What did David Tepper know? Rock Hill wants Panthers owner records over failed project
Lawyers for the city of Rock Hill want records and communications from Carolina Panthers owner David Tepper related to the team’s failed headquarters project, court records show.
Records indicate the city wants to know who decided to pull the plug on the project -- and why.
The city is demanding from Tepper, “All documents and communications concerning or related to the Debtor’s decision to suspend the Project,” according to court records.
The action by the city is the first time since bankruptcy was declared in June that Rock Hill has sought answers from Tepper himself.
Lawyers representing Rock Hill have filed documents in federal bankruptcy court in Delaware saying they intend to subpoena Tepper for records and communications pertaining to the decision by Tepper’s company, GT Real Estate, to halt the project and file bankruptcy.
GT Real Estate, called the Debtor in court documents, was the company created by Tepper to build the then-planned Panthers headquarters and practice facility. Construction had been underway on the site off Mount Gallant Road in Rock Hill, S.C.
The city also wants records from other Tepper companies, including the Carolina Panthers, GT Real Estate, DT Sports Holding, Tepper Sports Holding, and Appaloosa Management.
The other companies are Tepper entities in the operation of the Panthers and his investment business, according to court filings.
Legal battle over Rock Hill, York County money
The request for records is the latest move in the back-and-forth legal maneuvering between lawyers for the Tepper companies, York County and Rock Hill over the failed project.
Construction had been underway since 2020. The project was abruptly halted in March in a dispute over money.
In previous court filings, Rock Hill claimed Tepper companies tried to severely scale back the project before halting the project and filing bankruptcy. The city claimed GT Real Estate failed to secure anchor hotel and hospital tenants for the development site, which would have produced substantial economic development and tax income.
York County claims it is owed at least $80 million, including $21 million in road tax money. Rock Hill claims it is owed at least $20 million it invested.
GT Real Estate says it owes the county and city nothing, court documents show.
In the bankruptcy, GT at first offered to pay York County the $21 million. Rock Hill would have been paid after the property was sold. But in recent weeks, after both York County and Rock Hill filed lawsuits against Tepper companies that alleged conspiracy and fraud, GT Real Estate withdrew the offer of guaranteed money to York County and Rock Hill.
GT claimed the city and county made “aggressive responses, unreasonable expectations regarding claim amounts,” in the bankruptcy.
GT called Rock Hill’s claims of fraud and dishonesty, “preposterous,” in court documents.
Now, the city wants records from Tepper about who decided to cut the city out of the guarantee after the city sued Tepper companies, the court filing shows.
The city’s lawyers want records of “All documents and communications concerning the Debtor’s decision to modify the treatment of the City Claims under the August 11 Plan (as defined in the Disclosure Statement) and the current Plan, including all communications with David Tepper and any persons acting at his direction or on his behalf,” according to the court documents.
Records about bonds
York County has sued Rock Hill for breach of contract.
The city denies legal claims from both York County and the Tepper companies that it was required to issue as much as $225 million in bonds to pay for the project.
In the bankruptcy, GT claims Rock Hill failed to get the bonds to pay for the headquarters to move forward. GT claimed Rock Hill had “inability or unwillingness to obtain low-cost public financing.”
Rock Hill wants records from Tepper to support the alleged claim that the city had either the inability or unwillingness to get the bonds, the court filing shows.
Tepper and the Tepper companies have not yet responded to the filing in court documents.
A spokesman for GT Real Estate declined comment Tuesday.
This story was originally published September 27, 2022 at 11:06 AM with the headline "What did David Tepper know? Rock Hill wants Panthers owner records over failed project."
