THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, June 22, 1995 TAG: 9506220464
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY MASON PETERS, STAFF WRITER
DATELINE: COLUMBIA LENGTH: Medium: 85 lines
The Northeastern North Carolina Economic Development Commission plans to seek legal advice to see if there's a conflict of interest in a $200,000 grant the commission approved for a Dare County developer to promote the Babe Ruth World Series in Manteo next year.
Several weeks ago, the pump-primers approved the $200,000 allocation after hearing an impassioned plea from Ray E. Hollowell, the Manteo entrepreneur. Hollowell is a founding member of the regional economic commission and currently serves on the 15-member board. He did not attend Wednesday's session at Columbia High School in Tyrrell County.
Hollowell helped create a tax-free youth foundation that will sponsor the Babe Ruth baseball tournament for teenage players in the summer of l996.
Commission member John D. Hall, a Northampton County radio executive, touched off several crackling minutes of debate when,in a surprise move, he said he thought the commission should look into the $200,000 grant.
``This may be my last action on this commission,'' said Hall, whose term on the panel expires June 30. ``But I'm concerned that there may be a conflict.''
Hall explained that he wanted to know whether Hollowell and his Dare County associates would be accountable for the $200,000.
Commission Chairman Andrew Allen, a Plymouth businessman, was clearly uncomfortable with the sudden flare-up that followed Hall's remarks.
``Nearly everything we fund involves spending some money for salaries, for labor, for equipment - what are you saying?'' Allen asked Hall.
``I'm only saying I think we should get legal advice on this,'' Hall replied.
In seconds, the term ``legal advice'' cooled the atmosphere around the table where the commission members sat. It was the first time that Hall had used the phrase and the idea of seeking a legal opinion seemed to put a more manageable face on the debate.
``Do I have a motion to ask our attorney about this?'' asked Allen.
He did. And it was quickly approved.
``The rules for sponsoring the Babe Ruth World Series require that a non-profit organization be involved for all fund raising,'' said Hollowell at his Manteo office after the commission meeting.
``Our participation will be sponsored by the Dare County Youth Enhancement Foundation and it has complied with all of the federal rules for non-profit organizations,'' said Hollowell.
``I explained that the foundation will never handle any of the $200,000. It will be in a joint bank account with Dare County and the commission and managed by the bank,'' Hollowell said.
Hollowell said that some time ago he joined with several other businessmen to organize the Dare County Youth Enhancement Foundation.
``We've helped a lot of kids,'' he said. ``We even bought musical instruments and paid for music teachers for the Manteo Middle School.
``And I can assure you that 99 percent of everything we've ever received has been used for helping young people. The money approved by the commission will pay for national television time during the Babe Ruth World Series and that will also help all of Northeastern North Carolina,'' Hollowell said.
On June 30, the terms of five commission members will expire. The 15 members of the commission are appointed, five each, by Gov. James B. Hunt Jr.; by the speaker of the House and by the president pro tem of the state Senate.
At least one of the five members due to step down has been reappointed. The four other appointments are expected to be completed before June 30.
``They'd better be,'' said Executive Director James Lancaster. ``The state attorney general says that after June 30, the five members whose terms expire are off the board - period.''
Lancaster told the commission that he expected the General Assembly to approve a $1,036,947 appropriation for the commission.
``Members of the state House and Senate appropriations committees have already agreed on the funding,'' Lancaster said. ``And they told me this week they thought there would be a favorable vote by both the House and Senate in a few days.''
The commission was one of six created by the legislators in 1992. Initially, each group was given a little over $2 million to set up shop.
The Northeastern panel has been slow to spend its money. The $200,000 approved for Hollowell's world series was the largest funding approved so far.
Sidward M. Boyce Jr., an Elizabeth City banker who is treasurer of the commission, told the members that they still have $1,173,157 in unspent funds in the bank as of May 31. by CNB