NASHVILLE - Republican gubernatorial candidate Zach Wamp's campaign charged today that Knoxville Mayor Bill Haslam, a GOP rival, and other Haslam family members mixed personal and city funds in a downtown Knoxville redevelopment project the mayor has touted in his campaign.
The issue, which involves the Regal Riveria Cinema, represents a "serious breach of ethics," Wamp spokesman Sam Edelen said in a news release.
The campaign said Mr. Haslam "never mentions that he co-mingled and co-invested as much as $2 million of his own money, as well as $750,000 each from his father, Jim Haslam, and brother, Jimmy Haslam."
The project also involved $4 million in taxpayer funds from Knoxville and another $3 million in government grants and tax credits to underwrite the development.
The Wamp campaign said the project is "now 100 percent privately owned by Haslam, his family and co-owners."
Mr. Haslam and campaign officials quickly took issue and defended Haslam family members' investments, saying their involvement came only "as a buyer of last resort."
"To imply that we owned it and set the thing up this way is just wrong," Mr. Haslam said Tuesday. "And it's owned by the city's Industrial Development Board, period."
For complete details, see tomorrow's Times Free Press.