York County, Tepper company reach tentative agreement in Panthers’ SC HQ bankruptcy

York County and a company created by Carolina Panthers owner David Tepper have tentatively agreed to settle a legal dispute over the failed headquarters project in South Carolina, lawyers for York County said Wednesday.

Terms of the settlement have not yet been released.

But it appears that the deal is a crucial step toward ending the months-long dispute. Lawsuits had been filed by York County and GT Real Estate against each other in the case, and the sides had been acrimonious in court hearings over whether York County taxpayers would recoup any money.

The York County lawyer said the agreement is in the best interests of taxpayers.

“The case has resolved but we are not yet at liberty to release the terms,” said John T. Lay, one of York County’s lawyers, in an emailed statement. “Pleadings will be filed very soon that will disclose the settlement terms. We strongly believe this resolution is in the best interests of York County citizens.”

GT Real Estate was the company Tepper created to build the team’s practice fields and headquarters in Rock Hill, S.C.

In a court filing late Thursday, GT lawyer Michael Farnan confirmed the settlement has been reached.

“On November 29, 2022, the Debtor (GT Real Estate) and York County, South Carolina reached agreement on the terms of a settlement that would globally resolve all of the pending litigation between the Debtor and the County,” the filing signed by Farnan and several other Tepper lawyers stated.

York County would support GT’s bankruptcy plan at a court confirmation hearing Dec. 14 under the settlement deal, GT lawyers stated in the document.

Details of the settlement are expected to be filed soon, lawyers for both sides said. No legal documents have yet been filed by either York County or GT Real Estate about the money amount in the proposed settlement.

GT Real Estate and the city of Rock Hill reached a $20 million settlement earlier this month. GT Real Estate and contractors already had tentatively agreed to a $60 million settlement.

The project, which was halted earlier this year, had been forecast to create hundreds of millions of dollars in economic development.

A court hearing was held late Tuesday in federal court in Delaware, but presiding Judge Karen Owens has not issued any orders concerning the tentative settlement.

York County, Tepper company at odds for months

York County and GT Real Estate filed lawsuits against each other earlier this year as the bankruptcy of the failed project churned through Delaware federal bankruptcy court.

The sides had at times combative court hearings as lawyers argued over whether GT Real Estate owed money to York County.

York County had alleged in lawsuits it was owed as much as $81 million from $21 million in road taxes spent on the project, and future money from projected economic development.

Construction at the project site was halted in March in a dispute over money. GT Real Estate declared bankruptcy in June.

Why the settlement is important

When Rock Hill and York County filed lawsuits against GT Real Estate, GT Real Estate claimed in bankruptcy court it owed no money to the county and city.

Now, if the settlement goes through, York County and Rock Hill would appear to get back some investments of taxpayer dollars.

The Rock Hill site

The original plan called for the team to move its corporate offices and practice facility to Rock Hill, with adjacent business development.

The Panthers headquarters and practice site was hailed by the team, Rock Hill, and York County as a huge economic development boost for the region. Top political leaders in South Carolina pushed an incentive package through in 2019 and 2020. Rock Hill gave $20 million, and York County gave $21 million, documents state. The Panthers received tax incentives.

The project included a new Interstate 77 interchange in Rock Hill near the planned site. That interchange cost tens of millions of dollars and is still being built.

But after construction started in 2020, the Tepper companies and Rock Hill began to argue over the city’s role in issuing at least $135 million in bonds to pay for part of the project.

Rock Hill has denied it was required to issue bonds. Rock Hill also claimed in court documents that Tepper companies tried to scale back the project after failing to find anchor hospital and hotel tenants.

York County also sued the city of Rock Hill, claiming breach of contract. It is unclear if any proposed settlement in the bankruptcy includes the dispute between York County and Rock Hill.

Check back for updates on this developing story.