Sunday, June 7, 2015

DGI, Jim Westmoreland, Nancy Vaughan, Zack Matheny, Tuggle Duggans, Roy Carroll and the Triad Good Government PAC

DGI's Board of Directors, 
in a closed session with Nancy Vaughan, Jim Westmoreland, 
Marty Lawing and Jeff Phillips, 
asked that DGI's funding be guaranteed 
before announcing the hiring of Zack Matheny 
to be funded by City of Greensboro and Guilford County tax dollars.

Zack Matheny, a sitting Greensboro City Councilman, 
apparently without objection or raised concerns 
as to the appearance of a conflict of interest in the course of action, 
has placed himself in a position where his future employment
has become dependent upon taxpayer money
for a sitting, elected official who has voted for the funding of the organization,
and serves as City Council's DGI Liaison.

Mr. Matheny hired someone from Tuggle Duggins
which has business before City Council
to negotiate Zack's DGI contract.

Tuggle Duggins represents Roy Carroll in business before the City.

Tuggle Duggins represents Bob Isner and Bob Chapman  
who are seeking a taxpayer funded settlement
which is currently in play before City Council
which includes Zack Matheny.

Brian Wise, General Counsel and VP of Finance
for Roy's Carroll Companies
should have participated in the DGI closed session
in which Zack Matheny's employment was discussed,
for the benefit of Roy Carroll and Tuggle Duggins,  
so it's not like John Hammer doesn't know.

Downtown Greensboro Inc. (DGI) is in for some big changes 
that go far beyond hiring City Councilmember Zack Matheny as the new president,
which according to reliable sources is in negotiations.

John Hammer

May 28, 2015

All this after interim DGI CEO Cyndy Hayworth 
publicly accused City Council member Mike Barber of extortion 
over the job for City Council member Zack Matheny, 
and after Greensboro Mayor Nancy Vaughan, 
who has received campaign contributions 
from Tuggle Duggins attorneys and Roy Carroll via the Triad Good Government PAC, unsuccessfully attempted to appoint John Lomax
a Matheny business partner and campaign contributor/crony 
to DGI's board before the meeting on hiring Matheny.
Any person who threatens or communicates a threat 
or threats to another with the intention 
thereby wrongfully to obtain anything of value 
or any acquittance, advantage, or immunity 
is guilty of extortion 
and such person shall be punished as a Class F felon.

§ 14-118.4. Extortion; Favoritism and Crony Capitalism

While Tuggle Duggins lobbies for Roy Carroll's financial interests
with the City of Greensboro,  
which Zack Matheny has voted for on multiples of occasions, 
as an elected Councilman with fiduciary responsibilities to Greensboro's taxpayers,
Tuggle Duggins is also lobbying for Zack to be appointed to DGI's top post, 
which was funded with Matheny's vote.
North Carolina Bar association Client-Lawyer Relationship Rule 1.7 Conflict of Interest: Current Clients

Updated, Updated; On Marsh Prause, Nancy Vaughan, Jim Westmoreland, Jeff Phillips, Marty Lawing and DGI's meeting to hire City Councilman Zack Matheny

No public officer or employee 
who is involved in making or administering a contract 
on behalf of a public agency may derive a direct benefit from the contract...

§ 14-234. Public officers or employees benefiting from public contracts; 

Tuggle Duggins' Charles Blackmon serves or served
on the CITY'S EVALUATION PANEL; Economic Development
and is involved in representing Zack Matheny
for a job with an agency tasked with economic development.

Process/Structure Review Group

Roy Carroll served/serves with Tuggle Duggins' Mike Fox
on the Process/Structure Review Group

"Michael S. Fox is involvement with Leadership Greensboro,
The Greensboro Chamber of Commerce
and One Step Further's Yvonne Johnson.

Mike gained extensive knowledge in land use and real estate issues by serving on the Greensboro Planning Board for six years from 2003 to 2009 and was the Chairman of the Planning Board from 2007 to 2009."
Iron Hen

"Things seemed set to move on until veteran attorney Mike Fox of Tuggle Duggins appeared at the podium. Fox recently represented Roy Carroll on a request to close a portion of Lindsay Street for Bellemeade Village, a $50 million mixed-use project near New- Bridge Bank Park.

Zack Matheny, a currently serving City Councilman
voted for Tuggle Duggins' client's projects
and has now enlisted the same firm to represent Zack's own interests
for an unknown sum of money, which may have been heavily discounted,
considering Matheny has done such a good job giving everyone else's money
to Tuggle Duggins' clients.

Fox appeared on behalf of Darren Dalton, owner of Custom Sheet Metal Works...

...“We are trying to be easy here,” Fox said. “We’re willing to work with (Greensboro’s Department of Transportation) and we know that a site plan can change.”

Direct or indirect benefits are considered 
under the City’s conflict of interest policy 
and typically involve financial interests for the Councilmember, 
his or her immediate family, their partner, or an organization
which employs or is about to employ the member...

S. Mujeeb Shah-Khan

Mayor Pro-Tempore Johnson made a motion to that effect, but then she and Council member Zach Matheny asked for staff guidance regarding the motion’s necessity. City Manager Jim Westmoreland said he didn’t think they needed to make an official motion. Attorney Fox quickly disagreed.

Yvonne Johnson should have recused herself,
as Mike Fox's bio says he serves on Yvonne's One Step Further board.

“I do think we need this condition,” Fox said. “It’s the only protection my client has. He’s the most impacted person by this street closure.”

...“She’s putting a $3.5 million investment downtown and she’s paying $400,000 for parking, which could be public. Why wouldn’t we consider doing a partnership like with did with Spice Cantina?” Matheny asked.

Spice Cantina, owned by Nancy Hoffmann's business partners
of whom Nick Piornack serves on DGI's board, 
who should have been in the room
when Zack Matheny's employment came up.

After several minutes of back and forth between Comer and Fox regarding their specific negotiations, Mayor Vaughan noted that the issue needed to be postponed."

Dec. 31, 2014; "South Elm Development Group, the private company contracted by the city to oversee the process of turning six acres of brownfields into 21st century mixed-use splendor, in turn has requested to be paid for more than $400,000 in project expenses.

No member shall be excused from voting 
except upon matters involving the consideration 
of the member's own financial interest 
or official conduct or on matters 
on which the member is prohibited from voting...

§ 160A‑75. Voting.

...Once it became clear that SEDG’s profit from land sales wouldn’t quite meet their expectations, partners Bob Chapman and Bob Isner began looking for an alternate compensation method.

...SEDG partner Bob Chapman submitted the first proposed amendment on Nov. 18. It called for the city to reimburse SEDG for any revenue lost when the city gives component developers land free of charge.

Whomever from Tuggle Duggins is representing Zack Matheny, 
a Greensboro City Council member 
in negotiations with Greensboro taxpayer funded DGI, 
is also representing others with claims against the City at the same time, 
which Zack has had the opportunity to involve himself with as a Councilman
in a blatant conflict of interest.

A week later, on Nov. 26, SEDG’s attorney Mike Fox of Tuggle Duggins reached out to USCI’s [and the Bryan Foundation's] Ed Kitchen, [which is involved in financing the Randolph County Megasite deal].

“(Greensboro city attorney) Tom Carruthers and I are discussing ideas about moving forward on the Union Square campus land issue and thought it would be good to brainstorm a little with you about some difficulties we were facing,” Fox wrote.

As a City Councilmember,
Zack Matheny currently represents the City on the matter of the Bob's
as his now attorney represents Zack,
which is a conflict of interest for Tuggle Duggins and Zack Matheny.

...Late that afternoon the city received a letter from SEDG attorney Fox spelling out their negotiating position.

Fox reiterated the work SEDG has performed under the agreement and how the land transfer to USCI “further diminishes SEDG’s ability to market the property ...”

Fox estimated that SEDG’s expected compensation for the two USCI parcels amounted to $2.9 million. The partners had incurred more than $436,000 in expenses, Fox said, and would be willing to settle for the $500,000 staff recommended in August. But SEDG wanted two additional considerations.
Roy Carroll’s $50M downtown Greensboro project to include 300 upscale apartments

...Carroll on Wednesday outlined the project to the Greensboro Planning Board...

Zack Matheny voted to give Mike Fox's client
a City street for free,
before hiring Fox's firm to represent him
in negotiations for money Zack voted to give to DGI
after accepting years of campaign contributions from Roy Carroll
and Tuggle Duggins's attorneys via the Triad Good Government PAC.

Carroll, of The Carroll Cos., and Tuggle Duggins attorney Mike Fox presented site plans and renderings to the planning board.
Along with Roy Carroll, Tuggle Duggins' attorneys are the largest contributors to the Triad Good Government PAC, which has provided campaign contributions to Trudy Wade, BJ Barnes, Kay Cashion, Lisa Johnson-Tonkins, Phil Berger, Zack Matheny and Nancy Vaughan.

Mike Barber's campaign contributor and treasurer Art Winstead, who is also Barber's First Tee of the Triad's tremendously overpaid accountant, who didn't charge Mike to be his campaign treasurer, also contributed to the Triad Good Government PAC.
Triad Good Government PAC, filed 1/25/11


Peter Evenson

Michael S. Fox, Steven D. Bell

Roy Carroll; $7,910.00

Charles Blackmon etc...

Disbursements; Robbie Perkins, Nancy Vaughan, Zack Matheny, Marikay Abuzuaiter, Dianne Bellamy-Small, Yvonne Johnson, Wayne Abraham among others
Triad Good Government PAC, filed 1/30/14

Contributors of interest;

Don Vaughan's business partner Paul Mengert.

Disbursements; Mike Barber, Robbie Perkins, Zack Matheny, Nancy Vaughan, Yvonne Johnson, Nancy Hoffmann, Tony Wilkins,
Downtown Design Manual – Small Stakeholder Group

Roy Carroll – The Carroll Companies

Mike Fox – Tuggle Duggins & Meschan
Matheny for Congress
City of Greensboro Information Request;

Please provide all documentation and communications between anyone at DGI, including the Tuggle Duggans' attorney representing Zack Matheny, concerning Zack's employment application with DGI, and/or contract negotiations with the City's legal department concerning Matheny's DGI job offer.

Please provide all documentation and communications concerning the City's legal representation relative to Zack Matheny and DGI, including whether or not the City can represent both Zack Mathney as a City Councilman and Zack Matheny as a candidate for a job funded by a Council vote in which Zack was involved. public servant...authorized to perform an official action
 requiring the exercise of discretion, 
shall participate in an official action by the employing entity
 if the public servant ...may incur a reasonably foreseeable financial benefit 
...which financial benefit would impair the public servant's
 independence of judgment or from which it could reasonably be inferred
that the financial benefit would influence 
the public servant's participation in the official action.

§ 138A‑36

Please provide all documentation and communications between anyone in the City's legal department and Zack Matheny, or an attorney representing Zack Matheny, for the last 90 days.

Please provide all documentation and communications between anyone in the City's legal department and Marsh Prause, or any other attorney representing DGI for the last 90 days.

If any documentation and communications are deemed privileged, please provide a privilege log detailing the communications and documentation.
Information Request #, Subject, Date,
Requested, Requestor, Status, Business Weeks/Days Open

4602 Zack Matheny and Sam Simpson 5/14/2015
Billy Jones Staff compiling records. 1 week 3 days

4603 Zack Matheny and John Lomax 5/14/2015
Billy Jones Staff compiling records. 1 week 3 days

4604 Zack Matheny and Roy Carroll 5/14/2015
Billy Jones Staff compiling records. 1 week 3 days

4607 Zack Matheny DGI communications 5/15/2015
George Hartzman Staff compiling records. 1 week 2 days

4608 Mike Barber communications 5/15/2015
George Hartzman Staff compiling records. 1 week 2 days

4609 Nancy Vaughan Communications 5/15/2015
George Hartzman Staff compiling records. 1 week 2 days

4613 Email search for Jason Cannon 5/15/2015
Jeff Sykes Staff compiling records. 1 week 2 days

4623 Jim Melvin communications 5/20/2015
George Hartzman Staff compiling records. 4 days

4624 Roy Carroll Communications 5/20/2015
George Hartzman Staff compiling records. 4 days

4627 DGI 5/20/2015
George Hartzman Staff compiling records. 4 days

George Hartzman Staff compiling records. 4 days

4630 Triad First Capital 5/20/2015
George Hartzman Staff compiling records. 4 days

4631 Stan Kelly 5/20/2015
George Hartzman Staff compiling records. 4 days

4632 Greensboro Randolph Megasite 5/20/2015
 Alan Ferguson Staff compiling records. 4 days

4633 Sam Simpson 5/20/2015
George Hartzman Staff compiling records. 4 days

4635 John Hammer Communications 5/21/2015
George Hartzman   3 days

4642 David Powell 5/26/2015
George Hartzman   1 day

4643 Jim Westmoreland 5/26/2015
George Hartzman   1 day

4644 Nancy Vaughan, Zack Matheny and Mike Barber Facebook Messages 5/26/2015
 George Hartzman   1 day

4649 AON Consulting contract 5/27/2015
George Hartzman
"Any officer, department head or employee 
who has financial interest, direct or indirect, 
in any proposed contract with the city 
...or to a contractor supplying the city, 
shall make known that interest 
and shall refrain from voting upon 
or otherwise participating in the making of such contract or sale.

Any officer, department head, or employee 
who willfully conceals such a financial interest 
or willfully violates the requirements of this Section 
shall be guilty of malfeasance in office or position
and shall forfeit his office or position.

Zack Matheny should resign.

Violation of this Section 
with the knowledge expressed or implied 
of the person or corporation contracting with or making a sale to the city
shall render the contract void."

Sec. 4.131. - Conflict of interest: Greensboro Code of Ordinances, City Charter

Matheny should have ended all public comment
and any Council deliberations and votes
on his announcement of going after a position Zack helped create
by conspiring to get rid of Jason Cannon
and killing Cyndy Hayworth's chance at the job

by leaking information about her education credentials to the press.