Update: Kingsport, Tennessee may have the law on their side to condemn property, but read below and then decide if it is the ethical thing to do.
The City of Kingsport, Tennessee voted on second reading to start legal proceedings to condemn property for a new fire station in the Rock Spring Road area.
The owner paid $476,149 for the property in 2003 and the City of Kingsport offered $330,000 to buy the property. The city had the property appraised at $240,000 and the owner of the property had it appraised at $440,000. A bank has a $450,000 lien on the property.
Alderman Marsh voted against condemnation while Mayor Phillips and his band of followers voted for stealing the property from the owner.
The city is determined to take this property from the owner, because it is the less costly route than obtaining other property that owners are willing to sell. Other property in the area would require more expensive site preparations.
The condemnation proceedings will be a trial by jury and the bank will also be a party to the suit. The jury may select the $240,000 appraisal done by the city or award a higher amount. City Attorney, Mike Billingsley stated that once committed to this lawsuit that there is no backing out if the jury awards a much higher amount.
See previous post below for much more detail on this issue.
Fire fight erupts as city attempts to steal property for new fire station
Kingsport, Tennessee Board of Mayor and Aldermen voted on first reading to steal property from a Virginia real estate developer. Kingsport has been trying to purchase 2.33 acres to build a new fire station in the Rock Springs Rd area. The City of Kingsport had the property appraised at $240,000 and offered $330,000 even though King VA LLC paid $476,149 for the property. The owner of the property put the property up for sale and the city claimed it had three contracts with the owner.
The city of Kingsport is putting their own spin on this property deal claiming that the owner would not honor the contract. It was pointed out by Vice Mayor Mallicote, who is an attorney, that the owner has an “out” clause in the contract. I do believe that they call this a contingent offer. The owner has refused to sell now and the city has begun condemnation proceedings. City Manager, John Campbell stated, the owner paid over $400,000 for the property. Mr. Campbell, quit the spin route, the real amount paid is $476,149.
It appears that the city is not willing to accept “no sale” for an answer and is willing to go the condemnation route when four of the current BMA members might be thinking of campaigning for another term when their term expire next year.
Alderman Marsh voted against condemnation proceedings and stated that there were other sites that could be used for the fire station.
City Manager, John Campbell, stated that if the condemnation matter goes to trial, then the owner might have to accept the $240,00 appraisal on the property. Aldermen Joh, who is the designated aldermen to deal with real estate matters for the City of Kingsport, stated at a June 16, 2008 BMA meeting, she did not pay much attention to appraisals since they can vary greatly. This comment by Aldermen Joh was given concerning the low appraisal done by the city versus the higher appraisal done by Kingsport Firefighter Association for their property. Alderman Joh is the owner of Blue Ridge Properties which is a real estate firm with many offices in the Kingsport area. I wonder if a jury trial decided that the property was worth $500,000, would the City of Kingsport still want it?
King VA LLC, 410 North Ridge Rd, Ste 100, Richmond, Virginia, is the owner of the 2.33 acres that the city wants. At the same address is Harper Associates, LLC, who deals in real estate development and investments. Harper Associates to me is well connected politically and is accustomed to dealing with city governments. They appear to care for the communities by sponsoring many events for the general public.
Listed below are the recent sale dates and prices paid for the property that the city wants to buy for $330,000.
| Sale Date | Price |
| 10/17/2003 | $476,149 |
| 07/10/2003 | $300,000 |
| 12/12/2002 | $422,156 |
| 01/19/2000 | $445,625 |
The property is located on Rock Springs Rd and Blakley Dr.and is very close to interestate26.

BMA minutes on the subject is below
5-14-07
10. Consideration of an Approval of Offer for the Acquisition of Real Property located at Rock Springs Road and Blakley Drive for the Future Fire Station (AF: 162-2007).
Motion/Second: Mallicote/Munsey, to approve,
The offer of $330,000 for 2.33 acres owned by King VA, LLC and to authorize the mayor to execute an agreement for purchase in a form approved by the city attorney
Passed: All present voting “aye.”
12-03-07 WS
BOARD COMMENT. City Manager Campbell informed the Board that closing on the Rock Springs fire station property is imminent.
It might be a good idea for cooler heads to prevail. It seems that the city manager and the BMA have dug their heels in and are set to fight this one out. They might want to listen to Aldermen Marsh’s suggestion to look at other properties. In my opinion I see it as a no-win for the city if they prevail in the suit. Treating an out of state real estate developer this way may affect future developments in Kingsport when the word gets out. I wonder if Kingsport would treat Somera Capital Management or General Growth Properties this way. There is a very good chance that General Growth Properties manages property built by the property owner that the city is suing.
Maybe a little fire hose action is needed to cool everyone down.