UPDATED COVERAGE of OPEN RECORDS SUIT

Allegations that Industrial Development Board Bypassed by EDOC

Fourteen Jefferson County residents filed suit in Chancery Court on Thursday, October 24, 2013, seeking access to meetings and records for the Economic Development Oversight Committee (EDOC) in Jefferson County. The suit alleges that EDOC has taken the funding and function of an arm of the government and, therefore, is subject to the same Open Meetings and Open Records Acts that other publicly funded bodies must observe. Included in the document filed last week was information that laid out, point by point, the allegation that the Jefferson County Chamber of Commerce and EDOC function as one entity and the sharing of physical space, employees, public information such as web sites, financial expenses and assets results in EDOC being an alter ego of the Chamber of Commerce. It further alleges that EDOC is a vehicle that the Chamber of Commerce uses to up the ante when tax payer dollars are doled out by the Jefferson County Commission.

EDOC Board of Directors consists of the positions of the Jefferson County Commission Chairman, the Jefferson County Director of Finance, the Mayor of Dandridge and the Mayor of Jefferson City. Joining those four public officials at the Board table are the four largest private investors in EDOC, making a total tally of eight Board members. Jefferson County has committed to a multi year investment of $180,000 of tax dollar donation to EDOC per year, in addition to the funds that were committed by the local municipalities, and those funds represent a large portion of the annual operational funds for EDOC. Jefferson County Commission also funds the Jefferson County Chamber of Commerce, at approximately $150,000 this fiscal year, through the collection of hotel/motel tax, which garners in the neighborhood of $200,000 annually. Combined, EDOC and the Chamber of Commerce take in more than $300,000 annually in tax payer dollars.

The Citizens represented in the complaint filed last week allege that they, or their representatives, have repeatedly requested information from EDOC regarding business contracts and transactions that were entered into by EDOC on behalf of Jefferson County and have been denied. They contend that EDOC has made decisions and deliberated in private on issues that should have been the function of the government. Scott Hurley, attorney for the plaintiffs made the following statement.

“My clients are all taxpayers in Jefferson County, and they have been very patient and have worked very hard to avoid having to file this complaint with the Court.   There is simply a fundamental difference of opinion between my clients and some of the Defendants about whether taxpayers and citizens have the right to know what is being done with their money.   We respectfully believe that open government is good government.  Since we could not resolve this debate by agreement, my clients have asked the Court to intervene. “

The Jefferson County Industrial Development Board were not named as a defendant and the complaint alleges that the local IDB, which is charged with development of industry, was bypassed by EDOC in their action of functioning as an arm of the government, rather than a private organization that would follow protocol, which would include solicitation of the IDB for projects that would necessitate tax abatements or publicly purchased property for development. Beyond bypassing the IDB, the suite alleges that only members of the Jefferson County Commission and Jefferson County government that were deemed friendly or supportive to the actions of EDOC were informed of certain information. The complaint states that Commissioners were ranked according to their unbridled support of EDOC and information was shared accordingly. A source close to the litigation contends that Jefferson County Commission Chairman Mills, who also sits on the Board of EDOC, was a primary source of information for the ranking system, which resulted in some Commissioners and government officials being kept in the dark about development plans.

Defendants in the complaint are the Board of Director of EDOC, both individually and collectively, the Jefferson County Chamber of Commerce, Jefferson County Mayor Palmieri and the Jefferson County Board of Commissioners. The plaintiffs are not seeking any compensatory damages. Reliable sources have indicated that last week’s complaint is the first filed and other allegations will likely be added as information unfolds.