The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Sunday, November 5, 1995               TAG: 9511050073
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY MASON PETERS, STAFF WRITER 
DATELINE: JACKSON                            LENGTH: Medium:   73 lines

MONDAY, JENKINS WILL REQUEST FUNDS FOR GASTON DEVELOPMENT

The former chancellor of Elizabeth City State University, Jimmy R. Jenkins Jr., and his group of Lake Gaston real estate developers on Monday will ask Northampton County commissioners for startup funding for a $29 million hotel and golf course on the north shore of the lake near Henrico.

Should the commissioners decide to ante up seed money at their meeting here, an additional grant request, for $150,000, probably would be viewed favorably by the Northeast North Carolina Economic Development Commission.

Jenkins asked for the $150,000 at a meeting of the economic commission's tourist committee in Hertford last week, in his role as board chairman of the Lake Gaston Regional Development Association.

Mary Lilley, chairwoman of the committee, told Jenkins that a previous commitment ``for resources from other local sources'' would smooth the way for most funding by the full commission.

Lilley said her committee would vote on Jenkins' request in early December. If the committee approves the funding, ``we'll make a favorable recommendation to the full commission,'' she said.

Months ago, the commission approved a similar $150,000 for the entrepreneurs who want to build the huge recreational complex at Lake Gaston. The action backfired when it was learned that Grover Edwards, a member of the commission, and his family owned some of the lakeshore land that would be developed.

Because of the apparent conflict of interest, the commission rescinded the grant.

But Edwards, now vice chairman of the commission, appeared last week at Jenkins' side when the former chancellor made a new pitch to help the Lake Gaston Association. Jenkins is a former vice chairman of the commission and remains a member.

Lilley told Jenkins she had sent a copy of Jenkins' proposal to Max Busby, the commission's Edenton attorney, ``for a ruling on the inevitable question of conflict of interest.''

``I can't comment on any communication I may have with the economic commission,'' Busby said Friday.

Jenkins' appearance as board chairman of the Lake Gaston group was as much a surprise as his resignation from ECSU in August. Since his departure, Jenkins has made few public appearances.

In a resignation letter to University of North Carolina President Clemmie Spangler Jr., Jenkins said he hoped to take a brief sabbatical and then return to ECSU as a biology teacher. Spangler has since appointed Dr. Mickey Birnam as interim chancellor.

Until last week, there was no indication that Jenkins was associated with the Lake Gaston association - nor were there indications that he was being considered for board chairman. Several other prominent African-American leaders appear as directors on the letterhead of the organization.

Jenkins told Lilley the Lake Gaston Association was seeking a tax-exempt status from the IRS, but for the present was ``utilizing the Eastern Minority Economic Development Corporation as a fiduciary funding agency'' during the period of application for tax-exempt status.

Jenkins also said that the Lake Gaston group was preparing a full report on their plans for the requested $150,000.

He promised to provide Lilley and her committee with a detailed account of the resources of the Lake Gaston Association, its management team, a budget breakdown for the $150,000 and a copy of the IRS 501(c)3 tax-exempt request letter. ILLUSTRATION: Photo

Jimmy R. Jenkins Jr. is board chairman of the Lake Gaston Regional

Development Association. He resigned as ECSU chancellor in August.

KEYWORDS: LAKE GASTON PIPELINE by CNB