DECATUR - The Decatur Celebration board and Decatur Memorial Hospital restructured their agreement Thursday, removing the hospital's name from the event and removing restrictions on the participation of competing entities, specifically St. Mary's Hospital.

Decatur Memorial Hospital will provide $40,000 in funding, which will not include title sponsorship or exclusivity.

"The Decatur Celebration Board credits DMH for taking the initiative to save the Decatur Celebration and encourages other business supporters to do the same," Matt Beck, past president of Decatur Celebration and St. Mary's Foundation Board chairman, said in a statement released by the Celebration office.

Last week, DMH announced an agreement to become the event's title sponsor for $80,000. The sponsorship included exclusivity. "They will be the only health care provider at the event," Fred Puglia, Decatur Celebration producer, said at last week's news conference.

On Thursday, DMH offered to change the sponsorship of the event, and the Celebration news release added "with a challenge of the rest of the business community to come forward with the other half of the funding."

"This agreement is the first step in having our business community step forward with generous underwriting of the festival through sponsorship," Puglia said in the release. "We are continuing to look for more sponsorship funds. We are overwhelmed with the support of our sponsors each year and the love of the people for this great event."

Prior to the announcement, St. Mary's had delivered to Celebration the original $2,500 sponsorship amount that was returned last week when DMH purchased the titling rights.

In a statement, St. Mary's CEO Kevin Kast said, "St. Mary's Hospital has supported the Decatur Celebration for 15 years. We continue to support the Decatur Celebration in 2008 and beyond. We commend Decatur Memorial Hospital's donation, but are dismayed at the exclusionary nature of the donation at an event meant to support and benefit the entire community.

"As always, our contribution was given with no strings attached other than to support the Decatur Celebration. While the staff and volunteers of St. Mary's are disappointed not to be able to volunteer this year, we are returning our sponsorship check to the Decatur Celebration to use as the Decatur Celebration board and staff deem necessary."

"On behalf of the Decatur Celebration Board of Directors, we welcome them back as a sponsor at a level to be determined," Beck said in Celebration's statement.

Tim Cain can be reached at timcain@herald-review.com or 421-6908.