The newly-formed East Ridge Housing and Redevelopment Authority held its first annual meeting, Wednesday at City Hall.
The five-member panel consisting of Chairman Darwin Branam, Ruth Braly, Eddie Phillips, Earl Wilson and Curtis Adams, formally adopted by-laws which will govern the authority. It elected Phillips, the city’s former Public Safety Director, as its Vice Chairman.
The authority discussed with City Manager Scott Miller how it would be funded. Initially, Miller said, the chairman would appear before the East Ridge City Council to ask for funding. The initial request would most probably be for money to pay for a couple of staff positions.
Miller said the housing authority would at the bare minimum have to hire staff for legal and professional services, which would include an appraiser and real estate expert.
City Attorney Mark Litchford, who is currently serving as counsel for the housing and redevelopment authority, advised the board to find someone who they trust in the commercial real estate market to provide information about the market in a consulting capacity. Litchford encouraged Chairman Branam to come up with a figure for an estimated cost for these positions and make a presentation to the city council.
Branam said that initially the East Ridge Housing and Redevelopment Authority would have to rely on using city employees as the authority becomes established. Those employees may include Kenny Custer, the city’s Director of Community Services, Janet Middleton, the city’s recorder, and Miller.
Phillips gave an example as to how the housing authority might actually acquire real estate. As a hypothetical, Phillips said that the city had received no cooperation from the owner of a dilapidated property and it had become an eyesore. The housing authority decides to buy it. A fair market value would be determined and the housing authority would ask the city council for permission to proceed.
Miller offered that an appraisal on such a property must be addressed first. He said if an appraisal came in at $75,000 and the owner wanted $150,000, “that’s when you’ve got a problem.”
“(The authority) is going to have to have a pretty darned good reason to buy it,” he said.
Miller said the authority, whose meetings are public, may want to consider holding “executive sessions” for the purposes of negotiating property deals.
There was a discussion about the housing authority acquiring property by eminent domain, the power of a government entity to take private property for public use.
Attorney Litchford said that Tennessee state law allows for eminent domain. He urged the authority to “take it and fight over it later.”
The property owner may file suit. Litchford said the court would then assess the value of the property taken by the city.
Adams asked if the city had ever “taken” property from a property owner? The answer was only for right-of-way for building of roads.
City Manager Miller made it clear that any eminent domain action taken by the housing authority would have to show the seizure was for a public purpose.
Adams again focused on seizing residential property. Chairman Branam said that the housing and redevelopment authority would initially focus on redevelopment of commercial property.
The board then had a brief discussion about properties which the authority may act on and a document listing three troubled commercial properties was handed out. Those properties include vacant land at 5711 Ringgold Road adjacent to the Dollar General store; the corner of Spring Creek and Ringgold Road at 6009 Ringgold road; and metal buildings at 5715 Ringgold Road.
Branam said that the list “is just something to consider.”
Attorney Litchford advised the board to talk with someone in commercial real estate that the board is potentially interested in addressing these problem properties.
The East Ridge Housing and Redevelopment Authority intends to meet on the first Wednesday of each month. The next meeting was scheduled for December 6 at 10 a.m.
