Midway Business Park Proposal

On a recent Tennessee This Week - we discussed the issue of the proposed Midway Business Park in East Knox County.

Several statements were made by our pundits panel including the assertion that there were more than 2,000 acres along Rutledge Pike that could be developed into a business park. We used the term Rutledge Pike Industrial Park, which is incorrect. It's the Rutledge Pike Industrial Corridor.

Regardless, Chamber officials say our information is wrong. Here's what Todd Napeir, Executive VP with the Development Corporation of Knox County says:

"...There is no Rutledge Pike Industrial Development Park. And regardless of that fact, there is absolutely not 2,000 acres of available industrial property for development along Rutledge Pike that could be developed for business park use. We have extensive mapping and information on the industrially zoned property in Northeast Knox County. Here are the facts on what actually exist.

The amount of available, industrially zoned property on Rutledge Pike is almost nonexistent. A majority of the undeveloped, industrially zoned property in the general area somewhat close to Rutledge Pike is located along the railroad tracks and on the banks of the Holston River. The two large tracts of undeveloped, industrially zoned property in the general Rutledge Pike area are:

· 65 acres owned by Walker Trucking. Located between the RR track and the banks of the Holston River, this property is located on the backside of an active landfill. According to RR officials there is no reasonable expectation of being able to obtaining a permanent railroad crossing to access the property due to its close proximity to John Sevier Rail Yard. This property is for sale.

· 365 acres of the Strong Farm is zoned industrial. The industrially zoned portions of the Strong Farm are on the southernmost end along the RR tracks. Over half of this industrially zoned property is located between the RR tracks and the Holston River. Access to this portion would require an at-grade RR Crossing, which even if the RR would approved, would be very difficult to construct. This property is NOT for sale.

The other tracts of undeveloped, industrially zoned property in Northeast Knox County are in the Mascot / Eastbridge Business Park area. The major tracts of industrially zoned property in this area are as follows:

· 185 total acres (largest possible tract 124 acres)in the Eastbridge Business Park. This property is owned by and for sale by The Development Corporation of Knox County. While there are some fantastic companies within this business park, it was been very slow to develop due primarily to its distance from the Interstate. It is 12 miles from the Rutledge Pike interchange at I-40.

· 116 acres owned by Oliver Smith is located on Mine Road directly across from Eastbridge Business Park. About half this property (the portion located closest to Mine Road) is covered with residual, white, fines, known as tailings (silt, clay and sand) from its former use by the mines as slurry ponds. In fact, there is still one of these slurry ponds on the property. Most of the back half of the property, that does not have the zinc mine tailings covering it, has very steep slopes. This property is for sale, and has been for at least 10 years. This property has no location advantages over Eastbridge Business Park

· 94 acres owned by the Jarnigan Trust is located just to the north of the Oliver Smith property and across Mine Road from Eastbridge Business Park. The entire back half of this property is impacted by steep slopes. This property is Not for sale and has no location advantages over Eastbridge Business Park.

· There is a 96 acre tract owned by Luke Green Company located on Mascot Road that WAS industrially zoned, but it was rezoned by the owner earlier this year to planned residential. This property was formerly owned and used by the mine company; when the mine company sold the property, they retained all subsurface mineral rights. Access to this property is off Mascot Road and would be difficult. This property is NOT for sale, and is more difficult to get to than Eastbridge Business Park.

· 71 acres owned by the McBee family is located on the east side of Mascot Road just north/west of the Holston River. This property is listed on the National Register of Historically Significant Places (site ID # 40JE41-44/40KN177). This property contains Civil War fortifications. This property is NOT for sale.

· There is a 74 acre tract and a 70 acre tract of land (not adjoining) on the banks of the Holston River just east of Clear Springs Road. These properties are both narrow in width and deep in depth. These properties are still carrying industrial zoning because they were part of the property once owned by the mining companies. These properties are NOT for sale, not as accessible as Eastbridge Business Park, and they would not be appropriate for industrial development despite their current zoning status.

Saying that there is over 2,000 acres of available, industrially zoned property that could be used to develop as business park for the recruitment of companies to Knox County is completely inaccurate..."

Another argument made by one of our panel members: “The USDA Grant, that’s what can happen. The County can recoup the $10 million that it spent on this. So they can have the $10 million back. Plus, they can then sell it and make even more money, or they can develop it in a way that is consistent with …. it would have to stay agricultural zoning … so they would have to develop it in a way that is consistent some sort of low density development. So they can still recoup the money they have put into it and make money off of it. It just would not be an industrial park.”

Napier's Response:

"..This property is located on the interstate at an interstate interchange. The Development Corporation of Knox County (TDC) bought this property to develop as a business park not for farming or ranching. We need to plan now for future business parks in Knox County. TDC has no intention to pursue this USDA Farm and Ranch Land Protection Program (FRLPP). However, what is quoted about what this program would do, is inaccurate. Thus I would like to clarify how this program works.

To put property into the USDA Farm and Ranch Land Protection Program (FRLPP), the owner (The Development Corporation of Knox County in this case) would have to make the application. The FRLPP provides matching funds for the purchase of the development rights in the form of a conservation easement that would limit any future use to agricultural only.

· The conservation easement would have to be held by an entity such as the Land Trust for Tennessee.

· The FRLPP provides matching funds to pay the property owner 50% of the value of the conservation easement.

· A separate organization/person/entity is required to provide cash equal to 25% of the value of the easement, and the owner’s value of the donated easement can account for the final 25% of the matching funds.

· The USDA uses a third party appraiser to determine the value of the conservation easement. The appraiser first determines the value of the property as it is currently, then determines what the value would be with the conservation easement in place. The difference in these two values, is the monetary value of the conservation easement.

Because of Chancellor Fansler’s ruling in 2008 overturning the Metropolitan Planning Commission’s and County Commission’s 2006 rezoning of the property that allowed for a business park use, the property subsequently reverted back to agricultural zoning. Also, this property has not been improved (i.e. roads, utilities, etc.). If this property is not rezoned to allow for business park use, its current appraised value will be based on unimproved, agriculturally zoned property (not as business park valued property). The difference between current value (unimproved, agriculturally zoned property) and the value if it were to have this conservation easement for farming and cattle use only, would be nowhere near the $20 million easement valuation that would be required to recoup $10 million (50% of the easement value) from this USDA FRLPP grant..."

This week on Tennessee This Week, Knox County Mayor Tim Burchett discusses the proposed business park. He says he's not yet ready to take a position on the proposal.