Charlotte council member announces sudden resignation after taking construction job
At-large Charlotte City Council member James “Smuggie” Mitchell announced his sudden resignation early Monday — a week after his new role as co-owner and president of a construction company stirred controversy.
Mitchell is at the helm of general contractor and construction management firm RJ Leeper, which was recently purchased by Bright Hope Capital LLC, a new company created by a group of local business leaders. Bright Hope’s primary investors are Hugh McColl, former Bank of America CEO, and Malcomb Coley and Lloyd Yates, current and former leaders at EY and Duke Energy, respectively.
They say Bright Hope will acquire and operate Black- and Hispanic-owned businesses like RJ Leeper to help them expand. But shortly after the announcement last week, questions arose about Mitchell’s role.
City attorney Patrick Baker told WFAE and the Charlotte Ledger newsletter that he has not been involved with a situation where a city official owned a company that conducted business with the city.
In a statement to reporters later that day, Baker said he was speaking in general about his experience managing possible city council conflicts.
Mitchell, who has served on the council for two decades, told his colleagues Monday that stepping down is in the “best interest” for himself, company and the city.
“This was a tough decision to make because serving the citizens of Charlotte for 20 years has been my great honor,” he said.
There’s no timeline yet for filling Mitchell’s seat, though some City Council members emphasized it should happen as soon as possible. Like recent vacancies, Baker said candidates will fill out an application.
The process is ultimately up to the City Council, though state statue says Mitchell’s replacement must be a Democrat.
In a press conference, Mitchell said he’d like to see a Black woman selected, and that he has developed a list of five potential candidates. Three of them are Black women, he said.
LaWana Mayfield, a former city council representative for District 3, said late Monday she is interested in Mitchell’s seat.
In an email to her supporters, Mayfield cited events of the last year to explain her interest, including COVID-19, the police response to Black Lives Matter protests and the rising cost of housing.
“I believe I have a lot more to offer our beautiful city as discussion of transportation, housing affordability, access & equity continue to dominate many of our conversations,” she wrote.
Ethics concerns
The city’s ethics policy — which Mayor Vi Lyles emphasized should be included with the application — prevents officials from using their position for personal benefit.
Mitchell told the Observer last week that he would recuse himself from voting on anything involving RJ Leeper, and that the firm’s vice president would handle city projects. The company is working on public projects like the Charlotte Convention Center and Charlotte Douglas International Airport expansions.
In Monday’s press conference, Mitchell said he was not previously aware of a state law that prevents public officials from deriving a “direct benefit from a contract with the public agency he or she serves.” The law considers owning more than 10% of a company part of such a contract to be a direct benefit.
Mitchell, who owns 25% of RJ Leeper, said the statute would have prevented the firm from doing business with the city if he had stayed on council.
“The opportunity was too great to take a 30-year minority-owned company and continue the legacy,” he said. “I think I can impact Charlotte in a different way.”
After starting the job, Mitchell said it also became clear he could not split his time between the two roles because of the time commitment. He said he was planning to make an announcement in May, but the city manager and Lyles said it would be better to bring a new representative in before the budget process this spring.
During City Council’s Monday retreat, Mitchell said his retirement is effective at 5 p.m Monday. Lyles and city manager Marcus Jones officially received his resignation letter by Monday morning, he said.
Mitchell, a Democrat, was serving his third term as an at-large member. He first joined the council as the District 2 representative, serving in that seat from 1999 to 2013.
He chairs the council’s Workforce and Business Development, which in recent months has created recovery programs to aid local business amid the coronavirus pandemic and disburse federal CARES money.
Mitchell is a native Charlottean and graduate of West Charlotte High School. He was previously a manager at JE Dunn Construction Company.
Mitchell previously drew controversy over whether a taxpayer-funded trip to Detroit sports facilities was for personal gain in 2018, before Charlotte leaders landed a Major League Soccer team. But in an interview with the Observer, Mitchell called the trip a “fact-finding mission for me,” ahead of potential changes to the Carolina Panthers’ Bank of America Stadium.
During Mitchell’s announcement Monday, Lyles and council members gave Mitchell a standing ovation at the Government Center. The mayor said Mitchell’s efforts — including his focus on small, minority and women-owned business — will be recognized at a later ceremony.
“When you see people gravitate toward him, that infectious smile and that support for the love of the city is clear,” Lyles said.
This story was originally published January 11, 2021 at 10:11 AM.
