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Oktoberfest organizers face bill for unpaid fairgrounds rent

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Board members of the German-American Klub of Indianapolis could be personally on the hook for more than $20,000 in unpaid rent at the Indiana State Fairgrounds.

The bill is from 2008 and 2009, when the club experimented with holding its annual Oktoberfest at the fairgrounds instead of its usual location at German Park, 8600 S. Meridian Street, next to the cultural organization's headquarters.

The Indiana State Fair Commission goes to court to collect on unpaid bills a few times a year, spokesman Andy Plotka said. The case against the German American Klub, filed in Marion Superior Court Nov. 7, is unusual in that individual board members could be held liable.

That’s because the Indiana Secretary of State dissolved the German-American Klub corporation for administrative reasons in 2003. Because the club wasn’t a legal entity when President Charles Kemp signed a contract at the fairgrounds, liability passes to the board of directors, the lawsuit says.

The total owed is $22,076.88.

Kemp, a member since 2006 who became president in mid-2009, said the unpaid bill is just one of the organization’s problems. He wasn’t aware until last year that the corporation had been dissolved. And now unpaid sales tax is keeping it from being reinstated, he said.

The club’s financial problems date to 2007, when a complete rainout of the multi-day Oktoberfest left the group about $170,000 in debt, Kemp said.

The club has been trying to catch up ever since. “Believe me, we’d love to [pay the debts],” Kemp said.

The German-American Klub has about 300 active members, Kemp said. The only qualification for membership is an interest in German culture. Annual dues range from $5 to $50.

Oktoberfest, which was held Sept. 8-11 this year, typically draws about 10,000 people. The festival earned a small profit in 2008, but the following year didn’t go as well, Kemp said.

Back at German Park since 2010, Oktoberfest has helped whittle down the overall debt, Kemp said, but more rain this year made it impossible to pay off the fairgrounds by the agreed-upon deadline, he said.

Kemp, a meat-cutter by trade, is personally on the hook. In August, he signed a note in which he agreed to pay $150, plus $50 a week, until October 14, when the entire balance became due, according the lawsuit.

Kemp said he knew he was taking a risk when he signed the note personally and on behalf of the club. “I wasn’t expecting a summer-long drought to end on those particular four days,” he said.
 


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  • trials of NFP's
    Why is it that clubs, non for profits and staple organizations of the past are folding every year?
    Mis management, low interest, lack of participation, to name a few. What has changed? probably access to 24 hour entertainment, the security of staying home, the ability to not be part of anything but believe that you are a part of everything. Think about that for a minute i hope i made my point.

    As for the German Club and the debt. I am sure the state fair board are not a bunch of loan sharks, i hope that they will continue to work with you.
    But think about this Event Insurance, get a writer for acts of nature.

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  1. City-County Councilor Angela Mansfield and Bob Lutz have a case of wishful thinking.

    They obviously don't really care about the cost.

    They should.

    Extending Federal Benefits to Same-Sex Couples Will Cost $898M, CBO Says

    http://www.foxnews.com/politics/2009/12/22/extending-federal-benefits-sex-couples-cost-m-cbo-says/

  2. Brett, be careful what you lie about, the truth always comes out.

    "IMS's George Honored: Tony George, Indianapolis Motor Speedway president and chief executive officer, received the inaugural Pioneering and Innovation Award at the Autosport Awards Dec. 5 in London for his leadership in the development of the Steel and Foam Energy Reduction (SAFER) Barrier. George received the award at the annual gala at the Grosvenor House on behalf of the creators of the SAFER Barrier from Prince Salman Bin Hamad Al Khalifa, the leader of the Bahrain International Grand Prix circuit. This is the fourth major award that has been presented to honor George and the SAFER Barrier development team. The SAFER Barrier also received the Louis Schwitzer Award, SEMA Motorsports Engineering Award and GM Racing Pioneer Award in 2002. The SAFER Barrier was installed in all four turns of the Indianapolis Motor Speedway a pioneer in safety for drivers, cars and tracks -- in time for the 86th Indianapolis 500 in 2002. It since has been installed at more than a dozen other tracks, and the latest iteration will be installed at the Speedway in the spring.(IMS PR), see more on my Indy Track News page.(12-7-2004)"

    As far as the cart safety team, I cannot find anything on its date of creation. The Delphi Safety team was created in 1996. For some reason there is not much info out there on defunct racing series.

  3. Great article Anthony. Glad IMS is finally being run like a business and not a personal check book to finance the "Vision".

    Things are looking up but 15 years of scorched earth won't be fixed overnight. Unfortunately the TV ratings are still poor and that won't change anytime soon with the brilliant 10 year contract signed under the former regime.

  4. Brett not sure why you wonder what he said in his quote. "''I would like to jump in a time machine, go back to 1995, and tell the owners and Tony George not to split,'' Franchitti said. ''As soon as my time machine is done, I know where I'm going.''"

    Pretty clear, he would love to go back and tell TG and the team owners not to split.

    I am not sure there is anyone who wanted the split, and I don't think there is anyone who would not like to go back and prevent the split. But, as has been discussed ad nauseum, without the split carts management by team owners would have run all of ow racing into bankruptcy. If cart had such a wonderful product, then losing IMS would not have forced it into bankruptcy. If NASCAR lost Daytona or Charlotte, it would not fail like cart did.

    Truth,

    So you predicted that cart would go into bankruptcy and cease to exist while Indycar would continue on? I missed that prediction.

  5. I want to live in a city that has a garage structure to be proud of for it's innovating design!

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