CAROLINA BEACH, NC (WECT) – Carolina Beach leaders closed two hotels owned by the town's non-profit CBP3 last week, but one issue regarding the property remains open.
The current town council is working to reduce the debt payments stemming from the property's $4.3 million purchase in 2009. The council that approved the purchase included three now former members involved in an SBI investigation: Mayor Joel Macon and Council members Dan Wilcox and Pat Efird.
Included in the accusation letter that spark the initial investigation is an signed affidavit from fellow, now former, Councilman Alan Gilbert. The document details Gilbert's version of how the town took over the property.
In closed session, town council originally authorized the Town Manager to bid up to $500,000 on one of several lots that were a part of Arcadius Development and now up for auction.
Gilbert attended the auction, where he said a representative from Republic Bank approached him. The representative said Mayor Macon told him about the town's interest in the oceanfront property, according to Gilbert's affidavit.
Carolina Beach bought one property that day for $475,000, but Republic Bank bought six others for $2.1 million. The bank continued to bid on the property in an effort to raise the price, according to the document.
Gilbert suggested the bank ran up the price of the properties at auction after learning of the town's interest in them from Macon. At a special closed session, Mayor Macon then informed the rest of town council that the bank would sell the property for $3.6 million. Once loans and interest were included, the town owed $4.3 million.
Town Manager Tim Owens told WECT.com Tuesday that the details of the auction and corresponding action were unclear more than two years later. Owens did say that the bank likely upped the price in an effort to make a return on its investment.
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