Lilly made a series of stock gifts-to Eaztham, How the college handled the donations is at the root of the dispute with Comer Prairie. The "primary purpose' of Lilly's initial stock transfer--40,000 shares of Eli Lilly and Co., worth abput $3 million at the limo--was to "enable Eaztham College to maintain and to operate the Conner Prairie Farm Museum complex;' according to the Tangled Ties 1964: Eli Lilly donates more than 1,400 acres of Fiamliton County land to Earlham College, Including 58 acres that became the core of Conner ~ n Praide. , , 1969: Lilly gives Earlham 40,000 shares of Eli Lilly and Co. stock, for the - "pdmarypurpose" of maintaining and operating Conner Praide: 1977: Lilly dies, leaving Fariham about 310,000 more shares of company stock, wtth insbuc0ons that the "first charge" be Conner Praide. 1973: Lilly gives Earlham another 200,000 shares,vlhh a covenantthat the "first charge" be to suppartand maintain Conner Praide. Eli ally, grandson 1972: LIIIy gives Earlham 20,000 shares of of Col. Eli tllty stock in his company, to be usedfor the museum and the college. 1992: Earlham, which had been mooing the museum hself, creates Conner Praide Inc., a wholly owned, not-for-proftt subsidiary. Conner Praide forms its own board of directors, but Earlham retains control of endowment funds and reserves the power to overrate museum board decisions. deed of gift: Eazlham's board had the authority to determine the scope of the museum and the freedom to use endowment income 'Prom time to time"-for the college. In 1972, Lilly gave Eazlham another 20,000 shazes worth about $1.44 million.. The college was told it could use the money for museum improvements- and operations, and programs at Earlham. A 1973 gift of 200,000 shares, valued at $16.7 million, had a covenant that the "fast chazge' be to Support Comer Prairie. But in 1974, Comes Prairie Director Myron Voutax complained to Lilly about the 'hebulous" relationship between the college and the museum, saying the board was "a lit- tle-parsimonious and or slow in planning what theVillage is to get" Lilly suggested the college come up with a plan~for dividing the fiords, and Earlham responded with a proposal to split the gift evenly between the college and the museum. The idea was fine with Lilly, who sug- gested in a response drat the 50-50 Wile be applied to any future gifts. Less than a week later, he reversed that decision on the advice of his lawyer, who had pointed out that Lilly could. always. make drat provision himself. . "Your reasoning about the limitation on future gifts to Earlham College is soord; as usual," Lilly wrote to his attorney, Byron Hollett. "ff I should die with my boots an, my thoughts on the subject will be available in this just-past correspon- dence befween ris." Lilly died three yeazs later, leaving Eazl- ham another 310,000 shares of company stock. His will said the income and princi- pal of the gift "shall be subject to a fast chazge" for maintenance, support, con- struction and restoratim of the Comer house and surrounding grounds. The bequest went on, however: `Any income from such fund (but no principaf) remaining after performance of the forego- ing provisions ... may be used for the gen- eral support of Eazlltam College. as its Trustees shall determine." Therein lies the rub. `It's a1/ about the money' Over the yeazs, the "first charge" provi- sionmentioned in Lilly's will sari at least one of his gifts was abandoned by Eazl- ham's board in favor of the 50-50 role the college proposed in 1973. `The gifts of stock were intended to ben- efit both Comer Prairie and the college;' Eazlham's Bennett said last week, "andthe Eazlham boazd had the discretion to deter- minehow Ore money ought to be allocated:' But the ousted Comer Prairie leaders Original Lilly-Earlham connection muddy Conner Prairie and Eazlham College don't even agree m how Indianapolis philanthropist Eli Lffiy came to donate 1,400 acres of Hamilton County land- and subsequently hundreds of thousand of shares of his company's stock-to the Richmond school. Lilly bought the 19th century William Comer farm and sutmuuding property iu 1934, according to an online history posted on Comer Prairie's Web site. fie restored the Comer house and improved fanning operations with the goal of creating a model of modem agri- cultural practice. The effort wasn't profitable, however, and Lilly eventually looked for a likely candidate to take it over. The end of the story is cleaz-he gave the land to Earlham, with the ordet- standing that the Comer house and 58 acres would be maintained in perpetuity. why Eazlham? The college issued a statement June l l .from Landrum Bolling, its president at the time of the donation, explaining that he and Lilly had been good friends. The Bollings and Lillys frequently dined together, and the EazOtam president and his wife visited the Lillys at their sum- 2003: Earlham dismisses most of the Conner Prairie board and fires its president 2000: Earlham and Conner Praide begin discussions about separating the museum from the college. Source: IBJ research mer home on Lake Wawasee, i[ said. "My friendship with Eli Lilly devel- oped long before I had an idea of Conner Prairie or knew anything about a possible major gift," Bolling said in the statemer" Current EazOtam President DougL. Bennett said the connection between Lilly and the college "is not my story to tell," and referred [o Bollirig's state- ment Bolling was not available for comment. But ousted Comer Prairie President John Herbst tells a different tale, which he said is based on oral histories. As the story goes, Lilly originally offered the land to Purdue University, but that didn't work out. Then Getman immigrant Tillman Bubenzer,. a Quaker who ran the farming operations on the land, suggested Earlham ' Myron Vourax, Conner Prairie's director for seven years in the eazly 1970s, said both versions could be true. Bolling and Lilly were friendly, he said, and Bubenzer had ties to the col- lege aswell. `T don't remember exactly how it hap- pened," Vourax said. 'That was a long trine ago:'• By Andrea Muirragui Davis say that's a conflict of interest and chazge that the college has used money intended for the museum. "Almost from the start, [Earlham boazd members] have ignored the fact that they are the trustee" of Comer Prairie, said Duck, the fomrer board chairman. `°Ihey've treated it like their own lime fiefdom." Tension developed almost immediately after the college appointed an advisory board of Indianapolis residents in the late 1960s, he said. Eazllram seldom offered fording, so board members often foord themselves with their hands out. "It was always, 'We need more money [o do this or that "' said Duck, whose father- in-law was a member of that early group. Vourax, director of the museum in the eazly and mid-1970s, said he ran the oper- ation without a fixed budget, making requests for each expenditure. "Over the years, what money I didn't spend, Earlham kept;' said Vonrax, himself a graduate of the college: `Then we had a major disagreement I wanted a budget I could Bve.with end work with" He appealed to Lilly, who often visited the museum. Lilly liked what he saw and kept making donafions. But the tug-of-war over fording eventu- ally resumed, Vourax said, and he left in 1977 because he was "tired of fighting it." Vottrax said he's disappointed the battle fs still raging. "Its all about the money," he said. `°Tha['s what this whole damn thing is about." Duck's "back of the envelope" math sug- gests Comer Prairie should have an endowment of about $100 million, based on the amoort of the original gifts and the historic performance of the stock. Bennett, -on the. outer hand, said the museum's portion of the $140 million Eli Lilly Endowment at Earlham totals only $64.7 million, slate Comer Prairie was allowed to dip into its principal. "Rre pay very careful attention to the funds within the Earlham .Endowment;' Bemett said. "When somebody puts in play a chazge that we aze misusing Ore fords, that's a very sharp criticism." The situation orderscores the impor- tance ofdonors being as explicit as possible about Oteir intent, said Cazol Simonettr, president and CEO of the Indianapolis- based Indiana Grantmakers Alliance. `The more vague the gift, the more pos- See next page ._ ..__ _ _ INDIANAPOLIS BUSINESS JOURNAL JUNE 23-29, 2003 • 47 Continued from previous page Bible mom for interpretation;' she said. Deficit or not? But the conflict is even more complicated. Bennett's explanation for dismissing the. boazd and fuing CEO Herbst is that Conner Prairie had accumulated a $4.5 million deficit over the past six yeazs. `°I1tat seemed like a point we ought not go beyond;' he said. Herbst and Duck say that is misleading. About $1:8 million of the so-called deficit arises from capita! expenditures the museum made even though the Eazlltam boazd refused their request for endowment money to fund them. Conner Prairie borrowed $1.J million. from Eazlham to help develop a working 1886 farm and spent another $650,000 on improvements ro visitor amenities. . Herbst said he was given permission to spend the $650,000, with the understand- ing that details would be worked out later. The $1.1 million was to be repaid through a capital campaign. And most of the $2.8 million operating shortfall was expected as part of a five-yeaz 'Supositioning" plan Bennett called for in 1998, Herbs[ said. At the time, the three Eazlham units- Conner Prairie, the college and Eazlham School of Religion-were mnnirtg deficits, and the Earlham board approved an addi- tional draw from the endowment to invest in programs that could boost revenue. The caveat: each unit had to show a plan to balance the budget within five yeazs. Conner Prairie invested the additional income on new attracfions, programs and mazketing. Its proposal, approved by the Eazlham boazd, predicted an operating deficit of $1.6 million over three yeazs before modest surpluses would begin. The museum's changes attracted more visitors, but the budget projections proved optimistic amid a weak economy, fallout from the Sept. I1 terrorist attacks and a scorching summer of 2002. "Stupidly, I thought we could get to a balanced budget last yeaz, and last year was the worst in terms of surprises," Herbs[ said. "As we got into the plan, I realized I would need more tune." Bennett said he bad seen enough. "T'he return to fiscal equilibrium was supposed fo happen in 2001. It didn't," he said. "It didn't happen in 2002, either. And we weredt seeing a lot of concern on the part of the Conner Prairie boazd:' But Bennett is an ex-officio member of the Conner Prairie board, and Eazlham appointees, have veto power over the majority members. So doesn't an indict- ment of the board also reflect on them? Not really, Bennett said The Earlham members vetoed an initial version of the 2002 budget, he said, but that "caused agreat deal of unhappiness and consternation, so we have tried to work on the fiscal issues through persuasion." `Z know they're commitment ro balanced budgets," Benett said of [he Eazlham rep- resentatives. The college itself is expected to elimi- nate its deficit in the 2003-04 fiscal yeaz, but is facing a projected $900,000 shortfall in 2004-05 because of one-time savings and delayed spending that helped balance the 2003-04 budget. Bennett said that's all part of the budget- ing process, and he expects the outlook for 2004-OS to improve with time. Ironically, the tide had started to rum at Canner Prairie. Data prepared.for the June 18 board meeting showed a deficit of $122,440 so faz this yeaz, compared with a budgeted deficit of $234,118 for the first five months of the year. Herbst said Conner Prairie wouldn't have a deficit at all if Eazlham freed up more endowment income for the muse- um The Eazlham units typically get a conservative 4 percent draw from the endowment. Other cultural institutions in Indianapolis budget fora 5 to 5-12 percent draw. "If we wen[ to 5-1/'L percent, we'd have no deficit," Herbst said. '~'ire've asked for that many, many times. It's been the subject of huge debate over the years...: The fact is, they set the budget before they talk to us about our needs:' Eazlham's endowment spending policy is intended to protect the assets for the future, Bennett said. "We invest it pmdenfiy with an eye ro the longterm;' he said. "Spending down an endowment isn't wise, in general." . Control Issues Conner Pmhie leaders thought their money troubles would be resolved if the museum were separated from Eazlham, and they spent a lot of time over the past three yeazs working to do just that The effort had been building momentum since [he college incorporated Conner Prairie Inc. as a wholly owned subsidiary in 1992. Although still linked to Eazlham, the not-for-profit entity got its own board-and fund-raising muscle. "Earlham figured out that. if they were ever going to get the support of Indianapolis, they had to 5nd a way to fully engage the philanthropic community here;' Duck said. So the board was filled with prestigious members of the community, many of whom had deep pockets of their own. They soon found out that wasn't enough. "Major givers are sophisticated about this stuff," Duck said. `°They wanted to know why they should give when the money was going to end up on the books at Eazlltam" The answer is simple, Bennett said. "Conner Prairie is a par[ of Eazlham, and it always has been;' be said. "Our hope would be for people to see the synergy there and be assured the money would go m Conner Prairie. I'm sorry anyone has ever doubted that." Still, the museum boazd became con- vinced that the only way to counter that perception would be to eliminate it by achieving independence. And in 2[700, Eazlham agreed to discuss the possibility. The two sides established some ground roles, and work began. Even so, "there was a 900-pound gorilla asleep in the comer heir [50.50] treat- ment of the will," Duck said. "What do you do about tha[7" ~ - Museumboazd members probed the issue and got a "ferocious" response, be said: `RYe were told that was non-negotiable. We could not talk about it at,all. It was off the table:' They agreed and moved ahead with the negotiations-until the issue reared its head again in Eazlham's March proposal, which offered the museum land and man- agement control. It also se[ the value of Conner Prairie's endowment at $64.7 million, requiring the museum give up any case it might make for a higher amount. Conner Prairie's counter offer valued the endowment at $100 million, prompting the ultimatum and ultimately the management overhaul "We'd just had it;' said Mortis Mills, a former state senator and member of the boazds at both Eazlltam and Conner Praide. "You don't just hand over $100 million to someone yoti~don't have confidence in.... We decided to stag all over." If Eazlham had enough confidence in the museum board ro hand over management duties, why not continue the negotiationsT "We were not going to sit still and be sued by them," Mills said. "We figured if they didn't accept [the deal], we'd be in court the next day." Moving forward Hours after firing the boazd, Bennett met with Conner Prairie staff and promised that day-to-day operations would not change as Eazlham took over. He has spent much of his time since then fielding questions and talking to dte media, but Bennett said work will begin soon on reconstituting the boazd; hiring a new president and balancing the budget. The financial situation actually worsened after the management shakeup,. as donors withdrew support and sponsors canceled commitments. A June 17 memo to Bennett from acting Director Ellen Rosenthal obtained by_ !BJ detailed neazIy $250,000 in potential lost revenue. Withdrawn donations from ousted boazd members alone totaled $72,000. The town of Fishers pulled $60,000 in supportit had planned. And the Celebration of American Women event was canceled, costing the organization another $47,500. Eazlltam has its work cut out for it, said Brian Payne, president of the Central Indi- ana Community Foundation. "It's going to be very difficult to rebuild the trust of [he community;' he said. `°I'hey have a tremendous challenge there:' Payne is skeptical about the college's motivation in overhauling management. Given the shazed endowment, "its inter- ests, are served if Conner Prairie is not ambitious and growth-oriented," he said. "lf Conner Prairie's needs aze less, that helps Eazlham:' -Any percepton that the college is not interested in improving the museum is "dreadfully inaccurate;' Bennett said. "Conner Prairie has grown to be a big, thriving, wonderfiil, complex museum under Eazlham's stewazdship." He acknowledged that Herbst and the former leadership played a big part. `"they did make unusual things happen. The museum has surged;' Bennett said. "I just ttiink the museum can singe and oper- ate at fiscal equilibrium." Still, community support is an important part of the equation. Without it, Conner Prairie may be going back in history. 'Z hope we find citizens interested in help- ing," said Mills, the Eazlham board member. "If no[, the museum might just have to do what. Mr. Lilly had in mind in the first place--preserve the [Conner] house. "It dcesn't have to advertise on the radio or try to.make itself a national aaraction."~ Conner Prairie lawsuit pending in Hamilton County As the public battle between Earlham College and ousted Conner Prairie board members urges on, legal action that could resolve the [router is moving slowly. A lawsuit filed in Hamilton Superior Court on June 12 is pending as the dis- missed board and former president await word from Attorney General Steve Carter. The group has asked Cotter to review the dispute over gifts given to Eazlham by late Indianapolis philanthropist Ell Lilly-gifts they say the college has been improperly administering. Hamilton County Judge J. Richazd Campbell denied the group's request for a temporary restraining order, but the lawsuit itself is still viable, said Berkley Duck, a plaintiff and chairman of the board Eazlltam dismissed June 11 along with President and CEO John Herbst. The next step is [o file fora prelimi- nary injunction, which, like the previous motion, would seek to reinstate the board and chief executive. But the court proceedings associated with such a request would be more extensive, "like a -little trial," Duck said. ` Still, the group isn't coshing to the courthouse. "It would make a tttighty powerfid statement if the attorney general joins us in that action," Duck-said. Carter was out of town when the law- suitwas filed, and has had "very prelim- inat}t' discussions withthe ousted board members since returning, spokeswoman Staci Schneider said. .Duck said the group would like to meet again with Carter to "go dunugh the situation from top to bottom:' "It's a little eazly to expect him ro have formed an opinion about any of this," he said. Eazlham President Douglas Bennett said the college is eager to put thematter [o rest. "Eazlham will participate fully in any exploration the attorney general makes," he said. If Carter decides not to intervene, the group will have to detemrirte whether it wants to proceed. "We might do it,"Duck said, "We still feel damage is being done every day .under Eazlham's management." Duck and Herbst said staff morale has suffered-a charge Bemtett denies. "it seems fine;' he said last week while at Conner Prairie for a meeting of the remaining board members; all of whom were appointed by Eazlham `Z admire the dedication and professional- ism of the staff." Benett is the organization's acting president Acting Director Ellen Rosen- thal, vice president of internal operations and planing, did not rettnn a phone call from IBJ. Duck realizes the mad ahead may not be easy, but he's reedy to navigate it nonetheless. "We still feel that what is in the ]ong- termbest interests of the museum is for -the old board to be reinstated and for Eazlham to back off;' he said. Dismissed boazd members commit- ted for the long haul last week when they incorporated Save the Prairie, a not-for-profit organization that will support legal action on behalf of an independent Conner Prairie. Local lawyers have been generous so far in donating their time to the effort, but Save the Prairie's not-for-profit status will allow the group ro raise money, too. Any donations left fiver "once we suc- ceed" will go to the museum; Duck said• By Andrea Muirragui Davis