The unexpected amount the city of East Ridge will owe the state on the fire hall property in connection with the Bass Pro development has risen to $603,000.
Earlier, East Ridge officials said the payment would be $428,000.
City Manager Andrew Hyatt said Monday, "The Tennessee Department of Transportation notified the city of East Ridge that an appraisal of the city’s former Fire Hall #2 property had been completed. An official copy of the appraisal was delivered to the city on Thursday. City officials initially understood the land’s appraised value to be approximately $603,000; however, the appraisal document shows this actually represents the amount that is to be paid to the state of Tennessee.
The fire hall near the entrance to Camp Jordan Park had to be moved as part of the planned major development at Exit 1.
It was later learned that the fire hall was restricted for fire hall use, so East Ridge faced having to pay a premium for the small property.
Mayor Brent Lambert said, "Based upon our city’s strong financial standing, we have the ability to pay what the state requires in order to lift the restrictions and allow economic development to take place on this property.
“We fully expect to submit this expense under the Border Region legislation, in which East Ridge is so blessed to be a participant. The legislation is very complex, but essentially the full amount should be reimbursed by the state of Tennessee through the state’s share of sales tax dollars generated inside our city.”
The former fire hall property had been purchased by the city from TDOT in 1999.
At the time, the city paid a negotiated price equal to 29 percent of the appraised value and accepted restrictions on how the property was to be used in the future. The city applied to have the restrictions lifted so that the property could be included in the new Jordan Crossing development at Exit 1.
TDOT’s Excess Land Committee agreed to lift the restrictions but decided the city would have to pay 71 percent of the land’s current appraised value. This decision necessitated the recent appraisal.
Mayor Lambert said, “We enjoy an outstanding relationship with our state officials, including TDOT, and together we all are working toward a speedy resolution to this issue. We are excited about the development taking place at Exit 1 and know that it will pay tremendous dividends to the city for years to come.”
The site has been cleared and a pad placed for the development, but no construction has started.