The last lawsuit over the failed Carolina Panthers site in South Carolina is now over, with York County officials saying it’s time to end their legal claim against the city of Rock Hill over alleged an breach of contract, according to court records, the York County manager, and the county’s legal team.
A bankruptcy deal finalized in December 2022 officially ended the project, which would have moved the team’s headquarters and practice site from Charlotte to Rock Hill off Interstate 77. The project ended in a dispute over money after the company created by Panthers owner David Tepper to build the site declared bankruptcy.
A federal judge approved the bankruptcy deal in December 2022 that officially ended the project. However, York County had filed a lawsuit after construction stopped earlier in 2022 that alleged Rock Hill was obligated to issue at least $135 million in bonds. The city denied it was required to issue any bonds and the lawsuit remained pending, even though the bankruptcy was finished.
York County Judge Dan Hall a year ago issued an order taking the case off the civil trial docket for up to a year, court records show. The sides could ask the court to restore the case within a year, but they didn’t, according to court records and county officials.
In the original plan for the site, York County paid $21 million in road tax money for improvements near the site. In the bankruptcy deal, the county got its money back. The city and its taxpayers got the 245-acre property back and still own it. The property has been for sale since after the city took ownership after the bankruptcy deal.
The Herald asked York County officials and Rock Hill officials for comment on the end of the lawsuit.
Attorney John T. Lay of York County’s legal team on the case issued a statement to The Herald Thursday saying county officials decided ending the lawsuit is best for the community.
“The County’s claims against the City of Rock Hill were all made in good faith and necessary to protect the York County Taxpayers,” the statement said. “While the Panthers organization was blaming the City and the City was blaming the Panthers organization for the failure of the project, York County was blameless and looking to ensure the return of its investment into the project from whomever was ultimately determined to be the wrongful party. While the County continues to have viable claims, County Council has decided that, at this time, it is best for the community as a whole to move forward and put the matter to rest.”
York County Manager Josh Edwards also issued a statement to The Herald about the end of the lawsuit, saying the county wants to work together with cities and towns to benefit the public. Rock Hill is York County’s largest city.
“It is time for our community to move forward and put this matter behind us,” Edwards’ statement said. “The County has been, and remains, committed to working cooperatively with all our municipalities and is focused on building a shared vision to attract opportunities that benefit our county as a whole.”
The Herald emailed Rock Hill officials Thursday asking for comment about the lawsuit but had not received an answer or statement before deadline.
Project failed in 2022, lawsuits filed
South Carolina political leaders ratified a tax incentive package in 2019 and 2020 for the Panthers deal and said it would be an economic stimulus for the city, county, region and state.
Construction started, then stopped in April 2022.
GT Real Estate, the company created to oversee the headquarters site, declared bankruptcy on June 1, 2022.
Around a week later, York County filed its lawsuit against against Rock Hill and three David Tepper companies — Appaloosa Management LP, DT Sports Holding LLC, and DT Sports Holding Inc.
The county claimed in the lawsuit it suffered rising construction, labor and material costs for Mount Gallant Road improvements, loss of interest income on the road tax funds — called Pennies for Progress — and lost tax revenue and economic benefits.
The city said repeatedly it was not required to issue bonds and did not violate any contract.
Months of legal arguing went on between the Tepper companies, the county, and city during the bankruptcy negotiations. The final December 2022 bankruptcy deal included that all claims against the Tepper companies be terminated and withdrawn from the York County lawsuit, court records showed.
The future of the site
The construction done before Tepper’s company pulled the plug on the project was torn down in 2023.
City manager David Vehaun and Mayor John Gettys told The Herald in 2024 the city would consider splitting the site up as it marketed the property for sale or development.
No deal on the site has been reached.
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Andrew Dys covers breaking news and public safety for The Herald, where he has been a reporter and columnist since 2000. He has won 51 South Carolina Press Association awards for his coverage of crime, race, justice, and people. He is author of the book “Slice of Dys” and his work is in the U.S. Library of Congress.