UNC-system President Erskine Bowles leads the board of directors of the company that was chosen to develop University Square through a closed process.
But University representatives said his relationship with Cousins Properties did not have any effect on the decision to hire the company to develop the 12-acre space acquired last year by the UNC-Chapel Hill Foundation.
A company’s board of directors is responsible for representing shareholders and ensuring the company’s executives are leading the firm to success.
“He has recused himself from any involvement in any doings related to the University,” said Joni Worthington, vice president for communications for the UNC system. “He will have no impact and no involvement.”
Real Estate Holdings, an arm of the UNC-Chapel Hill Foundation, purchased the space — which includes Granville Towers — in June 2008 for $45.75 million.
The foundation is a private group associated with UNC-Chapel Hill. It manages properties and other assets for the University.
Cousins Properties, a urban, retail, office and residential development company based in Atlanta, has not done much work in North Carolina outside of Charlotte — where Bowles worked as an investment banker before becoming system president.
The company plans to tear down much of the existing development and add office space, triple the retail space and build multi-level parking decks. Cousins Properties recently hired an architect and is holding public forums to gather input on what should go in the area.
Since the UNC-Chapel Hill Foundation is not technically part of the University, the decision to bring in Cousins Properties was not a public one. The company’s contract has not been released, so it is unknown how much the foundation is paying.
Bowles was appointed to Cousins Properties’ board of directors in 2003, more than two years before he became president of the UNC system. He was named lead director at Cousins Properties in May.
Board members don’t have dealings with everyday projects, said Gordon Merklein, executive director of real estate development for UNC.
“He’ll have absolutely zero impact,” Merklein said of Bowles’ role on the board.
Bowles also sits on the board of directors for General Motors, Morgan Stanley and N.C. Mutual Life Insurance Co.
“There’s no reason for him to have any role in the project outside of his interest in Carolina and the betterment of downtown,” Merklein said.
Contact the University Editor at udesk@unc.edu.
