Tullahoma Arts Resolves Question Of Loan (update)

Tullahoma Fine Arts Center’s Board of Directors finally resolved a large debt hanging over the organization.

According to minutes of the November board meeting, Lucy Hollis is not requiring that the center repay a $13,476 loan she made to TFAC, while serving as its executive director and president.

According to the center’s 990 tax return for the fiscal year beginning July 1, 2008 and ending June 30, 2009, and previous statements by Hollis, she loaned the money to help pay the center’s bills. The 990 form states that the loan, made without a written agreement, was approved by the board of directors.

At the October board meeting, members discussed approaching Hollis and asking that the money be considered a gift to TFAC.

However, according to email sent to MTA on January 12, by TFAC treasurer Rhessa Orr, "the Board (represented by Jon Gray and Orr) approached Mrs. Hollis to discuss a repayment plan at which time she generously gifted the center by writing off the loan amount."

The previous board, led by Troy McFarland, failed to take action on the matter. It was McFarland’s opinion that the center did not owe her the money