Days after York County and the David Tepper-owned company behind the Carolina Panthers’ failed South Carolina headquarters project reached a bankruptcy settlement, law enforcement officials announced they’re investigating money transfers associated with the deal.
In a statement late Thursday, the offices of York County Sheriff Kevin Tolson and 16th Circuit Solicitor Kevin Brackett said they’ve launched “an investigation into the circumstances surrounding the transfer to, and subsequent use of public money by the Carolina Panthers owner David Tepper and GTRE, the company created to oversee the construction of the Panthers training facility.”
The officials didn’t say what prompted the investigation, or their statement, and said they would not comment further. They also said that the investigation “is simply an inquiry and should not create any inference that wrongdoing has been committed by any party.”
The York County Sheriff’s Office initiated the inquiry, which also now involves the local solicitor, the state attorney general and the the State Law Enforcement Division.
GT Real Estate Holdings called the news "politically timed leaks," and hinted that it could derail the recent bankruptcy settlement.
"It would be unfortunate if the recently announced settlement between GTRE and York County were somehow undermined by politically motivated leaks. The timing of these leaks is all the more curious in light of this settlement," said a spokesman for GT Real Estate.
"This is a straightforward commercial matter that is being fully resolved. The underlying disputes arise under contracts that were jointly negotiated by the parties and are publicly available. The funds paid by the County were handled consistent with the terms of those contracts," said the statement.
Tepper and the Panthers launched their new, $800 million headquarters in Rock Hill with much fanfare at a 240-acre site off Interstate 77, south of Charlotte and the state line. The project was expected to be a major economic boon for the area, with a state-of-the-art practice facility, offices, retail and other draws for fans and tourists.
York County agreed to pay for some road improvements around the site, and Rock Hill agreed to issue roughly $225 million worth of bonds to fund other infrastructure, such as water and sewer facilities.
The deal dissolved in acrimony earlier this year after both sides accused each other of failing to meet their obligations. GT Real Estate Holdings, the Tepper-affiliated company overseeing the headquarters construction, filed for bankruptcy in June. York County sued GT Real Estate, alleging it was owed some $80 million.
Last month, Rock Hill and GT Real Estate said in court filings that they had reached a settlement agreement in which the city would get $21 million.
York County and GT Real Estate indicated in court filings this week that they have also reached a settlement agreement. GT Real Estate said that settlement would pay the $21.65 million to "fully compensate" York County for all of its claims.
Other creditors, such as contractors, would receive $60.5 million under the proposed bankruptcy plan.
Here's the full statement from York County Sheriff Kevin Tolson and the Solicitor's office:
An investigation into the circumstances surrounding the transfer to, and subsequent use of public money by the Carolina Panthers owner David Tepper and GTRE, the company created to oversee the construction of the Panthers training facility, was initiated by the York County Sheriff to determine whether any laws were violated during that process. The Attorney General, Solicitor Kevin Brackett's Office and the State Law Enforcement Division have partnered with us to provide additional resources and assistance and we will work together to ensure that all relevant information is gathered so that a fair and just outcome can be reached.
An investigation is simply an inquiry and should not create any inference that wrongdoing has been committed by any party.
This office will have no further comment on the matter at this time.
