Fire-protection tax fought

The Knox County Commission will consider a three-year contract for Rural/Metro Fire Department to provide fire protection to businesses in the Forks of the River Industrial Park, under a proposal approved with no recommendation Monday by the commission's Finance Committee.

The contract for $807,206 covers three years, beginning Monday if the measure gets commission approval.

The three years of fire protection would be paid for by a special property tax on occupants in the business park — but not without controversy.

John Valliant, representing the businesses in the district, said they are 'opposing the increase.'

'With the economy the way it is and several businesses in the Forks of the River laying off … this is an inopportune time to be imposing a tax for fire protection,' Valliant said. 'This is certainly sending a bad signal. When it comes to County Commission, if it gets that far, there will be companies (here) that feel this is unfair.'

The tax supports a fire station that serves Forks of the River Industrial Park, and 40 businesses 'are directly affected,' Valliant said.

For example, Valliant said Sea Ray Boats has laid off employees.

'It's just not right to do that right now,' he said.

Commissioner Richard Briggs asked when the last time the tax was increased, and Valliant said he didn't believe it's ever been increased in the 16 years it's been in place.

'There's an increase because some of these businesses handle hazardous material,' Valliant said. 'You've got one special tax district here. This is a huge, huge deal. Some people are going to go out of business.'

Mayor Mike Ragsdale's chief of staff Mike Arms said the tax went into place in 1993 and that the park had no fire protection at that time.

Jerry Harnish, Rural/Metro Fire Department fire chief, said that before the early 1990s, there was no fire station to serve the area. 'There was a very destructive fire at Bike Athletic involving liquid propane,' he said, which spurred the location of the fire department on National Drive.

The tax would be $175,000 the first year, about $266,112 the second year and $319,334 the third year. The additional costs would be to pay the Knoxville Utilities Board for the use of water and hydrants.

'The contract doesn't pay for all the costs of the fire station,' Harnish said. 'The residents pay a subscription to the fire station. The issue to us is, if the fire district isn't paying its portion of the costs, the burden falls on residents outside the (industrial park). We don't want residents outside the district to pay for fire protection inside the district.'