Downtown Pasco Development Authority moving forward with city events

A downtown Pasco nonprofit still on the mend following an embezzlement scandal is continuing to plan major events in the city despite deep debts.

Plans are already in the works for the Downtown Pasco Development Authority to play host to the annual Cinco de Mayo festivities, one of the biggest and most attended events in the downtown area.

The Cinco de Mayo bash is scheduled for May 7 and will feature a parade, music and other activities. Preparations were discussed this week at an agency board meeting.

The development authority will also put on the Fiery Foods Festival later this year. The one-day festival draws heat-seekers from around the region by offering spicy food and specialized vendors.

The events, two of the largest the agency holds, are expected to go on despite an estimated $100,000 in debts to dozens of companies. The large sum is the result of former executive director Michael Goins stealing money over a two-year period.

Mike Miller, former president and current treasurer of the agency, said members remain committed to organizing quality events for citizens and continuing to develop downtown Pasco.

“We are all moving forward,” Miller said. “We are getting good support. Everyone understands what happened. Everyone has been patient.”

Goins has pleaded guilty to first-degree theft and is expected to be sentenced next month. His plea deal calls for him to spend a year in prison.

Officials with the state Auditor’s Office and a Pasco accounting firm are working to determine exactly how much Goins took. If it’s discovered that he stole more than $150,000, his plea deal could be taken off the table.

Police have estimated that Goins embezzled $90,000, while Goins himself says the number is closer to $70,000.

Officials with the accounting firm, Baker & Giles, notified the authority they are nearly done with the forensic part of the investigation.

The authority has been working to pay back businesses, the city of Pasco and the Internal Revenue Service. The IRS is owed about $73,000 in unpaid taxes.

Records show that at the end of 2015 the agency owed around $111,000 in bills. That number was cut down to about $104,000 by the end of January.

A financial report released this week shows the agency paid off about $11,540 between Jan. 22 and Feb. 12, cutting the debt even further. The agency’s checking account currently sits at $2,600.

The agency is hopeful insurance money could help pay off the large chunk of cash owed to the IRS, Miller said. A claim has been filed.

Miller is hopeful money owed to businesses soon will be paid off.

“I am thinking in the next two or three months we should be (paid off), other than the IRS and the city,” he said.

The authority plans to hire a new executive director. A five-person team has reworked the job description and an advertisement for the position might be posted next week.

“I think we did a really good job of restructuring and reorganizing (the description),” said Jacob Gonzalez, the agency’s president.

This story was originally published February 26, 2016 at 9:41 PM with the headline "Downtown Pasco Development Authority moving forward with city events."