Crossville City Council faced a full house of residents and taxpayers during a special called meeting Thursday at 4pm.  They all were there to oppose a $55 million dollar indoor recreation center the Council is considering building on Main Street.

A rec center that the city finance director says could double or triple city property taxes to fund the huge rec center loan.  Crossville Mayor R. J. Crawford moved the rec center discussion from the end of the agenda to the front.  The Mayor first stated the notice which appeared in the local paper saying city residents had 20 days to submit a petition opposing the rec center project before the City moved forward on the $55 million bond issue (loan) is now rescinded-or cancelled.  The Mayor said there had been a lot of misinformation distributed concerning the rec center and made a motion to, in effect, table the project until more information could be obtained on the exact cost and design and be evaluated.  The Mayor also alluded to a possible referendum on the rec center before any finalization of the project.

The Council Chambers was full of people who wanted to voice their opinion on the rec center.  Some of those present were allowed to speak to the Council after the Mayor made the motion to rescind the public notice until more info could be obtained. One property owner, Butch Smith, told the Council he had spoken directly to City Finance Director Fred Houston who told Smith the rec center debt  would for sure double the city property tax rate and probably would triple the rate- so he didn’t consider that ‘misinformation’.

A Mr. Robinson spoke to the Council saying “I think we need a rec center like you guys need hemorrhoids”

Mayor Crawford said the public notice did not mean the Council was moving forward with the bond issuance, however, the public notice the City published made it appear the Council was going through with the bond issuance (loan) unless a petition was presented by ten percent of the registered voters within 20 days opposing the bond issuance.  You can read the City’s public notice below:

PUBLIC NOTICE:

AN INITIAL RESOLUTION AUTHORIZING THE ISSUANCE OF NOT IN EXCESS OF FIFTY
FIVE MILLION DOLLARS ($55,000,000) OF TAX-EXEMPT GENERAL OBLIGATION BONDS
OF CITY OF CROSSVILLE, TENNESSEE PURSUANT TO TENN. CODE ANN. § 9-21-101
et seq. OR ALTERNATIVELY THE INCURRING THE INDEBTEDNESS OF A LOAN FROM
THE PUBLIC BUILDING AUTHORITY OF THE CITY OF CROSSVILLE, TENNESSEE IN
AN ORIGINAL PRINCIPAL AMOUNT NOT IN EXCESS OF FIFTY FIVE MILLION DOLLARS
($55,000,000), AS THE CITY COUNCIL SHALL DETERMINE, IN EITHER EVENT FOR THE
PURPOSE OF FINANCING THE ACQUISITION, DESIGN, AND CONSTRUCTION OF A
PUBLIC RECREATION CENTER INCLUDING ANCILLARY AND RELATED STRUCTURES
AND FACILITIES, REIMBURSING THE CITY CERTAIN EXPENDITURES PREVIOUSLY MADE
IN CONNECTION THEREWITH, AND PAYING COSTS RELATED THERETO AND INCIDENT
TO THE ISSUANCE OF THE BONDS OR THE CONSUMMATION OF THE LOAN
BE IT RESOLVED by the City Council of City of Crossville, Tennessee (the “City”) as follows:

NOTICE

The foregoing resolution has been adopted. Unless within twenty (20) days from the date of the
publication hereof, a petition signed by at least ten percent (10%) of the registered voters of the
local government, (or the portion thereof being taxed for the Bonds or for the payment of the
indebtedness of the Loan) shall have been filed with the City Clerk protesting the issuance of the
general obligation Bonds or the incurring of the indebtedness of the Loan, as the case may be,
the Bonds will be issued as proposed or the indebtedness of the Loan will be incurred.
Publish Date: 04/18/23
/s/ R.J. Crawford
/s/ Valerie Hale
Mayor
City Clerk
1. It is hereby determined and authorized for the City to incur indebtedness in connection
with the acquisition, design, and construction of a public recreation center for the
use and benefit of the City, the City’s citizens and residents, and other members
of the general public as determined by the City, together with ancillary and related
facilities, structures, and improvements (all of the foregoing collectively and severally
referred to herein as the “Project”), in an amount not to exceed Fifty Five Million Dollars
($55,000,000).
2. It is hereby determined and authorized that the indebtedness contemplated by this
resolution may be incurred by the City, as determined pursuant to further resolution of
the City’s governing body, in either of the following alternative forms, in either event in
compliance with and pursuant to applicable law:
a. The issuance of tax-exempt general obligation bonds of the City, to be issued
in an aggregate amount not in excess of Fifty Five Million Dollars ($55,000,000)
(collectively, the “Bonds”), pursuant to the provisions of the Local Government
Public Obligations Act of 1986 (as amended), Tenn. Code Ann. § 9-21-101 et
seq; or,
b. The proceeds of a loan (the “Loan”) from The Public Building Authority of the City
of Crossville, Tennessee (the “Authority”) in the original principal amount not in
excess of Fifty Five Million Dollars ($55,000,000), pursuant to the provisions of
the Public Building Authorities Act of 1971 (as amended), Tenn. Code Ann. § 12-
10-101 et seq.
2. The indebtedness of the Bonds or the Loan, as the case may be, shall be issued for
the purposes of —
a. Reimbursing the City for “original expenditures” and “preliminary expenditures”
heretofore expended by the City in connection with the Project;
b. Paying costs of acquisition of land and/or interests in land for use in connection
with the Project;
c. Financing the costs of design and construction of the Project and infrastructure
improvements necessitated by the Project’s construction or operation;
d. Financing expenditures incurred by the City in connection with development of
business operating plans and parameters in connection with the Project; and,
e. Paying costs and expenses incident to the issuance of the Bonds or the
consummation of the Loan, as the case may be.
3. The Bonds or any instrument evidencing the indebtedness of the Loan, as the case
may be, shall bear interest at such rate or rates not to exceed the lesser of six and
one-half percent and No/100 percent (6.50%) per annum or the maximum rate
permitted by law at the time of sale thereof, payable in such manner and at such times
as shall hereafter be determined by or pursuant to a subsequent resolution of the
City’s governing body and/or by loan agreement between the City and the Authority,
as applicable.
4. The Bonds if issued shall be payable in the first instance from revenues received by
the City in connection with operation of the Project, and to the extent of a deficiency
in such revenues for such purposes, the Bonds shall be payable from and secured by
the ad valorem taxes levied on all taxable property in the City without limitation as to
rate or amount; and in all events the full faith and credit and unlimited taxing power of
the City, together with all revenues from the Project, shall be pledged for that purpose.
5. The indebtedness of the Loan, if incurred, shall be payable by the City to the Authority
in the first instance from revenues received by the City in connection with operation of
the Project, and to the extent of a deficiency in such revenues for such purposes, the
indebtedness of the Loan shall be payable from and secured by the ad valorem taxes
levied on all taxable property in the City without limitation as to rate or amount; and in
all events the full faith and credit and unlimited taxing power of the City, together with
all revenues from the Project, shall be pledged for that purpose.
6. The City’s mayor and city manager, or either of them, are herewith authorized to
execute all contracts and documents associated with the issuance of Bonds or the
extension of credit of the Loan from the Authority to the City, as the case may be;
selection and engagement of transaction participants and professionals; sale and
closing of the Bonds or consummation of the Loan, as the case may be; and, all other
matters related thereto.
7. This resolution shall be published in full once in a newspaper of general circulation in
Cumberland County, Tennessee.
8. This resolution shall take effect immediately upon its adoption.
Adopted this 11th day of April 2023.