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Commission approves binding MOU to pass through funds for signalized intersection after debate
Summary
Following questions about liability and fund management, the commission approved a binding memorandum of understanding that will let the county act as a financial pass-through for the installation of a signalized intersection tied to a private development and Pellissippi State funding.
The Blount County Board of County Commissioners voted 15–2 on Thursday to adopt a binding memorandum of understanding allowing the county to act as a financial pass-through for funds tied to a signalized intersection project.
The item, introduced as Resolution 25-6-012, would permit the county to receive funds from the Pellissippi State Board of Regents and relay them to a private developer for construction of a signalized intersection at a project known in the meeting record as Bridal Acres/Gray Bridal Acres. County staff said Tennessee Department of Transportation (TDOT) declined to act as the financial intermediary and that the Board of Regents could not give funds directly to a private developer.
Why it matters: Commissioners raised questions about accepting a binding MOU because a binding MOU functions like a contract and could create fiscal or legal responsibilities if the scope or costs change. The project ties county administrative responsibility to private development activity and state/regional partners.
Discussion and concerns
Commissioner Hannah said she had "some concerns with this specific item" and asked for more information because the county has not previously served as a pass-through for such projects. Commissioner Hannah moved to postpone consideration for one month; that motion failed on a roll call vote (2 yes, 15 no).
Commissioner Davis pressed staff on the MOU being described as "binding," saying, "If this is binding, it functions as a contract," and asking who would manage funds and who would own improvements. Staff (Finance Director Brian Baldwin) explained the county would hold the funds and pass them through after project completion and TDOT sign-off. Baldwin said the traffic signal itself would be turned over to the Maryville-Alcoa-Blount County signalized-intersection group for operations while other infrastructure reverts to TDOT.
County attorney staff provided a written opinion to the commission that the MOU did not create undue liability for the county; commissioners were told the county attorney's office had reviewed the document.
Vote and next steps
The commission voted to adopt Resolution 25-6-012 (15 yes, 2 no). Commission sponsors said the next step, if the MOU is in place, would be to return to the commission to request authorization for the county to receive and pass through the funds.
Ending: Commissioners who opposed the MOU said their concern was fiscal exposure and precedent; commissioners in favor emphasized public-safety improvements at the intersection and time/cost savings by combining projects.
