Wed
Jun 4 2008
11:14 am

Lost in all the excitement about the primary finally wrapping up, there was some important local news yesterday about the Midway Industrial Park. Opponents may have won an important skirmish in their ongoing lawsuit to stop the development. The KNS reports:

According to lawyers who were present, Chancellor Daryl Fansler said in a hearing that it appeared the Metropolitan Planning Commission did not amend a sector plan that paved the way for the Midway Business Park, and that even if the MPC did amend the plan, commissioners did not comply with an ordinance in question.

Knox County says they will appeal. The 8th District Preservation Association has been quiet for a while, but their attorney soldiers on against big odds.

Lisa Starbuck's picture

Victory is Sweet

The Thorn Grove neighborhood won an important victory for all Knoxville and Knox County neighbhorhod groups as Chancellor Daryl Fasler ruled that MPC had illegally changed the sector plan to accommodate the Development Corporation's proposed Midway Road Industrial Park.

As I posted in an earlier thread, this lawsuit is going to be historic - it shows the MPC that they too have to be accountable for their actions, and that they can't just make arbitrary decisions.

This should have an immediate impact on rezonings. Neighborhoods, pay attention! The Knox County ordinance that governs changes to the sector plan says that there has to be a material change in the conditions before the plan can be amended. There was no attempt to show that there had a been any change when the MPC did the Development Corp.'s bidding against the wishes of the neighborhood.

It also serves to highlight the importance of the sector plans and also of the MPC commissioners, which are appointed, not elected. The ruling says that only MPC has the ability to amend sector plans, and that they must follow the ordinance to do so. I look for heavy pressure on MPC commissioners and also an attempt to change the ordinance. I know that the MPC director recently sent out a reassurance to staff and commissioners along the lines of they were confident they were right and were going to win the lawsuit, blah, blah. A bit of misplaced confidence there I believe.

Don't know why there wasn't much coverage of this important ruling in the local media, unless they don't grasp the implications. The Sentinel did write this somewhat slanted story, but it was buried - I was looking for it and never did see it online.

Mike Edwards just can't let go, can he? But I guess after all, why should he? It's not HIS money he's spending, it's OURS.

Attorney John Valliant told the Chancellor that he had been practicing zoning law for years and they had always done it that way.

Guess it's time for a change . . . .

MPC - 0 Knox County Neighborhoods - 1

Next up, County Commission!

Rachel's picture

As I posted in an earlier

As I posted in an earlier thread, this lawsuit is going to be historic - it shows the MPC that they too have to be accountable for their actions, and that they can't just make arbitrary decisions.

Yup, this has implications far beyond Midway. Good for Fansler.

P.S. I'd like to read the actual ruling. Does anybody know where I could find that?

R. Neal's picture

My understanding from the

My understanding from the KNS article quoted above was that the official ruling hasn't been handed down yet, but that Fansler mentioned it in a hearing and telegraphed his decision.

Lisa Starbuck's picture

Bench Ruling

He only issued a bench ruling, not a written one. Guess we'll have to wait for the transcript.

SnM's picture

Don't know about online

"The Sentinel did write this somewhat slanted story, but it was buried - I was looking for it and never did see it online."

...but it was page 1, top of the fold in the print edition.

Lisa Starbuck's picture

Thanks

Glad to know that.I think the Sentinel needs to work on having more local news on the front page of the online version. I hear all the time from people that they think it's too hard to find stories online. I know I was checking pretty much all day and never did see anything about it.

SnM's picture

Search function

I entered "Midway" in the search window, and it was the first returned story.

I linked to it yesterday in my "You Might Be a Knox Countian..." thread over on Knoxblab.

But anyway, I think your points about how MPC and the Development Corp proceed henceforth are well taken.

Lisa Starbuck's picture

Knoxblab

Hee, hee. I just went and checked out your Midway post at Knoxblab. Thanks for the heads up, I enjoyed that and will pass it along to others. Humor does indeed work best when there's an element of truth in it, sad but true.

I especially enjoyed this part:

"It's stupid, it's pointless, it's a waste of taxpayer money, and who ever heard of putting a theme park based on a WWII Pacific Theatre naval battle in the middle of a rural East Tennessee county anyway? It's the most ridiculous thing I ever heard of," said one opponent of the park.

"Don't listen to him," cried Development Corp. President and CEO Mike Edwards. "He's Tokyo Rose!"

jbr's picture

I agree the NS story was

I agree the NS story was pretty slanted and watered down of straightforward information. But I suspect since Josh Flory wrote it and he makes his living espousing the greatness of developments, whatever they may be, that was no surprise. Over the time I have glanced at his stories he seems a bit of a shill for Edwards, this developer, that developer, etc.

The NS should have assigned that story to a different reporter. To focus on the empowering significance to the average citizen of this suit. They have treated the Midway suit oddly from the beginning. From a journalistic standpoint, it was a weak offering as it was presented. Especially since it was on the front page.

Rachel's picture

The NS should have assigned

The NS should have assigned that story to a different reporter.

Yup. Or at least brought in a reporter to help Flory who understands zoning issues. I don't think Flory had a clue about the bigger implications of this ruling.

Anonymously Nine's picture

Bad idea from the start...

This is example of how political power can overpower reason. This project is not viable. It never was. The Development Corporation has never shown how a sewer plant can be cost effectively put in this karst geography. The break-even was non-attainable two years ago.

The problem is two fold. First the problem of where to locate the sewer plant. The Development Corporation has even suggested a mini sewer plant to keep costs down and still cannot reach a break even.

The second part of the problem is the sewer pipes. Because of the karst geography, the sewer pipes must be lined to prevent leaks. When water meets karst (limestone), it dissolves the structure that supports the sewer pipe. A sinkhole forms, and it gets very expensive. Lined pipes blow up the cost beyond any return on investment.

County Commission was given this information before they voted. They chose to ignore it. Not a dime should be spent on this until the sewer design is approved by County Commission.

rikki's picture

blinded me with science

When water meets karst (limestone), it dissolves the structure that supports the sewer pipe. A sinkhole forms, and it gets very expensive.

In other news, the Grand Canyon formed in a week after Paul Bunyan's ox returned from a cross-border tequila binge.

Anonymously Nine's picture

blinded me with science

Believe you wrote a few columns on the same subject rikki. But until County Commission understands science, we will have to endure flawed development projects.

Also MPC could use some remedial science tutoring.

jbr's picture

MPC needs more than that. It

MPC needs more than that.

It should start with taking the MPC commissioners appointment powers out of the mayors' hands.

Rachel's picture

It should start with taking

It should start with taking the MPC commissioners appointment powers out of the mayors' hands.

Wanta do that - lobby your state legislators. Those appts are governed by state law.

I'd settle for just having them confirmed by Council/Commission. At least then the public would have a chance to know who's being nominated before they show up at their first meeting.

rikki's picture

Believe you wrote a few

Believe you wrote a few columns on the same subject rikki

I wrote a news story that contained some of the same words, but I certainly never wrote on the subject of leaking sewer pipes creating sinkholes. That's silliness. Sinkholes present structural challenges for any type of construction, but the main concern is that sinkholes provide a direct conduit to groundwater, without the natural filtering soil and vegetation perform.

The primary concern with a sewer line is that it invites further development, contrary to the sector plan and without a deliberate, democratic decision to open an area up to development. I think that is the key issue, that this project is an attempt to sneak development in the back door.

Anonymously Nine's picture

ROI, rikki

I wrote a news story that contained some of the same words, but I certainly never wrote on the subject of leaking sewer pipes creating sinkholes. That's silliness. Sinkholes present structural challenges for any type of construction, but the main concern is that sinkholes provide a direct conduit to groundwater, without the natural filtering soil and vegetation perform.

You never wrote about the Return on Investment of the Midway Project? I thought you had. If you left that out, you shouldn't have. Give us a link for a second look.

I agree that the more important concern is groundwater, but wasting taxpayers money is an important concern as well.

Yes, sewers spur development. Not all development is bad. This is a case of a project that is bad on every level.

rikki's picture

investment

You might be mistaking me for someone else. I haven't reported on that project since the news story in Metro Pulse when the sector/zoning vote was before Commission. Old MP links don't seem to be working since they moved to the new design, and the archive on the new site has not been fully populated yet.

When I wrote about it, there had been little investment, at least by the county, and I believe that is still true. That is kind of the point. The county has invested nothing but a few winks and a nod and is saving the vote with the big price tag until last, by which time everyone thinks the project was approved long ago.

Developers who follow MPC and TDC proceedings closely have invested in properties, or at least options on properties. The potential return on an industrial park grows slimmer as oil prices rise. If the Midway project ever gets to the trigger point, by then it will probably make more sense to build an industrial park along a rail line. That may already be preferable.

Coincidentally, capping the Coster Yard with asphalt and buildings would be environmentally beneficial as a way to contain contaminants on site.

jbr's picture

Is there a public record of

Is there a public record of who has acquired options on properties?

If so, is it viewable on the web?

Anonymously Nine's picture

TDC owns the land

From the KNS column:

The Development Corporation of Knox County, a nonprofit partnership between local government and the private sector that promotes economic development, purchased the land for the park for about $11 million in 2006 and intervened in the case as a defendant.

Today's column on the Development Corporation is interesting also.

(link...)

The Development Corporation has 11 million in the bank. A Commissioner says they do not need $900,000 in funding from Knox County. The Development Corporation says they cannot use money in the bank for operations.

Mike Edwards, president of the Knoxville Chamber, said those last two entities would cease to exist without the $900,000 in operating funds. "We don't have the discretion to use the capital funds for operating dollars," Edwards said.

Unbelievable. Our taxpayer money is wasted. When the property tax increase from hell comes remember how we got in this mess.

rikki's picture

Unbelievable. Our taxpayer

Unbelievable. Our taxpayer money is wasted.

TDC money is not taxpayer money, and a Commissioner lusting after it during budget hearings does not make it so. As far as I know, the only taxpayer money wrapped up in the Midway project is money allocated for running a sewer line from near the Straw Plains exit to the project site.

I don't know how much of that has been spent or budgeted, but there may be some amount that could be zeroed out to relieve pressure on higher priority items. It would be less than $1 million, and possibly a good bit less.

Lisa Starbuck's picture

TAxpayers

Rikki,

Not sure what you mean about TDC money not being taxpayer funds. All of their money comes from taxpayers in one way or another - either through direct allocation from County Commission, or in the case of the Farmers Market property, the land was deeded to them from Knox County (for free) and they turned around and sold it and kept the money.

Lisa

rikki's picture

Did County Commission

Did County Commission allocate money to TDC for purchasing land for the industrial park? The only vote involving public funds I can recall was the sewer line vote.

Most of the Thorn Grove land purchases were done by private individuals acting as proxies for TDC before Commission ever addressed the project. I have no idea how those proxy arrangements work, but they seem predicated more on the notion that TDC will be able to railroad a project through the county government than on formal government commitments.

Anonymously Nine's picture

TDC

The Development Corporation has $22 million dollars of land and $12 million cash in the bank.

Part of that land is the Midway land. It was taxpayer money.

Here is an interesting idea about the Development Corporation:

(link...)

Daniels wants to redirect $50,000 in discretionary funding for commissioners, $40,000 for lobbyists, and $900,000 in operating funds for the Industrial Development Board and the Development Corporation, designating the money to nonprofits instead.

Mike Edwards, president of the Knoxville Chamber, said those last two entities would cease to exist without the $900,000 in operating funds.

Daniels said the groups have more than $12 million in the bank for capital projects, including purchasing land for economic development.

"We don't have the discretion to use the capital funds for operating dollars," Edwards said.

That's rich. The Development Corporation has $12 million in the bank but will cease to exist if it doesn't get $900,000 from County Commission. We can't use money in the bank for operations says CEO Mike Edwards.

Is that fucked up or what?

Lisa Starbuck's picture

Midway Funding

In 2007 County Commission voted to give them money for the Midway project that was allocated for "economic development" in the budget from 2007, 2008, 2009 and I think 2010 for "infrastructure" development. Of course the 2008-2010 budget hadn't even been done yet, but they passed it anyway.

They had the money from the sale of the FM property to purchase the land with, so they didn't need any approval from CC. I understand that Pat Wood's real estate company made about $600k of taxpayer money for doing the options and buying the land.

jbr's picture

Good information. I assume

Good information. I assume its public record but maybe not easily accessible to get more details on the options.

This could be an unusually interesting trial.

Maybe the Tennessean or Washington Post will develop an interest.

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