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By FRANK LEWIS

PDT Staff Writer

The U.S. Department of Agriculture (USDA) says it is waiting for more information from the Southern Ohio Growth Partnership (SOGP) Board before investigating the economic development organization’s improper use of loan funds for operating expenses.

“We have not taken any action at this point,” said Jennifer Sonnenberg, acting Business and Cooperative Programs director with USDA. “We’re working with the (SOGP) Board, and we’re going to try and resolve what issues come up.”

Sonnenberg said the USDA lends money to groups such as SOGP and when those funds are repaid, SOGP is allowed to use the interest to help fund operational costs, such as for salaries, expenses and facility.

According to SOGP Board President/Treasurer Mike Gampp, however, SOGP was using the loan principal, not just the interest, for operating expenses, and had been for years.

When asked why that practice is just now coming to light, Sonnenberg said their audits didn’t show anything obvious.

“We rely on the outside auditors to provide us with an audit each year, as part of the intermediary re-lending program, the rules require that our borrowers provide us with financial statements annually,” Sonnenberg said.

Following the recent ouster of longtime SOGP President and CEO Bob Huff and the uncertain future of funding at SOGP, what now becomes of the Portsmouth Area Chamber of Commerce and the Welcome Center?

“This community cannot afford to have the Chamber of Commerce shut down. It’s just something Portsmouth can’t afford,” Gampp said. “So I have a back-up plan. If I need to go personally knocking on the doors of several local community leaders to subsidize the salary of (Chamber Administrator) Lisa Carver, and rent space over in the Masonic Temple Building, to keep the Chamber of Commerce active, that’s what we’ll do. I just don’t think we can let that go dark. I don’t think that’s an option.”

Gampp said the Board might need to seek assistance from Scioto County and the City of Portsmouth to keep the Chamber active.

Scioto County Commissioner Tom Reiser said the Commissioners are non-committal at this time, but did not rule out getting involved if it comes to that.

“But we’re certainly willing to sit down and talk, and find out what needs to be done, because we worked too hard to get that facility (Welcome Center), and it certainly has been utilized, so when approached we will certainly listen,” Reiser said.

Carver says the Chamber can operate independently of the SOGP.

“Southern Ohio Growth Partnership is the development arm of our organization. And obviously their board is our governing board,” Carver said. “But we have always worked very hard to make the Chamber the focal point of the community. Our functions are very different. SOGP is mainly economic development. The Chamber of Commerce is basically the platform for our members to network, to have a voice together. And anything that’s happened with SOGP does not chazznge our goals or our stand in the community. The Chamber is a very sound organization by itself.”

Carver said the Chamber is supported by the dues of its members, of which there are about 500.

Although the Chamber’s health might not be in doubt, the Welcome Center’s fate is tied to SOGP. Gampp said to secure the grants to build the Welcome Center, Portsmouth Murals Inc. — an arm of SOGP — took the lead.

“There was an understanding that all of the operating expenses of the building would be paid by SOGP. Over the years, SOGP has footed all of the operating costs of that building. Portsmouth Murals hasn’t paid for any of those expenses,” Gampp said. “All of the Murals’ money has been used for fundraising — has all gone back into the murals. There has been no money that was spent back over at SOGP.”

Gampp said every entity in the Welcome Center could be affected, including Portsmouth Murals Inc., the Convention and Visitors Bureau and Main Street Portsmouth.

“The Convention and Visitors Bureau, though they are a separate entity, their office is housed in that building. And they pay $300 a month rent,” Gampp said. “Obviously, if the building were shut down they would have to find a new place to go, as would Main Street (Portsmouth).”

Gampp said the USDA has had confidence in what SOGP has been doing to resolve the issue.

“If that (confidence) continues, what happens is that USDA will approve our budget to allow us to receive some operating expenses from the administrator of the program, because the existing loans still have to be taken care of,”Gampp said. “Someone still has to collect the payments. And someone still has to manage that portfolio. So we have to get some reimbursement of expenses for that, which is all fully appropriate. As long as you budget for that and get approval for it from the USDA, there is nothing wrong with that. So we’re waiting for that.”

Frank Lewis may be reached at 740-353-3101, ext. 232, or at flewis@heartlandpublications.com.