Carolina Crossroads - Management and Ownership Changes

Management and Ownership Changes

The local government in Roanoke Rapids, the North Carolina Local Government Commission, and North Carolina Treasurer Richard H. Moore (chair of the commission) at that time were questioned about their decision making surrounding the project. Questions remain on why they allowed the project to go forward and bonds be issued to finance the project based on assurances that any revenue shortfalls could be covered by sales taxes. Critics say that the commission failed to completely consider the study which relied on 2 hotels and a retail shopping facility be completed by the time the publicly funded theater was to open, which did not happen.

In November 2007 the city took control of the theater from Parton and gave it to UGL Unicco, hired to run the theater under a short term contract. By early January 2008, more than 30 acts had been booked in the first half of 2008. During that time the theater produced its first profit of $17,000. Previously it had lost more than $1 million under Parton's management.

On January 8, 2008, the city of Roanoke Rapids terminated Randy Parton's contact and renamed the theater the Roanoke Rapids Theater. Scheduled performances continued, with disappointing ticket sales. Some details of contracts between the city, performers and other employees remained secret until local media obtained them via the Freedom of Information Act. Some who worked for the group responsible for bringing the theater to the area later worked for the theater and were paid hundreds of thousands in salary which some employees said was unearned. Several thousand dollars in "Memorandum of Understanding" payments to Parton's daughters have also been questioned. Scandal extended outside the project when a NCDOT official representing the area resigned after questions arose concerning fund raising efforts targeted at officials associated with the Carolina Crossroads project.

On February 18, 2008, UGL Unicco terminated its contract with the city of Roanoke Rapids citing repeated missed payments of over $100,000. Thereafter the city itself managed the theater until it closed in the summer of 2008. In December 2009, the city announced that it was selling the theater to Lafayette Gatling of Chicago, Illinois. It reopened and was renamed the Roanoke Rapids Theatre. However, in April 2010 the city announced it was terminating the contract with Gatling due to late payments. In June 2010, the city filed suit to evict Gatling from the theater; in August 2010, a court ordered Gatling to hand over the premises to the city. The city signed a new management contract and two events were held at the theatre in 2011.

Separately, the amphitheater operated briefly as the Atlantic One Amphitheater. The last event at the amphitheater under that branding was in July 2009. It was purchased by a new owner, Carolina Dirt, and rebranded as The Festival Park at Carolina Crossroads with an event scheduled for June 2011.

In November 2011, the city agreed to sell the theater outright to Gatling in an effort to reduce the city's debt from the project. However, this deal was not consummated. In September 2012, the city leased the theater to HSV Entertainment, an Arkansas company, which renamed it the Royal Palace Theatre. Events were announced for October 2012, and the city also announced that electronic gaming would be available at the theater.