MOUNT VERNON — Three weeks after buying a Mansfield Road property, city council members approved selling the house and garage on GovDeals.
The city paid $340,000 for the property at 200 Mansfield Road as part of a future intersection improvement project at Clinton, Fairgrounds, and Mansfield roads.
City Engineer Brian Ball said he has received multiple phone calls from people asking if they could have the house and garage.
“We cannot give it to them legally, but we do have the ability to put the house and garage on govdeals.com,” he said.
The city will create a bid packet for individuals to submit bids to purchase and relocate the structures.
“Separately, we have a different group of people who are interested in the garage and would like to pick it up and move it,” he said.
The 1.164-acre property is appraised at $259,120.
Natural gas aggregation
The city’s current variable-rate natural gas aggregation program expires in the spring of 2026. Recent responses to Palmer Energy’s Request for Proposal showed a downward movement in rates over the past few weeks.
City council members amended the gas aggregation program to remove the name of the city’s former broker and to authorize the safety-service director to lock in current rates.
Bob Snavely of Palmer Energy, the current city’s consultant, said the contract will likely be a fixed rate for 24 to 26 months. He expects residents will pay roughly the same or slightly more compared to the current contract.
Snavely said the short-term lower rates are based on a warm-weather forecast.
Longer term, two to three years, he anticipates prices moving upward due to supply and demand. Natural gas has moved from being between 5% and 10% of the source for electric generation to 20%.
Allocating the lodging excise tax
Council members also amended the city code relating to the lodging excise tax, commonly referred to as the bed tax.
City council established the tax in 2005. The Greater Downtown Management Council oversees the distribution of the receipts.
Recipients are nonprofit organizations that support tourism, cultural engagement, and economic vitality.
Previously, council members had to amend the excise tax ordinance every two years because it listed the organizations that received funds.
On Monday, they amended the ordinance to state only the tax amount, how the money will be allocated, and reporting requirements.
This means that going forward, council only has to adopt a resolution approving the recipient organizations rather than amending city code.
The tax is 3% on all rents received by a hotel and/or short-term rental properties.
The money will be distributed as follows:
•5% to the city’s general fund for administration
•85% to the lodging tax designated program fund
•10% to the lodging tax petition fund
Council members approved a resolution designating the receiving organizations that will receive program funding for 2026-27:
•10% Mount Vernon Arts Consortium (MVAC)
•35% Heritage Centre Association DBA Experience Mount Vernon
•25% Knox Partnership for Arts & Culture (Woodward Opera House)
•25% Knox County Convention & Visitors Bureau
•5% Ariel-Foundation Park
The 10% distributed through the petition fund has not yet been determined.
Founders Grove NCA
Following a public hearing, council members accepted the Founders Grove development into the city’s New Community Authority (NCA).
The 33.89-acre development on Upper Gilchrist Road will include 156 rental villas, a clubhouse, and recreation facilities.
Lemmon Development plans to invest more than $40 million in the project.
Residents in the development will pay a 4-mill fee to cover infrastructure costs. The city can use the money throughout the city for a new fire station, water and wastewater, among other uses.
Current residents will not pay the 4 mills.
“The benefits to the city are that this supports the new housing development. The funds for the infrastructure are provided without any increased tax levies to the rest of us. It preserves the city’s general fund capacity, and it grows our economic and residential base,” Mayor Matt Starr said.
Bill Alley moved to Roanoke Street a year and a half ago. He took issue not with Founders Grove but with the city’s planning.
“It’s been over four years now. We’ve added Gilchrist Estates, we’ve added all those apartment complexes. We’ve added a ton of traffic already, and yet we still have terrible roads to drive out there,” he said during the hearing.
He also is upset that the city granted Founders Grove a 10-year, 50% tax abatement, only to learn the school plans to put an earned-income tax levy on the ballot in 2026.
Earned income does not apply to pensions, Social Security, retirement income, or investment earnings.
Safety-Service Director Tanner Salyers noted the city has no control over the schools.
“Additionally, this is for a 55 and up community. … They have come into the community anticipating not having a significant impact on the school district,” he said.
New road slated for 2027
Regarding Upper Gilchrist Road, Salyers said that with developments under construction and Founders Grove in development, the city did not want to rebuild the road only to have it destroyed by construction equipment.
The city is in the detailed design phase for Upper Gilchrist Road reconstruction from U.S. 36 north to the city limits. It has studied the intersection and Upper Gilchrist Road improvements for several years.
Dave Serrino, a Plymouth Road resident in Gilchrist Estates since May 2023, asked how the city will upgrade Upper Gilchrist.
“The north side of the intersection will be made to look roughly like the south side of the intersection,” Ball said. “Basically a third lane, left turn light. Like we mentioned, we have been in detailed design of that for several years.”
Improvements include new curbs and gutters, storm drains, and sidewalks.
Ball said the city might make temporary repairs next year, but constructing a new road is slated for 2027.
Council took the following additional actions on Monday:
•Authorized land transactions on Sychar Road for the new police station
•Learned about updates to the west end levee
•Honored outgoing council members Janis Seavolt and Tammy Woods
•Paid bills, authorized transfers, and accepted supplemental appropriations
