NC Supreme Court declines Bruton Smith’s incentives appeal

Billionaire bully Bruton Smith out of options

Bruton Smith's $80 million legal fight against Cabarrus County may have run out of track. In a change of heart, the N.C. Supreme Court has declined to rule on the racing magnate's lawsuit that Cabarrus taxpayers owe him tens of millions of dollars in tax breaks for his racing complex in Concord. That decision marks Smith's third defeat in as many court trips dating back to 2012.

The high court's ruling on Dec. 19, however, marks a bit of a reversal: The justices first agreed to hear Smith's challenge of a 2013 ruling by the state Court of Appeals to throw out Smith's suit. But after hearing arguments from both sides in September, the Supreme Court members changed their minds. That means the earlier court decision to throw out Smith's claims stands. The dispute arose in 2007 when Smith, one of racing's most powerful and controversial figures, announced plans to build a drag strip near his Charlotte Motor Speedway. The city of Concord objected, and Smith responded by threatening to move the speedway – and its $420 million annual impact on the local economy – and build the drag way elsewhere.

Eventually, Cabarrus leaders wrote Smith a letter, committing to $80 million in tax breaks, grants and other public money to pay for speedway improvements. According to court documents, Smith called Mayor Bob Padgett that day and told him: "We have an agreement." It didn't hold up. Preliminary discussions focused on a combination of state, county and city money to pay for such infrastructure improvements as roads and noise control. Smith's drag strip opened in August 2008. The next day, the governments sent over a proposed contract that would have given them up to 40 years to make good on their $80 million pledge.

Smith would have been required to complete $200 million of promised speedway improvements within three years. Smith and the speedway sued. The city settled with Smith for $2.8 million, but the track owner's fight with the county continued on through the state's top three courts. Smith's complaint accused the county of breach of contract and fraud, among other claims, while arguing that the 2007 letter from the local governments served as "a valid and enforceable contract." Charlotte Observer