By Jonathan B. Cox and Matt Ehlers, Staff writers
ROANOKE RAPIDS - Husband and wife consultants Mike and Cathy Scott don't have the family connections of Randy Parton.
And unlike Dolly Parton's brother, they never had their names emblazoned on a theater in Roanoke Rapids. But they were among the biggest beneficiaries of the theater, a struggling economic development project on Interstate 95 at the Virginia border.
The Scotts' company worked for the regional group that brought Parton to North Carolina and for the city of Roanoke Rapids while it courted Parton. They were paid a total of $386,236, from both sources. During that time, they occasionally represented Parton's interests and later went to work for his theater at a combined salary of $250,000 a year.
Mike Scott said he and his wife did nothing wrong. The couple, who didn't work a full year at the theater, received only part of their salary.
They do not appear to have violated any laws. But their role could be scrutinized as part of a new investigation by State Auditor Leslie Merritt. It's not clear exactly what the probe entails, but Merritt has focused more attention on the theater development and the public officials, consultants and others involved.
Records that have become public in recent weeks -- after months of prodding by the news media -- show how a web of people connected to the $21.5 million theater project prospered from the deal.
Parton's two daughters, Heidi Lou and Tever, for instance, were on the payroll. So was William A. Lane, the son of Halifax County's former economic development director, Rocky Lane. Gary T. Medlin, husband of the county's tourism director, received $36,319 for setting up the theater's gift shop.
"It doesn't seem right," said Jim Garrett, a Roanoke Rapids real estate agent. He runs an Internet site where residents have criticized the theater and city leaders. "When somebody works for, basically, the government to bring a project to town and then they end up working for the project, I see that as a conflict."
North Carolina's Northeast Partnership, a regional economic development group funded by state and private money, brought Parton to the area in 2004. The leader at the time, Rick Watson, pushed a vision for the area that included concentrating performance venues in that rural corner of the state.
Roanoke Rapids decided to build one of the venues. Officials constructed The Randy Parton Theatre to anchor a broader entertainment district called Carolina Crossroads. They borrowed $21.5 million and gave Parton performance and management responsibilities. The theater opened in July but drew sparse crowds.
Late last year, the city booted Parton as the manager and chief performer. This month, they renamed the venue The Roanoke Rapids Theatre.
The Scotts were involved from the project's start. They began their own business, PRO Inc., in 1991 after careers as local economic development officials. PRO specializes in grant writing, industrial site development and marketing
. The company long worked for the Northeast Partnership.
Between July 2004 and the middle of 2007, when the partnership was focused on the Parton project, the Scotts were paid $324,533 by the organization.
The line between the partnership and Parton blurred. Cathy Scott, for instance, responded to e-mail from job seekers curious about opportunities at the theater. She set meetings on Parton's calendar. She exchanged e-mail with a representative for William Ivey Long, the acclaimed costume designer and a North Carolina native, about creating a wardrobe for Parton.
Multiple employers
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