Alachua County sent a notice of default to Viking Companies on Friday that outlines several ways in which the company has failed to obey its contractual obligations as the operator of the Alachua County Sports and Event Center at Celebration Pointe.
The letter gives Viking Companies, the owner of Celebration Pointe, 30 days to fix the breaches or else Alachua County will consider the company in default.
A default could mean Alachua County cancels its contract with Viking Companies and seeks damages and other relief because of the violations.
The stated violations include failing to pay a special assessment to the community development district and failing to give Alachua County enough data for a fiscal audit. The letter, sent by the county’s third-party legal firm, said no payments to the district have been made in fiscal years 2024 or 2025.
For fiscal year 2024, the letter said a special assessment of $312,409.96 was placed against the property that contains the Alachua County Sports and Event Center—with interest accruing at a rate of $29,659.11 per month.
“The Sports Center Gross Revenues that the Operator (Viking Companies) has collected from the use of the Sports Center are required to be applied first for payment of the CDD special assessments. The Operator has failed to do so,” the letter said.
According to the letter, the county hired a financial firm to do an audit of the event center, but the firm said it couldn’t complete the audit because of the lack of documentation and information from Viking Companies.
Michele Lieberman, county manager, updated the Board of County Commissioners (BOCC) on the issue at Tuesday’s regular meeting. She said the letter had been sent and staff will return in July with an update whether the violations are fixed or not.
“So basically, I’m here to tell you we will be back to you at your first meeting in July with a plan moving forward to let you know whether it was cured, and if not, the plan moving forward,” Lieberman said.
Commissioner Marihelen Wheeler asked if Alachua County would take over management of the site, regardless of whether Viking Companies corrects the issues.
Lieberman said the contract with Viking Companies allows the county to terminate the contract for cause and without cause, allowing the county to take control.
Even if the issues are corrected, Lieberman said she asked Svein Dyrkolbotn, principal owner of Viking Companies, to present a plan for moving forward. If the issues aren’t corrected, Lieberman said that’s a whole different subject.
She said the county is monitoring the situation very closely.
“We also emphasize that the County expects the Operator will provide full transparency regarding the collection of all forms of revenues, timely payment of all expenses related to the Sports Center’s operation, and fully comply with all terms of the Agreement moving forward,” the letter said.
Alachua County and Viking Companies entered a public-private partnership for the creation of the sports and event center, which is owned by the county but operated by Viking Companies.
Viking Companies took out loans to fulfill its side of the project, and officials have celebrated the center’s success in drawing events.
Earlier this year, Alachua County hosted the World Masters Athletics Indoor Championship, drawing more than 3,700 competitors and thousands of additional visitors. But the budget for the project was a concern months before the event.
Alachua County’s letter comes as Viking Companies is in bankruptcy and facing lawsuits from lenders and investors. Last week, Patricia Shively sued Viking Companies, Dyrkolbotn and others for allegedly scamming her, and the investors who loaned Dyrkolbotn the funds to fulfill his side of the sports center have also sued.
Viking Companies denied any wrongdoing connected with Shively’s lawsuit.
Viking does a monthly “accounting” for the Sports Center. It is almost the same every month, but, despite requests, they will not provide receipts for their claimed “expenses.” However, their bookkeeping shows a monthly LOSS of $100,000 to $200,000 EVERY MONTH since the Sports Center began operation. Never a profit, not even the month they hosted their biggest event ever, the World Masters. The BOCC has known this for years and just ignores reality and looks the other way. Because Svein is a Gator Jock and the Gainesville love for sports and all things Gator Jockdom turns their brains to mush. So they believe the monthly “accounting” done by an accused bankrupt con man.
Embarrassing,…well-paid Alachua County, FL elected politicians and employees duped by “high roller” developers. “Follow the Money”: more possibly to come about corruption and graft.
Just like the biomass plant debacle. Do they ever learn or are they just complicit?
Um, biomass plant was GRU/City of GNV.
This will be just another financial disaster and a disappointment. Can the Alachua County Board of Commissioners just focus on core services and stop with the wasteful spending. Alachua County BCC just spent 1.3 million dollars on cameras for a pilot program for the County vehicles with a monthly subscription cost to spy on the county drivers.
That’s right; blame it on the elected officials: NOT!
This is not a BOCC mistake. It derives from private investment, and, to its credit, the Alachua County Commission is trying to clean up and disentangle itself from the problem.
This IS a BOCC problem. They gave an accused con man $31 million tax dollars to design and build a sports center, then partnered with him to run it. How much more involved can the BOCC get?
No, it stems from Svein Dyrkolbotn’s concept for “Celebration Pointe.”
Supposedly, Dyrkolbotn had an initial vision for the facility. The Alachua County Board of County Commissioners recognized the need for a sports and event center to boost tourism and activity in the area. Dyrkolbotn’s Viking Companies, LLC partnered with the county and played a key role in the project as the Celebration Pointe developer. And, as you might guess, the project was also championed in the legislature by individuals such as Rep. Chuck Clemons and Sen. Keith Perry.
Another clown debacle just like the 2 billion dollar wood burner.