Critics: State, city share blame in Parton deal

Randy Parton has taken the brunt of the criticism for the failings of his namesake theater and for the way he spent public money.

But documents released this week suggest that government officials, throughout the process, fell short in their oversight.

On Wednesday, a member of a panel that allowed Roanoke Rapids to borrow $21.5 million to build The Randy Parton Theatre said the committee acted without first reviewing all pertinent data.

What's more, Roanoke Rapids continued to give Parton access to $3 million in public funds, even after leaders discovered that he had spent some of the money on alcohol, trips and meals. An official, though, said the city had limited authority over Parton's spending.

Roanoke Rapids built The Randy Parton Theatre -- and agreed to let Parton run the venue and star in the performances -- to anchor a new entertainment district, Carolina Crossroads. That broader project is supposed to be an impetus for economic resurgence in a region hurt by factory declines.

Neither the theater nor Carolina Crossroads has lived up to expectations.

Ticket sales were slow during the first four months of theater operations, with about 200, on average, sold per show. Carolina Crossroads was to draw other attractions, but so far, only a Hilton Garden Inn has been built. It has not opened.

A study done before the theater was built said it could succeed if at least 200,000 square feet of additional shops, restaurants and other amenities were in place when the venue opened.

Allen Joines said Wednesday that he did not know about that stipulation. He is on the N.C. Local Government Commission, which is responsible for signing off on the type of borrowing Roanoke Rapids used. The commission unanimously approved Roanoke Rapids' request.

"There was no mention or discussion of the feasibility study," Joines, the mayor of Winston-Salem, said in a letter Tuesday to State Treasurer Richard Moore, who oversees the commission.

A Moore spokesman said Joines' letter was motivated by politics. Joines supports Lt. Gov. Bev Perdue against Moore in the Democratic race for governor. There's been some finger-pointing on the campaign trail about the Parton project.

Joines rejected that allegation, adding in an interview Wednesday: "The full commission did not get all the information that was available."

His letter shows possible problems with the approval process. And a city e-mail message highlights deficiencies afterward.

Of the $21.5 million the city borrowed to build the theater, it set aside $3 million in a reserve fund for Parton to get the business running. The city sent the first payment, $254,000, to Parton's account Sept. 20, 2005.

A 2005 Economic Development Agreement outlined the process for disbursements. The contract required Parton to submit a budget for each payment he requested and detail how he spent previous funds, according to an August e-mail from City Attorney M. Glynn Rollins Jr. to City Manager Phyllis Lee.

Rollins on Wednesday referred questions to Lee. She could not be reached.

But Reggie Baird, the mayor pro tem, said Parton held up his end of the agreement. The city received an accounting of the first $254,000, which showed that Parton had bought alcohol and gone to Las Vegas.

Some of the expenditures raised red flags for the council, Baird said. But even if it didn't approve, the city had to keep sending money to Parton's account.

According to the 2005 agreement, "it was available to him upon request," Baird said.

Eventually, Parton spent $2.4 million.

In November, the city replaced Parton as manager of the theater. This month, officials banned him from performing there.