May 2005 CJ State02b
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• Forgotten History: • State Abandons Genesis of a Nation Plan to Move DNPE Public Housing Debacles C A R O L I N A “Constitutional Chaos” Statewide Edition A Monthly Journal of News, Analysis, and Opinion from May 2005 • Vol. 14, No. 5 JOURNAL the John Locke Foundation www.CarolinaJournal.com www.JohnLocke.org It Took a Village to Stop Gold Mine in Stanly County University, and Peter Edquist, a local Senator helps create resident, have told neighbors and local locality to thwart mining newspapers that they wish nothing more than to return Misenheimer to its tradi- venture by landowner tional roots. “The purpose of incorporation,” Ambrose said, “is to maintain the iden- By CHAD ADAMS tity of Misenheimer and extend that as Contributing Editor an economic engine.” and PAUL MESSINO But to truly discover the identity of Editorial Intern Misenheimer, we must start with 19th STANLY COUNTY century resident Tobias Barringer. Ac- n June 26, 2003, Senate Bill 76 cording to various newspaper accounts created the incorporated Vil- at the time, Barringer purchased the O lage of Misenheimer. But the property around 1824. This simple, small incorporation of 1.58 square miles and plantation, by Southern standards, 739 residents is far removed from the housed a few slaves and yielded a mod- typical “incorporation” in both prop- est crop. One day while hunting squir- erty rights issues, special interests, and rels on the property, Barringer noticed history. golden metallic flecks shimmering in a Photo courtesy of Joe Carter Two primary players in the cam- paign to incorporate Misenheimer, Landowner Joe Carter shows a sample of gold in the Barringer mine in Stanly County. Charles Ambrose, president of Pfeiffer Continued as “Senator Helps,” Page 3 Sen. Basnight’s Aide Gets DOT to Take Project for Company in exchange for relocating significant Carolina’s Northeast Partnership, is a dent Steve McDorman wrote a letter for Blizzard pressured operations to North Carolina. The com- private investor in Privaris. Watson MCEDC’s files that promised to “main- state officials to devote pany, however, never complied. worked on obtaining funds for the pilot tain expense report records… for a pe- After Privaris, Inc. completed a pi- project despite his personal financial riod of three years from the end of the resources for technology lot project for the state Division of Mo- stake in the company, creating an ap- project.” tor Vehicles in 2003, company workers parent conflict of interest. He pressed Documents show that MCEDC vacated their office space at a publicly for the April 2004 payment to be made. President Stan Crowe was assured by By PAUL CHESSER funded business incubator in William- Documents obtained by Carolina Tobacco Trust administrative assistant Associate Editor ston. Despite its failure to create 10 to 15 Journal demonstrate that employees of Amy Bissette that McDorman’s letter RALEIGH new jobs as promised in its contract the Tobacco Trust Fund Commission would satisfy the state auditor if the fingerprint technology com- with the Tobacco Trust, Privaris was and the Martin County Economic De- grant was examined. McDorman’s let- pany promoted by State Sen- paid $132,575 in April 2004. velopment Commission, which took ter triggered the release of the check A ate President Pro Tem Marc Sources with direct knowledge of over administration of the project from Basnight received $307,575 from the the project say Rick Watson, executive Watson, secured documentation to jus- state’s Tobacco Trust Fund, ostensibly director of the state-subsidized North tify issuing the check. Privaris Vice Presi- Continued as “Privaris Secures,” Page 4 NC Should Spend Gas, Car Taxes On. The John Locke Foundation NONPROFIT ORG. 200 W. Morgan St., # 200 Contents U.S. POSTAGE Only Roads 57% Raleigh, NC 27601 PAID Other Items, Too 38% State Government 3 RALEIGH NC Not Sure 5% Washington Watch 6 PERMIT NO. 1766 Education 8 Higher Education 12 Local Government 16 Books & the Arts 20 Opinion 24 % of N.C. Respondents in Oct. 2004 JLF Poll Parting Shot 28 C A R O L I N A C A R O L I N A North Carolina JOURNAL JOURNAL ‘Confusion’ Led to a Possible Conflict Speaker Black spent discretionary funds on Rep. Owens’ downtown property Richard Wagner Editor By DON CARRINGTON Executive Editor Don Carrington Executive Editor RALEIGH ep. Bill Owens says confusion Paul Chesser, Michael Lowrey on the part of N.C. House Donna Martinez, Jon Sanders R Speaker Jim Black about where Associate Editors to spend state discretionary funds cre- ated what appears to be a conflict of in- Chad Adams, Shannon Blosser, terest for the Pasquotank County Demo- Andrew Cline, Roy Cordato, crat. Bob Fliss, David Hartgen, Last fall, Owens helped secure state Summer Hood, Lindalyn Kakadelis, grants that would benefit his downtown George Leef, Marc Rotterman, Elizabeth City real estate holdings, lo- Karen Palasek, R.E. Smith Jr., cated on Main Street. The money came Jack Sommer, John Staddon, from discretionary funds Black and Sen- George Stephens, Jeff Taylor, ate leader Marc Basnight controlled in Michael Walden, Karen Welsh the Department of Transportation and Contributing Editors the Department of Cultural Resources. Jenna Ashley Robinson, Carolina Journal and The News & Observer Paul Messino, Brian McGraw first revealed publicly the existence of Downtown Elizabeth City, where Rep. Owens owns property. Editorial Interns the discretionary funds last month. However, Owens maintains he did more blocks. completed, this facility will play a piv- not request money for Main Street, but Owens told CJ that he asked the city otal role in transforming downtown his- for improvements on Water Street, to deal with Basnight in seeking the toric Elizabeth City into a vibrant cen- Published by which intersects with Main Street. He funds for the streetscape project, so that ter of commerce and can help to rede- The John Locke Foundation does not know how Black got confused is what City Manager Rich Olson ini- fine the area’s economic future,” Execu- 200 W. Morgan St., # 200 and asked for money for Main Street. tially did. “I have had several conver- tive Director Lisa Winslow told The Raleigh, N.C. 27601 “My first knowledge that all the sations with Senator Basnight’s office Daily Advance of Elizabeth City in 2003. (919) 828-3876 • Fax: 821-5117 money was going to Main Street was concerning completion of the Main Legislative leaders directed the De- www.JohnLocke.org when I read it in the newspaper. I have Street Streetscape project. Senator Bas- partment of Cultural Resources to send refused to do anything unethical,” he night has once again requested that we a total of $9.2 million to approximately Jon Ham said. provide a cost estimate, so he can start 100 different organizations. The Arts Vice President & Publisher the appropriation process. We will re- Council grant was one of the largest John Hood Main Street Champions quest $500,000 from the Senator,” wrote awards. Only three other groups re- Chairman & President Olson in an October 2004 memo to the ceived more. In January, Owens and his partner mayor and city councilors Bruce Babcock, Herb Berkowitz, Zack Robertson were honored during But Speaker Black ended up in the Owens' response John Carrington, Sandra Fearrington, the North Carolina Main Street annual deal, as well. “Speaker Black has ap- Jim Fulghum, William Graham, awards dinner in Morganton by being proved Bill Owens request of $250,000 Owens told Carolina Journal that in Lee Kindberg, Robert Luddy, named “Main Street Champions” by for the Main Street in Elizabeth City. the last few days of the General Fund William Maready, J. Arthur Pope, Elizabeth City Downtown, Inc. Please find the enclosed letter for de- budget process, the Arts Council asked Assad Meymandi, Tula Robbins, “We’re just investors buying prop- tails. This is half of the $500,000 needed him if there was any money available David Stover, Jess Ward, erty and fixing it up as we can afford to for this project and Speaker Black would for its project. “I passed a request from Andy Wells do it,” Owens told The Virginian-Pilot. like to share the cost with Senator the Arts Council on to Speaker Black. Board of Directors Owens was a Pasquotank County com- Basnight,” read a memo from Black’s When we got the award, I was totally missioner from 1976 to 1995 and since office to DOT Secretary Lyndo Tippett. amazed at the amount. I thought it was then has served in the N. C. General On Sept. 20, 2004, Black aide Rita a mistake.” Assembly. Robertson is a former Eliza- Harris sent to Donna Rosenfield, Legis- Owens said that even though he has Carolina Journal is a monthly journal of news, analysis, and commentary on state beth City Councilman. lative Liason at the Department of Cul- approximately $5 million worth of real and local government and public policy is- Owens owns several apartments, tural Resources, a list of projects to be estate downtown, he has considerable sues in North Carolina. retail space, and office buildings valued funded from Black’s discretionary fund loans on the properties, and added that between $2 and $3 million on East Main at that department. Among the projects he is one of the largest taxpayers down- ©2005 by The John Locke Foundation Street, and as much as $5 million total was $500,000 for the Pasquotank Arts town. He acknowledged the improve- Inc. All opinions expressed in bylined articles in the immediate downtown area. Council in Elizabeth City. Each project ments would enhance the value of his are those of the authors and do not necessarily Owens and Robertson formed a part- also listed the name of a legislator, and real estate holdings.