Fri
Aug 10 2007
01:10 pm

While everyone is all worked up over the P-cards and the non-profit grant scandals, the dollar amount involved is peanuts compared to the $$$ going for corporate welfare in Knox County.

Between handing out TIF's like candy to developers, to government funded initiatives disguised as economic development such as the proposed Midway Road Industrial Park, millions of dollars of tax money is wasted or redirected to the private pockets of insiders.

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Today's News-Sentinel has two stories on industrial and business park developments in Knox County. One is a story on the new Hardin Valley Business Park, and in it Development Corp. CEO Mike Edwards says that "a number of existing Knox County businesses have expressed interest in buying land in the Hardin Business Park. Although that’s good, it presents something of a dilemma because the main purpose of building the new park is growing new jobs," Edwards says.

So, we have a new business park in Hardin Valley that nobody but existing Knox County businesses wants to go into, leaving behind the empty buildings they are located in now and moving from private sector locations to a government-subsidized site? And then they tell us that we need to build yet another park at Midway Road and they are going to need to go to County Commission for several million MORE dollars than they have already gotten pushed through Commission earlier this year to put sewer out there? Not to mention that the cheapest option they are looking at is basically a giant septic tank that will pollute the groundwater in an area riddled with sinkholes?

They have said $30 million for the new industrial park at Midway Road, but it looks like the number is going up and up already. And of course, there is the lawsuit filed by the area residents who are vehemently opposed to it for a number of good reasons.

Many people believe that the industrial park is just another scheme to funnel government money to the right people. After all, you have to build something and spend money to enable developers to profit from it. KUB can't put in the new sewer that will allow developers to start building in rural Northeast Knox County because of having to pay for their PACE 10 program. So that's why The Development Corp is stepping up to the plate on behalf of the developers and putting in the infrastructure that will allow the land speculators to build their subdivisions. There's already been thousands of dollars funneled to a well-connected real estate firm for brokerage fees for the land acquisition, and that's just the tip of the iceberg.

I'm not saying that some of the outrage over the P-Cards and non-profits isn't justified, but my goodness! Where is the outcry and publicity over the millions being wasted by these quasi-governmental agencies like TDC?

Rachel's picture

The Midway Industrial Park

The Midway Industrial Park project is the poster child for how not to operate a government. It's terrible land use planning, financially irresponsible, and completely divorced from public input.

Carole Borges's picture

You've made a very strong point there, Lisa...

I'm not saying the people involved in the p-card scandal were like this, but many non-profits are started by people with a desire to help the community, but little knowledge about complex legal requirements and tax issues. Many times they depend on free advice about these things or just try to do the best they can with forms. Corporate scammers tend to be much more savvy and their main goal is profit.

Brian A.'s picture

Sprawl

The area really does need to mix in some businesses to keep the urban sprawl growing farther and farther outward.

Brian A.
I'd rather be cycling.

Sam's picture

Link from the KNS

(link...)

Things are not looking good for Finch!

Sarge's picture

Where is the Outcry

Apparently no African American women are involved in this scheme.

Sandra Clark's picture

Corporate Welfare

Just this week, Knoxville City Council voted $800,000 to developer Victor Jernigan as a quid pro quo for agreeing to bring annexation to a massive tract on Washington Pike.

Local government is not just condoning urban sprawl -- they're funding it -- at least if your name is Tim Graham or Victor Jernigan. -- s.

jbr's picture

The unscrupulous annexation

The questionable annexation pulled off down Chapman Highway with the single voter was unbelievable.

Check the NS story...

(link...)

And Sam Venable lays it out pretty well...

(link...)

As was Mayor Haslam's letter to NS attempting to justify it.

bizgrrl's picture

Oh, but Haslam's so good for

Oh, but Haslam's so good for the city. Didn't you see that big sign downtown?

It's just SoKno, ya know. Those people don't know what's good for them.

"At the time, Knoxville Mayor Bill Haslam said it was a rare win-win-win. Yes, the developer got his land annexed into the city, where restaurants can serve liquor. Yes, South Knoxville gets a new development. And, yes, Knoxville and Knox County will get hundreds of thousands of dollars in new taxes, much of which will go to schools.

But the voters lost. So did the electoral process and open government. We hope this isn't getting to be a habit."

edens's picture

One thing that's interesting

One thing that's interesting about Jernigan's case is how arbitrary map boundaries impact development (stormwater regs, or even something like liquor by the drink).

Btw, Sandra, I think the term you were looking for is "suburban sprawl". Unless, of course, it's mostly the annexation you find objectionable, rather than the development itself.

Sandra Clark's picture

Oops

Btw, Sandra, I think the term you were looking for is "suburban sprawl". Unless, of course, it's mostly the annexation you find objectionable, rather than the development itself.

Hmmm. I thought suburbia WAS urban sprawl.

On the Jernigan development (and the earlier Tim Graham annexation at South Grove), I object to the city buying annexation. Not only is it bad public policy, but it strains and stretches city resources to the detriment of current city residents. -- s.

edens's picture

>Not only is it bad public

>Not only is it bad public policy, but it strains and >stretches city resources

I don't disagree. I was just curious what your opinion of either development would have been had they remained outside the city limits?

Rachel's picture

Yup, I'm curious about this

Yup, I'm curious about this too. I agree that the south Knox deal smelled to high heaven, but sprawl is sprawl. It, like watersheds, knows no political boundaries (unless you happen to be in some place with UGBs, like Oregon). Both these developments contribute to sprawl be they inside or outside the city limits.

rocketsquirrel's picture

suburban renewal

suburban renewal will hopefully follow in about 60 years, after they cut apart more suburban neighborhoods with more TDOT projects and sound walls, as they did with "urban" neighborhoods, which are technically Knoxville's first "suburbs." (google trolleyburbs--a remarkably Knoxville-centric term, according to Google). Matt, please retitle your MP column immediately, the offering to the (sub)urban renewal gods demand it.

Lisa Starbuck's picture

Victor Jernigan Annexation

Jernigan only gets the $800k if he does $2.3m in road improvements to Washington Pike.

Victor has agreed to a voluntary annexation of Phase I of his development at Murphy Road in order to get a liquor license and other reasons - and has agreed to ask for voluntary annexation on future phases of this development, a fact making the neighbors pretty nervous.

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