Judge Will Not Accept Bond Counsel Approval For $9 Million Black Creek TIF Road Project

Monday, July 7, 2014

Chancellor Frank Brown on Monday granted a motion to strike an affidavit from a Bass, Berry & Sims attorney supporting a controversial $9 million Tax Increment Financing (TIF) project.

The chancellor said he perceived there was a conflict of interest involved in Attorney George Masterson's involvement in the project at Black Creek in Lookout Valley and his rendering an opinion as to the  legitimacy of the project. Attorney Masterson had opined that the Chattanooga Industrial Development Board could proceed with approval of the TIF to build a $9 million road and sewer line up Aetna Mountain. 

Citizen Helen Burns Sharp filed suit concerning the TIF, saying it was not legitimate.  The IDB never met again to discuss this issue after the opinion letter was received from attorney Masterson, paving the way for closing of the TIF.

The case is set to go for a hearing before Chancellor Brown on Thursday. There may be a hearing Tuesday of next week depending on the outcome of the hearing on Thursday.  However, the chancellor suggested to the defendants that they might want to not proceed with the hearings and take the matter back to the IDB (or go for a state opinion on the matter).

Ms. Sharp is represented by attorney John Konvalinka.


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