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Rand Key Player in Easley Property Swap It’S Unclear How Easley Paid for His House on Bald Head Island Former Gov

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INSIDE THIS ISSUE: DEPARTMENTS Citizens rise North Carolina 2 C A R O L I N A Education 9 up against Higher Education 13 forced an- Local Government 16 Books & the Arts 20 nexations in Opinion 24 Parting Shot 28 N.C./5 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION JOURNALFROM THE JOHN LOCKE FOUNDATION December 2009 Vol. 18. No. 12 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Rand Key Player in Easley Property Swap It’s unclear how Easley paid for his house on Bald Head Island Former Gov. Mike Sen. Tony Rand, D- BY DON CARRINGTON Executive Editor Easley Cumberland RALEIGH an additional 25 percent discount, ew information developed by $137,470, from the publicly stated pur- Carolina Journal shows that for- chase price of $549,880. mer Gov. Mike Easley’s 2005 That discount is not mentioned in NCannonsgate real-estate deal was not any publicly recorded documents and the first time Easley was involved in a was disclosed only when The News & deceptive land transaction. Observer acquired a copy of the closing The information shows that Eas- statement. ley acquired a lot and a home on ex- Bald Head Island, located in clusive Bald Head Island some years Brunswick County, is considered one of earlier with the assistance of state Sen. North Carolina’s most exclusive resort Tony Rand of Fayetteville. areas. Only 2,000 of its 12,000 acres are In addition, it’s unclear from the scheduled for development. The unde- public records how much Easley paid veloped property will remain natural areas. There are no high-rise buildings for the property. In 2007, CJ reported After a complicated series of transactions involving state Sen. Tony Rand and Bald that Easley paid less for his Bald Head Head Island Limited, former Gov. Mike Easley eventually became the owner of this and no billboards. With the exception Island home than a nearly identical house at the exclusive island resort. Go here http://bit.ly/5F7eIb for a virtual tour. (CJ of a few construction and emergency house sold for at the same time. photo by Don Carrington) vehicles, no cars are allowed on the is- These revelations follow an April ing that Easley got a favorable deal on 2009 report in The News & Observer of 2006 report by Carolina Journal show- his Cannonsgate lot, and a September Raleigh that showed Easley received Continued as “Rand,” Page 2 UNC-CH Reimbursed $27K for Commute PAID RALEIGH, NC U.S. POSTAGE and lodging while in the Chapel Hill PERMIT NO. 1766 NONPROFIT ORG. area on business. Since her employ- Deputy director ment began in October 2006, the university has repaid her a total of continued commute $76,558. Kerner-Hoeg is the second- highest-paid employee in the program, with an annual salary of $129,600. even after questions Her reimbursements have come under scrutiny in recent months af- BY DAVID N. BASS Public documents and infor- Associate Editor ter an internal UNC-Chapel Hill re- mation obtained by Carolina Journal view, released in June, found evidence RALEIGH show that Susan Kerner-Hoeg, di- of waste and abuse in the program. military-aid initiative at the rector of military relations for the UNC-Chapel Hill announced University of North Carolina at Citizen-Soldier Support Program, Nov. 13 that it was trimming back the Chapel Hill reimbursed one of booked $22,181 in commercial airline program, reorienting funding, and Aits employees at least $27,000 to com- flights to the Triangle over the last shifting leadership responsibilities. mute between North Carolina and her three years and charged about $5,400 Kerner-Hoeg’s role is also changing home in Virginia, even as questions for mileage between 2007 and 2009. about the program’s effectiveness and Receipts also show that she The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 use of resources lingered. spent nearly $25,000 on rental cars Continued as “UNC-CH,“ Page 4 PAGE 2 DECEMBER 2009 | CAROLINA JOURNAL C A R O L I N A Rand Key Player in Easley Coastal Property Swap Continued from Page 1 JOURNAL land. Transportation on the island is by foot, bicycle, or golf cart. Rick Henderson In November 1992, just after be- Managing Editor ing elected to his first term as North Carolina’s attorney general, Easley Don Carrington transferred ownership of Lot 619 on Executive Editor Bald Head Island to his friend Rand, who, according to records, paid Easley David N. Bass, Mitch Kokai $40,000 for the property. But in a re- Michael Lowrey cent phone interview, Rand told CJ he Associate Editors didn’t pay Easley anything and Easley Jana Benscoter, Kristen Blair continued to control the property. Roy Cordato, Becki Gray Three years later, at Easley’s re- Paige Holland Hamp, David Hartgen quest, Rand said he transferred Lot Sam A. Hieb, Lindalyn Kakadelis 619 to a developer who was building George Leef, Karen McMahan a home for Easley on another parcel on Donna Martinez, Sarah Okeson the island. “He said you convey it back Karen Palasek, Lee Raynor to them and they will give me credit Marc Rotterman, Jim Stegall for it, so that’s what I did,” Rand said George Stephens, Jeff Taylor Easley told him. Michael Walden, Karen Welsh Public records show that Easley Hal Young, John Calvin Young and his wife Mary jointly owned Lot Contributors 619 with another couple, Tom and Su- san Rabon. Easley, his brother Henry, Laura Barringer, Jacob Burgdorf and their wives are listed as the own- Adrienne Dunn, Marissa Farell ers of the new home, referred to in re- Ben Goldhaber, Hans Kist cords as Unit 23, Flora’s Bluff. Caitlin McLean, Alex Pitsinos, Public records indicate the de- Sara Riggins, Andrew Schreiber veloper — Bald Head Island Limited Former Gov. Mike Easley’s Bald Head Island house, center, as seen from the air. (CJ Editorial Interns photo by Don Carrington) — paid Rand $80,000 for Lot 619, but Published by Rand said he received no money for Easley received for the lot is not known other sources. Easley did not respond The John Locke Foundation the sale. He said he understood that because representatives from Bald to a message left with his assistant at 200 W. Morgan St., # 200 the developer applied the value to- Head Island Limited refused to discuss the McGuire Woods law office in Ra- Raleigh, N.C. 27601 ward Easley’s purchase of the newly the transaction with CJ. leigh. Calls to Thomas Hicks of Wilm- (919) 828-3876 • Fax: 821-5117 built home. Company employee Judy Ward, ington and Wade Byrd of Fayetteville, www.JohnLocke.org Rand said his original involve- who returned calls from CJ on behalf lawyers believed to be representing ment with Easley revolved around of Bald Head Island Limited President Easley, were not returned. A message Jon Ham discussions of jointly building a home Kent Mitchell, acknowledged review- left for Easley’s brother Henry Easley, Vice President & Publisher on the coast. “Easley and I were talk- ing the files on the Easley and Rand a Chocowinity physician, also was not ing about doing something. I was talk- transactions but would not discuss the returned. John Hood ing about doing something. We didn’t details. “The details of that transaction In addition to their half-interest Chairman & President know what we were going to do,” are between the parties of that transac- in the Bald Head Island home, public Rand said. “We talked about doing a tion,” she said. records show that Mike and Mary Ea- Bruce Babcock, Herb Berkowitz place together. We never could come to Asked if she could explain the sley own a waterfront home in South- Charlie Carter, Jim Fulghum an agreement on what we were going transactions involving Bald Head Is- port located less than four miles across Chuck Fuller, Bill Graham to do.” land Limited and the then-attorney the Cape Fear River from Bald Head Robert Luddy, Assad Meymandi “I never put any money in the general, she said, “I have no desire in Island, a home in Raleigh, and the wa- Baker A. Mitchell Jr., Carl Mumpower, terfront lot in the Cannonsgate subdi- J. Arthur Pope, Thomas A. Roberg, deal. I was going to do it and then de- helping you explain anything.” Asked vision near Emerald Isle. David Stover, J.M Bryan Taylor, cided not to. Nobody paid me $80,000,” if she was speaking for the company’s The Easleys offer the home, Andy Wells he said. owners, she said, “I am speaking for Board of Directors Public records indicate Easley Bald Head Island Limited.” known as the Maritime Cottage, for paid $250,000 for the new home when The Easley home at Bald Head rent through Bald Head Island Lim- Carolina Journal is a monthly journal he took title in June 1996. The complet- Island comprises 1,336 square feet and ited. Easley did not declare any rental of news, analysis, and commentary on state ed home was added to the Brunswick has four bedrooms. It sits on a bluff income from the property on his eco- and local government and public policy issues County tax records with an assigned and has an ocean view from the second nomic interest statements. In peak sea- in North Carolina. value of $329,440, or $79,440 more than floor. A state-owned maritime forest son, the house rents for $607 a day. ©2009 by The John Locke Foundation the amount public records indicated preserve adjoins the rear of the prop- Bald Head Island Inc.
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