The state would put the property that was once home to Lakeshore Mental Health Institute up for sale to the highest bidder rather than transfer it to the city of Knoxville under legislation proposed by two Knoxville legislators.
The bill filed by Sen. Stacey Campfield and Rep. Steve Hall, both Republicans, was sharply criticized Thursday by Knoxville Mayor Madeline Rogero and former Mayor Victor Ashe. Both said a sale of the park could jeopardize the current city park located on adjoining land, and prevent its expansion.
A spokesman for Gov. Bill Haslam, also a former Knoxville mayor, indicated the governor backs Rogero’s view and opposes the proposal.
Campfield said it makes sense to have the state sell the land at fair market value and use the money to benefit mental health.
“I don’t think we need another park… a monument to someone’s vanity,” said Campfield. “We do need money for mental health.”
The bill as filed (SB1243) does not earmark funds received from sale of about 60 acres owned by the state to mental health, but Campfield said that is his intention and the bill can be amended to do so. He also said Knoxville can be given right to buy the land from the state at full market value.
“Let them (state officials) subdivide it up, put it out for bids, see what it’s worth and offer it to the city at that price,” said Campfield in an interview. “That would bring in a ton of money for mental health, where we have been cutting back year after year.”
Optionally, if the land goes to a private developer, it would generate property tax dollars for the city and county, Campfield said.
Rogero and Haslam have been negotiating a transfer of the land to the city. The present park is on Lakeshore land transferred to the city in 1999. Rogero said in a statement the proposed new transfer ties into a “longstanding agreement with the state” that “will protect the land as a public asset for generations to come.”
David Smith, spokesman for Haslam, sent a reporter a copy of Rogero’s statement and said in an email, “The state has a longstanding agreement with the city, and the governor believes we should continue with that agreement.”
“Selling the land would be a windfall to some land developer and harm the existing park,” said Ashe in a statement.