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FBI asks about Union Co. sewers
 
Published Thursday, February 14, 2008
by Julia Oliver

The FBI has been asking questions about Union County government -- and especially how it provides sewer service -- for as long as a year, according to people who have been contacted by agents. Six people who spoke with the Observer said the discussions ranged widely across county government topics, but all said FBI agents asked about the county's sewer services.

One person said he believed agents were looking for "any hint of illegal activity where a government official did something for something, quid pro quo."

An FBI spokeswoman said the agency could not comment.

Five of the six people who told the Observer they spoke with FBI agents asked that their names not be published. They said agents told them not to talk about the interviews. They are currently or formerly affiliated with county government, either as elected officials, hired staff or board appointees.

Most said they did not know the focus of the investigation. They spoke to the agents about their expertise in government or experience with Union County officials. But all said the conversation included a discussion of the sewer system or sewer capacity allocation.

The sixth person who said she was approached by FBI agents was Irene Broaddus of Waxhaw, a former member of the county's water-sewer board. She said she was contacted by agents on Tuesday.

That was a week after county officials revealed they had turned over to the Union County district attorney a series of e-mails between her and Charlotte developer Ashley Campbell. The e-mails addressed a county sewer approval his company wants. She offered to lobby for the company in exchange for a fee of up to $37,500.

Broaddus said Wednesday she had only a brief discussion with FBI agents. She said, however, that "it's never been a secret" that an investigation was under way.

"They made it very clear to me that I was not the object of their investigation," Broaddus said. She said agents didn't say exactly what they wanted to talk about, but she believes it's "sewer issues or developer issues."

She said: "From my point of view, I'm glad they're involved." 

Developer Campbell also told the Observer that he, too, was contacted by investigators. But he would not confirm they were from the FBI. He said the investigators also called him soon after news stories about the e-mails appeared.

"There are investigators that are inquiring about this issue as well as other issues," Campbell said. "It stems around water and sewer and governmental practices that date back more than a year."

Four of the five Union County commissioners either said they have not been approached by FBI agents or said they could not comment. Commissioner Parker Mills could not be reached.

"If an FBI investigation is going on, this might be just what the county needs," commissioner Kevin Pressley said.

In the past year or so, fast-growing Union County has learned that it lacks enough sewer capacity to serve all the developers who want it. The capacity, a valuable resource in homebuilding, is especially precious in Union because much of the county's soil does not accommodate septic systems.

Union developers have an estimated tens of millions of dollars riding on sewer service. Not unexpectedly, meting out that service has been controversial and confusing.

Commissioners have complained they were blindsided by the sewer shortage shortly before they fired former County Manager Mike Shalati in January 2007. They have refused to comment directly on the firing, citing personnel laws.

Shalati, in turn, has in a lawsuit accused three commissioners of meddling in sewer issues and asking him to break state utility regulations.

In September, commissioners released a set of guidelines for distributing precious sewer capacity. Months later, it is unclear whether many developers will get all the sewer service they want in the next five years. In addition, the county's options for expanding existing sewer plants or building a new one are limited by politics, geography or environmental concerns.

The commissioners discussed the distribution policy almost entirely in closed session, citing a need to get legal advice.

One commissioner walked out of a closed meeting in protest, saying policy discussions should happen before the public eye. The Observer has sued the county to get records of those closed meetings -- records that officials refused to release.

The e-mails between Broaddus and Campbell reported in news stories last week were about a request from Campbell's company, Infinity Partners, to avoid Union's sewer capacity crunch. The developer is asking commissioners for permission to build a pump station that would allow him to transport wastewater to Mecklenburg County for treatment. At stake, Campbell has said, is a planned Weddington subdivision of 203 homes with prices starting at $1.2 million.

County commissioners haven't voted on the request.

The fight over sewer capacity

In the past year or so, Union County -- one of the state's fastest growing -- has learned that it lacks enough sewer capacity to serve all the developers who want it. Now, six people have told the Observer that FBI agents have asked them about the county's sewer system, or allocation of sewer capacity.

 


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