After heated debates, seller backs out of property sale to Southport
The city of Southport considered the purchase of a piece of property located near city hall for "future city use," but after some details about the property were disclosed publicly, the seller backed out of the deal.
While property acquisition matters are typically handled in closed session meetings, the city’s attorney recommended disclosing the property’s location, current owners and intended use by the city in open session, which led to a series of comments and debate from the board.
During the board’s Oct. 11 meeting, Southport Mayor Joe Pat Hatem asked for a motion to go into closed session, which was met with concerns from Alderman Lowe Davis, who said the board instructed City Manager Bonnie Therrien to enter negotiations for the purchase of a property, a move Davis said should have been disclosed in open session.
Davis’ concerns seemed to irritate Alderman John Allen, who asked “When did you get your law license?”
The board opted to delay the closed session that night until the board’s meeting on Oct. 12, at which time City Attorney Brady Herman cited state statutes that require disclosure of the reason a governing body might go into closed session, often for attorney-client privileged discussions, personnel discussions and real property acquisition.
For the latter, Herman said, case law from the 1990s held that at public request, the board may disclose the property’s location, current owner and intended use.
The board first entered a closed session for an attorney-client privileged discussion. Back in open session, Therrien said the property the city is considering is 1105 North Howe St., which is owned by Jonathan and Suzanne Hatch and would be "used for future city use."
According to real estate listings, the property is a 0.57-acre lot with a 876-square-foot building located across the street from city hall. The property is listed for $625,000.
Alderman Robert Carroll, a local RE/MAX partner and real estate agent, had recused himself from the closed session dealing with the proposed property acquisition.
“It’s unfortunate that we’re in a position that compromises the negotiations so that we can call it transparency,” Carroll said. “That’s the unfortunate part.”
Carroll made it clear his company was somehow involved in the potential deal when Alderman Richard Alt asked, "Are we going to go into who’s going to make money off this deal?"
“I’m going to make money,” Carroll replied. “I’m going to make money.”
At the Oct. 12 meeting, Therrien said disclosing those details of the potential acquisition was “the stupidest thing I’ve ever seen in my life.”
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“You are negotiating on behalf of a municipality for a property and now you’re going to send all of that information out into the public where all of a sudden…you’re going to find out who’s going to be competing against you and raise that price,” she said. “It is stupid.”
At the board’s Nov. 3 meeting, Carroll apologized for his heated comments.
It seems Therrien's concerns were realized. At the board's Nov. 9 meeting, Hatem asked that the item be removed from the meeting's agenda.
"That is no longer for sale," Hatem said. "They did not want to go through with a sale to the city."
Jamey Cross covers Brunswick County for the StarNews. Reach her at jbcross@gannett.com or message her on X/Twitter @jameybcross.
This article originally appeared on Wilmington StarNews: Southport aldermen consider purchase of property near city hall
