LITTLE ROCK, Ark. (AP) — An Arkansas State University spokesman says two contracts to expand the university’s football stadium will be revised after the school’s athletics director signed agreements on behalf of the athletics department instead of a supporting nonprofit foundation.
The Red Wolves Foundation is paying $29 million to expand the university’s football stadium, the Arkansas Democrat-Gazette reported.
The university’s board of trustees approved a 20-year lease agreement last year that gave the foundation authority to manage the project in exchange for $100 a year in rent for the stadium.
But ASU System spokesman Jeff Hankins said Athletics Director Terry Mohajir “mistakenly used Arkansas State University as a party” when signing the contracts. He said the error is being addressed.
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The contracts for lockers and interior design with Texas-based Longhorn Locker Co. LLC and Dimensional Innovations, a Kansas company, are worth a combined $1.2 million.
Hankins said the contract opportunities weren’t advertised because the foundation will use donations to pay the cost, instead of taxpayer or university revenue.
“As a private entity using private funds, the (Red Wolves Foundation) can choose its contractors,” Hankins said. “The university is not bound by these agreements and is not a guarantor of payments not made by RWF for any vendor.”
Hankins said the foundation’s bylaws give Mohajir the authority to sign contacts on its behalf.
Information from: Arkansas Democrat-Gazette, http://www.arkansasonline.com