ROCK HILL, S.C. (WBTV) – York County has approved a settlement with Carolina Panthers owner David Tepper’s GT Real Estate (GTRE) company. A statement released Wednesday evening by a county spokesperson claimed “David Tepper and the Tepper Entities have acted in good faith” and “believes that no action of any kind…is warranted.”
The official announcement from York County came one week after the York County Sheriff’s Office said it would be investigating the transfer of and use of public money by Tepper and GTRE. The statement from the sheriff did not include any details about which public funds were in question.
York County and the City of Rock Hill awarded millions of dollars to Tepper and GTRE to build an $800 million modern, state-of-the-art practice facility and team headquarters in the area, but those plans were scrapped and construction was halted in April.
Under the new settlement, York County will receive $21.2 million which has been held in escrow since July 2022, from an affiliate of GTRE in respect of its claim for the recovery of funds transferred to GTRE in January 2021.
It is awaiting court approval.
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When the payment is received, the county will withdraw any prior complaint, if any, and any allegations, if any, that GTRE, David Tepper, or any of the Tepper Entities engaged in any violation of the Pennies for Progress statute, C-Fund statute or any other wrongdoing.
“Therefore, GTRE, David Tepper and the Tepper Entities have acted in good faith; the County Payment is restored; and the County is satisfied,” the county said. “As a result, the County considers all matters related to the County Payment closed and believes that no action of any kind with respect to the County Payment is warranted.”
A WBTV Investigation on the failed Panthers-Rock Hill practice facility and headquarters raised questions about whether the project was doomed from the start.
The investigation found the amount of bond money agreed to by Rock Hill was far more public investment than other similar projects and simultaneously sidestepped key oversight steps.
In an original agreement between York County and GT Real Estate, York County agreed to transfer $21 million from the Pennies for Progress program to GTRE for construction on Mt Gallant Road entering the Panthers project property. The agreement says the money would be transfered no later than July 15, 2020 as long as GTRE started construction within “24 months following the issuance of at least $225 million in SSRBs or MID Bonds by the City no later than October 31, 2020.”
In a complaint filed by York County in July, the county claimed that GT Real Estate and “Tepper Defendants” misappropriated the Penny Tax Funds to purposes other than the Mt. Gallant Project.
“Specifically, they used the funds to cover expenses associated with the Project generally,” the complaint read and accused Tepper’s company of violating the Penny Tax Statute and “committing misrepresentations or fraud.”
In June, GTRE filed for bankruptcy. In August, GTRE offered $82 million to pay off Rock Hill’s bankruptcy.
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