Charlotte offers no explanation behind $78 million deal’s delay as legal questions loom
The Charlotte City Council on Monday night deferred consideration of a deal involving construction company RJ Leeper at the last minute while the state investigates a councilman’s ties to the company.
During the council’s action review meeting at 5 p.m., a staff member walked to the lectern to tell the council item 34 needed to be deferred to a December meeting with no explanation. Item 34 was a $78.21 million deal involving RJ Leeper for a new pump station at the Mallard Creek Wastewater Treatment Plant near University City.
Leeper’s contracts with city government made their way into legal discussions during the 2022 municipal election. James “Smuggie” Mitchell finished fourth in the at-large Democratic primary and general election — enough to win a seat back on the City Council. But Mitchell continued to claim he owned a stake in RJ Leeper, which has active contracts with the city for projects at Charlotte Douglas International Airport and the Charlotte Convention Center.
Under N.C. law, it’s illegal for a city do business with a company if a member of the city’s governing board owns more than 10%.
Mitchell’s continued claims launched a district attorney-requested a investigation. N.C. State Bureau of Investigation spokesman Anjanette Grube told The Charlotte Observer Tuesday the probe is still ongoing.
“We have received assurances from the SBI that work on this case has continued steadily, even as they balance an investigative caseload from other jurisdictions across the state,” Mecklenburg County District Attorney Spencer Merriweather said. “When the investigation is concluded, the DA will review the SBI’s findings and determine whether there is any violation of criminal law warranting further action.”
Mitchell declined to comment, referring the Observer to Charlotte City Attorney Patrick Baker for more information. Baker said he had no update on the investigation or why city staff members pulled the wastewater treatment plant item.
What we know about Mitchell’s ownership
Despite significant evidence to the contrary, Mitchell has repeatedly claimed to own a 25% stake in a local construction company.
Records provided to the city from the company’s lawyers indicate Mitchell has neither the facts nor the law on his side — that Mitchell lost his stake in Bright Hope Construction LLC after he failed to repay a $375,000 company loan, money designed specifically for Mitchell to buy into the company in the first place.
Mallard Creek Wastewater Treatment Plant
The deal deferred to December would give a maximum of $78.21 million from the Charlotte Water Capital Investment Plan to a joint venture involving PC Construction and RJ Leeper to build a new pump station at the Mallard Creek Wastewater Treatment Plant.
The new station is part of a bigger multi-phase project by Charlotte Water to expand the Mallard Creek Basin. The project would expand the wastewater treatment plant’s capacity from 13.1 million to 16 gallons per day.
In June 2021, the city approved a contract for almost $1 million with the joint venture for pre-construction services.
On July 11, days before Mitchell was elected to the council, the city approved a guaranteed maximum price of $7 million for equipment and preliminary construction.
Phase one of Mallard Creek plant improvement projects is expected to wrap up by the end of 2025, city council documents show.
This story was originally published November 29, 2022 at 5:57 PM.
