Dr. Phillips Center sues to claim millions pledged by nonprofit donor

The Dr. Phillips Center for the Performing Arts has filed suit to collect more than $3 million in unpaid pledges from one of its earliest and largest donors, the Orlando-based CNL Charitable Foundation , while the foundation says it is within its rights to withhold payment based on the “unconscionable” treatment it has received from the downtown arts center.

The dispute has been simmering for years, according to court documents, concerned with naming rights for the Seneff Arts Plaza — the center’s front lawn — and in particular, the plaza’s use during the successful Frontyard Festival, heralded as an innovative way to provide entertainment and employ artists during the COVID-19 shutdown of 2020-21.

The Dr. Phillips Center filed its lawsuit with Orange County Circuit Court in September; the CNL Charitable Foundation, abbreviated as CCF, made its legal response Tuesday.

At times, the filings by the two nonprofits take a decidedly personal tone: The Dr. Phillips Center accuses a foundation representative of being “dismissive” and cites a meeting where he “refused to provide any additional information.”

The foundation, which refers to the arts center as DPAC — an out-of-date acronym used before the center was built and named — lays out multiple objections.

“DPAC’s behavior would be unconscionable in any context, but it is particularly egregious in this context, where local charitable organizations and the public have a vested interest in seeing that DPAC honor its contractual commitments to supporters of the arts in our community,” the document states. “Donors should not have to worry that DPAC — which touts ‘accountability’ as one of its core commitments — will disclose confidential agreements, disregard its contractual obligations, and attempt to auction off donor’s naming rights to the next highest bidder when DPAC has grown forgetful of the donor’s contribution.”

And it cites arts-center president Kathy Ramsberger by name, claiming she told the foundation the center “’didn’t get enough money’ from CCF for the naming rights to the Seneff Arts Plaza and that she could re-sell CCF’s naming rights to another donor for more money.”

The foundation, in its legal response, goes on to contend that the center is “persisting in what appears to be a campaign to force [the foundation] to exit its involvement with the performing arts center and relinquish its naming rights, such that DPAC may re-sell those rights to a new donor.”

The arts center’s suit does not address renaming the plaza but points out the CNL Charitable Foundation has not made scheduled payments totaling $3.35 million and dating back to 2021, a fact CCF does not dispute.

But CCF says the payments were not made because the arts center breached its contract, in part by failing to promote the Seneff Arts Plaza during the Frontyard Festival, as was required.

The Dr. Phillips Center maintains that when objections were raised over the festival, it adjusted website copy, tickets and other advertising material to make it clear the Frontyard Festival entrance was at the Seneff Arts Plaza.

CCF also objects to what it sees as the center’s “blurring the lines” between the land earmarked for the plaza and adjacent areas that originally were earmarked for commercial development, plans that have since been dropped.

The foundation points to the center’s idea to redevelop the areas around the main building, revealed in 2023 with an application to use Tourist Development Tax funds to add a new outdoor amphitheater and other features, as evidence that the center was squeezing the foundation out. The name Seneff Arts Plaza did not appear on the funding application, and CCF says it was not consulted on the proposed changes, as required.

This isn’t the first time the arts center has angered a donor over naming rights. In 2019, the president of Dr. Phillips Charities, which donated $35 million to the nonprofit and gave the building its name, resigned from the board. Among the reasons he gave was future naming-rights plans.

Dr. Phillips Charities president quits arts center’s board

A center spokeswoman said because the matter is in active litigation, the organization is “limited” in what it can discuss publicly, but added the center was looking forward “to resolving the matter as quickly as possible.”

That may not happen, however. If the parties cannot come to an agreement, a decision in the case could take 18 months.

“Dr. Phillips Center has not taken the decision to file suit lightly,” her statement said.

For its part, CCF says the contract governing the donation does not require it to pay the rest of its pledge.

CCF agreed to give $10 million to the arts center in a 2007 agreement that was later amended several times. In return, the center’s front yard was named the Seneff Arts Plaza in honor of James M. Seneff Jr., the founder and executive chairman of CNL Financial Group, a real-estate company. CCF is the business’s charitable arm.

Seneff had advocated for a downtown performing-arts center since the idea was broached by Mayor Bill Frederick in the late 1980s. He was appointed by Mayor Buddy Dyer to serve as vice chairman of the original arts center board.

In a news release, the CNL Charitable Foundation said it was “surprised” and “deeply disappointed” by the lawsuit.

“It is highly offensive as a donor, and should be to all current and potential donors, that the Dr. Phillips Center would treat a long-time benefactor and advocate in this manner,” the release said.

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