Permanent Land Sales Ban OK'd 8-1

By Michael Silence

Despite pleas to water down TVA's temporary ban on selling federal land for private residential development, the agency's board voted 8-1 Thursday to make the ban permanent.  The board established a temporary ban in May.

"I will vote for the preservation of the most beautiful land," board member Mike Duncan said during the federal agency's monthly board meeting at its downtown Knoxville headquarters.

"There's a lot of passion for the treasures we hold," said board member Susan Williams, who noted in a recent comment period that 92 percent of those who commented favor the temporary policy.

Board member Bill Baxter was the lone dissenter, saying the policy is too restrictive.  He said the policy is "less balanced and flexible than what we need."  And he noted that TVA's core mission when created was "economic development, not producing power."

In May, one of the first moves by TVA's new part-time board was to suspend the sale of land or the changing of deed restrictions on previously sold land until a policy was developed.

The move was sparked by two controversial land sales -- the transfer of property in 2003 to local developer Mike Ross, president of Rarity Communities, for a high-end golf course community on Tellico Lake, and another land transfer last year along Nickajack Lake to Chattanooga developer John "Thunder" Thornton.  In both cases, the develoers swapped private property for TVA acreage.

In this year's first public comment period, about 75 percent of approximately 900 comments opposed the sale of public land for private residential development.  In October, TVA launched another public input process to gauge reaction to a moratorium on deals for public land by private interests, and what a new policy should be.  In November, it extended that comment period at the request of some elected officials.

Williams, who chaired the committee that drafted the new policy said 92 percent of more than 5,000 people who submitted comments favored making the ban permanent.  In Thursday's approved policy, Williams said there were basicallythree changes in the land policy provisions as they relate to industrial development and other businesses.

The new policy:

Eliminated the mandate that water access would only be considered for manufacturing businesses and made it broader by just saying businesses.  However, preference would be given to those businesses needing water access.

Allows TVA to consider a land transfer as long as it is for public use.

Changes the wording for what use the agency would not consider for transfer of reservoir property from nonindustrial and commercial to retail and residential.

Prior to the vote, the board heard from eight people who had signed up to speak on the issue.  The first five speakers wanted to the board to consider changes to the policy to allow exceptions.  "We are convinced this policy is too restrictive," said James Hines, city recorder for the city of Rockwood in Roane County.

Perry County Mayor John Carroll also expressed concerns and is asking for an exemption for a project in his county.  But he also said, "I appreciate the flexibility added to this." 

Renee Hoyos, executive director of the Tennesee Clean Water Network, applauded the decision.  "Lands don't just sit,  They provide a lot of environmental services to the community.  All of these lands that ... sit, provide clean air and clean water for the community," she said.

Former state Rep. Bill Owen of Knoxville, who said he is representing Campbell County and its pursuit to to put a convention center and hotel overlooking Norris Lake and would need TVA land for such a development, asked the board to consider an exception in their case.

In other action, the board approved the $23 million purchase of a three-unit natural gas power plant in Gleason, Tennessee.  The plant would be used to meet peak demand needs for electricity, such as hot July days.

Business writer Andrew Eder contributed to this report.  Michael Silence may be reached at 865-342-6310