Commission approves purchase of 508 West 2nd North Street after questions about contract terms and agent fees

The Hamblen County Commission voted Nov. 20 to approve the purchase of a property at 508 West 2nd North Street in Morristown after questions from commissioners and members of the public about the purchasing process and contract language.

During discussion Commissioner Green said a records request showed prior contracts for the Anderson property had not come before the commission and asked whether the county could have negotiated directly with the Andersons to avoid agent commissions. Green said she believed an agent fee of about $17,000 had been paid in related business and asked why the county used an outside broker.

The mayor’s office defended the use of a one-year contract with a real estate agent, saying such contracts do not obligate county funds until a purchase is approved. “The contract was for a real estate agent to negotiate. There is no money change of hands. If this body votes no, there is no expenditure,” the mayor said. The mayor added that he chose to use an outside agent to preserve transparency and accountability during negotiations.

A public commenter who previously raised the issue (Louis Chen) pointed to contract terms that require a $1,000,000 liability insurance policy paid by the consulting company and a 5–7% commission clause that, he said, could exclude many firms and might be illegal.

The commission approved the purchase after discussion; commissioners also indicated interest in ensuring procurement practices and contracts are appropriate for future transactions.

What happens next: the purchase will proceed per the approval taken on the floor; questions raised in the meeting may prompt follow-up with purchasing and legal staff about contract language and the use of agents on county property transactions.