• 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 . 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- , 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. He said he gave reflect the views of the editors of CJ or the staff nership in 1991 and started buying in this case it was Owens. $15,000 towards the streetscape project, and board of the John Locke Foundation. downtown property in Elizabeth City. The same day she received Black’s but the city gave the money back. Material published herein may be reprinted request, Department Secretary Lisbeth He said he was worried about the as long as appropriate credit is given. Sub- Streetscape improvements Evans sent the Pasquotank Arts Coun- appearance of a conflict of interest, so missions and letters are welcome and should cil a letter informing the group that it prior to requesting the grants he de- be directed to the editor. Owens owns or has an interest in had been awarded $500,000 “for reno- cided to discuss the situation with his 10 or more properties on or adjacent to vation of a downtown building for a hometown paper. He said The Daily CJ readers wanting more information an ongoing Main Street improvement cultural arts center.” Prior to receiving Advance editor Michael Goodman urged between monthly issues can call 919-828- project referred to as a “streetscape.” the grant, the Arts Council claimed net him to pursue the grants. 3876 and ask for Carolina Journal Weekly Report, delivered each weekend by e-mail, or Streetscape involved new sidewalks, assets of $265,000 for the tax year end- Goodman confirmed that Owens visit CarolinaJournal.com for news, links, underground utility lines, brick street ing June 30, 2004. approached him about the issue. and exclusive content updated each weekday. crossings, new pavement, new street The organization is currently ”Streetscape was a way to help Eliza- Those interested in education, higher educa- lights, new benches, and new trash cans. housed in a building on East Main Street beth City. You can’t restrict the devel- tion, or local government should also ask to Three blocks were finished last year. The and the new facility is also on East Main opment of downtown because Bill receive weekly e-letters covering these issues. additional grants from the state discre- Street. The Council acquired the new Owens owns property here,” Goodman tionary funds are to help finance two building in 2002 for $120,000. “Once told CJ. CJ C A R O L I N A May 2005 JOURNAL North Carolina 3 Senator Helps College President, Citizen Block Historic Gold Mine

Continued From Page 1 staff. liability company… and the objective of became the largest tract of privately held In a final attempt, Carter was able to that is to… protect the investors from land in the proposed village. Pfeiffer stream. Digging into the adjacent stream get a split decision to rezone his prop- liabilities… if the mine goes broke, Carter College is the other large tract of land bank, Barringer struck gold. Little did erty from Residential Agricultural (RA) and his investors can walk away from it, and is exempt from property taxes. Pro- Barringer know, but he had struck it big to Heavy Industrial (M2) with a condi- leaving the community scarred forever,” ponents also saw a unique opportunity — one of the largest veins of gold in tional use permit. That final split deci- he said. to rectify another lingering issue for North Carolina history. sion led to a public hearing before the Residents voiced their concerns. Pfeiffer. Richard F. Knap of the N.C. Depart- county commission April 8, 2002. He Mike Harrin said, “if this land is re- A decision rendered by the N.C. ment of Cultural Resources and co-au- and his consultants illustrated their in- zoned M2, our community will forever Court of Appeals in December 2002 thor of Gold Mining in North Carolina tent to create multiple businesses and be in the shadow of heavy industry.” (State v. Jordan), reaffirmed the posi- described the Barringer Gold Mine as a dozens of jobs while staying within the Carter himself seemed to sum up tion that Pfeiffer’s police force was im- “watershed event in US gold mining, state and federal guidelines for mining. the commissioner meeting best. “We potent to enforce the state’s laws. If moving the industry into the age of vein During the meeting, Carter and his sup- can all speculate on the ‘what-ifs,’ but incorporation of the village were to suc- mining.” porters ran into opposition headed by the best barometer is what’s out there ceed, Pfeiffer would benefit from a state- The fortune of the mine, however, Edquist and Ambrose. right now,” he said. approved police force whose jurisdic- turned to tragedy in 1904. Under the “The decisions this evening,” said Ambrose provided testimony as to tion would include the university. With ownership of Whitney Mining Com- Steve Smith, Carter’s lawyer, “should the beginning of Carter’s endeavor, say- the creation of the village, Pfeiffer now pany, eight men were killed in the mine be based on facts. We understand there ing they had had meetings about the subsidizes its police protection to the when a heavy deluge hit the county are fears and there are rumors, but nei- original residential development that tune of $350,000 annually. Aug. 11 and flooded the mine. After the ther are a sufficient basis to render your were positive. It was only after discov- In Feb. 17, 2003, Sen. Bill Purcell tragedy (and the ensuing lawsuits), the decision tonight.” ering the potential of the mine that the filed Senate Bill 76, which had the sup- mine closed. Numerous residents testified that college began to have “serious concerns” port of the Stanly County Commission. On March 25, 1998 Stanly County they were worried about dust, blasting, and helped organize citizen opposition. In the documents submitted to the Gen- developer and entrepreneur Joe Carter cancer, and the disruption of their lives The county commissioners voted eral Assembly, there were to be 150 bought the mine and nearly 240 acres of because of the mining process. Others against the rezoning request unani- permanent residents, 600 Pfeiffer stu- land. While clearing the land for devel- feared that Carter’s real goal was to start mously. dents, 183 registered voters with signa- opment, Carter, much like Barringer, a rock quarry, that the gold and tourism During the late summer of 2002, the tures from 154 of that voter pool. discovered gold. The discovery, com- plans were a ruse, and that the actual town of Richfield worked with Carter One of the requirements by the state bined with the hope of finding more intent was to quarry aggregate for con- on a possible annexation strategy. government is that a “petition signed by gold, led Carter to hire the services of struction. Carolyn Lisenby, Richfield’s town ad- fifteen percent (15%) of the registered numerous experts who were to assess Stuart Brashear, a blast expert with ministrator, said Richfield held meet- voters of the area proposed to be incor- the practicality of creating a viable min- Dyna-Nobel, told the committee that ings about such a possibility. If granted, porated” be presented to the Joint Leg- ing operation and establishing a new neither dust levels nor blast sounds or the move would have allowed for the islative Commission on Municipal In- tourist destination in Stanly County. The vibrations would exceed state or federal operation of the mine. Richmond Town corporations. According to age and ad- experts concluded that the mine offered restrictions. In fact, he said, that due to Alderman Terry Almond also confirmed dresses supplied by the N.C. Board of many valuable possibilities for Carter. the use of a “wet mining process,” dust that Carter had worked with them in a Elections, 39 of the 227 registered voters Not only could this small portion of the levels should not be an issue. Further move that would have allowed Richfield (17 percent) in the Misenheimer area for land be used for excavating gravel and testimony revealed that “blast sound to annex the Carter property and pro- 2003 could be Pfeiffer students. sand for highway construction, but, be- and vibrations would be similar to that ceed with development of the mine. He The legislation was hastily ratified cause of geological processes, the mine of a train” going through the commu- confirmed that there were councilmen June 26, 2003. Carter, based upon con- contained a thin, and in some places nity once a year. willing to work with Carter for eco- versations with legislative staff, brought extremely pure, vein of gold. In their Additional information showed that nomic development reasons. several witnesses to appear before a estimation, only 10 percent of the total the aggregate being removed for high- Concurrently, both Ambrose and committee before final ratification. Upon gold in the vein had been removed. way use was a byproduct of the mining Edquist went on offense. Edquist, as a bringing the witnesses to Raleigh, he With current mining techniques, the process and would create additional rev- private citizen and Ambrose, as presi- was told that the schedule had been remaining gold could be mined with enue. The aggregate was the rationale dent of Pfeiffer, started using their col- changed. He was never allowed to ap- minimal environmental impact, they behind calling the operation a “quarry” lective abilities to lobby support from pear before any committee. Hartsell, said. by the opposition. The word “quarry” alumni, students, residents, and Hartsell who had represented Pfeiffer and Knap agrees and further believes also appears on the mining permits. to take a different approach. They peti- Edquist, voted in favor of the village. In the Barringer mine could become a his- Environmental engineer Paul tioned the state to create a new town to the haste to pass the bill, dates of mu- torical site similar to the nearby Reed Harrison, of the Moser Group, studied forcibly annex Carter’s property and nicipal elections were set for 2004 and Gold Mine in Midland. the impact on land value of properties stop the mine. were later modified because they were Halting further development on the adjacent to a mine similar to the pro- The net effect of the creation would in violation of municipal election laws land, Carter turned toward the possibil- posed Barringer operation. “In sum, the neutralize any future rights Carter and that require municipal elections to be ity of mining the gold. While consulting perception of a negative impact of a his business partners would have to held in odd-number year