LEBANON, Tenn. – Philip Craighead is both the mayor of Lebanon and the president of a real estate company and some say that is a conflict of interest and violates the city's charter.
Craighead was first elected into office in 2008. He ran his own real estate company, Craighead Home Sales, Inc., long before that.
In a statement posted on his election Web site, Craighead states, "In 1985, I began building homes in the Middle Tennessee area. Since then, together with my wife, we have built over 200 homes. In 1991 we started The Phoenix Group of Middle Tennessee, a highway construction company that works on roadway projects throughout the state. My son has joined us in the family business which is allowing me the luxury of the time needed to serve as mayor."
The Web site for Craighead Home Sales, Inc. has several links including one to his mayoral Web site.
Since his election, some have raised questions whether the mayor is violating the Lebanon City Charter.
Under the charter, "The mayor shall devote full time to the duties and demands of the office and during his tenure shall not hold any other position of employment."
In mid-April, armed with a copy of the charter, and copies of deeds and other real estate documents with Craighead's signature, Nashville's News 2 Investigates paid a visit to Lebanon City Hill to talk with the mayor.
Among the documents signed by the mayor was one dated March 8, 2011, a Tuesday.
"That's a Tuesday," Nashville's News 2 Investigates' Andy Cordan asked. "What were you doing as the mayor of Lebanon on that day? You see what I'm saying? How is this not a conflict of interest? How is this not a violation of that? Don't you think in some way this is a conflict of interest?"
Throughout the encounter, Craighead maintained he was merely refinancing properties he's always had.
"Everyone knows I own a lot of different land. Is it not wise when the time is right to repackage what you have and refinance?" he asked, adding, "And that is all I have done is refinance the loans I have had."
When asked about the time spent doing so, he responded, "A lot of it might be in the afternoon, when we finished up, and my hours are not 40 hours here. I put in 60-plus [hours] each week so at some point you have to take care of your life and family and business."
Craighead said his properties are properties he's always owned and taking care of them doesn't interfere with city business.
"These are properties we own and have always owned," the mayor added. "My job is to promote the city of Lebanon and watch the budget and do anything to promote it, but at some point everyone has to go home and think of their own household and that's all this is... This is where we went in and refinanced to put my family in a better position."
Craighead's wife, Darlene, a real estate professional, involved in the company maintains her husband's role in the company is limited.
"When you say real estate business you assume he has a real estate license. He has no license. He is not involved in real estate," she said.
"I manage all the properties. He doesn't do that. He does sign because he has ownership," she continued. "He helped us refinance, which is a one time thing. We don't do it every day."
"The banks aren't going to let us sign for a loan if I don't sign," the mayor added.
Mayor Craighead told Nashville's News 2 Investigates city business comes before the family's business and when it comes to city business, the family is out of the picture.
Craighead said as mayor, his salary is $82,000 and taking the job as mayor was a pay cut. Read more from Mayor Craighead.
Former tenants, councilwoman cry foul
While the Craigheads say the mayor's role in Craighead Home Sales, Inc. is limited, Keely Callaway doesn't agree.
The mother of four once lived at 101 Phoenix Place, a property owned by Mayor Craighead's corporation.
By phone, she told Nashville's News 2 Investigates she used to work for the Wilson County Sheriff's Office until she moved two years ago following an incident during Slammin' and Jammin', an annual car show once held in Lebanon.
She recalled, "Two [years] ago, my daughter had friends over and they spun out. It was reported to Phillip Craighead, who mayor at the time and our landlord. Three hours later, he threatened to put me in jail for not keeping my kids under control and we would have to move if I did not keep my kids under control."
"What he told me, as far as us having to leave our home, he was acting as a landlord," she continued, saying she doesn't believe Mayor Craighead would have ever came to her home if he didn't own it.
Callaway said he was acting as a landlord who owned the property, not the city's mayor.
She reiterated, "He said we would have to move and I would be taken to jail if I could not keep my kids under control." Read more from Callaway.
Nashville's News 2 investigates also spoke to another former tenant of a property owned by Craighead Home Sales, Inc. who once worked for the city of Lebanon.
The person did not want to be identified but said she was told by a Lebanon city supervisor to not complain about conditions at her townhome because it might jeopardize her job with the city.
She said the message was clear, "If you live in the mayor's property and you work for a city run by that same mayor" [keep your mouth shut].
Kathy Warmath has long been a city councilwoman in Lebanon, representing Ward 6 on the city's west side.
"I would say that is an understatement to say that he doesn't follow the charter," she replied when asked if Mayor Craighead has as conflict of interest.
"I am troubled by this," she continued. "The bottom line is, when you hire a mayor, by election, the charter says you are to be devoted, the citizens expect you to be committed on endeavors for betterment of the city, and you can't do that with two or three agendas." Read more from Warmath.
Disclosure agreement signed
As it relates to the disclosure agreement Craighead signed as "honey do list coordinator," Wilson County Attorney General Tommy Thompson told Nashville's News 2 Investigates, "It has to do with conflicts of interest and ethics, and the city wants to run on an ethical basis and so they have everyone sign conflict of interest sheets."
Thompson said while there is a lot of gray area involving Craighead "the mayor" and Craighead "the real estate president," there is nothing further that he would consider actionable.
"We have looked through the papers you presented, which are mostly refinancing existing properties. I can see with the volume of the signatures, based on what we see, maybe his wife should sign, but it is a family decision, he made it and signed it and it doesn't detract from his job as mayor of Lebanon," he concluded.
Attorney says real estate deals mostly legit
J. Carlton Drumwright is a real estate attorney who specializes in real estate documents like those acquired by Nashville's News 2 Investigates.
By and large, Drumwright said deals signed by Mayor Craighead are legal, legitimate and standard in the real estate profession.
He said, "Basically when he says he is refinancing and re-bundling, yes that is true, the vast majority of properties he already owned… but there are properties on here that [Craighead] bought." Read more from Drumwright.
Attempts to get comment from Mayor Craighead on the allegations made by Callaway and the others were never returned.
