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Arnold won't say whether hell stay

Friday, March 7, 2008
(Updated Wednesday, June 4 - 12:26 am)

GREENSBORO — A Guilford County commissioner facing accusations of fraud and slander declined to say Thursday whether he would leave office.

"I do not want to speak tonight," Republican Steve Arnold said during a break in Thursday's meeting.

Arnold filed for Chapter 7 bankruptcy protection in November, the same month his development company, Arcon, also filed for bankruptcy. At that time, Arnold mentioned he was considering stepping down from the board.

Asked if he has made a decision on his future with the Board of Commissioners, Arnold said, "I've already decided what I'm going to do, and I will let you know when the time comes."

He would not elaborate on his plans or when the announcement might come.

"I have no obligation to talk to the press," Arnold said. "I have no obligation to talk to the public, either."

He added that he does speak with the District 2 High Point constituents who contact him.

For several weeks, Arnold has not returned phone messages seeking comment on a February bankruptcy hearing and on complaints filed against him in bankruptcy court.

One complaint alleging slander and defamation came from Elkes Development, a firm that Arnold's company partnered with on projects. That complaint alleges that in September Arnold wrongly accused the Elkes owners of taking money from him, a comment they say he made during an impromptu news conference during a break in a county commissioners meeting.

The other complaint came from an Arcon investor alleging that Arnold fraudulently had handed titles to his property over to his parents and father-in-law without payment. Manuel Perkins, a retired water utility owner, also alleged that Arnold committed unfair trade practices. Perkins alleges that Arnold transferred property to family members to keep creditors from getting at his land to settle his debt.

Perkins invested in Brightwood Farm, a development on which Arnold's company broke ground in 2002.

Arnold has said a string of severe weather events washed out the development and made it difficult to build. In November, Arnold said streets had to be graded several times and construction dates were pushed back months because of the weather.

Bankruptcy filings showed Arnold and his company with more than $12 million in debt and assets of $250,000.

Arnold didn't speak to those complaints or anything regarding ongoing litigation Thursday, saying they were court matters.

His fellow commissioners weren't interested in speaking on Arnold's personal issues this week, either. Most said they believed Arnold's court proceedings didn't have an affect on his duty as commissioner.

Several board members seemed to support Arnold.

"I happen to know Steve and know that he is an honorable person, and I think he will try his very best to do the right thing on this," said fellow Republican Linda Shaw.

Commissioner Paul Gibson said voters should have more of a say on whether Arnold should stick around.

"He's there because the voters put him there. That's a business issue, and that has nothing to do with the county," Gibson said.

Arnold is the board's senior member, serving since 1990. He previously served on the High Point City Council and as a state representative. In 1996, he made an unsuccessful run for lieutenant governor.

In other business, the commissioners:

l Approved two contracts for food service to inmates and workers in the Guilford County jail and the juvenile detention center totaling up to $1.88 million for 15 months. Not all of the money may be spent. The contract was based on an estimated maximum of 3,013 meals served per day between the two locations.

l Approved the purchase of two open space parcels: 63 acres in Oak Ridge for $318,000 and 19 acres near Northeast Middle School for $59,400.

Contact Gerald Witt at 373-7008 or gerald.witt@news-record.com

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