Lawsuit shows rift between Marion Heritage Center and Granger House

MARION — Granger House Museum and Marion Heritage Center, which once operated as one, are in the midst of a rocky breakup.

It has been close to a year since Granger House and Heritage Center split into separate non-profits. But as the center's recent lawsuit against the 19th century house attests, some matters remain unsettled.

Officials with both organizations have been mum on details surrounding the split, but the March 11 suit by Heritage Center, 590 10th St., asserts the Granger House, 970 10th St., owes it more than $120,000.

'Citing 10 months of delays and obfuscation, the Marion Historical Society's board of directors has filed a lawsuit against Marion Museums Inc., operators of the Granger House in Marion,' a March news release from Heritage Center president Vic Klopfenstein states.

In it, Klopfenstein said the 'regrettable action resulted from the failure of the Granger House Board to finalize the transfer of museum assets following a mutual decision to pursue divergent goals.'

Heritage Center alleges that Granger House is in breach of a March 31, 2015, agreement. In the deal, Heritage Center left the Granger House organization and created a new non-profit.

Granger House agreed to transfer $110,000 of the Heritage Center Endowment Fund to the newly created corporation, according to the suit. The endowment originated from a fundraising campaign carried out when both entities operated as one, according to the lawsuit. All told, Heritage Center is seeking more than $121,000 from Granger House.

Klopfenstein and Ann Rogers, Granger House board president, declined to comment on the suit or relationship between the two.

J.K Robison, an attorney for Heritage Center, also declined to comment. 'I think what we've said in the (court document) is all I want to throw on the table at this point,' Robison said.

Granger House's attorney did not return calls.

Tensions between the two entities have been growing for more than a year.

In late 2014, the Granger House Museum board of directors divided into two committees — one working with Granger House and one with Heritage Center.

The goal, according to an April 2015 letter sent from Marion Historical Society President Don Meritt to society members, was to evaluate the missions and directions of both facilities.

The committees found the Heritage Center and Granger House to be 'moving in separate directions with different missions and goals,' the letter states.

Heritage Center had remained a repository for historical items and a venue for programs focused on Marion's past, while Granger House was developing into a cultural center with concerts and educational programs and a place for meetings and gatherings.

With that in mind, the board decided to divide the two properties and assets. Several board members stayed with Granger House, while others departed to create the Heritage Center non-profit.

'This letter is meant to reassure you, our supporters, that your membership will still be honored at both sites, and also to stop any rumors that you may have heard regarding mismanagement or reckless spending at either facility,' the letter states.

In November 2015, former Granger House Director Kathy Wilson posted on the non-profit's Facebook page that the executive committee had eliminated her position, citing financial reasons.

The Marion City Council soon after requested an independent audit of the Granger House's use of $6,875 in hotel-motel tax dollars granted for this fiscal year.

Lon Pluckhahn, the Marion city manager since 2007, said hotel-motel tax grant recipients self-report the use of the previous year's grant money during the annual application process.

'To my knowledge this would be the first time we've gone back for additional information,' he said. 'We would be looking for a third-party verification.'

Pluckhahn said the city hopes to get the report before next year's applications are reviewed in May or June.

According to city documents, Granger House's fiscal 2014-15 budget included total income of about $28,000, with more than $21,000 of that in grants.

Most of it expenses included about $10,000 in payroll and more than $7,000 in building costs. The non-profit's final net income was about $1,660.

Heritage Center's budget for the same year included total income of $32,000, with almost $12,000 of that coming from the hotel-motel tax. Net income after expenses that year was $975.