• Group Says Gay • Caucus Disagrees Seminar Illegal, P. 4 with Black, P. 5 Governor’s Priorities, P. 9 Bible in Schools, P. 8 Statewide Edition A Monthly Journal of News, Analysis, and Opinion from April 2006 • Vol. 15, No. 4 the John Locke Foundation www.CarolinaJournal.com www.JohnLocke.org Easley Didn’t Disclose Before Marina Vote By DON CARRINGTON commissioner. By law, the council is Executive Editor required to approve or deny state real RALEIGH estate transactions. ov. Mike Easley failed to disclose The 46-acre marina property, under a personal business relationship control of the N.C. State Ports Authority, — a $150,000 home-remodeling had been leased to Southport Marina, Gcontract — with Wilmington developer Inc. to operate the facility. Raleigh busi- Charles “Nick” Garrett, Jr. before Ea- nessmen Cliff Benson, Jr. and John F. sley called for a Council of State vote Phillips owned that company but later to approve a lease of the state-owned sold it to new owners. Southport Marina to Garrett and his A story in the Triangle Business associates. Journal in August 2005 reported Cary de- Garrett’s development company velopers Tim Smith and Julian “Bubba” remodeled Easley’s Southport home Rawl “provided financial backing for shortly after Easley became governor Wilmington home builder Nick Garrett’s in January 2001. July purchase of Southport Marina Inc.” In an apparent attempt to down- The story also reported that Smith’s and play Easley’s potential conflict of inter- Rawl’s only involvement was to help est, an Easley spokeswoman said that he Garrett finance the purchase. “We don’t did not vote on the marina deal and that want to be managing it. We don’t know Garrett is not a principal in the project. anything about running marinas,” Smith In addition to involvement in the Gov. Mike Easley’s home in Southport (arrow points to it in photo above) was remodeled told the newspaper. marina and the remodeling of Easley’s by someone who was a principal in a company later involved in the Southport Marina The Council of State made the new Southport home, Garrett got a plum lease deal. (CJ Photo by Don Carrington) marina lease contingent on the sale of automobile license tag franchise in the franchise. comprised of the governor and the Southport Marina Inc. to the new own- Wilmington from the N.C. Department The vote on a new marina lease other nine independently elected state of Transportation despite a recommen- came at the monthly Council of State officials, such as the state treasurer, dation by a DOT official against granting meeting January 2006. The council is lieutenant governor, and agriculture Continued as “Easley” Page 2 Northeast Partnership Ends Contract of CEO Rick Watson By PAUL CHESSER Pasquotank County who helped develop of his deals, will serve as the interim yesterday had no comment. Associate Editor recommendations for organizational director. Jack Runion, chairman of the RALEIGH changes to the Northeast Economic According to Mort Hurst, chair- board of both the Northeast Partnership he board of the North Carolina’s Development Commission and the man of the Martin County Board of and the Northeastern North Carolina Northeast Partnership termi- partnership, said Watson’s termination Commissioners, Watson’s contract was Economic Development Commission, nated the contract of its president was retroactive to March 1, and that he ended because a state audit — not yet from which the partnership was spun, Tand CEO, Rick Watson, on March 20, would receive a one-year salary sever- released — determined that Watson’s confirmed Watson’s termination. after a longtime disagreement among ance, amounting to $165,000. relationship with country music en- “We are in the process of adjust- the partnership’s county members about Vann Rogerson, a Department tertainer Randy Parton presented a ment due to the relieving of the CEO/ his contract and his personal business of Commerce employee who worked conflict of interest with his duties for dealings. out of the Partnership’s Edenton office the Northeast Partnership. Representa- Randy Keaton, the manager for and helped Watson negotiate many tives of State Auditor Les Merritt’s office Continued as “Northeast” Page 3 Do you feel things in N.C. are 80headed in the right direction? 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 Higher Education 12 Right direction 40 % Local Government 16 Wrong track 41 % Books & the Arts 20 Not Sure 19 % Opinion 24 Parting Shot 28 John William Pope Civitas Institute Poll, March 2006 CAROLINA C A R O L I N A North Carolina JOURNAL JOURNAL Easley Didn’t Disclose Before Urging Marina Vote Richard Wagner Continued from Page 1 Editor ers. The council awarded a new 15-year Don Carrington lease with extensions that would tie up Executive Editor the property through 2040. On March 10, Easley spokeswom- Paul Chesser, Michael Lowrey an Sherri Johnson said, “The governor Donna Martinez did not vote to approve the lease. The Associate Editors governor only votes in the event of a tie, and did not vote on this matter.” Chad Adams, Shannon Blosser, Johnson also said that Garrett is Andrew Cline, Roy Cordato, not a principal in Southport Marina, Inc. Paige Holland Hamp, David Hartgen, Sam A. Hieb, Lindalyn Kakadelis, Her statement contradicts news reports Mitch Kokai, George Leef, that for several months have referred Maximilian Longley, Rick Martinez, to Garrett as one of the new owners of Karen Palasek, Marc Rotterman, Southport Marina, Inc. In addition to Mike Rouse, R.E. Smith Jr., the Triangle Business Journal, The News & Jack Sommer, John Staddon, Observer of Raleigh, The State Port Pilot of Jim Stegall, George Stephens, Southport, and the Wilmington Star-News Jeff Taylor, Michael Walden, all have reported Garrett’s involvement Karen Welsh, Hal Young with the company, and Garrett has never Contributing Editors said anything publicly to the contrary. The Southport Marina, which was leased to a private company after a vote of members of Johnson did not reveal the source of her the Council of State at the urging of Gov. Mike Easley. (CJ Photo by Don Carrington) Richard Carney, Travis Fisher, information. Guillermo Peña, Brent Lucas, If Garrett’s role in the project has transactions “shall be subject to prior ing the possible sale of the property.” Jenna Ashley Robinson, changed, a letter obtained by CJ indi- review by the Governor and Council of Shortly after that news story appeared, Matt Stephenson State, and shall become effective only CJ contacted Stewart and asked him to Editorial Interns cates the change was recent. “As you all know by now, investors Tim Smith, after the same has been approved by identify the person from Easley’s of- the Governor and Council of State.” So fice who had called him. He refused to Published by Julian ’Bubba’ Rawl and Nick Garrett purchased Southport Marina as of Janu- if Easley didn’t vote or specifically ap- identify the person. The John Locke Foundation On Aug. 4 Easley released a state- 200 W. Morgan St., # 200 ary 2006 and subsequently assumed the prove of the transaction, the lease may ment declaring that “the state marina at Raleigh, N.C. 27601 property lease from the North Carolina not be valid. Southport is not for sale.” In December (919) 828-3876 • Fax: 821-5117 State Ports Authority,” said the Feb. 28 The council vote angered a group 2005 the City of Southport offered $6 mil- www.JohnLocke.org letter from Southport Marina, Inc. to all of Southport residents who traveled to lion for the property. The Star-News re- marina slip holders. Raleigh to attend the meeting. “That ported that “if given the chance” Garrett Jon Ham Garrett has built luxury condo- council is extremely ethically and mor- “would beat the city’s offer.” The Ports Vice President & Publisher miniums across the street from the ally bankrupt — the group personifies Authority rejected the city’s offer. marina and has been trying to acquire that,” said Southport resident Woody John Hood The port deal comes amid state additional adjacent property. He tried to Wilson as reported by the Star-News. Chairman & President elections board hearings and legisla- buy the marina property in 2005. Wilson and other opponents told CJ they tive concern over the ethics of state State Auditor Les Merritt, when thought the agreement was a sweetheart Bruce Babcock, Herb Berkowitz, officials. told about Easley’s business relation- deal for the developers who were buying James Culbertson, Jim Fulghum, CJ has tried to interview Garrett ship with Garrett, said it was not im- Southport Marina, Inc. “There was no Bill Graham, Robert Luddy, about his role in Southport Marina Inc., portant whether Easley voted on the doubt that the governor was pushing for Assad Meymandi, Baker A. Mitchell, but he has not returned phone calls. Jr., Carl Mumpower, Maria Ochoa, item. “Maybe he didn’t vote, but he was the Garrett group as the answer for the J. Arthur Pope, Tula Robbins, certainly involved in the discussion,” future of the marina,” Wilson said. Thomas A. Roberg, David Stover, Merritt said. Merritt and Labor Com- Several news reports indicate Eas- Ethics guidelines applicable Robert Stowe III, Andy Wells ley has been closely involved in discus- missioner Cherie Berry voted against “Our citizens have a right to de- Board of Directors sions over the future of the marina. In awarding the lease. mand and expect the highest ethical May 2005 the Ports Authority received Voting for the lease were Lt. Gov. conduct from their leaders,” Easley said Beverly Perdue, Insurance Commis- an unsolicited offer to purchase the 430- Carolina Journal is a monthly journal at a March 2 press conference announc- sioner Jim Long, Secretary of State Elaine slip marina for an undisclosed amount ing his appointment of retired Superior of news, analysis, and commentary on state of money.