Although a possible solution to a
delinquent lot dispute between Loudon County and the
Tellico Village Property Owners Association has
seemingly been delayed at least until the next auction,
details on how public officials attempted to broker a
deal with taxpayer money have been slow to surface
following a closed door meeting between Loudon County
Commission and attorneys that took place more than five
months ago.
Emails obtained Thursday as part of an
open records request initially filed in mid-December
revealed that POA Attorney Kevin Stevens provided some
financial information about The Public Library at
Tellico Village to Loudon County Attorney Bob Bowman but
appeared to stop short of making any concrete requests
to the county.
According to Bowman and county officials, however,
the POA asked the county to contribute about $1.4
million to help pay construction costs associated
with the library in order for the POA to take the
lots and settle with the county.
POA officials have contended that no
such specific arrangement was offered.
Some background
“We were answering questions put to
us,” John Cherry, Tellico Village public relations
manager, said about correspondence between the
county and the POA. “What’s the note on the library?
What’s the daily operating budget? — as part of
preparations on discussion about what can be done to
get this lot situation resolved.”
On Oct. 1, Bowman and delinquent tax
attorney Terry Vann met with commission to discuss a
potential settlement agreement with the Tellico
Village POA ahead of a planned auction that was set
for Oct. 20.
After a judge ruled in the county’s
favor the morning of the sale to take the lots out
of the auction, thus temporarily removing the
county’s responsibility for any unpaid assessments
on about 400 pieces of property, terms of an alleged
settlement arrangement have remained unclear.
During an open meeting Dec. 15,
Bowman told Loudon County Commission that the county
was asked to pay the $1.4 million contribution for
the library to settle with the POA, noting that he
had correspondence from Stevens dated in early
October that confirmed details of a potential deal.
“We were,” Bowman said at the time
when asked if the county was asked to pay that
amount. “And I have an email from Mr. Stevens that
confirms the amount, the payoff schedule and all the
terms.”
In an open records request filed Dec.
16, the News-Herald asked for the email Bowman
referenced in the meeting. On Dec. 31, Bowman denied
the records request, citing Tennessee Rule of
Evidence 408 that pertain trials, current litigation
or “related” litigation. On Jan. 9, Bowman’s office
sent a supplemental denial letter, noting that the
records could not be released due to Tennessee rules
of evidence 408 and 502. Rule 502 deals with the
“inadvertent disclosure of privileged information.”
Records denial ‘game’
In opinions Jan. 2 and Jan. 9
respectively, Deborah Fisher, with the Tennessee
Coalition for Open Government, and Ann Butterworth,
counsel with the Tennessee Office of Open Records,
disagreed with Bowman’s request denial.
“These are the games that government
officials will play when they don’t want to give out
a record, and it’s not right,” Fisher said during an
interview Monday. “Anybody can understand something
taking three weeks. ... There are lots of reasons
that things can take a long time to compile. One
particular email that you asked for back in
(December), that doesn’t make sense.”
On Jan. 21, Butterworth wrote Bowman
stating her office’s objection to the denial.
“As indicated in my voice message, I
have reviewed the records denial letter, and I do
not agree with the grounds given for denying access
to the records,” Butterworth said in January.
“Please contact me at your earliest convenience so
that we can reach a resolution that complies” with
the Tennessee open records law.
Butterworth also said that a case
Bowman cited in support of the records request
denial, Goodyear Tire & Rubber Co. v. Chiles Power
Supply, Inc., was not pertinent.
“The case does not involve parties
subject to government transparency laws and refers
to Federal (not Tennessee) court rules,” Butterworth
said in an email to Bowman. “The case has been
subsequently negatively referenced: Matsushita Elec.
Indus. Co. v. Mediatek, Inc.”
Chairman intervenes
On Feb. 27, the News-Herald made a
second attempt to retrieve the email Bowman
referenced Dec. 15. Commission Chairman Steve
Harrelson contacted Bowman on Tuesday about the
records request. On Wednesday, Harrelson said both
attorneys, Bowman and Stevens, agreed to release the
records.
On Thursday, Bowman forwarded two
emails from Stevens dated the afternoon of Oct. 1.
After consulting with Bowman,
Harrelson said other officials who attended a closed
session meeting requested access to the emails
regarding negotiations between Bowman and Stevens.
“He did mention that there were
several others who were in the executive session
that had asked to view the emails,” Harrelson said
in a follow-up email correspondence about the
records request. “Not sure who or how many. I’d say
that everyone else including myself saw them as not
being very important in any future matters dealing
with the TVPOA because I haven’t heard any comments
from anyone about the content of the documents.
“Our main concern is not any ‘he said
this or they said that stuff’ but how do we deal
with the delinquent lots issue in the future and how
do we protect the interests of the taxpayers of
Loudon County,” Harrelson added.
Loudon County Mayor Rollen “Buddy”
Bradshaw said he was aware of the newspaper’s
initial records request from three months ago.
“We were still in some negotiations,
and there was a possibility of litigation at that
point and time,” Bradshaw said. “... That was
sensitive information at that point and time in
December. I wish it (fulfillment of the records
request) had been quicker, but in looking out for
the taxpayers we had to be careful.”
In the more substantive email
released by Bowman’s office, Stevens, on the
afternoon of Oct. 1, provided information on the
library’s debt, noting that the Friends of the
Tellico Village Library, the nonprofit organization
that supports the facility, took out a $1.5 million
mortgage in 2011 on a 41-year term.
Stevens also told Bowman in the email that the mortgage payment is $6,475 per month and that the balance on the principal at the time in October was “not much less” than the original loan amount because of a “lengthy amortization schedule.”
Stevens also told Bowman in the email that the mortgage payment is $6,475 per month and that the balance on the principal at the time in October was “not much less” than the original loan amount because of a “lengthy amortization schedule.”
In a follow-up email a few minutes
later, Stevens told Bowman that the outstanding
balance at the time was $1,484,274.59.
No additional emails
Bowman did not provide additional
emails related to negotiations between himself and
Stevens. He said the two emails from Stevens was the
“complete thread” from that afternoon before the
closed session meeting later that day.
“The e-mail from KS to me was in
response to questions I posed to him in his office
earlier that afternoon,” Bowman said. “The first
question was what does the POA want from the County
in order to take the lots. He (Stevens) said pay off
the library. I then asked him to send me details on
how much is owed on the building.”
In an email correspondence, Stevens
said he and Bowman exchanged seven email threads
between Oct. 1-7, and he said the POA never made a
“single specific monetary demand” to Loudon County.
He said the idea that the POA made a demand for a
payoff on the library is “illogical” and “false.”
Stevens said he voluntarily withdrew
himself from representing the TVPOA on the
delinquent property tax sale issue to avoid “even
the perception of conflict” with his representation
of the Loudon County Solid Waste Disposal
Commission.
Cherry said none of the other emails
between Bowman and the POA indicate a specific
dollar amount that the POA was requesting to settle
with the county.
“We’ve been very consistent with here
in the POA is we knew the county could not afford
the $400,000 on assessments, so it makes no sense
that we would come back and ask for $1.4 million to
pay off the library note,” Cherry said. “It just
doesn’t make any sense.”
Our effort to get records
Following is a timeline of events
leading up to the production of a records request
initially filed Dec. 16 by the News-Herald:
- Oct. 1 — Loudon County Attorney
Bob Bowman and Tellico Village Property Owners
Association Attorney Kevin Stevens meet in Stevens’
office in Knoxville to discuss a potential
settlement agreement between the county and POA
related to hundreds of delinquent lots that were
scheduled for sale during a public auction Oct. 20
at Loudon County Courthouse. Lots that did not sell
at the auction would have reverted back to the
county, and, by state law, Loudon County would have
been responsible for any unpaid Tellico Village POA
assessments.
- Oct. 1 — Later that day, Bowman,
Loudon County Commission and delinquent tax attorney
Terry Vann meet in closed session to consider a
brokered deal with the POA.
- Oct. 20 — Chancellor Frank V.
Williams rules in the county’s favor, and the
disputed lots are removed from the sale the same
day. The week before, the county filed a motion to
remove the properties from the tax sale, which was
followed by a motion to dismiss from the POA.
- Dec. 15 — Bowman tells Commission
during an open workshop meeting that Stevens
suggested that the county could settle with the POA
and take possession of the lots if the county would
contribute $1.4 million to pay off construction
costs associated with The Public Library at Tellico
Village. Bowman asserts that an email from Stevens
confirms his story about the negotiation.
- Dec. 16 — News-Herald files an
open record request seeking the email exchange.
- Dec. 31 — Bowman’s office denies
records request, citing a offer of settlement
provision in Tennessee Rule of Evidence 408
pertaining to trials, current litigation or
“related” litigation.
- Jan. 2 — Deborah Fisher,
executive director with the Tennessee Coalition for
Open Government, provides an opinion that there is
no legal proceeding related to Rule of Evidence 408
in denying the request.
- Jan. 9 — News-Herald receives a
supplemental records request denial from Bowman,
citing provisions in Rule of Evidence 408 and 502.
According to Rule 502, “Inadvertent disclosure of
privileged information or work product does not
operate as a waiver: (1) the disclosure is
inadvertent, (2) the holder of the privilege or
work-product protection took reasonable steps to
prevent disclosure, and (3) the holder promptly took
reasonable steps to rectify the error.” In support
of the denial, the records request also cited the
case of Goodyear Tire & Rubber Co. v. Chiles Power
Supply, Inc.
- Jan. 9 — Ann Butterworth, counsel
with the Tennessee Office of Open Records, provides
an opinion that the case referenced in the denial
letter did not deal with parties that are subject to
government open records law and pertained to
federal, not state, law.
- Jan. 21 — The Tennessee Office of
Open Records writes Bowman’s office stating its
objection to the records request denial.
- Feb. 27 — News-Herald writes
Bowman’s office in a second attempt to gain access
to the email exchange.
- Monday — Bowman’s office responds
to request, noting in a letter that the document
“will be available or a determination of
accessibility and availability will be made
regarding the requested records” by March 27.
- Tuesday — Loudon County
Commission Chairman Steve Harrelson speaks with
Bowman after learning about the News-Herald’s second
attempt to retrieve the documents.
- Wednesday — Harrelson tells the
News-Herald that both attorneys agreed to provide
the requested documents.
- Thursday — After consulting with Stevens and county officials, Bowman releases two emails from Stevens from 3:33 p.m. and 3:48 p.m. Oct. 1.