The Hogle Zoo appears poised to receive $33 million in voter-approved public funding after fielding a tough round of questioning by the Salt Lake County Council on Tuesday.
The zoo just completed raising $11 million in private donations — a target it was required to hit in order to qualify for the bond that voters overwhelmingly approved in 2008. The accounting behind that fundraising, however, raised a few flags for the council.
About $4 million of the funds came in the form of pledges — money promised but paid over time. Democratic Council Chairman Joe Hatch said before the meeting Tuesday that one of those pledges, $2.5 million from a concessionaire contracted with the zoo, was scheduled to be paid out over a particularly long time period, $250,000 a year for 10 years — a payout schedule that might be a problem.
"This particular donation falls outside what we normally recognize as acceptable," Hatch said. "For other bonding issues, we've made three to five years the window."
While the long-term contract was discussed and essentially accepted by the council, the source of the funding, Service Systems Associates, also posed a potential problem. The company signed up as the concessionaire with the zoo in 2007 and, according to zoo officials, made a donation that is in no way connected to the concession contract. Republican Councilman Michael Jensen said clarifying that agreement was likely in order.
"Legally, is there an issue with the concessionaire giving that kind of donation?" Jensen asked. "Is it kind of paying to play?"
Hogle's executive director, Craig Dinsmore, explained that Service Systems Associates specializes in concession service for public facilities such as zoos and aquariums and currently contracts with seven other major exhibitors. The company makes contributions to many of those organizations as a regular part of preserving their business environment, Dinsmore said.
"They wouldn't just come in here with no opportunity to make a profit," he said. "They donate to make their zoos better."
The leader of the Republican minority, Councilman Jeff Allen, asked that a vote on the issue be shelved for a week while that contract was reviewed and other issues are addressed. While many of the questions posed by council members went to financial matters behind the fundraising, there was also an undercurrent of support for Hogle's role in the community.
"The zoo has a strong legacy in the community," said Councilwoman Jenny Wilson. "They've been doing great things and have shown good practices."
Once released, the bond funding will help finance ongoing expansion and upgrades of the zoo's facilities. Included in those plans is a new 4-acre exhibition of cold-weather animals called "Arctic Edge." The expansion on the west end of the zoo will include habitats for polar bears, seals and wolves, and will feature new underwater viewing exhibits.
Moving forward with those plans will hinge on next week's council vote, but whether the zoo has met its obligation to voters is not a question in the eyes of the facility's director.
"We're confident we've made our $11 million match and have done so in a conservative manner," Dinsmore said. "Our intent, beginning in January 2006, as stated today, was to pursue a private capital campaign and public funding through a voter initiative to fund a private-public partnership to advance the zoo, provide better homes for animals, better experiences for the guests.
"We believe strongly that that's what the voters last November asked us to do, in fact mandated us to do with a 72 percent approval," he said.
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