Newsletter 8/12: Olympics-related business under state scrutiny
Plus: Frontier CEO pleased with Charlotte after big expansion; Matthews is lone holdout on transit plan; Atrium on board with medical-debt relief; Toppman reviews 'Mojada'; Curry as bête noire
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N.C. is looking into spending by the Charlotte-based U.S. Performance Center and its related nonprofit, which collected $55M in state money, two investigative reports say
Members of the USA field hockey team train at the U.S. Performance Center in Charlotte. (Travis Dove for The Assembly; republished with permission)
A Charlotte company that received tens of millions of dollars in state money to help attract Olympic athletes and sports governing bodies to the Charlotte region is coming under scrutiny for its spending.
Two investigative articles published last week — by the statewide digital magazine The Assembly and by the News & Observer of Raleigh — suggest that the for-profit U.S. Performance Center and its associated nonprofit, the N.C. Sports Legacy Foundation, collected $55 million allocated by the General Assembly in the last few years — and spent a lot of the money on consulting fees instead of capital expenses, with minimal accomplishments to point to.
State auditors are now examining how the small company, which has stayed mostly under the radar, spent the state money, the publications reported.
The company was founded in 2012 by Ike Belk, a member of the prominent Belk department store family, and David Koerner, who ran a south Charlotte sports rehabilitation clinic.
The Assembly reported that the U.S. Performance Center, which takes a “science-based approach to create innovative and highly specialized training programs,” had hoped to attract Olympic sport governing bodies to the Charlotte area, which could be a step toward Charlotte eventually hosting the summer Olympics.
The article continued:
Some leading North Carolina legislators bought into the dream. In 2021, they allocated $25 million in public funds “for capital needs” to the U.S. Performance Center to lure national governing bodies to Charlotte. Two years later, legislators provided another $30 million to the North Carolina Sports Legacy Foundation, a nonprofit Belk founded, for the same purpose.
USPC and the nonprofit have spent $45.5 million of the $55 million as of June, according to documents provided to The Assembly from the Office of State Budget and Management.
While the state money was supposed to fund capital needs, only about $10 million has paid to build facilities or buy equipment. Roughly $7 million went to the Robeson County-based construction firm Metcon, which built a field hockey pitch at UNC Charlotte in hopes of attracting the sport’s governing body from Colorado. Another $3 million was spent on sports equipment or for repairs, such as $1.4 million for custom Keiser fitness machines and $427,000 to a Wisconsin treadmill company.
The rest of the money was spent on other purposes, the documents show. USPC has charged more than $9.8 million for its own consulting services to the nonprofit and has spent $2.9 million on salaries and benefits, including $800,000 to Belk and Koerner in two years.
More than $4 million was spent on “services rendered to Olympic teams” and another $1.6 million for “USPC Olympic Services.” More than $4.5 million went to outside consultants.
While dozens of U.S. athletes train in Charlotte, no governing body has moved here, The Assembly reported.
A company spokesman told the publication that the USPC has hosted more than 200 athletic tournaments, bringing hundreds of thousands of visitors here, and that it has “achieved the required benchmarks of success.” It is also a finalist to host the 2027 Military World Games in Charlotte, he said, which are like the Olympics for members of the military.
In an article published a day after The Assembly’s, the News & Observer looked at the spending from a more political angle, noting that hundreds of thousands of dollars in the USPC’s consulting contracts went to people with strong ties to state Republicans. The GOP controls the General Assembly, which approved the money.
The N&O found that the expenses included:
$67,000 for hotels, including $1,300 to a Ritz Carlton
$55,000 to pay vehicle loans
$34,000 for meals and entertainment
$13,000 for late taxes and penalties to the Internal Revenue Service
The USPC is also working to develop a $6M bobsled training center on UNC Charlotte’s campus.
The state budget office says a review of the company’s expenses should be finished by the end of September. —TM
➡️ Read the full article from The Assembly.
Related Ledger article:
“Effort to land Olympic teams gets boost from state budget; details still mysterious” (Dec. 1, 2021)
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You might check out The Assembly
If you haven’t heard of The Assembly, you might give it a look. It’s a statewide digital magazine that leans heavily into investigations and long-form journalism. The Ledger and The Assembly are kindred spirits — we both believe that North Carolina deserves better sources of independent information, giving readers insights they cannot find elsewhere. The Assembly aims to publish “deep reporting about power and place in North Carolina.”
We’ve teamed up with The Assembly in the past, and we’re working on some projects with their team now that we’re looking forward to announcing soon.
In the meantime, check out their website. You can also sign up for their newsletter.
Today’s supporting sponsor is By George Communications, an award-winning public relations firm. We love shaping stories and helping our clients gain coverage in local and national news outlets. Telling your story isn't a “nice to have.” It's essential business strategy. What are you waiting for?
Four months after big CLT expansion, Frontier CEO says almost all Charlotte routes ‘are doing overall really well’; cuts one
Frontier Airlines CEO Barry Biffle says the carrier’s 14 Charlotte routes are doing fine, except for one which will operate for the last time on Monday.
The Charlotte routes, several of them added in April, “are doing overall really well,” Biffle said in an interview with The Charlotte Ledger. “We’ve been really pleased with them. Charlotte is a high-fare market, so those customers who need an option have flown them.”
In January, Frontier announced seven new cities served from CLT, making it the No. 2 airline from Charlotte by the number of destinations, behind American Airlines.
The one underperforming Frontier route is Charlotte-to-Trenton. The route is being pulled because “we were competing with ourselves in Philly,” Biffle said. While it will end Monday, Frontier will begin Charlotte-to-Boston service on Tuesday.
With the switch, Frontier continues to serve 14 cities from Charlotte. They are Baltimore, Boston, Buffalo, Cincinnati, Cleveland, Chicago, Dallas, Denver, Houston Bush, Miami, New York/LaGuardia, Philadelphia, Orlando and San Juan, Puerto Rico.
On Frontier’s earnings call on Thursday, Biffle said Frontier fares are rising. “September fares have inflected positive,” because airlines have been reducing capacity, he said. “A lot of the cuts have already happened. The industry is responding to this capacity imbalance.”
Recent Frontier innovations include scheduling more out-and-back flying, less flying on Tuesdays and Wednesdays and launching 114 new routes, many on business/leisure routes such as Charlotte-to-Philadelphia rather than routes that primarily serve leisure passengers. —Ted Reed
Related Ledger article:
“Frontier adds flights to 7 cities from CLT” (Jan. 23)
Car fire in airport’s hourly lot injures 3 and causes $100K+ in damage
A fire that started in a vehicle engine on Saturday morning in the hourly parking deck at Charlotte’s airport resulted in three minor injuries, the Charlotte Fire Department said. It took 60 firefighters about 40 minutes to get it under control. Airport operations were not affected, though plumes of dark smoke could be seen coming from the parking deck. The fire damaged four vehicles at an estimated cost of $105,000. (Photo by Charlotte Fire Department)
Will Matthews derail the latest plan for transit? Town’s leaders blast ‘inequities’ of new strategy
Local government leaders on Friday announced they have reached consensus on a path forward for a transit plan. But there’s one notable opponent: the town of Matthews.
The city of Charlotte, Mecklenburg County and the towns of Huntersville, Cornelius, Davidson, Mint Hill and Pineville say they support a proposal to be presented to the General Assembly that would form a 27-member transit authority, which would be in charge of distributing money from a 1 percentage point increase in the sales tax charged in Mecklenburg, provided that Mecklenburg voters approve the measure. That would generate hundreds of millions of dollars that would be used on road projects, buses, light rail and more.
Business leaders from the Charlotte Regional Business Alliance also sent a press release touting their support.
But public officials in Matthews strongly oppose the deal, because it would eliminate plans for light rail to Matthews and replace it with bus rapid transit. Longstanding plans had called for light rail down portions of Independence Boulevard and Monroe Road, but that would be expensive.
The opposition is a reversal of sorts: For years, the transit plan didn’t move forward because of the opposition of the northern towns. But now that the Red Line commuter rail to those towns appears to be a possibility, they support the plan, while Matthews has flipped to opposing it.
It is unclear if Matthews’ opposition would be enough to derail chances of getting the measure passed in the General Assembly, which traditionally prefers consensus on local bills.
Matthews’ population is about 31,000, in a county with a population of nearly 1.2 million.
Over the weekend, Matthews leaders signaled their objections:
Mayor John Higdon (according to WSOC’s Joe Bruno): “I am strongly opposed to the current draft legislation, as it knowingly underfunds the approved transit plan for the region. If ultimately approved, it will create drastic inequities by only funding the Silver Line East as Bus Rapid Transit while all other lines are built as rail. … This is not the ‘community consensus plan’ requested by North Carolina General Assembly leadership, and I believe there are better and much more equitable regional transit solutions that would best serve our entire community."
Commissioner Ken McCool: “East Charlotte and Matthews are being asked to settle for an untested Bus Rapid Transit system instead of the rail service promised to other areas, and Mint Hill is completely left out. This unequal distribution isn’t fair and undermines the idea of a unified regional solution.”
Towns are expected to start voting on their support. Matthews plans to pass a resolution in opposition tonight.
Alternate ideas: Meeting documents say Matthews might push for a 1.4-cent tax that funds rail to Matthews, or for a “Bus Rapid Transit for All” plan than pushes for buses on what are now expected to be rail lines. It says those ideas would be more “equitable.” —TM
Related transit articles:
“Revised transit plan would scrap 1/2 of Silver Line, Matthews mayor says” (May 30)
“Matthews and eastside leaders slam light rail cuts” (May 31)
🎭 Review: Three Bone Theatre’s ‘Mojada: A Medea in Los Angeles’ tackles themes of immigration, honor and the pursuit of a better life
Arts critic Lawrence Toppman took in Three Bone Theatre’s production of “Mojada: A Medea in Los Angeles.” It’s a modern adaptation of Euripides’ tragedy, and it runs through Aug. 24 at The Arts Factory at West End Studios.
The set by Jennifer Wynn O’Kelly features lush overgrowth, suggesting a house in a jungle — a place about to be overcome by dark forces of nature. (Photo courtesy of Three Bone Theatre)
In his review for The Ledger, Toppman writes:
Luis Alfaro has updated Euripides’ drama as the third part of a trilogy inspired by Greek tragedies, following “Electricidad” (from Sophocles’ “Electra”) and “Oedipus El Rey” (from Sophocles’ “Oedipus Rex”). …
Alfaro has set “Mojada” amid the Latino community in Los Angeles, though an off-Broadway production in 2019 moved it to the borough of Queens. The title means “wet” in Spanish, but Latinos also use it to describe undocumented immigrants in the United States.
That applies to Medea, Hason, their son Acan and wise old Tita, who slip across the border from Mexico in one of many harrowing scenes. Tita (Banu Valladares), a kind of Greek chorus for the show and factotum for the family, happily accepts peaceful anonymity in the historically Chicano neighborhood of Boyle Heights. Medea (Sonia Rosales McLeod), a gifted seamstress, hides in the confines of her yard and flinches at the sound of helicopters passing overhead. …
Alfaro and directors CarlosAlexis Cruz and Michelle Medina Villalon keep the most troubling events offstage, as Greek dramatists did. Even then, the lush overgrowth around Jennifer Wynn O’Kelly’s set suggests a house in a jungle, a place about to be overcome by dark forces of nature.
Despite concerns, Atrium commits to N.C.’s medical debt relief plan
All of the state’s biggest hospital systems — including Atrium Health and Novant Health — have opted into a new medical debt relief initiative that aims to wipe out old medical debt for up to 2 million North Carolinians.
The program promises higher federal payments to hospitals that agree to forgive medical debt deemed uncollectable for low- and middle-income patients.
Hospitals must also provide charity care and specific discounts to low-income patients based on their income, take proactive steps to make sure eligible patients get those discounts and refrain from reporting medical debt to credit agencies.
The Ledger reported on Friday that many big hospital systems in the state were signing on but that Atrium had not declared whether it was participating. When agreeing on Friday, just ahead of the state’s deadline, Atrium outlined several concerns about the program. In a letter to the state, the hospital said the program could hurt financially struggling rural hospitals and discourage people and businesses from buying health insurance, potentially pushing up premiums.
Atrium also noted hospitals account for less than half of U.S. healthcare spending. It said other players that help drive up the cost of care, such as health insurance companies with high deductibles, should have been factored into the state’s policy.
More than 137,000 Mecklenburg County residents who have $3.4M in medical debt would be eligible for relief if all of the state’s hospitals participate, according to state health officials. —Michelle Crouch
Related Ledger/N.C. Health News articles:
“N.C. hospitals are signing on to medical debt relief plan” (Aug. 9)
“Can cash coax hospitals to erase medical debt?” (July 19)
“Charlotte leaders urge Atrium to consider new approach on medical debt” (Jan. 29, 2024)
“Charlotte hospitals say ‘no thanks’ to charity’s efforts to reduce medical debt” (Dec. 11, 2023)
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Coming up in The Ledger: A focus on medical debt
In the coming months, The Ledger and N.C. Health News are stepping up our efforts to provide the community with insights and solutions on the challenge of medical debt.
What questions do you have about medical debt? What are your experiences with medical debt?
Let our health care reporter, Michelle Crouch, know. You can reach her by email at mcrouch@northcarolinahealthnews.org.
You might be interested in these Charlotte events
Events submitted by readers to The Ledger’s events board:
FRIDAY: Grand reopening celebration at Fred Alexander Park, 5-7 p.m., 1832 Griers Grove Road, Charlotte. New amenities include outdoor workout equipment, game tables and a pump track. Swings and a half-court basketball court were added to the existing playground and full court. As part of the reopening celebration, staff from West Charlotte Recreation Center are giving away backpacks, Trips for Kids is giving away helmets, and the Tarheel Trailblazers will demo the pump track for the community.
SUNDAY: Pickleball for Peace, 1-4 p.m., Levine Center for Wellness & Recreation, Queens University of Charlotte, 2201 Wellesley Ave. Join us for a fun opportunity to exercise, stay cool and support the Stan Greenspon Holocaust and Social Justice Education Center’s efforts to combat hate and advocate for social justice. Learn more about the Center at www.stangreensponcenter.org. Players and spectators welcome! $50 to play; $10 spectator.
➡️ List your event on the Ledger events board.
In brief:
Charlotte’s Olympic medalists: Olympic medal-winners with Charlotte connections include West Mecklenburg alum Naya Tapper (bronze, rugby); Mallard Creek High alum Kaylyn Brown (gold and silver, 4x400 relay); Butler High alum Cierra Burdick (bronze, 3x3 basketball); Evy Leibfarth of Forest City, who trains at the U.S. National Whitewater Center (bronze in canoe); Providence Day alum Anna Cockrell (silver, hurdles); and Charlotte Christian alum Stephen Curry (gold, basketball). (N.C. Rabbit Hole, Axios Charlotte)
Religious discrimination suit settled: A Charlotte IHOP franchise agreed to pay $40,000 to settle a lawsuit by a chef who said he was fired after the company refused to honor his request not to work on Sundays because of his Christian religious beliefs. (Observer)
Fire death: An 82-year-old woman injured in a June fire on Sharon Road West in south Charlotte has died from her injuries, and police are investigating her death as a homicide. (WSOC)
Bus driver vacancies: Charlotte-Mecklenburg Schools is trying to cover 82 bus driver vacancies before the start of school on Aug. 26. (WSOC)
MrBeast to implement sensitivity training: Popular N.C.-based YouTuber MrBeast plans to hire a chief human resources officer and implement company-wide sensitivity training in response to allegations of “inappropriate behavior” from people in the company. (Associated Press)
Loves me some internet, in French: ‘This devil named Curry is hurting us’
The French-language commentary on Saturday’s gold medal men’s basketball game, in which former Davidson College and Charlotte Christian star Steph Curry hit eight 3-pointers to clinch the victory for Team USA over host nation France:
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Executive editor: Tony Mecia; Managing editor: Cristina Bolling; Staff writer: Lindsey Banks; Business manager: Brie Chrisman