Webb: Blogger's accusations false, politically motivated

Andy Webb says accusations against him are nothing more than a politically motivated smear campaign.

Webb, a McDowell County commissioner and candidate for the Republican nomination for N.C. Senate, has come under fire in recent weeks for his business association with a Morganton entrepreneur, Rocco DiSanto.

An online blogger who identified himself -- or herself -- only as a "city employee" began posting accusations about Webb's and DiSanto's business associations back in November. According to the blogger, DiSanto is the agent or CEO of record for at least 14 businesses in the high-tech communications industry, including DGR Networks LLC, which has an agreement with the county, and Broadplex LLC, which has a contract with the public schools.

DGR, the blogger continues, has received land, services and incentives from the county and Broadplex has received a great deal of money from the public school system. The blogger has suggested that DiSanto's relationship with Webb had influenced those deals, in other words, that DiSanto had used Webb's position as a commissioner to fleece the county.

Chuck Abernathy, head of the McDowell Economic Development Association, said that DiSanto was far behind schedule in developing the property and expanding his business to McDowell, but that the county had so far lost nothing and would reclaim the property if the conditions of the award were not met.

"This was never an open-ended deal," said Abernathy. "There is a time limit specified."

The fact that business plans made two years ago have not panned out is, unfortunately, no surprise, he added.

"A lot of businesses have had to scale back these days," Abernathy stated.

The arrangement is spelled out in a contract. The agreement involves slightly more than 4 acres in the McDowell County Industrial Park. The agreed value of the land is stated to be $100,000, or $23,810 per acre. The county has agreed to provide water and sewer hookups and to waive fees associated with that connection.

In exchange, DiSanto's company agreed to bear all costs associated with the title and deed to the land, to build a 1,000-square-foot facility and to employ six full-time workers in the first year of "beneficial occupancy" and increase that staff to 12 within 36 months.

The company has until April 1, 2010 to construct the building, according to the agreement.

If DiSanto fails to meet the conditions, according to the document, his company is subject to penalty.

"If by the termination date, the company fails to achieve the (specified staffing requirements), the company shall reimburse MEDA a prorated share of the $100,000 incentive," the document stated. If only five full-time employees are hired, for example, the company must pay $50,000, half of the agreed value of the incentive package received.

This sort of arrangement is not at all unusual, according to Abernathy. DiSanto is not the first entrepreneur to negotiate incentives from the county, he said, nor is he the first to find that his plans have changed due to the unprecedented recession and resultant decline in business.

But did Webb have a hand in the agreement?

Webb told The McDowell News that he had no association with DiSanto when that agreement was made in October 2007. He added that he recused himself from discussion and votes in April when the original agreement was amended (and the agreement cited above was drafted).

"I have a business relationship with Mr. DiSanto starting in March 2008," said Webb. "It is a minor association, not in any way full time," he added. "I don't know what the future will hold, because the economy has slowed his ability to act on his business plans."

DiSanto told The McDowell News his several companies represent the range of services and products he is involved in, as well as the fact that he has been in the industry for many years.

"We began as a local dial-up ISP (Internet service provider) a long time ago, and we have evolved with the technology," he said. "We are a competitive local exchange provider."

His primary focus, he added, is to develop underserved markets like McDowell, rather than compete in developed and crowded markets.

"Andy serves in a couple of roles," he said, "doing marketing and potentially sales at some point. His work doesn't approach full time."

Aaron Slutsky, McDowell schools' technology director, said Broadplex has a contract to install cable for the schools' "wide area networks," that is, lines between the schools, but not in the schools. The contract, Slutsky pointed out, predates his tenure as technology director.

"It is a three-year deal," he said, "and it expires on June 30, 2011."

He said there have been some delays.

"We're told that the work is held up due to some railway right-of-way issues," he said. "We haven't got Nebo and North Cove connected yet, and there's an issue at Old Fort, where the fiber that has been installed there is broken."

He said two companies -- Broadplex and Charter -- bid on the project and Broadplex was "much cheaper" than Charter. Broadplex offered twice the bandwidth for less money.

DiSanto said that while gaining right-of-way waivers from railroads is a notoriously slow process, he is confident it will be concluded soon. He said he expected the work for the school system to be completed "anywhere from one month to a few months from now," and "we'll serve the school system for as long as we are graced with their business."

He said he had been aware of some rumors on the Internet, but noting specific.

"Certainly, if anyone can substantiate any claim of wrong-doing on my part I'll be glad to discuss it with them," he said.

Webb said he is certain there is nothing more than politics at play in this matter.

"This whole thing is ridiculous," he said. "This has everything to do with the Senate race, nothing more than that."