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Gov. Easley Got Pricey Lot at Bargain Price

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Gov. Easley Got Pricey Lot at Bargain Price • 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.
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