Taxpayer group sues over theater

Suit claims Parton project tricked city

RALEIGH -- A taxpayer advocacy group on Thursday sued a brother of country star Dolly Parton and two other men over a struggling theater project that has left taxpayers holding a tab of more than $21.5 million.

A suit filed by the N.C. Institute for Constitutional Law claims Randy Parton, manager Richard Watson, lawyer Earnest Pearson and their companies schemed to get the city to issue millions in bonds for construction and startup costs for the Roanoke Rapids Theatre, which was to be the cornerstone of an entertainment district that never panned out.

The three men "exaggerated and embellished" Parton's experience and management capabilities to persuade city officials to fund the project, the lawsuit claims. Their action lured city officials into taking out hefty tax- increment financing bonds without voter approval for a project that would never pay for itself, the lawsuit says. The lawsuit also accused Parton of misusing millions in theater money.

Parton's lawyer didn't immediately return a telephone message, but Watson told WRAL-TV that the lawsuit was frivolous and politically motivated.

"The fact that the city made a decision -- or its elected officials made a decision to do business or to finance the theater -- I think that's irrelevant to me or Randy Parton," Watson told the station.

Watson is the former chief executive of a nonprofit economic development group. The State Auditor's Office criticized him two years ago for creating a conflict of interest by accepting a job on the Parton project while working for the booster group.

"The city was victimized here," Institute senior staff attorney Jeanette Doran said. "It's very simple. They were desperate for some stimulation of their economy and had really high hopes for the Randy Parton Theatre."

Since its 2007 opening, the theater has struggled financially, prompting city officials to boot Parton from management and strip his name from the facility.

The lawsuit, filed on behalf of city resident Jim Garrett, asks the three organizers to pay back the city and seeks to have all contracts related to the project voided.

Roanoke Rapids officials backed the project because they were eager for the jobs and tourism that the organizers said would be generated by the theater. But the fizzled project has left taxpayers to foot the bill, Garrett said.

"I think that there is a lot of hostility because of the tax increases that we've suffered because of this project," Garrett said.

City attorney Gilbert Chichester said Roanoke Rapids officials are considering a property tax increase this year, which is needed, in part, because of the city's bonds.

"The city has certainly had an expense and will have an expense as a result of the theater being one of the assets that we have to be responsible for," Chichester said.