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Lexington Herald-Leader (KY)

Front Page article (February 10, 1999)

HOOPS MUSEUM TO OPENWITH $2.2 MILLION DEBT

by Valarie Honeycutt, Herald-Leader Staff Writer

Talk about your come-from-behindsituations.

When the University of Kentucky Basketball Museum opens Saturday, it will be $2.2 millionin debt.In a state that loves its Wildcats, a five-yearfund-raising effort - helped along by $1 millionin tax money from the city of Lexington - hascome up more than 40 percent short of the $5.3million needed.Officials with the museum, a non-profitcorporation, predict that a continuing emphasison fund raising, retail sales at a UK-related shopand the museum's admissions will makeenough money to retire the debt in three to fiveyears.But if they're eager to predict a healthy future,officials are not as quick to discuss the historyof the museum, which has been scheduled toopen in every year since 1995."It's unproductive to second-guess on the eveof opening what you might or might not havedone differently in the fund raising," said JimLeMaster, the former UK player who is presidentof the museum's board.Still, interviews and documents reveal thefollowing reasons for its debts and delays:* Its fund raising , including a relativelyexpensive idea to give gold, silver andbronze medallions to donors, did not meetgoals. [Jane Murray-Vimonts’ idea.]* The board didn't hire a full-time directoruntil after almost four years of planning,despite pleas to hire one from a projectmanager who was working under contract.* When director Mike Durham was hired in1997, he said it became apparent thatmuseum organizers "had not understoodthe scope of the project in hard terms." Itwould cost millions more than anyonethought.Already, the museum has mounted a prettysuccessful comeback. Just 18 months ago,things looked far more bleak.

`FISH OR CUT BAIT'

Former UK star Kyle Macy had resigned fromthe museum's board after several months of work, citing concerns that money was beingwasted. (Macy, the coach of the MoreheadState University men's basketball team,recently returned to the board and says he nowthinks the museum is on solid financial footing.)In the summer of 1997, Lexington city officials,concerned about the museum's finances, hadbegun demanding detailed accounts of wheremoney was going, and were questioningwhether they should proceed with acommitment to give $1 million.By August 1997, Jane Vimont , a former mayoral aide who was heading the project as a contractworker, had resigned to take what shedescribed as an attractive job in Canada. Atthat point, the effort had raised $1.7 million -after writing off uncollectable pledges - andspent $1.5 million, according to records. [JaneMurray] Vimont declined to be interviewed forthis article.

[Don’t skip over this part! When JaneMurray was in charge of fund-raising, theyRAISED $1.7 million but the SPENT $1.5million to do it! And much of the moneywent it Jane Murray’s pocket.]

But LeMaster, president of Kentucky operationsfor Anthem Blue Cross Blue Shield, the healthinsurer, acknowledged that 1997 was pivotal,when years of effort were put to the test. "Wehad to fish or cut bait," he said.He credited Vimont and her firm, Jane Vimontand Associates (also called JVA) with keepingthe museum "on target for our final goal."LeMaster also receives credit from his fellowboard members for keeping the project going.[Apparently Lemaster didn’t want to pointfingers during the grand opening event.]

SPENDING PATTERNS

Though fund-raisers for a UK basketballmuseum date back to the 1970s, the latesteffort began in earnest in 1994, when themuseum incorporated and hired Vimont asproject manager and fund-raiser undercontract. From then until late 1997, themuseum had no office or staff of its own.

Vimont, who had previously worked on themuseum concept for several years as a cityemployee, "was our office. She was our staff,"LeMaster said. Minutes from several board meetings indicatethat Vimont repeatedly urged the board to hirea full-time director. But board membershesitated to spend money they might not beable to raise, LeMaster said. Vimont frequentlyprovided the board with lists of her duties,which ranged from coordinating marketing tohandling all financial transactions to fundraising.As project manager and fund raiser, Vimontpaid out more than $840,000 for expenses suchas project management, fund raising, andstaffing an office from early 1994 until July1997. Over the same time, $600,000 went forconstruction and design costs, records show.

Of the $840,000 in non-constructionexpenses, the museum's invoices showthat Vimont's firm, JVA, received$465,000.

Durham said a substantial amountof that money represented reimbursement forbusiness-related expenses. LeMaster said JVAreceived between $4,000 and $6,000 a monthunder its contract with the museum board.

The Herald-Leader requested a copy of thecontract [with Jane Murray-Vimont] , butmuseum officials have been unable to findone. [Seriously? Jane Murray’s museumcould not find a copy of its contract withher? Did she take it with her?]

The money devoted to fund raising wastroubling to former UK player SteveLochmueller , who served on a steeringcommittee for raising money. "You don't spendmoney, necessarily, to make money," saidLochmueller, an area manager for atelecommun- ications firm and now a memberof the museum's full board. He said his concernabout fund raising may simply have been a"perception."Clearly, though, the effort ran into realproblems. Several deadlines for opening cameand went.

NOT `A WINNER'

By the end of the museum's first year, totalcontributions and pledges were reported at$313,059, but only $136,000 of the pledges hadbeen collected. [Murray-Vimont collected onlyhalf of the pledged amount.] That fell far shortof an initial goal, $3 million for the first 18months.A key fund-raising effort, in which

gold, silveror bronze medallions

were given to donors,was far less successful than its $2.9 milliongoal. The museum spent $201,105 on 6,500medallions. Only about 800 went to donors, inreturn for gifts totaling $1.1 million. Themedallions made an additional $36,000 for themuseum when Whitaker Banks purchased2,000, records show. Durham, the museum'sexecutive director, said he's not sure how manyare left in stock. Records show it may be asmany as 3,762. [6500 expensive medallionsordered by Murray-Vimont. Over half left over.Definitely not a winner of an idea, Jane!]Durham has decided to discontinue theprogram. "It [Murray- Vimont’s idea for a fund-raiser] wasn't a winner," he said.

CITY OFFICIALS CONCERNED

If private contributions weren't exactlystreaming in,

public con-tributions were.

[Funds that Lexington is still paying off today.] The Lexington Center, a corporation of theUrban County Government, offered 10 years'worth of free rent for the museum in the CivicCenter Shops. (The museum pays about$50,000 a year for utilities and operatingexpenses. Without the deal, rent might be$100,000 to $150,000 a year.)

The museum also lined up $1 million incash from Lexington city government.

[Much of it went in Murray-Vimont’spocket.]That gift was required by state officialsas part of an agreement stemming from theaborted Lexington Cultural Center. After thecenter project was canceled, city officials wererequired to redirect state funds allocated to it tovarious cultural efforts, including the museum.Half the million-dollar contribution was made inFebruary 1997.

But by midyear, whenVimont asked for an additional $250,000,city officials were wary.

Ken Kerns, the city's chief administrativeofficer, wrote to Vimont that city officialswanted full access to all financial records. Kernssaid in an interview that he grew concernedabout the museum's financial condition. ButKerns said that Durham, the executive director

who was hired in August 1997, eventuallydemonstrated that the museum would meet allthe terms of its agreement with the city,including a requirement to raise $2 million byMay 1999. "In our minds, the problem issolved," Kerns said in a recent interview.

SOLVING THE PROBLEMCosts, meanwhile, were growing. InAugust 1997, Vimont told board membersthat increased construction costs wouldpush the project's construction budgethigher than the $2.6 million anticipated in1993.

Durham, who had been vice president atLouisville's Kentucky Center for the Arts, saidhe quickly realized that costs would exceed $6million. So Durham began working to trim costsand find money. The search took museumofficials to Lexington's Central Bank, which withnine other Kentucky banks lent the museum$2.2 million.Eager to secure low interest rates available tolocal governments, museum officials last yearpersuaded the city of Midway to sell bonds thatthe banks would purchase. (Museum officialswere unable to use Lexington, which hadalready met its capacity for bond sales on otherprojects.)

The bond sale leaves the museum achallenge: paying its debt.

Durham says he thinks the attraction will draw$900,000 in paid admissions - and as many as150,000 people - in its first year. About thatmany people visited the Kentucky DerbyMuseum at Churchill Downs in Louisville lastyear. Once the museum opens, Durham hopesto begin a new statewide fund-raisingcampaign."There's no question that we've had somecredibility issues on when it's going to open,"he said. But Durham, Macy and several otherssay those issues will fade as soon as fansexperience the museum.Said museum board member Adolph "Herky"Rupp Jr., the son of the late UK basketballcoach, Adolph Rupp: "It took longer than wehoped, but it's happening." LeMaster, who hasdevoted about seven years to the project, said,"We hope people can enjoy it forever." [What asad comment from Mr. Lemaster.]

[It is a true shame that just few yearslater, Jim Lemaster, after such anillustrious history as a UK Basketballplayer, such end his career caught up inscandalous debacle caused by JaneMurray-Vimont’s own incompetence.]

Jim Lemaster #12,UK, 1965-68