Although they hesitated, the Mecklenburg County Board of Commissioners approved granting up to $6.48 million in federal Recovery Zone Facility Bonds to Red City Properties Tuesday.
But first, commissioners questioned whether their approval of the funding could entangle the board in an ongoing lawsuit by Charlotte-based software company Bridgetree against Red City’s sister company, RedF Marketing. The lawsuit alleges that former Bridgetree employees, when hired by RedF, took proprietary software with them.
“There are some pretty serious allegations floating back and forth in these lawsuits,” Commissioner Neil Cooksey said. “It concerns me that, if the allegations on either side are true, that the county is putting itself in the position of associating itself with one of the entities of that lawsuit.”
Mecklenburg County attorney Marvin Bethune reassured commissioners that their vote to approve the awarding of the bonds would not associate them with the lawsuit.
The bond funds will be used to buy and renovate an office building at 222 S. Church St. in Center City to be used as the headquarters of Red City Properties and Red F Marketing and an entrepreneurial hub. The bonds will be repaid using the company’s profits, not public funds.
Caitlin Coakley can be reached at email@example.com.