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Knoxville Resident Demands Audit of Multi-Million Dollar Public Asset Transferred for $1.00
Jan 8, 2025, 6:19 pm


KNOXVILLE — Crystal Flack, a local advocate and resident, has formally filed a grievance and records request with the City of Knoxville and the Industrial Development Board (IDB) regarding the property located at 2410 Martin Luther King Jr. Ave.

The property, once the site of the federally funded Metro Village Market IGA, was developed using over $4 million in public and Federal Empowerment Zone funds. Records indicate that despite this massive public investment, the property was recently cleared for transfer to a private entity for a nominal fee of just $1.00.




“Taxpayers invested millions into this site to solve a food desert crisis,” says Flack. “Now, that public asset is being handed off for a dollar in a 'pass-through' transaction that lacks transparency. We are demanding to know where the money went and why this public asset is being cleared for a private windfall while other community projects, like BattleField Farm, are held to a different standard.”

The formal grievance filed today outlines four critical demands:

A "Recapture of Funds" Audit: Requesting documentation on how the millions in federal funds (Project G3 C2 P10) were protected after the original grocery store failed.
Investigation into Fiduciary Mismanagement: Questioning why the IDB and City are "washing their hands" of a multi-million dollar asset rather than recuperating value for the taxpayers.
* A 90-Day Stay of Action: Calling for an immediate halt on all permits and secondary transfers related to the site to allow for a transparent audit.
Equity in Development: Demanding that if the City can value commercial assets at $1.00 for private entities, it must apply the same "Public Purpose" valuation to local food sovereignty projects like BattleField Farm.


Flack has invoked her rights under the Tennessee Public Records Act and Federal HUD Regulation 24 CFR § 570.508 to inspect all records related to hiring (Section 3) and performance reports. The City and KCDC have seven business days to respond to the request for inspection.

“The public deserves to see the paper trail,” Flack added. “We are not going to let a $4 million community investment disappear into private hands without a fight for equity and accountability.”

# Crystal Flack is an Advocate and a dedicated community researcher in East Knoxville. She utilizes her research to secure social justice and ensure that equity is a lived reality for all and not just the few.

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