Forks of the River fire district may dissolve: Industrial Park firms want their own deals

Oct 15, 2009 (The Knoxville News-Sentinel - McClatchy-Tribune Information Services via COMTEX) -- RURL | Quote | Chart | News | PowerRating -- Businesses in Forks of the River Industrial Park are looking at negotiating their own fire protection contracts.

Knox County Mayor Mike Ragsdale, Rural/Metro Fire Department and John Valliant, an attorney for businesses in the East Knox County industrial district, have agreed to dissolve the fire protection district provided by Rural/Metro, pending Knox County Commission approval, the mayor's office said Wednesday.

That means the 54 companies in the industrial park would negotiate with Rural/Metro individually for fire protection. About a dozen businesses in the district have said they want that right, which is provided in the county's other industrial parks.

Rural/Metro will work with individual businesses and property owners to seek subscription services to continue fire protection for the Forks of the River park, a statement by Ragsdale said.

Rural/Metro earlier said it might close its Forks of the River fire station and let its Strawberry Plains station provide that industrial coverage. Future service will depend on the number of subscribers, the mayor's office said.

The industrial park is on Gov. John Sevier Highway and bordered by the Holston River.

The deal still must be approved by Knox County Commission at its Oct. 26 meeting.

"I applaud the cooperative spirit and I am pleased that both parties have agreed to a compromise solution. I am optimistic that the private sector will work with Rural/Metro so that quality fire protection can continue in the park," Ragsdale said. "I will encourage County Commission to follow this course of action."

Valliant, who represents businesses in the industrial park, said the decision is the best resolution to the situation.

"You had several businesses at the Forks of the River Industrial Park that were very unhappy with government being involved as a go-between with Rural/Metro," Valliant said. "It wasn't working out for them."

He also noted that taxes were being levied in a unfair manner in the park. Out of 54 businesses, 42 paid real property taxes last year but didn't pay personal property taxes.

"I personally haven't started lobbying the County Commission," Valliant said. "I've just heard feedback, and my sense is that government wants out of this -- both the executive branch and the commission."

Mark Munday, owner and president of Superior Steel in the Forks of the River fire district, said he was pleased with the agreement and noted many commissioners support it.

"First and foremost, the decision is in the best interest of all citizens of Knox County as a whole," Munday said. "It's a tribute to folks getting involved and folks listening and examining the facts and making a good decision. Folks have gotten involved and educated commissioners and realize it's in the best interest of Knox County."

David Gensterblum chief executive at Aqua-Chem in the park, said the move is the "appropriate decision."

"There were many inconsistencies (in tax bills). I'm very happy with the outcome," Gensterblum said.

Knox County Commissioner Richard Briggs backed decertification before the agreement was reached.

"I was very supportive of decertifying that district and letting those businesses negotiate with Rural/Metro. All the other industrial parks do it," Briggs said, referring to the other Knox County sites.

However, County Commissioner Dave Wright expressed surprise and wasn't convinced the decision is the best deal.

He believes the district can benefit from economies of scale by going together to pay for Rural/Metro service.

"I'm open to that," Wright said. "Rural/Metro is a provider. The more economical it is to be in the Forks of the River at the cheapest rate, that's a business attraction. I'm interested in making it financially attractive so new businesses will come in."

Many other commissioners, however, have expressed an interest in getting out of the fire district.

The issue arose because Rural/Metro recently asked for the first increase in its contract since it began serving the district in 1992.

At the request of Knox County, Rural/Metro has provided fire, first responder and hazardous materials service to Forks of the River for 16 years, said Rob Webb, Rural/Metro division general manager.

"Knox County created a fire district to serve the area, and Rural/Metro's service was funded by taxes levied on the businesses and some residences in the district. If Knox County Commission dissolves the fire district, Rural/Metro will offer direct subscription service to the businesses in the business park."

Rural/Metro's proposed contract was $807,206 over three years. The emergency service provider agreed to reduce that amount by $183,206.

That lowered the fire tax from 23 cents to 17 cents on every $100 of assessed value.

Rebecca Ferrar may be reached at 865-342-6357.

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