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HARTINGTON — A state auditor’s review of the City of Hartington’s Skylon Ballroom project found nearly $1 million in city-funded renovation costs that appear to conflict with the terms of the original purchase agreement, while also raising questions about the use of economic development funds and incomplete project inspections.
The Skylon, a longtime community landmark dating back to 1952, reopened in August 2025 after being moved a quarter mile to the west into Hartington's new business park. It is currently being operated as an event center under a lease agreement between the city and a private company headed by Hartington resident, Corey Kramer.
In a March 31 letter to city officials, Nebraska Auditor of Public Accounts Mike Foley said a full audit is not necessary at this time, but identified issues that “merit corrective action.”
Foley said his office was made aware of public concerns about the project through a tipline on the Auditor's website.
Each week that tip line provides the Auditor's office with several tips about the possible use of public funds, said Craig Kubicek, a Division Manager with the State Auditor's office.
At the center of the issue is the cost of moving and renovating the historic ballroom.
According to the Auditor's report, the city made 74 payments totaling $965,960.98 tied to renovation work on the Skylon.
That spending, the report said, appears to conflict with the September 2024 purchase agreement, which stated renovations were to be completed “by and at the expense of the seller,” Roger Wortmann.
The auditor also noted more than $198,000 of those payments went to Plumbing & Electric Service, Inc., a company established by Wortmann, meaning the city both covered renovation costs and paid the seller’s business directly for work on the project.
The report further questions the handling of a $50,000 LB 840 economic development grant used to purchase the land where the Skylon now sits.
Because state law prohibits cities from awarding LB 840 funds to themselves, the money was granted to Wortmann, who purchased the property and later transferred it to the city at no cost. The auditor said if the arrangement was used to work around that restriction, the grant could be considered legally suspect.
The auditor also found the city took ownership of the building too early — before key contract conditions were met.
The agreement required the Skylon to pass final building inspections after renovations before transfer. However, the report says those inspections were not adequately completed before the city took possession on June 3, 2025, nor before the building opened to the public on Aug. 9, 2025.
As of late February 2026, a final inspection confirming full compliance had still not been completed, the report said.
Engineering reviews cited in the report also identified concerns. A 2025 site visit noted the structure had not been evaluated for current code compliance, and a January 2026 review identified several structural issues that may require further work.
City officials, in a written response included in the report, said some of the expenses paid by the city were outside the original agreement, including parking lot construction, landscaping and additional project upgrades. They also noted the building passed electrical and fire inspections needed to host events and that fundraising efforts have exceeded $200,000.
The auditor acknowledged that response but maintained the contract language clearly placed renovation costs on the seller and that a final inspection following completion of all work still appears outstanding.
The city held a bond election in May 2024 to buy, move and renovate the historic facility. Voters rejected that plan, however, so the city decided to work with Wortmann to move and renovate the facility with the understanding he would then sell it to the city.
The city agreed to purchase the Skylon for $1.05 million plus interest. By the time the property was transferred in June 2025, the city had paid $100,000 under that agreement.
The auditor's report stops short of alleging wrongdoing, but warns that without stronger controls, there is an increased risk of misuse of public funds.
Kubicek said now that the report has been filed, it is up to another entity such as the County Attorney, or Attorney General to decide if other action is needed.
'What the public does with it now, is up to them,' he said.
Foley said reports like this are designed to draw attention to potential misuse of public funds.
'If it is an impropriety, then the county attorney could step in. I don’t think this falls into that category,” Foley said. “I think this is more a question of pointing out the problem and then expecting them to take some action to make some corrections. I don’t see any legal repercussions against the city.”
Foley said his office works as a watchdog to make sure public funds are used correctly.
'We point out the problem and leave it to their discretion as to how to handle it,' he said. 'It is hoped that they will take the recommendations to heart and implement the changes we are suggesting,' Foley said.
State auditors recommended the city improve procedures to ensure compliance with contracts and LB 840 requirements, and to seek legal guidance on whether it can recover funds spent on renovations that should have been paid by the seller.
