Public hearing set for TIF for Justice family

Mar. 7—The children of West Virginia Gov. Jim Justice are one step closer to gaining approval for tax breaks to develop properties they own in Raleigh County.

The measure cleared its first hurdle Tuesday morning during a Raleigh County Commission meeting where commissioners set a date for a public hearing to learn more about a proposed tax increment financing (TIF) district, where it will be located and the plans for its development.

The public hearing will take place at 11 a.m., April 25, in commission chambers at 116 N. Heber St. in downtown Beckley.

The TIF district is being proposed for two tracts of land in Raleigh County known as the Brier Patch Golf Links and the Smith property, which developers plan to use for residential and commercial development.

Justice's son, James Justice III, and his daughter, Jillean Justice, either own or have a stake in one or both of the properties as well as the company that will be developing the properties.

Roger Hunter, bond counsel for the project with Bowles Rice LLP, said the development plan for the project "remains essentially the same" as was presented to commissioners in April 2021.

At the time, the application for a $19.5 million TIF district for 30 years for the Brier Patch and Smith properties was denied after only receiving support from Commissioner Greg Duckworth.

A TIF is a public financing method that allows a developer to forego payment of taxes in order to develop a blighted area and grow the local economy. In theory, the money is used to develop the property.

Hunter said the new proposal has some changes that address previous concerns brought up by commissioners.

"Originally when we presented to you some time back before we hit the pause button, there was some consideration given to possibly including some tracts over on the other side of Tamarack," Hunter told commissioners. "Those have been removed at your all's request."

Hunter said the developers are still planning to use the properties for "mixed use development, which includes both commercial and private sector as well as affordable housing stock, which is a critical part of this plan."

The Brier Patch complex is located off Mount Tabor Road and is owned by Saddlebred LLC. Justice's son, James Justice III, and his daughter, Jillean Justice, are officers within Saddlebred.

The Smith property, formerly owned by Gov. Hulett Smith, is located on Harper Road near Tamarack. This property is owned by James Justice III.

Justice's son and daughter also have a stake in the Bellwood Corporation, the developer for the project.

Prior to Tuesday's meeting, Raleigh County commissioners wrote a letter to the West Virginia Ethics Commission seeking an opinion and possibly contract exemption regarding whether they could grant a TIF district to the children of the current governor.

County attorney Bill Roop said the state ethics commission informed the county last week that there would be no ethical issues with the commission proceeding with the matter as it's the children of the governor and not the governor himself who owns the properties or the company developing the properties.

"Since the Governor does not hold an ownership interest in the affected properties and is not associated with such businesses or interests," a contract exemption is not necessary, read a letter to commissioners from the state ethics commission.

Although Justice is not listed as the owner or either property, the Brier Patch property is referenced as being "acquired" by Justice in his bio on the Office of the Governor's website.

"Justice saw an opportunity to grow tourism in Raleigh County so he acquired The Resort at Glade Springs, Black Knight Country Club, and Brier Patch Golf Links," reads the bio.

The Black Knight Country Club is now owned by the city of Beckley which paid $3 million for the property in 2018.

Duckworth told The Register-Herald Tuesday that he also sought advice from the state ethics commission two years ago regarding the same matter.

Duckworth works as head of security for Glade Springs. He said he was informed that there would be "no conflict" because he would have "no personal gain" if the TIF district was granted.

He added that he is pleased that the entire commission is now in favor of allowing the proposal to proceed to the next step.

"It's very nice to have a united front where the commission is moving in the same direction," he said. "You can really see things move forward in the county when the county commission is all pushing the same direction."

Duckworth said he supports the TIF district because he sees it as a chance for economic development and job creation.

Commissioner Dave Tolliver said he chose to allow for the public hearing this time around because it seemed like the developers have a clearer vision for the properties.

"The last time, they didn't know what they was wanting to do," Tolliver said. "First time they come (to the commission), they had two pieces of property. Then next time they came, they had three pieces of property, and then they had one piece ... We didn't vote for it because we didn't have no really exact details of what they're going to do. But this time, it seems like, according to our attorney, they've got everything together."

Following the public hearing at the end of April, Tolliver said another date will be set for commissioners to vote on whether to approve the TIF district.

Tolliver said his main concern with the proposal is how long it will take before progress is actually made on the properties.

"If we do give them a 30-year TIF, is it gonna be 10 years from now before they ever start anything or five years from now or in the next year or so?" he said.

Tolliver said the attorneys who spoke at Tuesday's meeting could not answer his question, but he hoped it would be one of the items addressed at the public hearing.

Email: jmoore@register-herald.com