GREENSBORO — The vice chairman of the Guilford County Board of Commissioners said his business bankruptcy — and ensuing court battles — won’t be a factor in whether he seeks another four-year term .
“It certainly doesn’t change anything,” Republican Commissioner Steve Arnold said Tuesday . “I’ll be making my announcement soon, and the court proceedings don’t affect that.”
A U.S. bankruptcy judge ruled last week that Arnold cannot avoid paying more than $1 million to a creditor as part of the fallout from his failed construction company, Arcon Inc. Saying the case had “numerous badges of fraud,” the judge noted Arnold admitted under oath to transferring land to family members to protect it from creditors.
Arcon and Arnold both filed for bankruptcy in 2007 with more than $12 million in outstanding debt.
Since then, Arnold has been sued for slander and libel. His arrest was even ordered for refusing to comply with court orders in a separate case in Randolph County. That order was later lifted when Arnold agreed to pay thousands and turn over documents related to another construction deal. In that case, the judge scolded Arnold for failing to live up to the “higher standard” of behavior expected of elected officials.
Democrats think they have a shot at Arnold, who first ran for the board in 1990 and has been re-elected easily four times since.
“I think people do have the idea that their elected officials should be held to a higher standard,” said Tom Coley , chairman of the Guilford County Democratic Party . “So if you look at some of the things he’s been involved in, I think that means someone is going to challenge him this time — a strong challenge.”
Most of Arnold’s fellow commissioners declined to comment on his future, but a few have been vocal.
Fellow Republican Commissioner Billy Yow said Arnold has served his district well and has made a good vice chairman.
Democratic Commissioner Paul Gibson , a frequent sparring partner of Arnold’s, has called for his resignation, saying his conduct as a businessman raises questions about his ethics and financial acumen.
Arnold said Gibson’s comments don’t bother him.
“Paul Gibson would be happy if everyone resigned from the board except for Paul Gibson,” Arnold said.
Some people don’t see significant problems for Arnold with his electorate, should he run again.
Marlene Sanford is president of the Triad Real Estate and Building Industry Coalition . She said many people in Guilford County are involved in one way or another in real estate , so voters are more likely to see Arnold’s business woes in perspective.
“Having a business or a personal bankruptcy is not necessarily something that is held against someone in this industry,” Sanford said.
Arnold said he’s concentrating on working as a development consultant and on the issues he wants the board to work on in 2010 — including spurring development.
“I’ve been dealing with this for two years without a detriment to my constituents or my public responsibilities,” Arnold said. “And I’ll continue to deal with it and do my job.”
Contact Joe Killian at 373-7023 or joe.killian@news-record.com
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