Revenue distribution to charities still unclear

DOTHAN, Ala. — On the eve of Country Crossing’s opening, details remain sketchy about the process in determining how much of the proceeds from electronic charitable bingo will be made available to Wiregrass charities.
Bingo regulations approved by the Houston County Commission require all “net revenue” from electronic bingo in Houston County to be set aside for charitable or educational distribution. But how net revenue will be determined remains unclear.
“There are expenses, leases, licensing agreements and other things that have to come out of (total revenue) in order to operate,” Houston County Commission Chairman Mark Culver said. “After that, all the net revenue goes for distribution.”
According to the 2008 bingo regulations passed by the commission, “bingo expenses” are defined as: “all expenses incurred in connection with the holding, operating and conducting of bingo games in accordance with Amendment 569 to the Constitution of Alabama 1901, including but not limited to, the following expenses: Bingo equipment, the payment of services necessary for the repair of bingo equipment, payment of prizes, rental for the location, utilities, janitorial services, security services, banking services, permit fees, taxes and permit fees, insurance premiums and maintenance.”
Also, according to a 2004 opinion from Attorney General Troy King, the project’s developer can be paid through what is known as a Development and License Agreement or a Trademark License Agreement.
“As long as the club (operating bingo) is not paying any consulting fees, compensation, or salary of any individual for the operation of the bingo games, the percentage payment of revenue, under the Development and License Agreement and the Trademark License Agreement, to the developer would be permissible,” the 2004 AG’s opinion states.
The financial aspect of bingo at Country Crossing will be operated through a non-profit group known as the Houston Economic Development Association (HEDA). The president of the group is Frank Wendt, the former IT & human resources manager at Ronnie Gilley Properties as well as former vice president of foodservice & entertainment at Ronnie Gilley Properties, according to his profile on LinkedIn, a professional networking Web site. Wendt did not return a call seeking comment.
Once HEDA determines bingo-related expenses, it is required to forward all of the remaining revenue to the Houston County Foundation, a three-person group comprised of Dothan Area Chamber of Commerce President Matt Parker, Dothan Area Convention and Visitors Bureau Executive Director Bob Hendrix, and Nancy Arnold, assistant vice president/branch manager at Trinity Bank.
The foundation will then distribute the money to qualifying charities and educational groups. Parker said the process for groups to apply to receive funds is still being determined. He said an advisory group is expected to be formed to assist the foundation in reviewing applications. It is not known how often the distributions will be made.
At least $2 million annually is guaranteed to local charities.