Concerns are growing in Blythewood after questions surfaced about $20,000 in hospitality tax (H-tax) funds originally allocated for the Town’s 2025 Juneteenth celebration.

Nearly three months ago, during the November 24 Town Council meeting, Councilman Donald Brock publicly stated that $20,000 from last year’s Juneteenth funding “walked away” and could not be accounted for. The funds in question were part of the Town’s FY 2024–25 budget and had been earmarked to support the upcoming 2025 Juneteenth event.

Understanding the Funding

Blythewood imposes a 2% hospitality tax on prepared food and beverages sold within town limits. According to the Town’s published guidelines, those funds are intended to support tourism-related nonprofit events and organizations through a formal grant application process.

Of the $25,000 allocated in the 2024–25 budget for Juneteenth, $20,000 (80%) was designated for planning and production. The remaining 20% would be disbursed after submission and approval of a post-event expenditure report.

In March 2025, Mayor Sloan Griffin authorized the release of the $20,000 to UniversalCMG World Entertainment to organize the event.

Event Cancelled — But Funds Not Returned

On April 30, 2025, Town Council voted to cancel Juneteenth and other nighttime park events, citing safety concerns. The very next day, records show that the previously issued $20,000 check was cashed.

Town officials have stated that the funds were not returned.

During the November 24 council meeting, Marketing and Special Projects Manager Jordan Langland told council members she was unsure where the money currently stood. Councilman Rich McKenrick later said he had not been informed about the matter prior to that meeting.

Relocation Claim Raises Further Questions

In a December 12 demand letter sent to local media, an attorney representing UniversalCMG stated that the company relocated and independently produced the Juneteenth event at its own expense after the Town’s cancellation. However, the letter did not disclose where the event was held.

An attached exhibit to that letter claimed that $19,130 of the $20,000 had already been committed to non-refundable deposits. Of that amount, $8,950 was reportedly spent before the Town issued the check, and $10,180 afterward. Only $2,550 was listed under advertising and promotional expenses related to tourism development — the primary category eligible under hospitality tax guidelines.

Application and Compliance Questions

Town policy states that applicants seeking H-tax funding must submit a completed application by February 15 for council approval. However, a note on the check request form reportedly indicated “Approval of mayor in place of application.”

A Freedom of Information (FOI) request was submitted seeking a copy of UniversalCMG’s funding application, any contract between the Town and UniversalCMG, and the required post-event expense report. While the Town acknowledged that these records are public, copies have not been provided.

Two council members have reportedly stated they were told an application does not exist.

Vendor Background

UniversalCMG World Entertainment describes itself online as an American record label founded by Edward Straiter, who resides in Blythewood. The company does not appear in the South Carolina Secretary of State’s nonprofit listings.

For H-tax eligibility, recipients are generally required to be nonprofit organizations and demonstrate tourism impact. No public documentation has yet clarified whether those criteria were met.

Additional Financial Decisions Under Scrutiny

Town records show UniversalCMG provided entertainment services at the Town’s December 2024 Christmas event for $4,450, as well as a Santa appearance for $1,750.

Separate records also indicate that a private event reservation at the Town’s Manor venue received a significant discount from the published rate schedule.

Transparency and FOI Dispute

When media representatives sought archived email communications related to the matter, the Town stated that retrieving emails would cost $500 due to vendor fees. However, a review of the Town’s vendor contract reportedly did not explicitly list such charges.

Interim Town Manager Ed Driggers has stated the matter is under review but has not yet presented a public report detailing findings or next steps.

Media attorney Jay Bender of the South Carolina Press Association noted that government records carry no expectation of privacy and emphasized the importance of public transparency in such matters.

Where Things Stand

As of now, several key questions remain unanswered:

• Was a formal application submitted for the $20,000 H-tax award?
• Did UniversalCMG qualify under nonprofit and tourism requirements?
• Why were funds disbursed without documented council approval of an application?
• Why were the funds spent after the event was officially cancelled?
• What steps, if any, are being taken to recover the funds?

With public funds involved, transparency and accountability are central concerns for both council members and residents. Until documentation is released and a formal report is presented, the situation continues to raise questions about oversight and compliance in the Town’s handling of hospitality tax dollars.