A newly elected Charlotte City Council member is under investigation for his potential ties to a company that does business with the city, according to the Mecklenburg County District Attorney.
James "Smuggie" Mitchell was elected to an at-large seat on the city council this year. He previously served on the city council for two decades before resigning in 2021 to take a job as president of R.J. Leeper Construction. Mitchell has since left that position.
"I have asked for the assistance of the N.C. State Bureau of Investigation to determine whether the status of Mr. Mitchell’s ownership stake in a firm that has a contractual relationship with the City of Charlotte can be confirmed," District Attorney Spencer Merriweather said in a statement.
State law says city council members can own no more than 10% of a company that does business with the city. R.J. Leeper Construction has several contracts with the city, including work on the airport expansion and the convention center renovation, according to the company's website.
Mitchell told Spectrum News 1 that his ownership stake in the construction company is under investigation.
"I’m looking forward to the SBI investigation, and I think it would bring closure - hope it will bring closure to this business matter,” he said.
In a separate statement, R.J. Leeper said Mitchell has not had a stake in the company or related companies since before the election.
"Mr. Mitchell has never owned a direct ownership interest in R.J. Leeper Construction, LLC. He previously owned 25% of Bright Hope Construction, LLC, a parent entity for R.J. Leeper Construction, LLC. Mr. Mitchell’s 25% interest was foreclosed upon under North Carolina law after he defaulted on his obligation to repay a $375,000 loan plus accrued interest," Leeper COO Lorie Spratley said.
"As a result, Mr. Mitchell has not held any ownership interest in Bright Hope Construction, LLC since March 22, 2022," she said.
Spectrum News 1 reporter Rachel Loyd contributed.