No resolution in Carmel money flap

Carmel, Ind. (WISH) - Some Carmel City Council members are at odds over a half million dollar payment given to the Performing Arts Foundation. The Arts Foundation is the not for profit group that will run the city's $150 million Performing Arts Center.

The $550 thousand was granted to the Foundation to pay for salaries. But State Auditors say grant money can't be given to not for profits.

City Council member John Accetturo wants to see the Foundation pay the money back.

"I think it is time for us to realize, yes, we made a mistake, that's not belabor it, let's get it corrected, and lets move on. The fact is I don't know what it takes for certain people to admit they made a mistake" said Accetturo.

The $550 thousand payment was granted by Carmel's Redevelopment Commission (CRC). The group oversees financing for the city's $150 million Regional Performing Arts Center.

"Did the CRC violate the law? Show me where it says the CRC violated the law and frankly you can't" said CRC President and Council member Ron Carter.

Council members debated the appropriateness of the half million dollar payment for quite some time. In the end, no resolution was reached.

"Appropriate is something we can argue about illegal is something where you can end up in jail and I don't think we in anyway stepped over that bound" sid Council President Rick Sharp.

Sharp points out the State auditors only issued an opinion. He is hopeful council members will move on.