Tyler Hayden
This story was originally published by the Santa Barbara Independent and is reproduced here in partnership with Edhat.
By Tyler Hayden of The Independent
The California Attorney General’s Office is demanding an independent audit of the Bellosguardo Foundation for its last three tax years after the nonprofit repeatedly failed to file complete financial records with the state Registry of Charitable Trusts.
In a letter sent this Monday, October 25, officials gave the foundation until November 29 to conduct the outside audit. In the meantime, they said, Bellosguardo has been listed in the registry as “delinquent,” meaning it is “not in good standing and is prohibited from engaging in conduct for which registration is required, including soliciting or disbursing charitable funds.” While the foundation is registered in New York, it still must comply with California transparency laws that govern any nonprofit that fundraises in the state.
The notice comes two weeks after the Santa Barbara Independent published an opinion column outlining local concerns over an apparent lack of progress by the Bellosguardo Foundation ― which took possession of Huguette Clark’s 23-acre cliff-top estate in 2017 ― in transforming the historic property into a public destination to “foster and promote the arts,” as Clark’s will dictated. It has instead been used exclusively as a high-dollar venue for parties, weddings, and private tours with little outward communication from its president or board. Bellosguardo’s defenders say proceeds from these events will help the organization carry out its mission of opening the grounds to all.
In March, foundation president Jeremy Lindaman submitted an application, which was previously approved by the city’s Historic Landmarks Commission, to its Planning Division to begin offering guided tours. Longer term, Lindaman said, the property will be turned into a museum. Planning staff said they were in “general support” of the tours proposal but were struck by its lack of detail, including how and when they would be conducted, how parking would be accommodated, where restroom facilities would be located, and so on. “You have not directly answered any of our questions,” staff said at the time.
In an email to the Independent this Tuesday, Lindaman said he will “likely” submit a revised application to the city “in the next week.” Meanwhile, the foundation’s website is asking local supporters to sign a petition in favor of the pending plan. “We are nearing the point where discretionary approval by the Planning Commission and possibly the Santa Barbara City Council is necessary,” the site reads. “It is critical that we are able to say how many of our supporters are Santa Barbara residents.”
The foundation has also announced that a selection of artwork by Clark, who was a painter as well as a collector, will be lent to the Santa Barbara Historical Museum for an upcoming exhibition. “Revealing Mrs. Clark’s artwork for the first time in 90 years is just the beginning, with much more to come,” promised Sandi Nicholson, a member of the Bellosguardo board, in a prepared statement. “Our goal is to open the estate to the public as a center for the arts.”
With regard to the audit, Lindaman said he’s deferring to the “advice and expertise” of the foundation’s accountant, Judy Dolan Holehouse with the financial firm Nasif, Hicks, Harris & Co. Holehouse has asked the Attorney General’s Office to reconsider its order, and if it does not, to give her longer than a month to comply.
Publicly accessible records from 2018 and 2019 ― the most recent available ― show the foundation controls $86.9 million in assets, approximately $23 million of which is tied up in Clark’s 27-room summer mansion, though the aging building has depreciated in value by $1.5 million since 2017. The land it sits on was valued this year at $53 million and the property tax bill was $563,000, according to the County Assessor’s Office.
Bellosguardo’s promotional and event expenses for 2018 and 2019 totaled $472,098, while event rentals only generated $190,650 in income, the records show. One of the nonprofit’s primary expenses, in addition to insurance, maintenance, and utility costs, is Lindaman’s $150,000 annual salary, a raise from previous years, as well as the $60,000 and $55,000 salaries of a house supervisor and groundskeeper, respectively.
Clark’s estate contributed $850,000 in cash to the foundation (her private funds are still being released from probate) as well as a $1.6 million doll collection, which has since been auctioned off. Private donations totaled $978,796. Some of the larger donors include Susie Bechtel, wife of Montecito billionaire Riley Bechtel, who gave $75,500; Law & Order producer and foundation board chair Dick Wolf ($50,000); tech investor and entrepreneur Richard Janssen and his wife Lucille ($27,500); board member Gary Tobey ($25,000); Lady Leslie Ridley-Tree ($25,000); the Busch Family Foundation ($25,000); and the Armand Hammer Foundation ($25,000).
Lindaman had four years to write up a plan while the estate was in legal limbo— didn’t happen.
Lindaman has had another four years to write up a plan after the estate was officially transferred to the foundation— hasn’t happened.
The fruit of Lindaman’s 8 years of employment was a planning permit application that HAD NO DETAILS. Lindaman is unbelievably lazy and incompetent. The fact that he has a received any salary at all is criminal.
Also, the caretakers’ house is rumored to home Mr. Lindaman these days. Is he paying fair market rate? It would be a very valuable rental. I’d guess many thousands of dollars per month in lost revenues. Criminal.
Yes, the Foundation’s attorney has a very reasonable, to a layman, argument.
In response to someone who days ago pointed out who, in this thread, is supporting property rights, I’m a liberal who has worked at several health-care and one animal-focused local non-profits. Thus I support non-profit organizations’ rights. Of course I will extend philosophical support to a non-profit whose aims I do not personally support. That’s why I also support free speech rights.
The State of CA AG has finally taken action regarding the funds given to the estate’s foundation and the way they are being spent. Because the foundation is registered in NY State, California has no jurisdiction of the physical aspects of the Board of Directors. However, the State of CA has laws governing how non-profits raise money from within the State of California and how it is accounted for by the non-profit. This is the crux of this investigation by the CA AG: Show us what came into the foundation in funding through CA sources and show us how it was spent.
Robert Eringer in the News-Press and Tyler Hayden’s pieces helped kick the door in. Tyler Hayden has been on this story for years with multiple pieces. I I wrote the CA AG in 2018 and the state took no action then. Others have pointed to this travesty, but it has taken almost eight years. Sticking with their usual MO, Mayor Murillo and the City Council did nothing. They were probably too busy enjoying the parties at the estate.
The estate had degenerated into a party place for the rich, the famous and the connected, including Dick Wolf, Mayor Murillo her City Council pals.
Helene Schneider was tasked with guiding this wonderful gift for all to enjoy to fruition, but wound up giving her former campaign manager and boyfriend Jeremy Lindaman a cushy six figure job as Executive Director of foundation who did not have one minutes’ experience of running such an enterprise. Along came Dick Wolf and his rich pals and it became a wedding and party spot on the Pacific.
It took many years, but then God has a a busy schedule.
Warmest regards and thanks to all that made this happen.
Much if the estate, the glass houses, the various pools, are in an unsafe condition to be open to the public. The buildings are termite ridden and kind if decrepit. It will take millions to get the place ready for public access. I spent quite a lot of time there trimming the trees for John Douglas. The most economical approach would probably be to bulldoze everything and build a new facility. But, why does Santa Barbara need another art facility? I know we here generate more art than there is walk space to display it, but, I dunno, just a quiet park with pedestrian access only for the public with restrooms and showers. Free electric wheelchairs at the gates for the disabled. That is my vision…
That person epitomizes the worst traits of some of our locals. An entitled, nosy, busy-body with way too much time on their hands and a huge amount of envy and anger. People like them are the worst. For some reason, Santa Barbara is full of them. Maybe its the water, or the air? Dunno. But this town attracts and fosters Karen’s like no other…
You continue to explain the reality of the situation but they dont want to know the facts.
The NewPress “Investigator” who has taken the lead on this topic found a very curious relationship between those appointed by Mayor Schneider to the foundation board, and those who also donated to Ms Schneider’s failed Congressional campaign at the same time. Coincidence is not causation. Read his article printed recently and decide for yourself. But meanwhile, back to basics. This fountains does not belong to the city in any way shape or form. It is a private non-profit and can do pretty much whatever they want, within in the confines of current governing regulations for non-profit organizations. Its value as a “museum” was an odd choice. How many people would pay to look inside and how many times would they repeat that admission charge to make its role as a “museum” sustainable. However, that is within the collective wisdom of the foundation board members of this independent operation to decide.
Full quote in fairness TheKids, respond please to what was put on the table: …….. ” It is a private non-profit and can do pretty much whatever they want, within in the confines of current governing regulations for non-profit organizations. ……….”
. . . . p.s. ~ when Mort Zuckerman was on The McLaughlin Group tv show the subject had been Money, with a few minutes left to kill John asked him “who’s richest in your set?” After just a moment of reflection Mort replied – “I would say Huguette Clark, because hers is all cash!” = $6 Billion stolen by th IRS & her beyond crooked lawyers/accountant !!! So much for these bogus books full of Lies. She had a double gate at the front w/ a phone to the house ~ it was only taken out after her last visit in 2007. They might’ve checked w/ th security company as well . . .