York County, Tepper Co. reach settlement in failed Rock Hill Panthers project
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York County and a company created by Carolina Panthers owner David Tepper have agreed to a $21 million-plus settlement in the bankruptcy case tied to the failed team headquarters, court documents show.
The proposed settlement was formally filed Wednesday night by GT Real Estate in Delaware bankruptcy court. The settlement would repay York County the $21 million in road tax money York County gave for the project.
In a statement, York County said it agreed to the settlement, which ends all civil disputes connected to the bankruptcy. York County also added that it believes no other action is needed in the case.
“As a result, the (York) County considers all matters related to the County Payment closed and believes that no action of any kind with respect to the County Payment is warranted,” the statement from York County’s spokesman said.
The York County statement Wednesday night, along with the official agreement in court documents, were released a week after South Carolina’s State Law Enforcement Division, the York County Sheriff and the 16th Circuit Solicitor, issued statements saying there was an investigation into the transfer of York County money to Tepper and four of his companies connected to the project.
In a statement last week, GT Real Estate questioned the politics and timing of the investigation, considering the sides had agreed to a settlement.
A spokesman for GT Real Estate declined comment Wednesday night after the settlement had been filed.
GTRE, or GT Real Estate, is the company created by Tepper to oversee what would have been the Panthers NFL team’s headquarters and practice facility in Rock Hill, S.C. The project failed and resulted in GT Real Estate filing for bankruptcy. There also have been other related lawsuits.
Construction halted in March in a dispute over money and GT Real Estate filed for bankruptcy in June. The sides had argued in court but settlements have been reached.
A full, satisfactory resolution
The settlement between GT Real Estate and York County is the same as the initial amount offered earlier this year before York County filed lawsuits against GT Real Estate and other Tepper companies. Those lawsuits prompted GT Real Estate to initially withdraw the $21 million offer.
The statement from York County issued Wednesday night said York County withdraws any claims against Tepper or his companies.
The county statement says:
“The receipt of the Settlement Amount is in full and final satisfaction and discharge of any and all claims the County had against GTRE, David Tepper and any of their related entities (the ‘Tepper Entities’) with respect to the County Payment and otherwise, and, upon receipt of the Settlement Payment, the County irrevocably withdraws any prior complaint, if any, and withdraws any allegations, if any, that GTRE, David Tepper or any of the Tepper Entities engaged in any violation of the Pennies for Progress statute or the C-Fund statute or engaged in any other wrongdoing with respect to the County Payment. The payment of the Settlement Amount is a full and satisfactory resolution of the County’s disputes with GTRE, David Tepper and the Tepper Entities. Therefore, GTRE, David Tepper and the Tepper Entities have acted in good faith; the County Payment is restored; and the County is satisfied.”
Contractors in the case have generally agreed to a $60 million settlement.
Lawsuits now over
The settlement also means that lawsuits in the case are over, documents state. York County had previously filed two civil lawsuits against Tepper companies.
In the first lawsuit filed in June in South Carolina federal court, York County alleged DT Sports Holding, Tepper Sports Holding and Appaloosa Management were engaged in a conspiracy to misappropriate the $21 million. That suit, which called the failed practice site a “vanity project,” named Appaloosa Management LP, DT Sports Holding, Tepper Sports Holding Inc, and the City of Rock Hill as defendants. In that civil lawsuit, York County alleged Tepper’s companies directed misappropriation of $21 million.
Tepper is one of the founders of Appaloosa Management.
Then in September, York County filed a second lawsuit against GT Real Estate. In that lawsuit, York County claimed GT “squandered” the $21 million and converted it for “others’ improper use and unjust enrichment.”
Tepper companies denied all those claims and filed countersuits against York County.
The York County settlement Wednesday removes all claims between York County and Tepper and those companies, documents state.
What happens now?
A federal bankruptcy judge has to approve the settlement between York County and GT Real Estate.
A hearing on the bankruptcy confirmation is scheduled for next week in Delaware.
This story was originally published December 7, 2022 at 8:07 PM with the headline "York County, Tepper Co. reach settlement in failed Rock Hill Panthers project."
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