Sunset Junction Responds to Charges of Fiscal Mismanagement

LA WEEKLY ARTICLE

The LA Weekly published an article called "Sunset Junction's Failed Mission" in its recent print edition.

It took a look at the tax filings of the Sunset Junction Neighborhood Alliance's and concluded:

[T]he Alliance's huge overhead, as compared to its revenue, dried up cash originally meant for youth programs.

Read the on-line version of that piece by Amanda Becker here.

SUNSET JUNCTION ALLIANCE RESPONDS

On Tuesday, Michael McKinley and the Alliance issued the following response through publicist Rogers & Cowan:

"The Sunset Junction Neighborhood Alliance was founded by a group of people who had been involved in organizing the first march in Washington, DC for lesbian and gay rights in October of 1979, and a similar march in Sacramento in the winter of 1980.  Many of the people who participated lived in the Silver Lake neighborhood of Los Angeles, where there was a great deal of tension between the gay and lesbian community and the gang community.  The decision was made to organize a street festival in the area to celebrate diversity and to bring these opposing forces together.  The gangs were invited to attend the event.  The gangs called a truce and they provided the first Security for the Sunset Junction Fair.  The name "Sunset Junction" came from the corner at Santa Monica and Sunset where  the Red Car stop was called "Sunset Junction".   Micheal Mckinley was one person of this group.  He alone did not found Sunset Junction.

"There has never been 250,000 attendees at the Sunset Junction Fair.

"Sunset Junction did not shift from community groups to corporations. Many community groups are in attendance at the festival and they continue their outreach.  The corporations have been attracted to the festival because of it's demographics and popularity.  One group has not been excluded to make room for the other group.  All groups have been invited to participate, if they choose to do so.

"The 2011 admission price of $25 was increased on August 1, 2011  from $20, in order to help pay for the high city fees being charged to the fair.  Sunset Junction paid $23,000 in  fees its 28th year; fees were not charged the 29th year, and four days before the 2010 event marking the 30th year, organizers were told they owed $263,000 before the street closure approval could be made.  This is more than a quarter of a million dollars leveled at a non-profit who previously paid less in fees.  It is ten times more than any other comparable citywide event.  It is more than the Hollywood Bowl pays for a year of street closures and police and its more than the Oscars pay for their street closures and security.  *Public record backs this up.

"The advance ticket price for Sunset Junction is $15 a day and a special advance purchase promotion ran offering a weekend pass for $15.  Additionally, free admission is always given to kids 12-years-old and younger and to senior citizens who are 65-years of age and older.  Sunset Junction also provides 5,000 free wristbands to the community to attend for free and 1,000 wristbands to the business owners to attend for free.

"The city charges for the 2011 fair were $142,000.  Sunset Junction did provide documented proof of funds that could have potentially allowed the festival to move forward this year.  This included a substantial loan from a well established corporate music entity that should have removed any doubt as to the issue of payment of 2011 fees.  Sunset Junction legal informed the Board of Public Works on 8/23 that a corporate loan had been secured. The date marks one day prior to the 8/24 hearing that would decide the fate of city permits.  Micheal McKinley was at Chase Bank the morning of the 8/24 hearing to administer deposit of and transfer of funds. 

"Sunset Junction contracts with Groove Tickets as a third party handling tickets onsite at the festival and in advance of the fair. All ticket sales are accounted for.

The tax records of Sunset Junction are public record.  Sunset Junction filed an extension for 2010 in order to allow the organization the time necessary to produce the 2011 fair.  In the 30 years of producing the Sunset Junction Fair, the organization has always received its city permits close to the festival date.  The city does not issue permits for street closures a year prior, nor even months prior. 

"All of Sunset Junction activities are designed to be a part of our youth program.  We are trying to empower the youth in the neighborhood in which they live and to provide work and life opportunities that they may not ordinarily receive.  Our staff works with 50- to- 60 youth at a local high school to coordinate the last period sports program.  Our youth and staff operate our farmer's market which takes place on Tuesdays and Saturdays. Our youth and staff  also work for one year to produce the annual street fair and they also staff it accordingly.

"Like every other business or organization, Sunset Junction is not immune to the current economic downturn.  Every business and organization fluctuates from year-to-year depending on many variables that effect the economy and that are out of our control.  Sunset Junction also disputes Amanda Becker's statement that we pay $12,000 for a lobbyist and needy kids get $500 as completely inaccurate.  During the 8/22 Board of Public Works hearing numerous at risk youth who have utilized Sunset Junction's youth programs returned that support by speaking on behalf of the fair and its positive impact on their lives.  The majority in attendance at the BOPW hearing on 8/22 spoke in support of Sunset Junction.

"We are not clear on what facts allowed Ms. Becker to determine this numerical equation of monies going to the program's at risk youth.  Ms. Becker also did not balance her news report with any Sunset Junction supporters. She interviewed only one Sunset Junction supporter but did not include this viewpoint in her news report.  On the other hand, the same Sunset Junction detractors continue to be quoted in news reports with many reports failing to include the pro-Sunset Junction opinion.

"Sunset Junction also disputes the Silverlake Neighborhood Council's claim that they reached out to Sunset Junction many times.  When the Sunset Junction Neighborhood Alliance did make a presentation to the Silverlake Neighborhood Council with handouts regarding our year-round work, the documents were tossed on the floor in a show of mockery.  This does not convey the actions of a professional group that is looking to build any type of amicable working relationship with the Sunset Junction Neighborhood Alliance.

"In closing, while Sunset Junction understands and respects the importance of news reporting for the community, credible journalism should always include the reporting of both sides of an issue.  Credible journalism does not represent a highly repetitive one-sided account that continuously relies on the same sources for quotations."