June 10, 1994
Charles D. Dixon Patrick, Harper & Dixon Attorneys at Law
P.O. Box 218 Hickory, North Carolina 28603
RE: Advisory Opinion: Potential Conflict of Interest Related to Proposed Purchase of Real Property by Catawba County Board of Commissioners for Catawba Memorial Hospital; G.S. 14234
Dear Mr. Dixon:
We have received your letter dated May 27, 1994, in which you request our opinion regarding whether a purchase of real estate for Catawba Memorial Hospital by the Catawba County Board of Commissioners violates G.S. 14-234 if the real estate is owned by a corporation in which a hospital trustee has an interest.
The facts, as set out in your letter, are that the County Commissioners are considering the purchase of condominium office space near Catawba Memorial Hospital to house the Hospital’s Business Services Department. The office space is owned by Fairgrove Church Road Realty, Inc. Dr. Joel B. Miller, one of the hospital’s eleven trustees, owns a one third interest in this corporation. The commissioners plan to determine the price they will offer for the property after it has been appraised by two certified real estate appraisers. Dr. Miller is not a commissioner, and will not participate in any Commission decisions regarding the purchase of the property.
G.S. 14-234 provides: "If any person appointed or elected a commissioner or director to discharge any trust wherein … any county … may be in any manner interested shall become an undertaker, or make any contract for his own benefit, under such authority, or be in any manner concerned or interested in making such contract, or in the profits thereof, either privately or openly, singly or jointly with another, he shall be guilty of a misdemeanor." Clearly, if a commissioner were the owner of the property in question, he would be in violation of this statute if he entered into a contract of sale with the board. Likewise, Dr. Miller would be in violation of the statute if it were the hospital trustees and not the commissioners which were purchasing the property. However, since neither is the case, it is our opinion that no violation of G.S. 14-234 is implicated.
Please let us know if you have additional questions or if this Office can be of further assistance to you in this matter.
Ann Reed Senior Deputy Attorney General