Arp Investigation Going to TBI

According to the press release below from District Attorney, Russell Johnson, the findings of his investigation into the "developer discounting" and other activities by Doyle Arp while he was the property assessor, will be going to the Tennessee Bureau Of Investigation for a full investigation. Apparently, Johnson has found evidence of something and feels that a more through investigation that he can provide is needed.

Back in July, it was discovered Arp had been "Doyleing" out, excuse the pun, big property appraisal breaks for his close friend, developer Mike Ross. Arp apparently gave Ross an 11.6 mil. break on his Rarity Bay property. Nearly a month after the story first broke on vanshaver.com, DA Johnson finally opened an investigation into the matter. Johnson's first report after a couple of weeks seemed to defend Arp's actions but obviously Johnson has found evidence for a deeper investigation.

There is also the violation of TCA 39-16-403 - Official Oppression that occurred when Arp attempted to force other county officials to violate the law on his behalf. Johnson has released no information on this matter.

PRESS RELEASE - October 9, 2008

Kingston, Tennessee

District Attorney General Predicates Full TBI Investigation into Rarity Bay Issues

For approximately two months District Attorney General Russell Johnson has been conducting an investigation with the assistance of TBI into various allegations involving the Rarity Bay development on Tellico Lake in Loudon County.  A number of fact finding interviews have been conducted by General Johnson and TBI agents as well as an examination lasting several weeks of all of the deed transfers from the original developer of Rarity Bay down to the current property owners for every lot of the development that lies within Loudon County.

Johnson stated that he has now “completed a thorough review of the results of this records examination, the information provided to me by the current Property Assessor and information from other sources, as well as the information gathered in the preliminary interviews.  As a result of this review I have predicated an investigation of all of the issues surrounding these transactions, including the allegations of ‘developer discounting’ to the Tennessee Bureau of Investigation”.

Once the TBI investigation is concluded and its results are available, Johnson stated that he intends to review them with the Director of the Tennessee District Attorney Generals Conference, the State Attorney General and the Director of the Division of Property Assessment.  After meeting with the TBI District Supervisor earlier today to ‘predicate the investigation’ Johnson further advised that he was ‘cautioned’ by TBI that, even with much of the preliminary work concluded, this investigation might still take a considerable amount of time given the complexity of the issues and the number of people to be interviewed or re-interviewed.

Johnson indicated that no action will be taken until the full TBI investigation is complete.

End of Press Release

TBI to get results of probe

District attorney investigated claims against Rarity Bay

Hugh G. Willett, knoxnews.com

Loudon County District Attorney General Russell Johnson said Tuesday that he will turn over to the TBI results of further investigation into various allegations involving property assessments at the Rarity Bay development.

The allegations, which came to light in August, include charges that current Loudon County Mayor Doyle Arp, while in the position of property assessor in 2005, provided discounts on property assessments of lots owned by Rarity Bay developer Mike Ross.

The allegations came this year when a property owner from Florida questioned why his lot had been assessed at a value almost twice that of comparable adjacent lots.

Current Property Assessor Chuck Jenkins said his investigation into the property owner's allegations revealed that the assessments on at least 178 lots owned by Ross and his associates were reduced by as much as half.

The adjustments to the assessments were made by Arp several weeks after the properties had been assessed and their values entered into the state database. Arp contends all the adjustments were justified and requested by property owners.

Ross denies he made such requests and said he has no idea why the adjustments were made.

In a statement released Tuesday, Johnson said he has conducted a number of fact-finding interviews as well as an examination lasting several weeks of all the deed transfers from the original developer of Rarity Bay down to the current property owners.

Johnson said that after completing a thorough review of the results of this records examination, "I have predicated an investigation of all of the issues surrounding these transactions, including the allegations of 'developer discounting' to the Tennessee Bureau of Investigation."

Once the TBI investigation is concluded and its results are available, Johnson stated that he intends to review them with the director of the Tennessee Attorney General's Conference, the state Attorney General and the director of the Division of Property Assessment.

After meeting with the TBI district supervisor Monday, Johnson said that he was cautioned by TBI that, even with much of the preliminary work concluded, this investigation might still take a considerable amount of time given the complexity of the issues and the number of people to be interviewed.

Johnson also recently confirmed that in addition to the allegations that Ross and his associates received discounts from the property assessor's office, there are other aspects to the investigation that involve forgery of documents and possible inflation of lot values at Rarity Bay by person or persons unknown.

Johnson also said he was extending his investigation to include other properties owned by Ross, including Rarity Pointe.

Loudon County Commissioner Bob Franke said last week that he was eager to learn the status of the investigation and that he had contacted Johnson's office for an update.

Franke could not be reached for comment on the latest developments.

Loudon County Mayor Doyle Arp did not respond to calls for comment.

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10/15/08