WILMINGTON — The developer of the Galleria project recently turned to Councilman Charlie Rivenbark for help with a long-term dispute over potential road access, apparently going over the heads of city staff, including the city attorney and both deputy city managers.
Related: City Council vote is latest step in paving the road for Wrightsville Ave ‘Galleria’ project
Rivenbark has been a supporter of the developer – Jeffery Kentner and State Street Companies – for years, helping spearhead some crucial support from the city dating back to at least 2015.
In 2017, Kentner – along with family and employees – gave $13,000 to Rivenbark’s campaign, over a third of his total election funding.
The dispute has to do in part with road access to both the Airlie at Wrightsville Sound and Galleria projects, both being developed by Jeffery Kentner and State Street Companies. The issue dates back in part to a 2003 City of Wilmington resolution that brought certain roads into the city street system following annexations in 1995.
The argument is twofold: Kentner argues that a recorded right-of-way on the Galleria project property is “fictitious” and, at the same time, a private easement on property bordering the Airlie development should be turned into a public street that would provide access to the residential side of the development, as well as pedestrian and bike access into the Galleria side.
Alleys and the Airlie Three
The issue of the alleys, and debate over whether they were private easements or public right-of-ways started in earnest in 2017.
In September of 2017, Kentner sent the city a $46,134.25 invoice for legal fees, including nearly $10,000 for attorney and then-State Senator Michael Lee related to the issue.
Wilmington did not reimburse for the fees, according to spokesperson Malissa Talbert, but the issues persisted.
The issue of the Airlie-side “alley” has become especially heated.
Kentner has argued that the neighboring property – known as the Airlie Three Subdivision – has been subdivided inappropriately, without a proper street to serve several properties that don’t touch Airlie Road. He’s also argued that the inappropriate layout of neighboring parcels has caused stormwater issues and, in general, devalued property.
City staff has denied Kenter’s claims about the Airlie Three.
As a proposed solution to the issues Kenter has alleged, State Street Companies has asked the city to turn the private easement into a public right-of-way, which would provide vehicle access to the Airlie at Wrightsville Sound residential development, pedestrian and bicycle access to the Galleria site, and also help resolve stormwater issues. The City of Wilmington has not apparently taken up the suggestion.
According to emails and text messages obtained through a public records request to the City of Wilmington, Kenter has repeatedly demanded a resolution to the situation from city staff, including City Attorney John Joye, Deputy City Manager Thom Moton, and Deputy City Manager Tony Caudle; Kentner has called the city’s actions “negligent” and blamed the city for causing delays and financing difficulties.
Kenter was particularly aggressive with Moton, sending several angry text messages over a weekend in August 2018.
Kentner texted: “You are continuing the path of weak leadership. We have zero confidence. Integrity or the pension? Sad state of affairs. Obviously not interested in building a bridge with you. Hopefully the next election will eliminate the ineffective bureaucrats. I promised honesty. You got it!”
The following day, Kentner followed up with another text: “Thom, We put the alley issues in your lap 3 months ago. It is clear the City has made mistakes in this matter. Mistakes are a part of life. How people respond to mistakes defines character. We are suffering damages due to the lack of enforcement. We have concluded the city is trying to cover its mistakes and is not dealing with us in an honest or straightforward manner. The issues are not complicated and we are disappointed in the lack of a response. Consequently, we have lost confidence and are dissuaded from trying to build a relationship. Jeff.”
Legal threats and deadlines
The following week, Kentner emailed Moton, including Mayor Bill Saffo and other city department heads, threatening “an enormous PR problem.” Kentner quoted a State Street attorney, who accused Wilmington’s staff of “covering their asses” and suggested the developer could turn public sentiment against the city.
“If the development and related impact on Airlie Lake continues unchecked, this inevitably will be an enormous PR problem for the City. We are happy to help accelerate the PR campaign. I am disgusted by the City’s fear to act. We will have no problem getting local citizens to call out the City’s irresponsible oversights and behavior,” Kentner wrote, quoting his attorney.
Then, last month, Kentner threatened legal action.
In a February 16 email, Kentner gave city staff a February 22 deadline before State Street Companies filed a declaratory judgment (according to a recent review of New Hanover County District Court records, that does not appear to have happened.)
Kentner also threatened to back out of the project, by way of David Novotny, the Galleria project manager. According to a hard copy of a February 27 email, provided as part of a recent public records request to the City of Wilmington, Novotny stated that State Street attorneys were, in fact, filing a legal complaint.
Novotny concluded his email, “the on-going disputes with the City have resulted in Ownership’s decision to pursue a divesture [sic]of its interest in Airlie at Wrightsville Sound because of the impossibility to execute the design intent and vision established of AWS without support from the municipality. The purchaser of AWS has a substantially different vision and motivation for Airlie Road than ours.”
Asking for Rivenbark’s help
The next day, however, Novotny reached out to Rivenbark for help.
“Charlie,” Novotny wrote. “I am reaching out to you concerning a serious matter.”
Novotny wrote that he was “at a complete and utter loss” as to why the city refused to require the Airlie Three Subdivision to comply with city regulations.
“Mayor Saffo asked Mr. Kentner to do ‘something great’ at Airlie at Wrightsville Sound. Our development team has worked tirelessly to do so but cannot execute the vision for Airlie at Wrightsville Sound unless and until the city fulfills its obligations to enforce its ordinances,” Novotny wrote.
Rivenbark responded the next day, “I swear I’m on this David.”
It’s not clear what action Rivenbark took but, according to public emails, there were no futher threats of legal action or abandoning the Airlie project.
Rivenbark’s history with State Street
It’s possible that Rivenbark could try to sway City Manager Sterling Cheatham to see things Kentner’s way. But there are other options, too, possibly including eminent domain.
In 2015 Rivenbark supported the city’s use of eminent domain to provide a road connection for Azalea Landing, a 42-acre residential project that Kentner was planning behind the Target store off New Centre Drive.
Kentner purchased the land in 2005. In 2009 City Council granted State Street’s request to extend two roads to connect to the development; in 2012 council approved accepting a right-of-way from the NCDOT.
Three years later, Kentner had still been unable to get the Arizona-based developer who owned a retention pond behind Target to grant him an easement, so in January of 2015 Wilmington City Council voted to explore eminent domain to take the land and give Kentner the easement.
The resolution didn’t immediately result in an eminent domain action. Over the summer, Rivenbark got involved to move the process along, sending an email calling for a meeting with Kentner, Caudle, and Saffo on June 18.
Rivenbark requested the meeting “with Jeff Kentner to discuss a plan that Mr. Kentner has come up with that I believe is in the city’s best interests and will also get this situation off the fence and moving along to resolve. I hope you will see the way to make this happen and I’m confident that it is a win-win deal for all concerned.”
Several months later, city council agreed to use eminent domain, at a cost of $350,500; the ordinance, approved Sept. 1, 2015, made no mention of Kentner or State Street, and the action was framed as being for the public good, instead.
Only Councilman Kevin O’Grady voted against eminent domain both times, citing concerns over potential abuse of the city’s eminent domain powers to benefit a single developer.
The eminent domain suit settled in New Hanover County Superior Court in July of 2017 and Wilmington took possession of the property needed for the right-of-way. To date, Kentner has not proceeded with the development, and, according to the city, State Street did not reimburse the $350,500 in taxpayer money that was spent on the land.
Several months later, Rivenbark called for a meeting on September 6, 2017, with Saffo, Kentner, and Caudle to “resolve to this ongoing issue re: the ROW at the Galleria property.”
The next week, Kentner – along with his family and employees – donated $13,000 to Rivenbark’s reelection fund, a considerable portion of his total campaign budget. According to North Carolina Board of Elections records, Kentner and his wife Pamela both gave $3,000, as did his daughters, former State Street intern Tracey Kentner Wooster and State Street Companies President Elizabeth Kentner Brinkman. Novotny himself gave $1,000. All the donations were recorded on the same day. Kentner and State Street do not appear to have contributed substantially to any other Wilmington campaigns that year.
It remains unclear if the donations were linked to any particular action on Rivenbark’s part. Kentner and Novotny have both declined several requests for interviews of the last several months. Rivenbark did not respond to emails sent to his personal and city council address sent Thursday.)
(Editor’s note: For full disclosure, the Charlie Rivenbark for City Council campaign paid for advertising with Local Voice Media, parent company of Port City Daily, during the 2017 campaign.)
Send comments and tips to Benjamin Schachtman at ben@localvoicemedia.com, @pcdben on Twitter, and (910) 538-2001.
