Sewell resigns road seat

Jacksonville businessman Louis Sewell Jr. said his resignation Thursday from the state Board of Transportation came at the request of Gov. Mike Easley, but Sewell was adamant that he never sought personal gain through his decisions.

Sewell told The Daily News he has been assured the N.C. State Ethics Commission will not investigate his decisions while on the BOT now that he has resigned. Messages left with the Ethics Commission were not returned Thursday afternoon.

Sewell acknowledged he directed $375,000 in state funds to improve Jacksonville roads near property owned by him or his son, Billy Sewell, and their respective partners, but said the money was used for sorely needed highway improvements, not for his financial benefit.

"Unfortunately, I did not follow proper protocol by fully recusing myself from decision which could be viewed as having an appearance of conflict of interest. I did not have any intentions to place myself or my family to personally benefit from these road improvements," Sewell wrote in his resignation letter.

His transportation dealings have become campaign fodder in North Carolina's gubernatorial race, as Charlotte Mayor Pat McCrory, the GOP nominee, has pointed to Sewell's ties to his Democratic opponent, Lt. Gov. Beverly Perdue.

Sewell canceled a Perdue campaign fundraiser planned for Thursday at his home.

Sewell, 73, is a former educator and co-founder of Golden Corral Restaurant. He also raised money for Easley, who appointed him to the BOT in 2000. He previously served as a board member from 1982 to 1985 after he was appointed by then-Gov. Jim Hunt.

Sewell said he and his family have contributed $37,000 to Perdue's campaign.

During a ceremony at Onslow Memorial Hospital last month, Perdue told the audience that Sewell "knows how to get things done."

Although Sewell was an at-large board member, he controlled discretionary money for road improvements in Onslow, Duplin or Sampson counties through an agreement he had with District 3 board member Lanny Wilson.

"It was an informal agreement," Wilson said. "Louis Sewell volunteered to attend meetings in those three counties and we spilt the funds that way."

Sewell said Onslow received the largest share of his discretionary because it had the most needs.

Sewell is a member of the Jacksonville Transportation Advisory Committee and on that panel has recused himself from votes that would affect property he owns. He told The Daily News he was not sure why he abstained from voting on the local committee but he voted for improvements at the state level.

State Transportation Secretary Lyndo Tippett released information Thursday about Sewell requests for improvements at Western and Marine boulevards in 2004 and 2005.

"Sewell had ownership interest in several properties adjacent to the intersection, but none of the improvements were adjacent to any Sewell-related property," Tippett said in a news release.

The DOT added a left-turn lane, extended a right-turn lane, installed a concrete median island and relocated overhead sign posts. The work was done to relieve congestion at the intersection, the release said.

Beginning in September 2004, Sewell and his partners sold land near the intersection for a total of $1.7 million. The property was purchased in 1999 for $603,000, according to county tax records.

The new left-turn lane directs traffic away from the Golden Corral owned by Billy Sewell, and the restaurant lost a driveway in the process, Sewell said.

"I was thinking of the best interest of the people of Onslow County and Jacksonville," he said. "I would not have voted on it if I had thought there was any financial gain in it for me. I pushed for it because it needed to be done."

The DOT also acknowledged a $50,000 project for Ramsey Road in 2003 to patch the pavement. "Initiation of the maintenance work prevented the need for full pavement rehabilitation and resulted in a significant cost savings," the DOT release said.

Sewell and partners own 250 acres adjacent to Ramsey Road. The property was purchased in 1996 as part of a larger parcel for $825,000 and has been recently assessed for $3.2 million, according to county tax records. It is now up for sale.

Sewell said the value of the property, which stretches from Ramsey Road to Western Boulevard, comes from its frontage on Western. "Fixing potholes on Ramsey Road didn't add value to that piece of land. Its real worth is on Western," he said.

Raleigh's News & Observer, which examined Sewell's votes on the state board in a report Sunday, said Sewell recommended the Ramsey Road repairs.

DOT Division 3 Engineer Robert Voss told The Daily News on Thursday that he initiated the work. "Ramsey Road was getting to be in real bad shape," he said. "I made the request to patch it up."

Sewell expressed hope that his resignation will not hamper major Onslow County road projects in the planning stages. Piney Green Road is scheduled to be widened, and an off ramp from the Jacksonville bypass directly to Onslow Memorial Hospital and the Jacksonville Mall is in the planning stage.

Contact crime reporter Lindell Kay at 910-219-8456. Read Lindell's blog at http://onslowcrime.encblogs.com.