James ‘Smuggie’ Mitchell leaves job that led him to resign from Charlotte City Council

James “Smuggie” Mitchell, who resigned from Charlotte City Council in January for an executive position at a construction company, has left the business.

Contracting and construction company R.J. Leeper told the Observer on Monday that Mitchell is no longer with the business. In a statement to the Observer, Mitchell said that he would continue to own 25% of the company.

Neither the company nor Mitchell’s statement disclose the reason for his exit.

His last day at the company was July 2, according to Q City Metro, which first reported Mitchell’s departure.

In the statement, Mitchell commended his time at the company and said R.J. Leeper “thrived under his leadership.” Mitchell said he was instrumental in securing 12 projects worth a total of $265.5 million and “creating a backlog of potential work with $280M.” The company also opened a Wilmington office under Mitchell in May, he said.

Workforce development has been a key aspect of his tenure, Mitchell wrote. He participated in initiatives such as the Mayor’s Youth Employment Program, Charlotte Rescue Mission, and contributed to workforce development among minority firms.

Mitchell’s profile was taken down from R.J. Leeper’s website by Monday afternoon.

A sudden resignation

Mitchell, a Charlotte native, had served on City Council as an at-large member since 1999 until January. He announced his resignation during a Jan. 11 meeting, citing that the decision was in the “best interest” for himself, the company and the city.

R.J. Leeper was founded in 1993 by former City Council member Ron Leeper, and has become one of the major minority-owned contractors in the Southeast.

On Jan. 4, the company was purchased by investment firm Bright Hope Capital LLC, which focuses on the acquisition and operation of Black- and Hispanic-owned businesses, the investors said. Bright Hope’s list of primary investors includes former Bank of America CEO Hugh McColl. He provided support for the founding of R.J. Leeper from early on, the company’s history page shows.

On the same day as the Bright Hope acquisition, Leeper said Mitchell would take over the company as president, the Observer reported.

Mitchell said there would not be a conflict of interest one day after taking on the role, saying that he would not vote on R.J. Leeper contracts with the city of Charlotte. But others expressed concerns over the potential conflicts. City attorney Patrick Baker, for example, said there hadn’t been a precedent where a City Council member owned a company that contracts with the city.

Later, Mitchell cited North Carolina Statute 14-234 as reason for his resignation. The statute prevents a public employee to receive an over 10% direct benefit form a public contract. However, Mitchell’s 25% stake in R.J. Leeper violated the statute. The company’s contract with the city and Mecklenburg County count towards over 60% of its revenue, Charlotte Business Journal reported.

After receiving over 140 applications in a short span of time, City Council on Feb. 1 picked former member Greg Phipps to fill in Mitchell’s vacant seat.

This story was updated July 20 to correct the name of R.J. Leeper founder, Ron Leeper.

This story was originally published July 19, 2021 at 4:48 PM.