NEWTON COUNTY – The Newton County Board of Commissioners held a special called meeting on Wednesday night to discuss and consider action related to the lease agreement and funding for Nelson Heights Community Services, Inc. (NHCS).
In a 3-1 vote, the board approved the motion to terminate the lease immediately between Nelson Heights Community Services, Inc. and the Newton County Board of Commissioners for breach of terms of the contract, with district 3 Commissioner Alana Sanders opposing and district 4 Commissioner J.C. Henderson having recused himself from the meeting.
The meeting discussed the organization’s audit and alleged subleasing between Nelson Heights Community Center and Unfolding Faith Inc. Dominion Leadership Academy, which was included as an update on the board’s regular meeting agenda on Aug. 15.
At the start of Wednesday’s special meeting, county Clerk Jackie Smith read a letter addressed to the board from Henderson as follows:
“As I think everyone is aware, the Newton County Board of Commissioners recently spent $15,000 to audit the $45,000 budget of the Nelson Heights Community Center,” the letter read. “The audit was intended to target me and my family and our involvement with the center. The board members who authorize the audit hope to find evidence of wrongdoing by me and my family. The audit did not find evidence of us mishandling money, but to no one’s surprise, showed that we are not accountants or bookkeepers. Frankly, the burden of supervising and maintaining the operations of the center and the burden of dealing with frequent attempts over the years to harm our reputation have led us to conclude it would be best for us to cancel the outstanding lease between Newton County and the Nelson Heights Community Center and turn over responsibility for funding, maintenance and operations of the center to the county. Please accept this letter as a request from me as district commissioner and the board of directors of Nelson Heights to cancel the lease when the county is ready to assume operations of the center. Thank you in advance for your help.”
After the full statement was read, Henderson recused himself from the meeting’s discussion.
Sanders filed a motion to add citizen comment to the agenda to allow affected residents to voice their support and/or concern regarding the matter. The motion was denied due to lack of support.
District 1 Commissioner Stan Edwards filed a motion to terminate the lease of Nelson Heights as requested by Henderson. District 5 Commissioner Ronnie Cowan seconded the motion.
Sanders addressed the “magnitude” of what the county “has done” in providing funding to Henderson over the course of the 12 years he has been involved with the nonprofit.
“It’s sad how our government operates and I speak on it all the time, that’s why I’m constantly attacked…,” Sanders said. “I’m going to hold you accountable, I don’t care who it is… and I expect the residents to hold me accountable…”
To the Nelson Heights residents who attended the meeting and residents throughout the county, Sanders urged them to utilize their ability to request open records.
“Every resident in this county – your next two words should be ‘open records,’” Sanders said. “Open record Newton County to death… Because there’s too much stuff and corruption and things that they’re doing just to nit pick people – it’s ridiculous. And it needs to stop.”
County manager Harold Cooper gave a presentation of a timeline of events as well as a review of the lease and alleged sublease for clarification on the issue, highlighting provisions 4A and 11 specifically.
Provision 4A, discussing the use of property, states: “Lessee shall use the Property exclusively for the purpose of maintaining and operating a nonprofit community center.”
Provision 11, discussing assignment and subleasing, states: “This agreement may not be assigned or transferred at any time by the Lessee to anyone without the prior written consent of the Lessor.”
Cooper shared that during the week of Aug. 21, a representative from Unfolding Faith Inc. Dominion Leadership Academy contacted the county manager’s office with their concerns. They provided a month-to-month lease at $2,000 a month dated Jan. 30, 2023 with an alleged signature from city councilmember Anthony Henderson.
Also provided by the representative were the following:
Copies of checks showing payments from Unfolding Faith Inc. Dominion Leadership Academy to NHCS throughout 2022 and 2023 totaling $6,650
A total of eight copied checks amounting to $10,675
A copy of a check showing rent and utility payment from Unfolding Faith Inc. Dominion Leadership Academy to NHCS in Feb. 2022 totaling $2,025
A copy of a check showing payment fees to operate a summer camp from Unfolding Faith Inc. Dominion Leadership Academy to NHCS in June 2023.
If substantiated, Cooper’s presentation noted this would be in violation of provisions four and 11 of the lease.
Following Cooper’s presentation, county Attorney Patrick Jaugstetter provided his recommendations for the board’s action.
“It’s my opinion that the lease has been breached by the authorization from Nelson Heights Community Services, Inc. to utilize the property for a school/daycare center. That authorizes the immediate termination of the lease.” Jaugstetter said. “It’s also my opinion that based on the totality of the circumstances and the facts that the county manager relayed to you certainly would justify the board to terminate the lease for convenience – which is the 60 day notice provision.
“I think you gave the right to exercise your rights under either of those provisions and it is my recommendation that you do so. This use restriction was a material provision of the lease. It is my understanding that the entire purpose for leasing this property to Nelson Heights was to provide a community center. To have it then used as a private school/daycare center, in my mind, violates the terms of the lease.”
Jaugstetter said his recommendation to terminate the lease was based “exclusively” on the language of the lease – not on the audit findings. He said if the board terminates the lease, they could do so “immediately,” which would call for a notice to be sent on Thursday morning, or give a 60-day notice.
