I haven't looked into the details yet, but from what I understand, the Rec. District was turned down twice by voters, only to be approved during a vote held in Hot Sulphur Springs.
From the sounds of the article, the District assumes a complaint was lodged with the IRS from a local source:
"According to the rec district's bond attorney, however, some of the specific requests in the letter — like the land donation agreement for Grand Park Community Recreation Center — indicate that this investigation was likely generated by a local inquiry, Parks and Recreation Director Scott Ledin said during a public meeting with the board Feb. 22."(SHDN)
I would imagine so, if the District was voter-approved in such a surreptitious manner. Wether there's any merit to the investigation or not, the way the Rec. District came to be could definitely be considered immoral by many in this town. And small towns have long memories.
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