Gov. Mike Easley, saying proper procedure had not been followed, thwarted Labor Commissioner Cherie Berry’s attempt in a Council of State meeting Tuesday to learn the identities of the individuals awarded a new lease for the state-owned Southport Marina property.

When Berry tried to raise the issue at the meeting, Easley would not allow it. He told Berry that she “didn’t allow enough time” for her request to be put on the agenda, though she said she had made the request five days in advance of the meeting. Easley indicated that her request would be taken up in August.

Berry said she wanted the individuals involved in the marina deal identified because she said the public has a right to know. She also said full disclosure is necessary so state officials can avoid a conflict of interest when voting on real estate matters.

Berry, Carolina Journal, and other media organizations have tried unsuccessfully to identify the leaseholders since Easley coaxed the lease though the approval process in January. Neither Easley’s office nor the North Carolina State Ports Authority, the agency that controls the property, will identify the new owners of the marina operating company.

Last week Berry asked Easley’s budget director, David McCoy, to place the ownership issue on the agenda of the council meeting. The council, comprising the governor and the other nine independently elected executive branch officials, is required to approve most state real-estate transactions. Easley presides over the monthly meetings.

Berry told CJ late Monday that she learned the item would not be on the agenda because the Ports Authority was unable to send a representative to the meeting. She said she still expected to have some discussion of the issue.

Last year Southport citizens concerned about the future of the marina formed The Committee to Save Southport Marina. Four members of the group came to the council meeting hoping to learn the identity of the owners.

One of the men, Jerry Miller, was dumbfounded that the Ports Authority would need to prepare for such a presentation. “To make an informed decision the Ports Authority had to know who the owners were. How much lead time did they need to prepare for this meeting?” Miller remarked to CJ after the meeting adjourned. “You can’t sign a lease with people if you don’t know who they are,” he said.

From July 2005 through February 2006 several news reports stated that Wilmington real estate developer Charles ”Nick“ Garrett, and his two partners, Raleigh-area developers Julian ”Bubba” Rawl and Tim Smith, were in control of the lease. Since March, Easley’s office has insisted that Garrett is not involved.

Recent news reports have identified officials with the Cary-based software company SAS as controlling the facility. But confirming the actual owners is a challenge to reporters, because the identities of individual stockholders are not listed on any public documents. Awarded without a competitive bid process, the new lease turns over control of the 45-acre property to the new owners of the Southport Marina, Inc through the year 2040.

Garrett’s involvement became controversial for several reasons. He was a major contributor and fund-raiser for Easley’s campaigns for governor. Easley appointed him to the N.C. Architecture Board and the Clean Water Management Trust Fund Board. The N. C. Department of Transportation awarded Garrett a state license tag franchise in 2003 even though a DOT official said a new franchise was not needed.

Garrett had another significant relationship with Easley. Five months after Easley became governor, Garrett’s construction company began a substantial remodeling of Easley’s Southport home. Easley did not disclose the remodeling job during the council meeting when the lease was approved.

In March, after Carolina Journal began investigating the details of the remodeling, Easley spokeswoman Sherri Johnson said Garrett was not involved in the ownership of the new company. In spite of her claims, several documents have surfaced that place Garrett in the middle of the transaction.

Don Carrington is executive editor of Carolina Journal.