Insurance, contracts weren’t required for neo-Nazi event in Tri-Cities. What happened?
A group of neo-Nazi fighters did not have to follow the same requirements to rent the HAPO Center arena as many other larger events at the Pasco facility.
The group wasn’t asked to show proof of insurance or sign any contracts to rent out the space for a private fighting event on Dec. 3 that ended up being prematurely shut down.
Nor was any background research done on the people who paid $500 in cash to rent out the space.
While HAPO managers have said the event has prompted plans to step up background checks on groups, there are no apparent discussions to change rules to require contracts or insurance for subcontracted arena events.
The event center is owned mostly by Franklin County but the city of Pasco also holds a minority stake in the HAPO Center and shares in its gains and losses.
The incident highlights the unique relationship the HAPO Center has with the sports startup, Clubhouse Sports Academy, that subleased the arena to the Evergreen Active Club and SoCal Active Club.
Shirley Simmons, co-owner of Simmons Venue Management (SVM) — which had been at the helm the HAPO Center for a few weeks when the incident happened — said the relationship with Clubhouse Sports was established before her company took on the management contract.
Clubhouse Sports has a contract with the HAPO Center to sublease the space for sporting events. The startup is not required to ask for an insurance policy or to enter into a contract with groups hosting events in the arena.
However, Franklin County requires SVM to have contracts and proof of liability insurance for every event and organization, said the county’s interim administrator Duane Davidson.
But at least one county commissioner told the Tri-City Herald that he believes the requirement for insurance and a signed contract should apply to all events.
“Since this took place, as a commissioner I have been continuing to press for a thorough review of that contract (between HAPO and Clubhouse) to ensure it has necessary provisions for a company renting the arena side to fully coordinate with the new management team and to provide appropriate insurance documents for any entity subletting that space,” said Franklin County Commissioner Brad Peck.
Public facility rentals
Processes for renting out publicly-owned facilities varies among the cities and counties and the facility types.
Across the river in Kennewick, the Benton County Fairgrounds, for example, requires a multi-step process to host private events: a questionnaire, a facility-use agreement, a banquet permit and security if alcohol is served, a certificate of liability insurance for the date, and two contacts, among other things.
The Richland Community Center requires a special event agreement and license on events with 30 or more people.
However, for small sports facilities, such as city-owned gymnasiums available to rent through the Pasco Parks and Recreation Department, a reservation and payment appears to be all that’s required.
FBI investigation
It’s unclear if the “active clubs” — and by extension, the HAPO Center — broke any laws, but the FBI does appear to be investigating.
The FBI does not comment to the media about ongoing investigations. However, federal agents reached out to Clubhouse requesting email messages, names, footage and other evidence.
One of the event’s lead organizers who spoke with HAPO officials was Daniel Rowe, a Richland man who stabbed an interracial couple outside an Olympia bar in 2016.
Rowe, who was sentenced to more than four years in prison, has ties to the Hakenkreuz Skinheads, according to the Anti-Defamation League (ADL).
“Active clubs,” according to the ADL, embrace white supremacist ideology and consider themselves “vigilante soldiers standing guard against a perceived existential threat to their ‘white future.’” Groups are loosely associated in several U.S. states and there’s a growing trend among them to deceive gyms and sports clubs into allowing their events.
They also often indoctrinate members into neo-Nazi ideology through fitness, memes and other propaganda. These athletic groups first started gathering on encrypted chat threads, like Telegram, but have recently been hosting real-world meetups, according to the ADL.
A flier distributed on the Evergreen Active Club’s Telegram channel promised the Tri-Cities, Wash., event on Dec. 3 would bring “bands, fights, foods, booze and tattoos.”
The food and alcohol was catered Simmons’ catering business, CG Catering, and Between the Buns.
The group was commemorating the life of an infamous white nationalist, Robert Jay Mathews, who died during a standoff with federal agents in Whidbey Island, Wash.
The white supremacist iconography and dog whistles were subtle at first. But once the fight clubs began to hang up a banner that said “no guilt,” Clubhouse Sports worked quickly to shut the event down.
Simmons later told the Herald that something like this will never happen again and says Clubhouse plans to stick strictly to youth sports, such as flag football and YMCA soccer programs.
HAPO Center management
The 84,000-square-foot HAPO Center off Road 68 in Pasco is among the largest events and sporting facilities in Eastern Washington. Formerly known as the TRAC center, HAPO Community Credit Union entered into a 10-year naming rights agreement with the county in 2019.
Franklin County has the majority ownership and manages the center, which regularly plays host to arts and crafts and trade shows, RV sales events and a number of other local events, such as cancer center fundraisers.
HAPO Center’s management top three managers resigned last fall, leaving the county scrambling.
In October, the Simmons, who had been in charge of catering since 2018, took over managing the center, as well, and have worked closely with promoters.
Franklin County pays Simmons Venue Management $12,500 a month to oversee operations, according to their operations contract.
And the company also is entitled to negotiated financial incentives based on targeted performance objectives, and can pocket 20% on certain sponsorships and fees.
HAPO advisory board
“I have absolute complete confidence and complete faith in the company providing the management now,” said Commissioner Peck. “They have decades of experience in this field and, quite candidly, this was an event that fell through the cracks in the transition.”
Public officials from both the city and county, as well as members from the community, serve on a HAPO Center-TRAC Advisory Board, which advises managers on operations and events. The board does not, however, have any direct oversight of the center.
Pasco Councilman Joseph Campos, who was appointed to the advisory board in January 2022, said it’s been challenging to get a full turnout to hold the quarterly meetings. In the past year, they’ve held just two meetings.
“I think that transition is very tough to manage for us, and I think our hands are tied. And, on a personal frustration, if it’s not important to the county we can’t make it important to them,” he said.
Other council members, including Mayor Pro Tem Craig Maloney, a longtime advisory board member, have previously voiced dissatisfaction about the city’s lack of a role in weighing in on decisions, including the “million-dollar decision” to award the naming rights to HAPO credit union.
Despite its losses, the HAPO Center serves as a substantial magnet for the community, generating millions of dollars in sales tax revenue each year, said Peck. The city and its residents also are the biggest benefactors of this city-county partnership, he said.
“It’s a good, cooperative relationship,” he said.
This story was originally published January 30, 2023 at 1:11 PM.
