Rock Hill alleges Tepper real estate holding company committed fraud against the city
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Carolina Panthers Rock Hill facility rendering courtesy of Tepper Sports and Entertainment
The Tepper-Rock Hill fight isn’t over yet.
Driving the news: Rock Hill City Council held a special session Wednesday morning and unanimously voted to file an adversary proceeding in bankruptcy court against GT Real Estate, David Tepper’s real estate holdings arm.
- “The City seeks entry of an order and a judgment declaring that GTRE is liable to the City for breach of contract accompanied by fraud and that the City is entitled to damages arising therefrom,” the court document reads.
- Rock Hill is seeking damages starting at $20 million, plus what the court deems appropriate in a jury trial. The city also wants the infrastructure on the site, such as pipes, to be in their control.
- It would be “inequitable” for GTRE to benefit from infrastructure the city funded, Rock Hill claims in its filing.
Of note: Rock Hill’s action is called an “adversary proceeding” rather than a lawsuit because it was filed in bankruptcy court, not civil court.
Why it matters: Blows have come from all sides since the Panthers ceased work on their 240-acre, $800 million headquarters and practice facility in March, claiming Rock Hill was not holding up their end of to fund the public infrastructure on the site.
- Now the partially completed project just sits there. Construction began in summer 2020. It was scheduled to wrap up in 2023.
State of play: Wednesday’s filing is Rock Hill’s response to GTRE filing a plan of reorganization in Delaware bankruptcy court in August, which would provide more than $82 million to creditors, including at least $20 million to Rock Hill. DT Sports Holdings, LLC, another Tepper arm, will provide the funding.
- The court is expected to hold a hearing in October to consider the plan, GTRE said in an August statement.
- GTRE filed for bankruptcy in June to provide an “orderly wind-down of the project at Rock Hill, S.C.,” GTRE said in a June statement.
What they’re saying: Rock Hill had no further comment. GTRE declined to comment.
Zoom out: While the Rock Hill conversation continues, TSE-owned Major League Soccer team Charlotte FC announced last month its headquarters will be in east Charlotte after all. No plans for future headquarters have been announced on the Panthers side.