INSIDE THIS ISSUE: DEPARTMENTS Dems still North Carolina 2 C A R O L I N A Education 8 pushing Local Government 10 From Page 1 14 Medicaid Higher Education 17 expansion in Books & the Arts 20 Opinion 24 N.C./2 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION June 2014 Vol. 23 No. 6 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Another Parton-Connected Project in Trouble By Don Carrington Executive Editor Corporate entities RALEIGH Burke County real estate and tax are County real estate develop- records, as well as corporation records er Ray Hollowell was counting in Virginia and North Carolina, show that Hollowell has used at least 14 on Dolly Parton and her family different entities to acquire land in Pine Dto help him transform the Pine Moun- Mountain. Nine companies were incor- tain development, located in southern porated in Virginia. They include: Burke County, into a more upscale community that he renamed “The New Highland, LLC South Mountain Preserve.” Hollowell Outerbanks Kinnakeet, Inc. also was counting on Gov. Bev Perdue Outer Banks/Kinnakeet Associates, to help promote LLC the project, and BGMC, LLC N.C. State Uni- Bon View Developers, LLC versity to help Tall Pines West, LLC establish vine- The entrance sign to the Pine Mountain development located south of Morganton, South Mountain Preserve, LLC yards and a which has hundreds of thousands of dollars in unpaid taxes, delinquent homeowner Spring Brook, LLC (with partner Rich- winery on the association assessments, and overdue loans. (CJ photo by Don Carrington) ard Watson) property. Burke Mountain Southeast, LLC performance facility. The project drew some lots in foreclosure proceedings My Mountain Hideaway, LLC Not long extensive coverage from news outlets and has other loans that are past due. Virginia Highland Properties, LLC before, officials across the state, led by reporting in His various companies owe almost South Mountain Real Estate, LLC in Roanoke Rap- Carolina Journal. $200,000 in back Antioch Ridge, LLC ids had count- But the saga property taxes to Ray Hollowell (as individual) Real estate devel- ed on Dolly’s of Pine Mountain Burke County. oper Ray Hollowell brother Randy — featuring hun- Developer has H o l l o w e l l and the Randy dreds of thousands met with CJ May velopment. I have been appreciative of Parton Theatre to anchor a music dis- employed 14 of dollars in un- 27 in Raleigh and the property owners association board trict that would transform the econo- paid taxes, delin- different entities said the Partons and the county with their patience and my of the region. Soon after the theater quent homeown- no longer are in- understanding,” he said. opened, however, it became a different ers assessments, to acquire over volved. “We had a “People need to understand what kind of anchor, saddling the town with and overdue loans list of things they millions in debt and an underused 900 parcels it has been like in the last eight years — has attracted were going to do, of the development world,” he added. little public atten- but the economy tion and no news killed the resort Neighbors concerned stories to date. And Hollowell, along development business,” he said. Pine Mountain residents David with homeowners in the development “I have millions invested in the and Edie Stitt, along with other neigh- and officials in Burke County, hope project. I can’t walk away. I believe bors who met with CJ, believe Hollow- PAID that Pine Mountain doesn’t suffer a that it is a good project and hope to ell either should pay his bills or sell his fate similar to that of the Randy Parton secure the financial resources to see RALEIGH, NC U.S. POSTAGE interests in Pine Mountain, where the PERMIT NO. 1766 it through. It is the best project that I NONPROFIT ORG. Theatre. Hollowell began purchasing va- have seen in over 30 years of resort de- Stitts have lived since 1995. Edie Stitt is cant lots at Pine Mountain in 2005, us- the current secretary to the board of di- ing 14 different entities to acquire more rectors of the Pine Mountain Property than 900 individual parcels. His activi- Owners Association. She told CJ that ties were concurrent with the develop- Hollowell still has several supporters ment of the Randy Parton Theatre, the in the community. “His supporters re- groundbreaking for which was in No- fer to him as a developer, but he has vember 2005. The building was com- not developed anything here. So far, pleted in March 2007. he has just been a land speculator that doesn’t pay his bills,” she said. Plans stalled She said Hollowell currently owes Pine Mountain Property Owners Hollowell’s plans for Pine Moun- Association $378,000 in back assess- tain have stalled, and public records ments and a note for $155,000 plus in- indicate he is experiencing financial terest. difficulties. He has been unwilling or Randy and Dolly Parton at the ground- unable to pay assessments to the prop- breaking of the Randy Parton Theatre in The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 erty owners association. He has lost Roanoke Rapids in 2005. (CJ file photo) Continued as “Another,” Page 14 PAGE 2 JUNE 2014 | CAROLINA JOURNAL North CaroliNa C A R O L I N A Democrats Still Pushing for Medicaid Expansion By Dan Way shire, Pennsylvania, Tennessee, Utah, and Virginia have JOURNAL Associate Editor examined alternative Medicaid expansion plans with ele- RALEIGH ments such as private options, premium assistance, and ome of the House Democrats’ most vocal advocates work-search requirements. Rick Henderson Managing Editor for Medicaid expansion in North Carolina have filed And while the Obama administration has turned up House Bill 1083, committing the state to add more of the pressure on expansion-resistant states to reconsider, the Don Carrington Sits poorest residents to the government health insurance Republican Governors Association has aired ads this year in Executive Editor program. South Carolina, Arkansas, and Wisconsin opposing Medic- And state Sen. Floyd McKissick, D-Durham, believes aid expansion. a Medicaid program overhaul advanced by the McCrory McKissick, a member of the Senate Health Care and Mitch Kokai, Michael Lowrey administration eventually could open Medicaid eligibility Appropriations on Health and Human Services committees, Barry Smith, Dan Way to more than a half million low-income residents who lack said there have been “ongoing conversations for quite some Associate Editors health insurance. time” with the governor and Republican leadership, and While H.B. 1083 addresses a position popular among Medicaid expansion “needs to be revisited as a matter of Democrats, it appears to have no chance of passing the Gen- coherent public policy.” Chad Adams, Kristy Bailey eral Assembly’s short session, based on comments from Many hospitals and doctors favor Medicaid expan- David N. Bass, Lloyd Billingsley Republican leaders. Even so, several sion, he said, and many interest Kristen Blair, Roy Cordato Becki Gray, Sam A. Hieb top Republicans have not ruled out groups “are concerned about the Lindalyn Kakadelis, Troy Kickler some form of Medicaid expansion, availability of health care for low- George Leef, Elizabeth Lincicome so the issue remains alive. income individuals.” Karen McMahan, Donna Martinez Meantime, conservative health If North Carolina were to ex- Karen Palasek, Marc Rotterman care analysts warn that states opting pand the program, and the federal Jesse Saffron, Michael Sanera for Medicaid expansion may not be government failed to keep its prom- George Stephens, Terry Stoops able to pare back the enhanced ben- ise to maintain its matching share at Andy Taylor, Michael Walden efits if the federal government trims 90 percent, “There’s nothing to say Karen Welsh, Hal Young its share of the costs of higher cover- you have to continue providing it,” John Calvin Young age. One compares it to the Eagles’ McKissick said. “You can make com- Contributors song “Hotel California” — states mensurate reductions if you chose to entering the program cannot get out. do so.” H.B. 1083 would require the Jonathan Ingram, director of Joseph Chesser Interns state to cover all residents with in- research at the Florida-based Foun- comes of less than 133 percent of the federal poverty level. dation for Government Accountability, who has been study- That change could add more than 500,000 North Carolin- ing Medicaid issues for years, cautioned against that think- Published by ians to the Medicaid rolls. ing. The John Locke Foundation In a midterm election year with House Speaker Thom “Some states eager to implement this Obamacare 200 W. Morgan St., # 200 Tillis, R-Mecklenburg, trying to unseat incumbent Demo- Medicaid expansion were wary of the federal government Raleigh, N.C. 27601 cratic U.S. Sen. Kay Hagan, every major issue the General breaking its [funding] promise, and have tried to insert (919) 828-3876 • Fax: 821-5117 Assembly addresses this session is being viewed through what they consider triggers or circuit breakers into their ex- www.JohnLocke.org the prism of electoral politics. pansion plans, where the expansion would be rolled back Republicans are hitting hard at Hagan’s support for if the federal government ever actually broke its promise,” the Affordable Care Act, which is facing a consumer back- Ingram said. Jon Ham lash over rising premium costs and decreasing coverage op- “But there’s a large, looming question over whether Vice President & Publisher tions. Hagan, meanwhile, has attacked Tillis in interviews states … can legally exit the Obamacare Medicaid expan- John Hood and on her campaign Facebook page for refusing to back sion once they entered into it,” Ingram said.