NEW: Sullivan County Commission to consider ending ownership of Observation Knob Park
Observation Knob Park in Bristol, Tennessee could be closed for the summer if Sullivan County commissioners vote to terminate a lease on the property made with TVA back in 1975.
An administrative committee voted this week to pull the funding from the upcoming budget for park operations due to an estimated half-million dollars in needed repairs that committee members said made park operations not viable.
If the TVA accepts the termination agreement from Sullivan County, the authority would have to go through a bidding process to find new operators for Observation Knob, a move that would close off the park grounds according to County Mayor Richard Venable.
Commissioners will get a first look at the proposal at Thursday night’s work session. A vote on first reading could come at their regular meeting on March 16 where 16 of the lawmakers would have to vote yes to break the lease.
Here is the complete message issued by Sullivan County Offices on Wednesday evening:
BLOUNTVILLE – The Sullivan County Commission is expected to get its first public look at a proposal to immediately terminate the county’s lease with the Tennessee Valley Authority for land on South Holston Lake known as Observation Knob Park.
At a budget hearing before the county’s Administrative Committee on Tuesday, the group voted unanimously to “pull funding for the park” from the county’s budget. The motion was made by Commissioner Jessica Means and seconded by Commissioner Cheryl Harvey.
Means made the motion amid discussion of park management’s budget request for the 2023-2024 budget year, which begins July 1.
That request did not seek an increase from this year’s budget for the park, which is $390,000. The park has produced enough revenue the last two years to pay for itself and is budgeted to do so again this year.
Historically, though, the park has mostly operated at a break-even point or a loss. But in the past two years had shown a combined positive cash flow of about $100,000.
Members of the Administrative Committee said they do not believe the park is viable going forward due to needed electrical upgrades, estimated to cost anywhere from $250,000 to $500,000. Members also cited concerns over potential risk to park visitors due to electrical problems.
Mayor Richard Venable, who has sole decision-making authority over park operations, said the large-scale electrical work is a long-term effort that could be completed in phases over as many as five years. Venable said recent changes to the park’s operation (rent increases, switching more seasonal sites to daily use) were designed to increase revenue to help defray that work.
For the short-term, Park Director Chris Ihrke told the committee he had bids for electrical repairs needed immediately to resolve issues cited in a recent electrical inspection at the park. Ihrke said the work could be done for $18,000 and the park could open for the 2023.
Harvey said that would be “a Band-Aid” for a much larger problem.
“I don’t feel confident it’s safe to continue to use the park,” Harvey said.
Sullivan County signed a 50-year lease with TVA for use of the land in July 1975.
Venable told the committee if their intent in “defunding the park” was to cease the county’s operation of the park, the full commission would need to approve a resolution to terminate the TVA lease.
Harvey, Means and others have indicated such a resolution will be presented at the commission’s work session on Thursday.
Venable spoke with a TVA representative on Wednesday to determine the options available to the county commission to terminate the lease, called an easement by TVA.
We did discuss the cleanup of the park that would be necessary, Venable said. “And if TVA choses to go through a request for proposals process to find a new operator for the park and campground, that could take most of the summer. So, the park may not be available at all this season.”
Administrative Committee members are commissioners: Joe Carr; Hershel Glover (chairman); Harvey; David Hayes; Hunter Locke; Means; and Archie Pierce.
Last month Venable sent a letter to the occupants of 178 seasonal sites at the park notifying them they need to vacate the park by March 15. That notice also said 88 seasonal spots would be available through a public lottery, under guidelines approved by TVA, for the 2023 season which begins April 1.
That lottery was set for on or about April 1, with March 20 as the start date for submission of lottery applications.
Venable said those dates are likely to change, pending the commission’s consideration and potential action on terminating the TVA lease.
The Sullivan County Commission is scheduled to meet for its monthly work session at 6 p.m., Thursday, March 9, 2023, in the Commission Room on the second floor of the historic Sullivan County Courthouse.
Decisions are not made during work sessions.
A decision on the proposed resolution to terminate the county’s lease with TVA for Observation Knob Park could take place when the commission meets in regular session on Thursday, March 16, at 6 p.m., at the same location. To gain approval on first reading the resolution would need 16 “yes” votes from the 24-member commission.
(IMAGE / PIXABAY)
