• Partnership Conflicts • Ferry Trial Jury Continue, P. 4 Selected, P. 5
School Board Squirms, P. 8 Counties Assisted, P. 9
Statewide Edition A Monthly Journal of News, Analysis, and Opinion from June 2006 • Vol. 15, No. 6 the John Locke Foundation www.CarolinaJournal.com www.JohnLocke.org Gov. Easley Got Pricey Lot at Bargain Price
property for a profit. Waterfront lot located Easley bought the lot from Can- Gov. Mike Easley’s nonsgate developer R. A. North Devel- in gated community lot at the exclu- opment, Inc. of Matthews. Randolph M. Allen of Matthews is listed as the sive Cannonsgate company president, according to the on Bogue Sound N. C. secretary of state’s corporation development on records. Allen’s signature is on Easley’s By DON CARRINGTON Bogue Sound is deed. In June 2005 Easley appointed Executive Editor Allen to a six-year term on the Wildlife RALEIGH at the entrance to Resources Commission ov. Mike Easley appears to have Real estate investor Lanny Wilson received a bargain price on a the marina and is of Wilmington, through his company waterfront lot that he purchased Cannonsgate Investments, LLC, pro- Gin December from a real estate developer protected by sand- vided $12.5 million in financing for the he appointed to the Wildlife Resources bags. project. Wilson’s deed of trust to Allen’s Commission. An Easley appointee to CJ Photo by Don Carrington company is dated July 8, 2005. Wilson the N. C. Department of Transporta- is a major political donor to Easley and tion Board is also involved in the new paid. Some lots are now being offered were not recorded until late October. other Democrats. Easley first appointed Cannonsgate community where the lot at $800,000. Carolina Journal has been unable to de- him to the Real Estate Commission and is located. Property tax records show that termine the amount of a typical deposit later to the N.C. Board of Transporta- Carteret County land records show Easley’s property is one of the most or the terms of a typical sales contract. tion. He reappointed Wilson in March Easley and his wife, Mary, paid $549,880 valuable lots in the new 525-lot, 287-acre, No home construction has begun, but 2005 to a four-year term on the Board of Dec. 16 for the 0.36-acre lot at the Intra- Cannonsgate subdivision situated on roads, utilities and other infrastructure coastal Waterway and the entrance to the mainland across from Emerald Isle are under construction. CJ has been un- the Cannonsgate marina. An adjoining Beach in Carteret County. The lots were able to determine whether Easley plans lot sold for $150,000 more than Easley first offered June 2005, but the first deeds to build a home on the lot or resell the Continued as “Gov. Easley” Page 3 New State Ethics Bill Would Set Bar Higher for Officials
By DON CARRINGTON ecutive branch employees are contained nation of the violator’s employment or filed his economic interest statement Executive Editor in an executive order. State laws apply board position. Concealing information five months after it was due. The Ethics RALEIGH sanctions or criminal penalties to only or providing false information could Board has not received Allen’s current he N.C. House approved an a few situations. The new laws would lead to criminal charges. statement, due May 15. executive branch ethics bill May apply to top executive branch employees Before becoming law, the ethics bill • Lanny Wilson of Wilmington, 16 that might pose a challenge as well as to all appointees to boards and must be approved by the state Senate. appointed by Easley to the Board of Tfor Gov. Mike Easley and at least three commissions. Those who would have been affected Transportation. Last year Wilson filed men he has appointed to state boards. Under the new provisions, failure by the bill’s provisions, had it been in his economic interest statement almost If the bill had been in place last year, all to file the required annual statement of force, are: six months after it was due. The Ethics four may have received fines or criminal economic interest within 30 days its due • Randolph M. Allen of Matthews, charges for failure to comply. date could result in a $250 fine. Failure to appointed by Easley to the Wildlife Current ethics guidelines for ex- file within 60 days could result in termi- Resources Commission. Last year Allen Continued as “New Ethics” Page 2
Are you willing to end temporary 80taxes since state has $2B surplus? The John Locke Foundation NONPROFIT ORG. Contents 200 W. Morgan St., #200 U.S. POSTAGE Raleigh, NC 27601 PAID RALEIGH, NC State Government 3 PERMIT NO. 1766 Washington 6 Education 8
Yes 82 % Higher Education 12 No 12 % Local Government 16 Books & the Arts 20 Not Sure 7 % Opinion 24 Parting Shot 28 John William Pope Civitas Institute Poll, May 2006 CAROLINA C a r o l i n a North Carolina JOURNAL Journal New State Ethics Bill Would Set Bar Higher Richard Wagner Continued from Page 1 that he owned on his economic interest Garrett is not a principal in Southport Editor statement. Marina, Inc. Board has also not received Wilson’s In December, Easley paid $549,880 But if Garrett’s role in the company Don Carrington current statement. for a home site in the 525-lot subdivi- changed, a letter obtained by CJ indicates Executive Editor • Charles “Nick” Garrett of sion. Wilson has substantial real estate the change was well after the lease was Wilmington, appointed by Easley to Paul Chesser, Michael Lowrey holdings in North Carolina. He provided approved. “As you all know by now, Donna Martinez the Clean Water Management Trust more than $12 million of the initial fi- investors Tim Smith, Julian ‘Bubba’ Rawl Associate Editors Fund Board. Last year Garrett failed to nancing for Cannonsgate. and Nick Garrett purchased Southport file an economic interest statement. The Nick Garrett Development was Marina as of January 2006 and subse- Chad Adams, Shannon Blosser, Ethics Board received Garrett’s current the general contractor for a $150,000 quently assumed the property lease,” Andrew Cline, Roy Cordato, statement by fax after working hours renovation of Easley’s home on the Cape said a Feb. 28 letter from Southport Paige Holland Hamp, David Hartgen, on the May 15 deadline. Under the new Fear River in Southport. The project was Marina, Inc. to all boat-slip holders. Sam A. Hieb, Lindalyn Kakadelis, law, Garrett could have lost his board started and completed in 2001 soon after Since Garrett did not file the Mitch Kokai, George Leef, position for failing to file his statement. Easley first took office as governor. Gar- required economic interest report last Maximilian Longley, Rick Martinez, The Clean Water Board voted last week rett and Wilson are partners in a com- year, his relationship with the company Karen Palasek, Marc Rotterman, to put Executive Director Bill Holman pany that is developing condominiums is unclear. He did not list Southport Mike Rouse, R.E. Smith Jr., on probation for three months for man- adjacent to the state-owned Southport Marina, Inc. on his latest filing. Garrett Jack Sommer, John Staddon, agement-related issues. Garrett was Marina. Garrett has been trying to ac- has not returned several phone calls Jim Stegall, George Stephens, one of two board members who voted quire other land adjacent to the marina from CJ seeking further information on Jeff Taylor, Michael Walden, against the measure, hinting that he and tried to buy the marina property his involvement in Southport Marina, Karen Welsh, Hal Young would have preferred a stronger stand, Contributing Editors from the state last year. or on the details of the remodeling job the Wilmington Star-News reported. “In Last year, Easley pushed for a he did for Easley. Richard Carney, my opinion, I felt Bill needed to be more new lease for the new owners of the The bill is one of several that have Brent Lucas, Michael Moore accountable,” Garrett said, as reported company that operated the marina, and been introduced in response to the scan- Molly McCullough by the paper. the Council of State approved the new dals revolving around House Speaker Jenna Ashley Robinson, The three appointees all are in- lease in January 2006. Numerous news Jim Black. Last year, lottery Commis- Dion Terry, Haley Wynn volved in real estate development and, reports stated that Garrett was one of sioner Kevin Geddings, a Black ap- Editorial Interns coincidentally, all three have ties to the owners of the company, but Easley pointee, failed to disclose that Scientific Easley’s personal real estate transac- failed to disclose his business relation- Games, one of the companies seeking Published by tions. Allen is the president of R. A. North ship with Garrett (the home-renovation to run the state lottery, had paid him. The John Locke Foundation Development, Inc., the company that is project) before he pushed for approval Geddings was indicted by a 200 W. Morgan St., # 200 developing the Cannonsgate waterfront of the new lease. federal grand jury May 18 on charges Raleigh, N.C. 27601 community in Carteret County. Allen In March, Easley spokeswoman of deceiving the state and the lot- (919) 828-3876 • Fax: 821-5117 did not list Cannonsgate as real estate Sherri Johnson told Carolina Journal that tery commission. CJ www.JohnLocke.org
Jon Ham Vice President & Publisher Easley Adds Own Ethics Proposals to the Mix John Hood By PAUL CHESSER Chairman & President Associate Editor Bruce Babcock, Herb Berkowitz, RALEIGH James Culbertson, Jim Fulghum, s ethics and lobbying reform Bill Graham, Robert Luddy, ideas fly around the House and Assad Meymandi, Baker A. Mitchell, Senate, Gov. Mike Easley an- Jr., Carl Mumpower, Maria Ochoa, Anounced his own proposals Wednesday J. Arthur Pope, Tula Robbins, on how to hold elected and appointed Thomas A. Roberg, David Stover, officials in state government more ac- Robert Stowe III, Andy Wells countable to the public. Board of Directors Among the governor’s recom- mendations: Carolina Journal is a monthly journal • Ban all gifts from lobbyists to of news, analysis, and commentary on state legislators, legislative employees, and and local government and public policy issues executive branch officers in North Carolina. • Extend the jurisdiction of the ©2005 by The John Locke Foundation N.C. Board of Ethics to include not Inc. All opinions expressed in bylined articles only the executive branch but also the are those of the authors and do not necessarily legislative branch and judiciary branch Judge Robert Farmer speaks to reporters at a May 17, 2006, press conference regarding reflect the views of the editors of CJ or the employees, excluding judges, who are the ethics proposals of Gov. Mike Easley. Farmer is flanked by Sen. Tony Rand, left, and staff and board of the John Locke Foundation. covered by the Judicial Standards Com- Easley, right. (CJ Photo by Don Carrington) mission Material published herein may be reprinted as on recommendations from Judge Robert lature. long as appropriate credit is given. Submis- • Expand the size of the Ethics Farmer, whom Easley appointed chair- Farmer said the Ethics Board, if ad- sions and letters are welcome and should be Board staff from three to seven em- man of the Ethics Board in March. State dressing a problem with the legislative directed to the editor. ployees Sen. Tony Rand, a Fayetteville Demo- branch, would limit its actions to making • Streamline the Statements of crat, said the new standards would be recommendations to ethics committees CJ readers wanting more information Economic Interest forms so that outside contained in legislation he intended to in the House or Senate, which in turn between monthly issues can call 919-828-3876 financial investments and incomes of introduce in the General Assembly. would exercise discipline if necessary. and ask for Carolina Journal Weekly Re- officials are disclosed annually Farmer said at a press conference “I don’t think they should have port, delivered each weekend by e-mail, or visit • Make lying on the Statements CarolinaJournal.com for news, links, and ex- that members of all branches of govern- a concern in the legislature,” Farmer of Economic Interest forms a crime of clusive content updated each weekday. Those ment should welcome being under the said. perjury, punishable as a felony interested in education, higher education, or same ethical standards. Some members Easley said the bill would include “These measures, I think, will help local government should also ask to receive of the Assembly have expressed concern “meaningful penalties” for those who ensure the public trust,” Easley said. weekly e-letters covering these issues. about granting to another branch of The governor based his proposal government oversight over the legis- Please see “Easley Adds”, Page 3 CAROLINA June 2006 JOURNAL North Carolina Gov. Easley Got Pricey Lot at Bargain Price on Coast
Continued from Page 2 six times. In 2003 state officials turned down the renewal because there had Transportation. not been enough development at the Easley’s acquisition of the Can- site. Stroud made a successful appeal nonsgate lot took place at the same to the Coastal Resources Commission time he was orchestrating a new lease and a new permit was issued in 2003. for Wilmington real estate developer The permit was renewed in December Charles “Nick” Garrett and the other 2004. new owners of the Southport Marina, Huggett said Stroud persuaded Inc., the company that operates the state- the commission that he had made sig- owned marina in Southport. Garrett and nificant investments that would be lost Wilson share a Wilmington office and if the permit were turned down. After are business partners in the develop- receiving the new permit, Stroud sold ment of condominiums adjacent to the the property July 8, 2005 to R. A. North Southport Marina. Like Wilson, Garrett Development, Inc. The sales price indi- also is a major political donor to Easley cated on the deed was $19.4 million. A and other Democrats. major modification to the permit was Nick Garrett Development was issued Aug. 17, 2005 and the permit was the general contractor for a $150,000 transferred to Cannonsgate. Sandbags protect the entrance of the Cannonsgate marina and butt up against a hard renovation of Easley’s home on the Cape wall at the edge of a lot owned by Gov. Mike Easley (CJ Photo by Don Carrington) Fear River in Southport. The project was Wrong address started and completed in 2001 soon after market value. “While tax value is rarely “Imagine having the excitement of the Easley first took office as governor. equivalent to market value, it can be a Intracoastal Waterway at your doorstep. Easley’s deed, prepared by Beau- good starting point for analysis,” Cart- Roll up your jeans to dig for clams, drop fort lawyer Richard L. Stanley, stated How much was it worth? eret County Tax Administrator Carl anchor and fish for hours in the plentiful the address for “Grantee’s Michael F. Easley and wife, Mary P. Easley” as Advertised as “the Crystal Coast’s Tilghman said. “We compared these waters, or just relax and watch the world “1305 Camfort View Drive, Raleigh, NC most coveted address,” the master plan properties to similar properties in the float by while you enjoy that incompa- area and set the value.” rable waterfront lifestyle.” 27607.” The address does not appear to includes a 75-slip marina, tennis courts, Real estate “The home exist. An employee of the Wake County a pool, and a clubhouse. developer Stephen sites along the GIS mapping department said the ad- Initial lot sales were through pri- Stroud of Raleigh marina offer an dress does not exist. City of Raleigh Fire vate offerings or word of mouth, said “The homesites along owns the other exceptional social Department employees also said the three lot owners, who did not want to be marina entrance the marina offer an ex- lifestyle. Imagine address does not exist. identified. CJ was unable to determine corner lot across the buzz of activ- When asked about the incorrect ad- how Easley learned about the property from Easley’s, but ceptional social lifestyle.” ity as you peruse dress, Stanley said, “Probably a mistake. and who set the price for his lot. Allen, Stroud’s lot cannot Cannonsgate brochure the docks and get I don’t know.” After checking his files, who lives in Matthews, did not return be used as a com- ready for a day he said that the address was picked up a phone call seeking information about parable sale, since on the boat with from the Nov. 30 sales contract and that Easley’s purchase. Easley spokeswoman Stroud received that lot as part of the family and friends. Venture out for an the handwriting was not very clear, but Sherri Johnson, responding to an email deal when he sold the entire tract to R. evening stroll and wave ‘Hello!’ as you that real estate broker Mace Watts appar- request, wrote, “I have no information A. North Development. Stroud owns a put your feet up to read the latest best ently filled in the address. Watts had no regarding a personal business transac- total of six lots in Cannonsgate. seller, iced tea in hand. The marina explanation and no comment. tion of the Governor.” Easley’s purchase price was 3 per- group will be a community of friends Easley’s deed of trust shows he “At this point I don’t feel comfort- cent above the tax value. A CJ analysis of like no other.” secured a $494,000 loan from Branch able talking about the governor’s busi- 525 lots excluding Easley’s and Stroud’s Banking & Trust Company of White- ness. We try to keep people’s privacy,” lots shows that the average sale price was Environmental permit ville. That document lists his address Cannonsgate’s lead real estate broker 33 percent above the tax value. A much as 200 N Blount Street, the address for Mace Watts said. “We like to have people smaller lot adjoining Easley’s lot sold for The Cannonsgate marina required the Governor’s Mansion. like the governor because it says a lot $500,000, which was 37 percent above the a Coastal Area Management Act per- According to his Statement of for the community.” Watts appeared tax value. The other lot next to Easley’s mit from the N.C. Division of Coastal Economic Interest filed with the N.C. surprised when told CJ had obtained a is slightly larger but contains a signifi- Management. CAMA Major Permit Board of Ethics in February, in addition price list for Phase I of the project. He cant amount of low land unsuitable for Manager Doug Huggett said a permit for to Cannonsgate, Easley owns three other refused to say what the prices were for building. It sold for $699,880, which was constructing the marina was originally properties: a home on East Lake Drive lots in Phase II, where Easley’s lot was 20 percent above the tax value. issued in 1988 to Broad Reach Invest- in Raleigh, a home on the Cape Fear situated. Easley’s and Stroud’s lots are the ments, a group that included Raleigh River in Southport, and one–half interest CJ’s analysis of other Cannonsgate only two that adjoin the marina and the developer Stephen Stroud. Even though in a home at Bald Head Island. He has property sales indicates that Easley’s Intracoastal waterway. Cannonsgate there was little activity on the site for mortgage loans on all properties except purchase price was significantly below literature describes the lots as follows: several years, Stroud renewed the permit the Bald Head Island home. CJ Easley Adds His Own Ethics Proposals to Those Flying Around
Continued from Page 2 Easley also included two lobbying “I think it’s very important that we has been motivated by the scandals law changes: lifting an exemption for recognize we have to pass something plaguing his party to pursue ethics re- betray the public trust. In the past the lawyers who lobby the executive branch, that we can implement immediately,” form, measures for which Republican Ethics Board has had no effective means and eliminating all gifts to public officials he said. legislators have been calling for some to enforce compliance with requirements from lobbyists. A leader of the state Republican time,” said N.C. GOP Chief of Staff Bill to file truthful economic interest state- “I just want to do it cold turkey,” Party approved of the measures, while Peaslee. “But additional laws alone will ments. Last year Kevin Geddings, an Easley said. “Let’s stop taking gifts from at the same time taking a swipe at Demo- not end corruption. appointee of House Speaker Jim Black to lobbyists.” The governor called Rand’s crats over the problems afflicting them, “Until the Democrat Party cleans the N.C. Lottery Commission, failed to bill “simple and direct,” and said it which have inspired the current wave its own house of corrupt individuals disclose prior work he had done to pro- would not likely be susceptible to court of ethics proposals. they will not be able to gird themselves mote the passage of the state lottery. challenges. “We are pleased that the governor in a cloak of ethics.” CJ June 2006 CAROLINA North Carolina JOURNAL Progressive Resources Continued Northeast Partnership Conflicts Concern State Auditors
By PAUL CHESSER Moonlight Bandit the contract. He a private, nonprofit organization not Associate Editor Productions, and said renegotiation subject to the state’s Public Records Act. RALEIGH the message re- Northeast Partnership with them after that Government funding accounted for 95 ongtime consultants for the ferred callers to its officials refuse to provide period is possible. percent of the Partnership’s revenue state-funded Northeastern N.C. Internet Web site. “The terms in during the last three years. Regional Economic Development The Scotts, documents to Carolina that contract are not The Scotts also appear to have LCommission, and the associated agency whose relation- so good,” Schrote run afoul of the state Department of North Carolina’s Northeast Partnership, ship with Watson Journal because they said. Revenue. According to the Secretary of continue to work for both entities despite and the Northeast The contract State’s Web site and officials with the an apparent conflict of interest similar Partnership-Com- claim they are a private, also included an department, Progressive Resources’ to one that helped cost former President mission dates to nonprofit organization automatic one-year legal charter has been suspended. A and CEO Rick Watson his job. 1996, did not re- notice of termina- department clerk would not disclose In addition, J. Michael Scott and turn telephone not subject to the state’s tion in the case of the reason for the suspension. Based on Cathy Scott of Roanoke Rapids, and messages left at the Commission state law, the department can implement their company Progressive Resources & the Partnership of- Public Records Act. losing 50 percent a suspension based on a failure to file a Opportunities, have had their business fice, their business, or more of its state simple report, or for not paying taxes charter suspended by the state Depart- their residence, or funding. The Scotts 90 days after they are due. ment of Revenue. at the Moonlight Bandit number. Vann were also permitted to own, invest in, It is unclear when Progressive The Scotts still work under contract Rogerson, interim president and CEO and manage businesses in northeastern Resources began its affiliation with with the Commission-Partnership while for the Commission-Partnership, also North Carolina as long as they don’t Moonlight Bandit. Both Scotts were at also representing Moonlight Bandit could not be reached. seek financing or assistance from the the forefront during a media announce- Productions, a recently formed company Progressive Resources has a con- Commission. No mention is made of the ment of the project last July. Cathy Scott, that plans to operate the Randy Parton sulting agreement with the Commission Partnership, and it is not clear whether representing the Northeast Partnership, Theater and Carolina Crossroads Enter- that pays $70 per hour and has generous Progressive Resources has a separate was also listed as the media contact for tainment District. severance terms. The contract, effec- contract with the Partnership as well, the groundbreaking ceremony for the Watson, until recently the presi- tive July 1, 2003, calls for a “minimum as did Watson and Rogerson. Randy Parton Theater in November. dent and CEO for the Commission-Part- retainer” amount of $120,000 per year, The Scotts reported directly to Wat- The Scotts in the past have pur- nership, was terminated by the agencies’ to be paid quarterly. Termination of the son, and under their contract were also sued other outside business activities directors in part because of his own plans agreement by the Commission requires eligible for “additional compensation in conjunction with Watson. Accord- to work for Moonlight Bandit. As head a one-year written notice to Progressive, and/or performance bonuses,” awarded ing to reports in The Daily Advance of of the Commission-Partnership, Watson with a full payout of its annual retainer. at the discretion of a three-member ex- Elizabeth City in 2003, they briefly tried to gain public financing for the The contract required the Commission ecutive committee of the Partnership’s formed an outside company together Parton project while planning his own to “maintain in readily available cash an board, which included Watson. Accord- that was to provide economic devel- employment with Moonlight Bandit, amount equal to [Progressive Resourc- ing to a report from the state auditor opment services — for compensation which State Auditor Les Merritt and es’] anticipated compensation to ensure released in March, the Scotts were paid — that were already provided by the directors of the commission determined satisfaction of [the] Commission’s obli- an additional $87,450 in bonus money Partnership-Commission for free. was a conflict of interest. gations hereunder.” during the last three years. Also, Watson told the newspaper at A call made last week to a phone According to Commission board Northeast Partnership officials the time that he sometimes steered number listed for Progressive Resources member John Schrote, the Scotts have refuse to provide documents to Caro- some small companies to the Scotts’ reached a voice message machine for been given their one-year’s notice to end lina Journal because they claim they are outside services as well. CJ Christian Rights Organization Warns DPI About Non-Public Claims
By PAUL CHESSER stipulate that the State Board of Educa- from the State Board — explaining the erly Burrows, whose son attended Associate Editor tion “has the sole authority to develop actions and content of a program insti- Governor’s School last year and said RALEIGH and approve courses and programs that tuted and led by employees of [DPI] and he returned home from the school “con- Christian legal organization has concern human sexuality education.” funded by the General Assembly with fused” about homosexuality because rebutted a claim by State Super- Another state law requires an “emphasis taxpayer dollars — actually attempts to of the seminar. The Burrowses said intendent of Public Instruction on the importance of parental involve- argue that the program is not a ‘public they were not warned about the “Gay AJune Atkinson that the Governor’s ment” and “abstinence from sex until school,’” Johnson wrote. Teenager” seminar and contacted ADF, School of North Carolina is not a public marriage” in any such curriculum. In his original complaint to DPI and questioning its legality. school required to adhere to the state’s Johnson’s letter on May 2 respond- the State Board of Education, Johnson Johnson originally warned DPI abstinence-only sexual education pro- ed to a letter from Atkinson on March said state law requires “that parents to prohibit “any similar seminars or gram. 16, in which she defended the “Gay be given the opportunity to review unapproved sexuality education cur- In addition, Michael Johnson, a Teenager” seminar by emphasizing that sex education programs, materials and ricula…in the future,” and requested lawyer for the Alliance Defense Fund, it was optional for students, and by stat- objectives before any student may par- “written assurance that religious view- has reiterated a demand for the Gover- ing that the Governor’s School “is not a ticipate….” He also said the law requires points will no longer be maligned…at nor’s School to discontinue educational ‘public school’ as that term is used in [the public hearings before sex education all future Governor’s programs.” programs that discuss “illicit human statute] and is not required to adhere to programs are adopted. The six-week Atkinson’s response provided no sexuality.” Johnson and ADF had initi- the Basic Education Program….” Governor’s School is conducted every promises, other than “to examine course ated a complaint to the Department of Johnson insisted that the Gover- summer, with 400 students each at two offerings and instructional practices Public Instruction and the State Board nor’s School is a public school, citing locations: Salem College in Winston- at the [Governor’s School West] to be of Education in February, because the another statute that defines a public Salem (West) and Meredith College in sure that they are consistent with the Governor’s School conducted a seminar school as “any day school conducted Raleigh (East). The residential program [school’s] mission to enrich the lives of called “The New Gay Teenager” without within the State under the authority draws public high school students who its students.” parental consent in Winston-Salem last and supervision of a duly elected or ap- are approaching their senior years, and “Based upon our review of the summer. pointed city or county school board, and who are nominated by their high schools’ events,” Atkinson wrote, “we are sat- In his letter to DPI and to the State any educational institution supported by teachers and administrators. isfied that ‘The New Gay Teenager’ Board of Education in February, Johnson and under the control of the State.” “The New Gay Teenager” was optional seminar did not violate any- had cited North Carolina statutes that “We find it ironic that a letter sent heavily criticized by James and Bev- one’s legal rights.” CJ CAROLINA June 2006 JOURNAL North Carolina Jurors Selected in Trial of Former Ferry Director Jerry Gaskill
By DON CARRINGTON across the shallow Currituck Sound from Executive Editor the Currituck community to the Corolla RALEIGH Former Ferry community. welve jurors and two alternates Division Direc- “The proposed ferry service is fea- were selected May 1 for the trial tor Jerry Gaskill sible, assuming the appropriate permits of former N.C. Department of (center) leaves can be obtained,” Gaskill concluded TTransportation Ferry Division Direc- in the study. But he failed to address the federal court- tor Jerry Gaskill. A federal grand jury house in Raleigh two previous unsuccessful attempts by indicted Gaskill, 63, of Cedar Island on Currituck County to obtain a dredging Jan. 18 on charges associated with the after jury selec- permit for the shallow Corolla loca- state’s illegal activities in establishing a tion on May 1 tion. State and federal environmental passenger ferry service across the Cur- with his attorney agencies had ruled that the area was a rituck Sound. Thomas Manning sensitive marine habitat that needed to U.S. District Judge Terrence Boyle and wife Charran be protected. At the time of the illegal presided over the selection process after Gaskill. dredging, neither DOT nor Currituck Gaskill pleaded not guilty to all charges County had applied for a permit. against him. The trial was to start in May (CJ Photo by After the illegal dredging became but was rescheduled to begin June 12. Don Carrington) public the project stalled. In May 2005, Gaskill is charged with conspiracy frustrated with the lack of progress, to violate the Clean Water Act and the Basnight called a meeting of all the Rivers and Harbor Act, actual violations state agencies involved in the project. of both acts, and with making material The group arrived at a plan to build an false statements about those activities. So that potential jurors could de- • Ralph Thomas (same name as 1,800-foot pier that would reach into The indictment alleges that Gaskill clare any potential conflicts, Boyle read Carteret County Sheriff) and an unidentified person agreed in deeper water. That plan was scrapped them a list of about 25 other witnesses • Environmental consultant after news organizations raised concerns January 2004 to force Ferry Division that are expected to be called. George Wood workboats into the Corolla basin in order about the safety of the schoolchildren. The list included: Previous stories by Carolina Journal The latest plan to build a 500-foot pier to create a deeper channel, knowing that • N. C. DOT Board member Lanny reported that the new ferry service faced no permits had been obtained for the in a different location is on hold. Wilson of Wilmington several obstacles. Plans for the project The student situation has also work. The indictment also alleges that • N. C. DOT Board member Stan were initiated soon after the Currituck changed dramatically. After the students on May 6-7, 2004, Gaskill and other Ferry White of Nags Head County Board of Commissioners asked were barred from Dare schools and Division workers proceeded to “prop • DOT Deputy Secretary David state Sen. Marc Basnight in July 2002 to forced to take a long bus ride to reach wash” the channel. The indictment King, who oversees the Ferry Division help establish a ferry service to transport the Currituck mainland, parents made further alleges that on June 25, 2004, • Ferry Division interim Director about 40 schoolchildren from the Outer other schooling arrangements. At times Gaskill signed a written false statement Jack Cahoon Banks to the mainland. Although propo- claiming the creation of the channel • Ferry Division employee Don nents of the ferry said it was needed for only one child was making the bus trip was unintentional and submitted the Chapman schoolchildren, documents suggest that this year. School officials said they will statement to the U.S. Army Corps of • Former Ferry Division employee the service was intended to transport return to the previous arrangement. Engineers. Charles Utz resort workers and tourists. Students The 49-person, 50-foot pontoon Four other Ferry Division employ- • Former Ferry Division employee had been attending Dare County schools boat ordered for service was delivered ees—Billy R. Moore, Herbert F. O’Neal, Connie Noe on the Outer Banks. in August 2004 to the State Shipyard Douglas A. Bateman, and Stephen G. • N.C. Wildlife Resources Com- The 2002 budget bill ordered in Manns Harbor. The Virginian-Pilot of Smith—pleaded guilty last year to mission Engineering Services Chief DOT to do a feasibility study. Gaskill Norfolk reported that DOT officials are charges in connection with the dredging. Gordon Meyers conducted a study and submitted it to considering selling the boat because All four are expected to testify against • Currituck County Manager Dan the General Assembly in May 2003. The the Coast Guard ruled the boat is un- Gaskill. Scanlon proposed route would be about 12 miles safe to run across the sound. CJ
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