Mon
Mar 14 2022
10:42 am

Mason, TN, is near the upcoming Ford plant, Blue Oval City.

"In my opinion, it’s time for Mason to relinquish its charter,” Comptroller Jason Mumpower wrote in a letter mailed to each one of Mason’s 1,337 property owners.

It is said that the state has never asked for a town charter to be relinquished, "unprecedented."

"Mason is 60% Black and includes descendants of men, women and children enslaved in the area before Emancipation. For more than a century the town was led by White elected officials.

That changed in 2016, when fraud and mismanagement allegations led to the resignations of nearly all City Hall officials, all of whom were White. Mason’s current mayor, vice mayor and five of its six alderman are Black."
...
“You are in a nice little spot, a sweet spot, and a lot of people want your land,” Sweetlove [president of the Tennessee State Conference NAACP] said. “If you need to fight, I will fight with you…Don’t sign away your charter. Keep your rights.”

OMG! WTF! Unbelievable.

bizgrrl's picture

From the Tennessee Tribune,

From the Tennessee Tribune, a weekly newspaper that reaches the heart of Tennessee’s Black community,
"Will Black People’s Land be Stolen in Tennessee – Again?"

The Tennessee Tribune article shows the letter from the State of Tennessee Comptroller, Mumpower.

bizgrrl's picture

So quickly. "Tennessee

So quickly.

"Tennessee Comptroller Jason Mumpower said Tuesday that he will be taking control of the finances of Mason, Tenn. a majority Black town of about 1,500 people located within five miles of the future site Blue Oval City, the Ford electric truck and battery plant that represents one of the largest manufacturing investments in the state’s history."

fischbobber's picture

East Knoxville neighborhoods.

I fear the same thing happening in East Knoxville around the stadium. It is imperative that we kept the property and consequently the rising wealth that goes with it in the present community. We must develop a new model for dealing with gentrification of neighborhoods.

bizgrrl's picture

Cities around the country

Cities around the country have been trying to do this for a while. One option I kind of like was set aside so many resicences/ units for rent control for lower income.

fischbobber's picture

Non corporate ownership

I also like the idea of restricting single family dwelling to private (non-corporate) ownership. There are strategies to implement this sort of thing, if the will exists within the community.

It will likely take some sort of community effort.

bizgrrl's picture

Ford Motors becomes

Ford Motors becomes concerned?

"The statement from Ford said company officials are “aware of the long-running situation between Mason and the State of Tennessee but we have not been directly involved.”

“We have reached out to state and local community leaders to express concern and learn more,” read the statement from Angie Kozleski, a Ford spokesperson.

“As we ramp up construction of Blue Oval City this year and move toward production in 2025, Ford is absolutely committed to being a good neighbor and providing inclusive and equitable opportunities for West Tennesseans, including the residents of Mason.”

fischbobber's picture

Ford

Ford is rapidly finding out that the business friendly atmosphere of Tennessee is not really so business friendly. It is based on a feudal/slave type labor system that is rapidly falling out of favor with workers. Now it is turning to stripping those same workers from their generational wealth right at a point where that wealth is beginning to mature. I look for a jump from Tennessee to Mississippi or Alabama. Hell, even George Wallace knew that providing free textbooks to public schools was vital. We've regressed from that sort of forward thing in Tennessee with the past 60 years.

barker's picture

No one's property is being taken

Mumpower said absolutely nothing about taking anyone's property. Zip. Nada. He recommended that the city relinquish its charter (essentially, go out of business) because its finances have been in disarray for the past two decades. Now, I have no idea how going out of business would be beneficial to the city's residents, but it doesn't matter because they are not relinquishing their charter. Mumpower is, however, basically taking over the town's finances, as authorized by state law.

Based on details released by Mumpower's office, the town's finances are indeed a wreck. For 12 years, the books were in such bad shape they couldn't even be audited. The town has been using utility revenues to pay for basic city services, which is illegal (imagine if the city of Knoxville used KUB money instead of tax revenues to pay city salaries). And the city's biggest source of tax revenues, a for-profit prison, just closed.

The town is just 4.5 miles from the Ford plant site and would be in a great position to benefit from that proximity, but Mumpower said it could miss out on that opportunity if it can't get its financial house in order.

You can disagree with Mumpower's action, but to say he is moving to take anyone's property is inaccurate.

bizgrrl's picture

They want to take away

They want to take away control of their town.

The town was run into the ground by the white leaders. Now that the African-American's are in control and slowly getting a handle on things the State of Tennessee wants to intervene. Hmmmm...

barker's picture

As I said, you can disagree

As I said, you can disagree with Mumpower's actions. It's certainly unusual and the timing raises questions. My point, though, is that a headline claiming that the state is taking property is wrong.

fischbobber's picture

I'm thinking...

Whose property are the sewer and water plants in this town? Seems like that might be quite an asset to hold in times like these. I am not surprised that it appears the state has taken a heavy handed approach to this. They'll need those water plants to develop the property. Whoever controls those, controls development.

barker's picture

Mason Utilities

The town of Mason provides the utilities. The city had illegally taken nearly $600,000 from the utilities services as of fiscal year 2020. The comptroller's office reported that Mason needs to spend $53.2 million on water and wastewater improvements to support anticipated growth (it's not clear from the comptroller's report whether that anticipated growth includes the projected impact of the Ford plant on growth). The city's utilities funds are under a separate investigation by the state Water & Wastewater Financing Board. Under state law, utilities must be self-supporting and keep their accounts separate from all others.

Up Goose Creek's picture

Eminent domain

When Mumpower was proposing disbanding the charter it raised the question - who would take the lead if someone wanted to pursue eminent domain. Would that be a function of the governing body? Would a town if it exists make that call?

barker's picture

eminent domain

First, nobody, but nobody, has mentioned using eminent domain to acquire property in Mason. Nobody.

Second, any government with jurisdiction or (believe it or not) a railroad can exercise eminent domain. That means the United States, State of Tennessee, Tipton County or the Town of Mason can force someone to sell their property to them under certain circumstances.

But again, nobody has even mentioned it in connection with Mumpower's decision to assert oversight of the city's finances. The town must repay its water and wastewater division over the next two years and get Mumpower's permission to spend other funds. Private property isn't part of the equation.

Up Goose Creek's picture

Eminent domain

Well of course no one is saying we are doing this to make it easier to acquire property for economic development. That would be a stupid move.

Yes I understand Tipton County can use eminent domain to build a school or some such. I'm just wondering if there have been cases where counties took property for economic development that happened to be located within a city limit.

I guess I figured with your experience reporting on politics you might know of any cases or is the standard protocol that cities are in charge within their borders.

I was asking for information, not ridicule.

barker's picture

My apologies

I did not intend to ridicule you or anyone else, and apologize for coming across that way.

Under Tennessee's constitution and state law, which was made tougher after the U.S. Supreme Court's Kelo decision, land can only be taken through eminent domain for a clearly defined public purpose. The power of eminent domain can't be used for private development.

As I mentioned, there are four layers of government, plus any railroad, that can exercise eminent domain in any particular city. The federal, state or county governments don't need the city's permission to exercise their rights.

bizgrrl's picture

Tennessee General Assembly

Tennessee General Assembly proposed a study on energy infrastructure with an amendment to remove local government’s ability to regulate fossil fuel infrastructure.

"Memphis residents and officials allege the bill directly targets Memphians’ fervent fight against the now-defunct Byhalia Pipeline, a 49-mile natural gas pipeline that was proposed to run through a historically Black Memphis neighborhood. "

Hmmm... The State of Tennessee wants to trample on the rights of another Black community?

barker's picture

Mason Update

Mumpower and Mason's vice mayor told the Legislature's Black Caucus on Tuesday that American Rescue Plan Act funding will be provided so the city can pay back the money it illegally took from its utility division. That should go a long way toward getting Mason's finances in order. No other details of the plan have been released.

One note about the city's challenges. According to the 2020 Census, Mason's population was 1,337. Since the prison closed in the second half of last year, the Comptroller's Office estimates the population has shrunk by 40 percent to 794.

Up Goose Creek's picture

Redevelopment

Very happy to see the state working with Mason rather than against it. I expect we'll see the population go back up once construction is underway.

BTW, Tennessee still allows eminent domain for redevelopment by a housing authority or Community development agency. (link...)
I suspect with a little digging one will find those are controlled by city officials within a municipality.

barker's picture

You don't have to do any

You don't have to do any digging at all. A housing authority acts as a government's agent. KCDC, for example, is the city of Knoxville's housing authority and can obtain blighted property through eminent domain to build low-income public housing.

State law doesn't allow a government to use eminent domain to acquire property to turn over to a private developer.

The city of Mason doesn't have its own housing authority, though Tipton County does.

Up Goose Creek's picture

Exception

It's not clear whether the exception in bullet point 3) overrides the statement that precludes taking for economic development.

Another exception is 5) Industrial parks. While I expect the governing party will develop the park, but would the parcels be turned over to private businesses for development?

barker's picture

Industrial Parks

Industrial parks, whether they are purchased on the open market or through eminent domain by a government entity or agent, are typically subdivided and the individual parcels sold to manufacturing companies.

jbr's picture

Tennessee comptroller's racist 'hostile takeover'

“This is our home. We were born and raised here. The majority of the town is homegrown people that live here,” she said. “He is trying to conquer and divide us. It’s akin to a hostile take-over and it’s not hard to figure out why here, why now.”

Why Tennessee comptroller's racist 'hostile takeover' of a Black town may fail after all

bizgrrl's picture

The story was from

The story was from MSNBC,

"Tennessee Comptroller Jason Mumpower, a white Republican, took a step back Tuesday from his racist plan to essentially erase from the map Mason, Tennessee, a predominantly African American town of about 1,500 that stands to benefit from the construction of a $5.6 billion Ford plant planned nearby."
...
"after what he called a “very positive meeting” with Mason officials, Mumpower acknowledged the steps they’ve taken to get out of debt and said his office’s financial oversight could end as soon as July. "
...
"...doesn’t eliminate the stench of racism that’s accompanied his dealings with the town. "

"...evidence [that Mason has been paying off its debt] was available from the start, but Mumpower didn’t request it. “He just came in with a demand...”

Up Goose Creek's picture

East Ridge

A housing authority acts as a government's agent. KCDC, for example, is the city of Knoxville's housing authority and can obtain blighted property through eminent domain to build low-income public housing.
State law doesn't allow a government to use eminent domain to acquire property to turn over to a private developer.

Somehow I have a hard time believing the city of East Ridge needed 500+ acres for low income public housing. And if they did want to develop housing projects wouldn't it be simpler to buy vacant land rather than deal with 2500 property owners????
(link...)

While the article speaks of proposed legislation to curb the takings I see no evidence the law proposed in 2021 got passed.

There was a law passes in 2017 giving some protection for land proposed as industrial parks. Perhaps you are confused. (link...)

barker's picture

I wasn't familiar with the

I wasn't familiar with the East Ridge situation and tried to look into it but I don't have a subscription to the Times Free Press and I'm not going to spring for one just for this. It looks like the residents not only won the battle, they won the war. The city dissolved its housing authority. That said, the development, which was proposed in conjunction with the Chattanooga Red Wolves' soccer stadium, moved forward in some shape, form or fashion. Obviously, I don't know how the dispute changed the developer's plans. (By the way, I could be wrong but I doubt there's 500 contiguous acres of vacant developable land in East Ridge. It's pretty much urbanized.)

The legislation mentioned in the Tennessean column you linked to (HB0344/SB0288) was withdrawn less than a month after it was filed last year. I don't know why.

The writer of the column works for the Institute for Justice, a nonprofit libertarian law firm founded with seed money from Charles Koch. The organization was the firm that lost the landmark Kelo case regarding eminent domain. They also represent pro-voucher clients in litigation.

Up Goose Creek's picture

Stadiums

The city of East Ridge does not need all that property for a stadium. Or a housing project. A good size housing project will be well under 100 acres.

I don't expect you to have information on the East Ridge site, maybe you can look closer to home. I expect a phone call will tell you the acreage of the proposed Knoxville stadium (well under 20 acres by my estimation) and also KCDCs "Magnolia Avenue warehouse district". That's a huge area bounded by Central, I-40, Bertrand, Harriet Tubman, and Summit Hill. Around 300 acres by my estimation. You know as well as I do that whole area is not proposed low income housing. And the boundary isn't defined for TIF purposes, that's a smaller area by half.

Are you dismissing the East Ridge article because it's written by someone who's politics you don't agree with? It was published in the Tennessean. Are you implying they don't have fact checkers?

fischbobber's picture

A note on the stadium property.

I've been driving around the County, including within the city limits, and while your point is valid, the construction on what I presume is the affordable housing along Dandridge/Summit Hill is well underway. I would strongly support another development of this size, and depending upon when the next housing crash is, wouldn't be surprised to see it happen soon after.

I see the real problem with affordable housing being the ongoing gentrification of properties all the way out to Burlington by developers after the stadium is built. Without some sort of programs and regulation to maintain, upgrade and keep these houses within the population of these traditional communities, this County is looking at a massive loss/drain of capital from those communities as well as a turnover from the local cultures to the folks being recruited to move here. Based on back-checking facebook posts with public records, this is not going to end well.

Knox County is being marketed as some sort of right wing paradise (think a Villages ( (link...) ) type development for KKK wannabes) and they have been driving both the anti-mask and Glenn Jacobs agenda. When buying property in new developments and near those like minded, thus far it has worked to the extent that we mostly live in peace. I think there is the strong possibility for pushback as these folks attempt to move into the city in more traditional urban neighborhoods. Knoxville City taxes are not high relative to what they offer, and it won't take vulture capitalists long to realize this.

It's not just new development that needs attention, but gentrification of the area within walking distance from the stadium that will be an issue. While East Knoxville is integrated to a greater extent than most places in Knox County, an active right wing presence will bring the same sorts of problems to Knoxville, specifically violent crime, that Mayor Jacobs keeps railing about. If folks move in with hate and determined to change local culture to match their personal philosophy, we have the two-fold problem of losing affordable neighborhoods and increasing conflict between neighbors.

These "refugees from Blue States" have driven the advance of covid to the point where our local county government has instituted policy that has delivered three times the deaths of not only progressive states in America, but countries like Cuba, Guatemala, and Jamaica. In addition, we have had to effectively shut down our hospitals for over nine weeks a year to deal with covid, denying service for those legitimately in need who are actively participating in the mitigation of the disease. We are trading dead citizens for smiling fascist children in our schools. Not really a fair trade-off in my opinion.

So, while I see your point, I think you may only be touching on the tip of the iceberg. The stadium can be a good thing or a bad thing, depending on how we react to it, and while there is a clear need for more affordable housing, there is also a need to protect the affordable housing, and upgrade and maintain that housing that we already have. Twenty fives years of no management is catching up to the County and spilling into the city.

barker's picture

Pivot

Well, that was certainly a pivot. KCDC is the city’s redevelopment authority and its mission, as defined by state law, goes beyond public housing. Your estimate of the size of the Magnolia Avenue Warehouse District is pretty darn close. It’s 279.6 acres. And not one bit of it, other than Austin Homes, is intended for public housing.

WARNING AND APOLOGY: Sorry this is so long, but I thought it might be useful to go into detail.

In 2009, at City Council’s request, the planning commission developed a Magnolia Avenue Corridor Plan that included the warehouse district and Magnolia Avenue to Burlington. KCDC, also at the direction of Council, then came up with the warehouse district redevelopment plan, which was approved in 2011. The redevelopment plan covers the warehouse district but not the entire Magnolia Avenue corridor.

The plan is legally binding and must be followed (that’s why it recently had to be amended to create a TIF district). The plan designates the area as blighted, but acknowledges there are individual parcels that are not blighted. It states that the plan’s intent is to “avoid public intervention” in properties that comply with city regulations. While that doesn’t say that KCDC would absolutely not acquire those properties, I think a decent lawyer could probably argue that the language precludes it. And the plan only authorizes KCDC to acquire blighted properties.

Governments can’t just seize property. The plan lays out the process, which follows state law. It’s long and involved.

First, if KCDC identifies a property as blighted as defined by law, it must give the owner the opportunity to come up with a corrective action plan. An advisory board consisting of stakeholders as outlined in state law would then review the plan, discuss it with the property owner (who can revise the plan as a result), and make a recommendation to KCDC.

If KCDC approves the corrective action plan, the owner must enter into an agreement to implement it. If the owner doesn’t follow through, KCDC can begin taking steps to acquire it.

If KCDC rejects the corrective action plan or if the owner fails to submit one within the allotted time frame (90 days), KCDC can begin the acquisition process. If KCDC rejects the corrective action plan, the owner has 60 days to submit a new one.

KCDC must first attempt to negotiate the purchase of the property at fair market value as determined by one or more independent appraisals.

If the owner doesn’t sell, KCDC can then exercise its eminent domain powers. The KCDC must approve, and the owner can request that City Council hear it too. All these meetings are in public. If KCDC acquires the property, it must provide relocation assistance. The rest is a court proceeding. KCDC would have to pay fair market value for the property, this time defined as no less than the last tax appraisal (often tax appraisals are lower than market appraisals), and could have to pay incidental expenses such as the cost of equipment removal.

To my knowledge, and I admit I haven’t researched this, KCDC has not used eminent domain to acquire property in the district during the 11 years the redevelopment plan has been in place.

Most of the privately-held land in the warehouse district south of the railroad tracks, where the stadium site is located, is owned by Randy Boyd or David Dewhirst and will be developed without the need for KCDC to acquire it. KUB owns a huge chunk as well, so that’s already in public ownership. In fact, a large portion of the warehouse district is owned by KUB, the city and the county.

barker's picture

More Mason Woes

Mason’s former interim police chief and a former patrol officer were indicted on Monday, charged with theft and other violations for receiving $14,933.66 and $20,568.42, respectively, in wrongful compensation. They worked for both the Mason and nearby Gallaway police departments, and allegedly double-dipped based on timesheets showing they were working in both places at the same time and other irregularities. Investigators are still looking at their compensation from January 2019 to June 2020 because of “a variety of oddities.”

Mumpower announced the indictments, saying that citizens of both towns reported their concerns to the Comptroller’s Office. Without overtly referring to Mason’s financial problems, he said local governments can avoid such incidents by reviewing timesheets, asking qu​​estions and verifying information.

Up Goose Creek's picture

Blighted property?

First, if KCDC identifies a property as blighted as defined by law, it must give the owner the opportunity to come up with a corrective action plan. An advisory board consisting of stakeholders as outlined in state law would then review the plan

Thank you for taking the time to look into the law as it currently stands. About 15 yrs ago I was on such a committee to determine blighted property in South Knoxville. Among the properties presented to us was a house on Suzanne avenue missing a half a dozen siding shingles was all and a recently remodeled duplex with one window that had been boarded up at the request of codes because it was behind an outside staircase. Not surprising the duplex was on a valuable piece of property.

Up Goose Creek's picture

Black Lives Matter

If you pivot enough you get back to the point of beginning. We can learn so much from the Black lives Matter movement -- and it goes way beyond the concept that a broken tail light or a counterfeit $20 shouldn’t be a death sentence.

I noticed the Magnolia Avenue Warehouse district is being expanded to include the block off Linden that includes the mini warehouses. What’s up with that? Is there a property owner that doesn’t want to “Play ball”? Does someone find these simple buildings unattractive? I imagine a number of the customers are black. Where can they find affordable storage space in the vicinity? Oh it doesn’t matter… Doesn’t seem to matter about Black residents who could be displaced or businesses that cater to black customers.

Back to Mason and the State of Tennessee. Tennessee Lookout has a great article about the history of hostility to black leadership in the state of Tennessee. (link...)

bizgrrl's picture

Wow. Thanks for the link.

Wow. Thanks for the link.

Up Goose Creek's picture

No, thank You

I originally happened upon that article because it was linked in the Tennessee Politics section of this blog.

Up Goose Creek's picture

Town of Mason files suit against comptroller

Update from Tennessee Lookout.
(link...)

bizgrrl's picture

Yes! Their lawsuit seems

Yes!

Their lawsuit seems quit reasonable, whereas the State's takeover seems very unreasonable and possibly racist.

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