DOE land was sold to developer at price far below appraised value
May 16, 2001By Frank Munger, News-Sentinel senior writer
OAK RIDGE -- Contrary to earlier reports, the Department of Energy's decision to sell some of the Clinch River floodplain for $54 an acre was not based on the judgment of an independent property appraiser.
According to a report by the Inspector General, the actual appraisal recommended a fair-market value of $200 an acre -- or $36,400 for the entire 182-acre parcel. The property was sold for $9,828 to the Oak Ridge Land Co., which plans to use the river access in connection with residential development on nearby land.
Conservationists protested the sale earlier this year, saying the property contains valuable wetlands that need to be preserved.
Steven Wyatt, a DOE spokesman, said Tuesday the decision to reduce the sale price to $54 an acre was made by the agency's Oak Ridge real-estate manager, Katy Kates.
Wyatt said: "Kates apparently believed that the appraiser had not adequately discounted the property because of its presence on the Clinch River floodplain."
Wyatt said Leah Dever, the Oak Ridge manager, and other top DOE officials were not aware the property had been "discounted" until recently.
Asked if Kates had been reprimanded, Wyatt said it "is inappropriate to discuss any potential disciplinary actions," but he added that DOE has taken steps to improve the management oversight of its real-estate activities.
"At a minimum, this represents a serious breakdown in communications," Wyatt said.
The News-Sentinel requested a copy of the real-estate appraisal two months ago. Initially, DOE said it did not have a copy. Then after acquiring a copy, it said the newspaper's request was being processed in accordance with the Freedom of Information Act.
Dev Joslin, a spokesman for Advocates for the Oak Ridge Reservation, one of the groups that earlier protested the land sale, said it's time to put the controversy to rest.
"We've given this enough bad press and ink, and I don't want to keep dwelling on it," Joslin said Tuesday. "I think it's time for us to move on and do some cooperative planning with DOE and the city on what should happen to the Oak Ridge reservation land."
Frank Munger can be reached at 865-482-9213 or twig1@knoxnews.infi.net.
Return to AFORR
Home Page