Tue
Sep 12 2006
07:23 pm

The people of the Thorn Grove community in East Knox County have filed a lawsuit to protect their community autonomy. This is the way business must be conducted in Knox County when the local government refuses to represent the people. One of the developers that owns parcels which will be used for the Midway Industrial Park is Harry Sherrod. The same Harry Sherrod who threatened Gary Seller's during the Wheel Tax petition and who was a key figure in Mayor Ragsdale's efforts to stop the Wheel Tax petition.

One of the key requirements for the Development Corporation was that the land have no more than 6 degrees of slope. This site in Thorn Grove is some of the most rolling land in Knox County. But only four Knox County Commissioners actually visited the site. The vote was pure politics. Commissioners voted for the Industrial Park because County Mayor Ragsdale told them to.

The 11 million dollars needed to purchase the 370 acres meant no money was left to keep the County Mayor's promise of fully funding the Hardin Valley High School. Mayor Ragsdale is doing everything in his power to build this High School for only 1,300 students. The result being that there will be no relief for school overcrowding for Karns, Bearden, and Farragut until 2011, well into the administration of the next Knox County Mayor.

Which is more important, to help a friend with a business deal, or to keep a promise to solve school overcrowding? Mayor Ragsdale has given his answer and only a court case can stop him.

On September 11, 2006, attorney David L. Buuck filed a lawsuit in Knox
County Chancery Court on behalf of several residents of the Thorn Grove
/ Midway Road community against the Knox County Commission and the
Metropolitan Planning Commission.

The suit contests the August rezoning by Knox County Commission of
approximately 378 acres of land at Midway Road for an industrial park at
the behest of The Development Corporation of Knox County (TDC) and 9.5
acres adjoining the proposed industrial park by developer Victor Jernigan.

“We believe that both the MPC and Knox County Commission violated the
East Knox County Sector Plan when they arbitrarily rezoned this property
for an expensive and ill-conceived project,” said Donna Bohon, president
of the 8th District Preservation Association. “This goes completely
against the thoughtful and thorough planning document that the community
spent hundreds of hours creating in conjunction with the MPC.”

The Complaint alleges, among other things, that the rezoning action by
the MPC and Knox County Commission “constitutes an instance of arbitrary
and unreasonable spot zoning” and “confers a special privilege
furthering the private interests of the applicants TDC and Jernigan,
while depriving plaintiffs and other property owners in the neighborhood
of their rights, values and privileges in and to their properties. . . "

Longtime Thorn Grove residents Wayne and Janis Waggoner are two of more
than a score of property owners listed as plaintiffs on the suit, and
they have been very active in opposing the industrial park. “This is a
risky project that is completely speculative. They are going to destroy
our community for another ‘if we build it, they will come’ project. They
are wasting tax dollars when we have far better uses for that money in
Knox County,” said Wayne Waggoner.

The suit also asks for an injunction preventing Knox County and MPC from
issuing any building permits on the property until the suit is settled.

Anonymous's picture

A New Vacancy at Forks of the River Industrial Park

One of the Thorn Grove arguments was that the industrial park was not needed because of all the empty space at the other industrial parks, including Forks of the River, and the un-reclaimed brownfields all around Knox County. Looks like we're about to get another vacancy at the Forks.

Just posted at the News-Sentinel:

Check manufacturer closing East Knox plant

By MICHAEL SILENCE, SILENCE@KNEWS.COM
September 12, 2006

B2Direct, a company that produces checks and check-related products and provides direct marketing services, will close its Knoxville operation Dec. 1, forcing the layoff of 54 employees.

B2Direct’s parent company, Clarke American Corp., announced the pending closure Tuesday. Clarke American’s Knoxville plant is located at 5205 N. National Dr. in Forks of the River Industrial Park.

"We are absorbing that production into other facilities. We have a large network, but primarily it will go to Jeffersonville, Ky.," Clarke American spokeswoman LaRhesa Pollock said Tuesday.

Pollock said Clarke American has positions open at other facilities and Knoxville employees will be considered if they choose to relocate.

CBT's picture

Nine, Was the suit filed by

Nine,

Was the suit filed by adjacent property owners? Developers have options from willing sellers for all the property needed for the park, right?

BTW, Harry Sherrod has family roots in that community (so do I). So, his involvement is not a surprise. I believe he's explored other options between Midway Road and Exit 407 (Sevierville).

smoky's picture

Some of the sellers are old

Some of the sellers are old people who were told they better sell because "so and so" has already sold their property and theirs would be worthless if they didn't join in.

Several of the sellers are regretting already that they have signed and I wouldn't be surprised to see some of them return the earnest money to get out of the deal.

No one is saying that a willing seller shouldn't be able to sell their property at any time. What is questionable is whether you have the *right* to rezone your property to allow noxious uses in order to get the most money out of your property, like in this case. Especially when you have a private corp funded with taxpayer money making the deal happen. Especially when the zoning goes against what has always been planned for this area.

What if your neighbor decided to sell his property and had the political pull to get it rezoned to allow a nuclear waste dump. Fair or not?

Anonymous's picture

Options

The people suing are all the surrounding landowners, many of whom have a house and an acre, which the Dev Corp didn't want to buy.

Interesting that today's News-Sentinel also has a story about Clarke check making company closing their facility in the Forks of the River Industrial Park, which now is less than half full. Been through there lately? It's like a ghost town. What the Midway folks have to look forward to if they lose in court.

CBT's picture

Big difference...Forks of

Big difference...Forks of the River isn't next to a major interstate. Same with Eastbridge. Westbridge is near Pellissippi Parkway and appears mostly full. Any others right on the interstate?

Number9's picture

Big difference...Forks of

Big difference...Forks of the River isn't next to a major interstate. Same with Eastbridge. Westbridge is near Pellissippi Parkway and appears mostly full. Any others right on the interstate?

CBT, do you support this Midway Industrial Park?

Anonymous's picture

Interstate Access

Uh, yeah. There's the near-empty industrial park where HT Hackney is in Roane County right on the interstate, all the land up and down Pellissippi Parkway that was zoned for industry that never was sold, the abandoned industrial sites at Cherry Street, Baxter Avenue, and the I-275 Business Park, formerly Coster Shop (other than the Sysco deal), just to name a few.

Building giant industrial parks is a totally outdated approach to economic development - people have realized it doesn't work - they are never filled up. And with all the tax breaks and incentives, it's not such a great deal for taxpayers. The trend is for industrial "mini-pods" instead of giant parks, because the parks are almost always a bad return on investment.

Because of our air quality problem, they can't recruit any more polluting industry anyway, so it will have to be distribution. Anyone who is paying attention would realize that is the wrong side of Knoxville for a distribution hub - the other end where the beltway is going makes much more sense.

This isn't about needing land for industry, it's about bringing the sewer and infrastructure to a rural area so all the real estate agents and developers can get their piece of the pie.

rikki's picture

This isn't about needing

This isn't about needing land for industry, it's about bringing the sewer and infrastructure to a rural area so all the real estate agents and developers can get their piece of the pie.

Yep. It says so quite plainly in the MPC report.

This episode is a textbook case for how corruption and patronage undermine democracy and explode public budgets. The only entity with the authority to spend county money, County Commission, has been out of the loop on this project until last month, when they were asked to open a trap door through which millions of dollars may fall. The commission did not decide to pursue an industrial park nor ask MPC to identify potential sites nor select one site from the list nor send proxy investors out to see whether landowners were willing to sell nor approve funds for land acquisition nor approve funds for planning a business park nor approve funds for infrastructure upgrades needed to support the park. They just trashed the Sector Plan hundreds of citizens and county officials spent months creating.

I think it's funny that a county commissioner told me weeks before the meeting the vote would be 16-3. It was. Why bother threatening commissioners with imminently expiring options, as Brian Hornback did, when the fix is already in? Doesn't that just draw further attention to the insider deals?

Number9's picture

Has MPC been sued before?

This episode is a textbook case for how corruption and patronage undermine democracy and explode public budgets. The only entity with the authority to spend county money, County Commission, has been out of the loop on this project until last month, when they were asked to open a trap door through which millions of dollars may fall.

Is this a history making lawsuit? Has MPC been sued before? The lawsuit is very interesting. I would not be surprised if Citizens for Home Rule look at this case.

lotta's picture

The only entity with the

The only entity with the authority to spend county money, County Commission, has been out of the loop on this project until last month, when they were asked to open a trap door through which millions of dollars may fall.

That's not entirely accurate.  Although they may not have been involved with initiating the deal, there are some comissioners who had knowledge of it many months ago.

rikki's picture

I didn't mean to imply the

I didn't mean to imply the commission is oblivious to what TDC was doing, just that there have been no formal votes authorizing any of it.

CBT's picture

"There's the near-empty

"There's the near-empty industrial park where HT Hackney is in Roane County right on the interstate, all the land up and down Pellissippi Parkway that was zoned for industry that never was sold, the abandoned industrial sites at Cherry Street, Baxter Avenue, and the I-275 Business Park, formerly Coster Shop (other than the Sysco deal), just to name a few."

I was talking about in Knox Co. However, the property near Hackney (in Roane Co.) will be attractive once the new exit gets finished (it's under construction).

The city sites you mention don't have the large area (300+ acres) planned for Midway Road and offer congested interstate access.

You make some interesting points about smaller pods, location, polution and motivation for development.

As for me being for or against the project, who gives a rip about my opinion, other than Number 9 who always seems to be curious about me. I've made the offer before, drop me a line 9 and I'll meet you for lunch to discuss the project.

Why-12's picture

Survey / Study Says

I decided to take this situation we have with the proposed Industrial Park and feed the data into a program called Strategic Network Optimization. The program looks at data points such as Interstates, locations (x,y) coordinates of the sites, railroad lines, barge terminals, airports, and even traffic flow can be simulated. Cost information regarding sq. feet of your Distribution Center or land as we do not have a DC yet. We then determined mileage bands where these DC's might ship product and we used maximum of 3000 miles to assume anywhere in the US and into Canada and Mexico (I can't imagine why we send anything there).

The best place for the acreage required (400) for these so called DC's to be located will be the area of land where HT Hackney is located as it is closer to I-40 & I-75. The airport is a straight shot across LC to Louisville and we have rail access close as well. I also figured in the proposed "Orange Route" which would link I-75 even more.
Note- the I-275 location might be the best location by far for a DC if you really want access to Rail and interstates but that location cannot support the acreage required for this proposed project.

This type of software is used by Fortune 100 companies as they use these tools to make decisions like this every day. Wal-Mart, Target, GE, P&G and other manufacturers and distributors must locate their DC's and plants in the most profitable locations. The right geo location will make or break your distribution network and the most profitable companies in the world know this.

I wonder if the Development corporation thought about this or discussed this with the companies they are recruiting? I bet the gang at the Dev Corp will not want to hear about a modeling software or see the results of this study!

Damn those software guys, they don't know about the real world!

Number9's picture

But that's not the way it is done here...

I wonder if the Development corporation thought about this or discussed this with the companies they are recruiting? I bet the gang at the Dev Corp will not want to hear about a modeling software or see the results of this study!

Actually the Development Corporation uses a different method.

(link...)

The divining rod was used before with the Knoxville Convention Center, the Women's Basketball Hall of Fame, the glass dome over Market Square, and Universe Knoxville. How can you argue with that track record?

What is this "modeling software" you speak of? Why should our great leaders abandon the divining rod which has served them so well?

Anonymous's picture

The "divining rods" work if you have the power or do they?

What is this "modeling software" you speak of? Why should our great leaders abandon the divining rod which has served them so well?

Nice one Number 9. The software I used came from a friend here in Knoxville that works for a large software company. The modeling tools come from many software companies and any Logistics Professor at UT would tell you this as well.

The powers to be would never want to use this approach as it might disclose the truth, oh no! The truth will set you free and the truth is evil in this town. The "divining rod" is only passed to the people that shower the king with gifts and they make the mistake of eating at the big table. These people know the secret handshake and the nod of power.

Political power = good, technology and software guys = bad for the corrupt society.

Bottom line - DC's should not be in Thorngrove unless they are feeding parts to a manufacturer or store in a certain mileage band in the SE US.

"Damn those technical guys, they might ruin our lunch wagon!"

Up Goose Creek's picture

Interstate acess

I wonder how the cost of sewer extensions and infrastructure compares to the cost of an interchange at John Sevier/I-40. I know that idea was floated & shot down in the past and was wondering if anyone knew the history and objections.

Number9's picture

The best place for the

The best place for the acreage required (400) for these so called DC's to be located will be the area of land where HT Hackney is located as it is closer to I-40 & I-75. The airport is a straight shot across LC to Louisville and we have rail access close as well. I also figured in the proposed "Orange Route" which would link I-75 even more.

You can rest assured that the Midway Industrial Park will not be a distribution center (DC). Even the Development Corporation knows that would be an abject failure. It is on the wrong side of Knox County logistically. My guess is the Development Corporation will soon be forced to tell the people it will be an Office Park. Like the one Knox County just invested 5 million dollars to build in Blount County because we are supposedly "running out of land". Seriously, that is what County Commissioner Mike Hammond told the News Sentinel.

After spending 300 million dollars to save downtown Thorn Grove seems to be a rather dumb place for an Office Park. Who do they think will use this Office Park? If the idea for the Blount County Office Park was that it was right next to the Airport what is the great idea in Thorn Grove? It is right next to what?

We seem to always be 20 years behind the times. As manufacturing is moving off shore and the need for Office Parks is diminishing due to telecommuting our bright idea is to build the things that no one wants. Like a Convention Center or a downtown Sports Museum.

Do you think when the Office Park idea flops they will suggest a Planetarium? Talk about the blind leading the stupid.

Has it become clear to everyone that this is just a scam to get sewer over to the Thorn Grove community so subdivisions can be built? Then of course there will be the need for new schools and twenty some odd Ruby Tuesdays. Pilot will want to build a giant Travel Center. The sad part is that this would still cost Knox County taxpayers less than the dumbass idea on the table.

The Midway "Industrial" Park will cost Knox County taxpayers over 50 million dollars and will be the most expensive failure in Knox County history. An even bigger boondoggle than the Farmer's Market which was only a 12 million dollar boondoggle.

Why do we insist on believing that "If you build it, they will come"?

lotta's picture

Planetwheriam?

Planetarium? No - that's way too educational. I think we'll end up with an aquarium (upsized due to all the acreage) inside a theme park. Yeah...that's the ticket.....

Number9's picture

Link to the lawsuit

Nine,

Was the suit filed by adjacent property owners? Developers have options from willing sellers for all the property needed for the park, right?

CBT, here is a link to the lawsuit:

(link...)

I don't know how "willing" these sellers are. High pressure sales tactics have been alleged.

When both the MPC and The Development Corporation broke their own rules it was inevitable this would go to court. This was one of the worst examples of governmental malpractice I have ever seen.

Article from today's Knoxville News Sentinel:

(link...)

Number9's picture

FAILED EASTBRIDGE SITE

East MapFAILED EASTBRIDGE SITE - The failed Eastbridge Business Park, an 800 acre site, has been unable to attract much interest by companies and has only a few tenants. The park has been plagued with flooding, erosion and stormwater problems since its inception, costing millions and requiring intervention by TDEC, business park tenants, the State of TN and Knox County to try to fix the problems, which included "flash flooding" at the park entrance. The primary tenant that was recruited by TDC for Eastbridge Business Park, Daiken Drivetrain Components Corporation, is among the Top 10 air polluters in Knox County. Daiken releases large quantities of Dichloromethane into the air, a known carcinogen.

For more visit: (link...)

Why-12's picture

Where is the EPA

If this is the case Number 9 then let's get the EPA involved and stop this! Oh crap, the EPA will not do anything as they are under the Brush Administration, I mean Bush.

Maybe Bob Corker can save us!

Wow, that was a bad dream!

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