The good news for the Signal Mountain Community is that there is a new middle and high school. The bad news (at least so far) is that the old middle school building stands vacant.

After it became clear that Hamilton County co-owned the property along with the School Board, the Hamilton County Commission on Aug. 27 accepted Mr. Poteet’s $850,000 offer to purchase the 16-plus acre property, with the stipulation that the 21 zoning restrictions that he collectively worked out with concerned citizens and the Signal Mountain Town Council also be placed in the deed transferring ownership to Mr. Poteet’s company.

Why did the Commission by unanimous vote require these deed restrictions?

(1) The deed restrictions give citizens a “belt and suspenders”. Deed restrictions, which duplicate the town’s zoning restrictions, apply to present and future owners but will require county approval to change to some different use. The deed and zoning approve the use of the property for a fitness center, a storage facility, and small retail. To make this clear, a different Town Council could change the zoning restrictions. The deed restrictions would require the County Commission to also approve any use changes.

(2) Mayor Bill Lusk of Signal Mountain told the County Commission on August 27 that the commercial zoning was only going to be given to Mr. Poteet for the specific uses he proposed. A re-bid of the property by the county in an effort to receive more money would receive a negative reception from the Town Council.

(3) If county taxpayers cannot receive more money for a possible alternative use of the property, should Mr. Poteet be able to have this benefit if he convinced a future Town Council to use the property in a different way? In the August 27th meeting, Mr. Poteet himself said that in certain circumstances the property was worth two times what he offered. The Commission believes now and in the future the property should be used as Mr. Poteet proposed and as many of the town citizens supported.

(4) In the meeting, Mayor Lusk stated it would be “prudent” for the County Commission to place the zoning restrictions in the deed itself.

Mr. Poteet has brought legal action because he maintains he already made a deal, and that the only deed restriction would be the one the School Board required (that there be no future private school operated on the property). He seeks to enforce a perceived transaction that was made before any party realized that the county along with the School Board owned the property.

I encourage Mr. Poteet to accept the Commission’s approval of his offer with the condition that the restrictions the Town Council and citizens want be placed in the conveyed deed to the property. Without the deed restrictions, the temptation will always be there for Mr. Poteet or some subsequent property owner to convince a Town Council to alter the zoning and/or restrictions. For example, a much smaller parcel, the CVS property, when vacant, was purchased for over $2,000,000. The transaction occurred after a zoning change made by a Town Council that in previous years opposed such action.

Richard Casavant
Hamilton County Commissioner – District