GOVERNMENT/POLITICS A4-5 | OUR COLUMNISTS A6-7 | YOUR NEIGHBORHOOD SCHOOLS A12-13 | BUSINESS A11
A great community newspaper.
powell
VOL. 51, NO. 5
JANUARY 30, 2012
INSIDE www.ShopperNewsNow.com
|
www.facebook.com/ShopperNewsNow
|
twitter.com/shoppernewsnow
Make that 6 million Congrats, Panthers! The Powell Middle School boys basketball team won the regular season Knox County championship. See page A-2
FEATURED COLUMNIST MARVIN WEST
Paterno and Majors Former UT coach remembers his friend “JoePa.” See page A-6
Horse trainer wins award David Cunningham of Beaver Brook Stables has been inducted into the United Professional Horsemen’s Association Hall of Fame. Cunningham looks back at an equestrian life. See Jake Mabe’s story on page A-3
ONLINE
DO YOU
LIKE? TELL US! The Shopper-News is now on Facebook! Check us out for updates, photos and more! www.facebook.com/ ShopperNewsNow
Local Lions participate in international tree planting campaign By Greg Householder When visiting the website of the Lions Clubs International, with a little searching one can get a relatively up-to-date status of the Lions’ “Million Tree Planting Campaign.” As of last Wednesday the count stood at 6,644,475. Add 34 to that number. Last week the Knox North Lions Club and the Powell Lions Club did their part in helping Lions from around the world meet 2011-2012 international president Wing-Kun Tam’s challenge to plant 1 million trees worldwide. At more than 6.5 million already planted, it appears that Tam greatly underestimated his Lions. Last Tuesday, the Knox North Lions club president took 19 saplings to Whittle Springs Middle School. The Knox North Lions recently adopted Whittle Springs. Under the supervision of school social worker Jen Tedder, a group of 7th grade science students braved the soggy ground to punch holes and plant the saplings. The saplings were planted about 21 feet apart and are located in the open field behind the outbuildings. Other saplings were planted near the running track and long jump pit near the property line of the school. Last Wednesday, Powell Middle School 7th grade 4-H students Amelia Thrasher, Dasia Jones and Amelia Shontz planted the 15 saplings provided by Powell Lion Diane Wilkerson. Powell Lion Edd Miller also showed up to check out the work done under the supervision of PMS principal Gary Critselous. The saplings were planted on
EDITOR Sandra Clark sclark426@aol.com ADVERTISING SALES Debbie Moss mossd@ShopperNewsNow.com Shopper-News is a member of KNS Media Group, published weekly at 4509 Doris Circle, Knoxville, TN, and distributed to 8,314 homes in Powell.
the west side of the new addition and on the east side of the same wing. The PMS 4-H club was recently named as the outstanding 4-H club in the junior high division by the Kiwanis Club of Knoxville. The saplings were obtained from the Tennessee Department of Agriculture Forestry Division by Lions District 12N district governor Chuck Bailey. Bailey set a goal of one sapling per member in the district. More than 1,200 saplings have been or will be planted throughout East Tennessee as part of the program.
Whittle Springs Middle School social worker Jen Tedder is about to demonstrate how to plant the loblolly pine trees provided by the Knox North Lions Club last Tuesday at the school.
Freddie and Fannie and Jim A builder’s dilemma By Greg Householder When times were good, builder Jim Holt’s condo buyers got 100 percent loans guaranteed by the federal government. But when times got tough, the feds roared back, making it almost impossible for Holt to stay in business. “I can’t compete with the U.S. Treasury,” said Holt.
Analysis
4509 Doris Circle 37918 (865) 922-4136 news@ShopperNewsNow.com ads@ShopperNewsNow.com
Whittle Springs Middle School students Rikki Worthington and Johnny Loy dig a hole for a new pine sapling. Photos by Greg Householder
Through his company JB Homes, Holt began developing the Forest Landing condominium complex off Tazewell Pike in 2006. The condos were modestly priced at $89,900, and JB Homes sold 10 of 24 units in 2007. The units were approved for Federal Housing Administration (FHA) loans that were eligible to be bought by secondary mortgage market players commonly called Fannie Mae and Freddie Mac. As the economy slowed, so did sales
We’ll dry clean all your household items! 7032 Maynardville Hwy. • M-F 7-6 • Sat. 8-3
922-4780
American owned since 1958 Quality work at competitive prices
hallscleaners.net
at Forest Landing. Only one condo sold in 2010 and another in 2011. Holt has five units remaining. He reduced the price incrementally, getting as low as $70,000 in December. But he is competing with Uncle Sam. A buyer of one of his earlier units walked away from her obligations and the unit fell under the control of the Department of Housing and Urban Development (HUD) – the federal overseer of the various government housing businesses. This owner purchased the unit with government approved financing in September 2008 for a total loan of $93,800 (including financing costs, closing costs, etc.). Without local advertising or even a sign in the yard, HUD sold the unit in September 2011 for $46,200. Holt had no idea it was for sale, even though the unit was near one of the remaining condos he uses as a model and office. Holt believes an out-of-state investor – what he terms a “vulture investor” – discovered the property through the HUD website.
With this low-ball sale, the comparables are destroyed. Holt recently received an offer from a local “vulture investor” of $150,000 for four condos, or about half of what he still owes on his construction loan. “My wife told me not to call you,” he said. “She didn’t want people knowing our business. But I’m mad.” Holt had made a list of the subcontractors he hired. They’re unemployed or have taken other jobs. Forest Landing is a vibrant community with some 18 homeowners paying back 30-year mortgages based on an almost $90,000 purchase price. That’s a good price for a brand new, 2-bedroom, bath and a half condo in Fountain City. But it’s surely depressing to see an adjacent unit go for less than half that. And Jim Holt is hanging by a thread, trying to sell those final five units and pay off his construction loan. “First Tennessee has been great to work with,” he said, “but there’s a limit to their patience.” We’ve read about the failures of
Jim Holt documents sale prices of the condos at Forest Landing. Photo by S. Clark
Fannie Mae and Freddie Mac. “Bad business decisions,” the pundits say. But fundamentally, the federal government’s involvement in the housing business was destined to fail. And now the community is reaping the consequences of that failure.
WE BUY
GOLD Directly across from Fountain City Park
P.C.C.A. Compounding Specialist
865-705-5836
Kenton Page, DPh Since 1976
5334 N. Broadway
5110 N. Broadway • 688-7025