Developers trying to build and sell homes near the Robert C. Jackson Drive Extension faced a reticent Maryville Planning Commission this week as they sought to get over a mound of issues caused by a literal pile of dirt.

After a ½-hour discussion Monday, an accountant for the project, Richard Perry, decided to defer a request for final approval on the 20-lot third phase of the Morgan Park Subdivision, a West Maryville residential development hotspot.

Since the multiphase project kicked off in 2017, the road has been rocky for Knoxville-based developer Belle Investment Company, according to Perry and city officials.

But in recent months, it’s become even rockier as a mound of dirt from local grading operations sat unattended.

It’s cost developers dearly after city officials explained to them nearly a year ago that the mound was out of compliance.

Then, on June 2, 2020, Maryville City Attorney Melanie Davis sent a letter to Belle CEO Travis Fuller informing him the company would be fined $3,000 a day because it did not “appear significant activity has taken place on the property even after our most recent meeting where you promised immediate action,” the letter states.

Those fines stacked up to $165,000 by July 28, 2020, city leaders told The Daily Times in an interview Monday. After developers resumed work at the site, the daily fines were suspended.

But the company still owes them.

Now Belle Investments and Morgan Park Subdivision are in a financial bind.

Perry told commissioners he would be happy just to get investments back on the project and that project principals are now spending money out of their own pockets to bankroll the development.

That’s why he wants final plat approval for the third phase: He needs to sell land fast, something that may not be difficult with the current wild sellers’ market Blount is experiencing.

But commissioners weren’t immediately willing to grant that approval.

The hill of dirt stood in the way.

Because of the dirt — which is part of a “spoil site,” where excess materials are placed during construction — city engineers couldn’t add stormwater certification to a list of signatures required for the project to proceed.

City Engineer Kevin Stoltenberg told commissioners this site “continues to have violations of our stormwater ordinance: It’s not finished in accordance with the previous stormwater pollution prevention program; it’s not stabilized.”

He added, “To Mr. Perry’s credit, he’s done more than has ever been done before, but it’s just still not quite there yet.”

After explaining the 3-year-old project’s trials and tribulations, Perry said he took responsibility for development after fines started accumulating in 2020. He added that, before he saw the attorney’s letter, he wasn’t aware of many issues at the development.

“I had no idea any of this was going on, for goodness’ sake,” Perry said, then trying to counter Stoltenberg’s assessment of the site, noting it was in compliance with the Tennessee Department of Environment and Conservation (TDEC).

It is, according to TDEC documents, but commissioners explained this wasn’t sufficient evidence to secure the stormwater signature.

Perry then detailed the financial distress plaguing the project: Development loans have been fully drawn, he said, and some principals are now paying “out of our back pockets.”

He’s paying $1,500 an hour to have dirt separated and removed currently, and said he’s made progress, hoping to finish work on the mound by mid-April. But even that may not entirely smooth Belle’s financial problems.

“I’m just going to be happy if I get my money out,” Perry said. “I need this dirt pile to be gone, I need for that to be a nice commercial lot for me to sell for me to be made whole. I’ve got to get this done and I’m going to get it done. I would just ask that you guys work with me. ... I could really use the money out of the closing to help to pay to fix this crazy dirt pile.”

Noting it wasn’t an excuse, he mentioned Fuller had a kidney replaced in the middle of the three-year project.

But commissioners said they didn’t want to set a precedent of voting for something that didn’t have the necessary signatures, regardless of assurances from Perry that the mound would be dealt with in the coming weeks.

Planning Commission Chair Keri Prigmore and Commissioner Suzette Donovan vocalized reservations. Other commissioners including Greg McClain and Tom Hodge tried to discuss alternatives.

Some even suggested waiving the $165,000 in fines.

“Do we just need to defer to next month?” Perry eventually asked.

“That may be the simplest thing,” McClain replied, noting after the meeting, “It’s not about fines for us; it’s about getting the work done.”

Perry said he’d talk to Stoltenberg to see what the best path forward was. “Obviously it seems like the goal is to get the dirt pile dealt with and get Kevin happy,” he said.

“It’s not about getting Kevin happy, for me,” Prigmore told Perry. “It’s about staying in compliance. ... I’m thankful that our staff is there to make sure the regulations are followed.”