Contractor not a nonprofit

Dave Brooks

The company hired to build the second phase of the city’s youth

sports complex is not registered as a nonprofit agency, according to

IRS records, as required by law.

In June 2003, the city paid an attorney from Salem, Ore., Joe

O’Connor, and his company Community Parks Foundation nearly $1

million to build and operate batting cages, roller skating rinks and

an indoor soccer arena as part of Phase II of the construction of the

Sports Complex.

It’s been more than three months since the facilities were

scheduled to be ready for use.

Instead, the project sits half-built and abandoned with the city

locked in a lawsuit with a Salem, Ore. contractor that has little

prior experience. The contractor is claiming a nonprofit status that

doesn’t exist for companies that are defunct.

“It sounds like the city didn’t do its due diligence on this one,”

City Councilman Dave Sullivan said.

Community Director Jim Engle said O’Connor was picked because a

clause in the sports center’s financing deal required a portion of

the construction be contracted to a nonprofit agency, and O’Connor’s

foundation seemed to fit that bill.

But according to Internal Revenue Service spokesman Raphael

Tulino, O’Connor’s foundation is not a registered nonprofit. His

other two companies, National Community Sports Foundation and

Intersport Systems Group, are also not listed.

They’re also not operating. National Community Sports Foundation

was dissolved two-and-a-half years ago by the state of Oregon for

failing to renew its articles of incorporation. Community Parks

Foundation, the company hired by the city, was dissolved in February.

Documents from the Oregon Business Registry show that Intersport had

its licensed revoked on Friday.

O’Connor wouldn’t comment on his company’s status, but said he

hoped to soon clear up the dispute with the city.

“This could have been done six weeks ago,” he said of the project.

“Technically if we were allowed back on, we could have it finished in

about 14 days.”

The city hoped the endeavor would generate up to $860,000 annually

to help pay off the $19-million sports complex.

But city officials became concerned when the project wasn’t

completed by its March 20 deadline, City Atty. Jennifer McGrath said.

When O’Connor failed to respond, McGrath terminated his contract and

filed a lawsuit against him.

O’Connor argued that the project got delayed because he wasn’t

allowed on the grounds until August, and when he arrived, the site

was badly damaged. He also said his equipment prices went up nearly

60% and he would need another $300,000 on top of the $950,000 the

city already paid him for the project.

The likelihood of that happening is very slim, McGrath said.

In her lawsuit, McGrath characterized O’Connor’s companies as

“mere shells and shams” serving as “alter egos of Defendant

O’Connor.”

The only verifiable nonprofit O’Connor belongs to is Capital

Soccer Club, a youth sports league he serves as president of.

One of his former employees, Jennifer Fagin, listed on the Oregon

Business Registry as the secretary of one of his defunct

corporations, described O’Connor inas a father “who loved everything

about the game “ and ambitiously set out to build an indoor arena

outside of Salem in 1998 for children to enjoy.

O’Connor was also allegedly involved in a soccer dome project in

Oregon that local papers reported led to legal and financial troubles

for him.