What A Deal

It just keeps getting better. I'm sure most of you remember the spectacular land deal the Loudon County Board of Education made back in 2006. That's when they paid 2.2 million dollars for an eighty acre tract of land that goats would have trouble grazing. Anyway, The board purchased the land from Knoxville developer Richard Eisenbach. The rub was, the original tract was 102 acres. In the deal the board struck, Eisenbach kept 22 acres of the property. His 22 acres was all Hwy. 321 road frontage.

Sadly, a few months ago Mr. Eisenbach passed away. Last week an estate sale was held to liquidate a number of properties owned in Loudon County by Mr. Eisenbach. According to the information I received and which I have yet been able to confirm, the 22 acres owned by Mr. Eisenbach that adjoins the 80 acre school property brought $160,000.00.

If the information is correct that means the property sold for $7,272.00 per acre and it was a decent piece of property. If you assume that the adjoining school property would bring at least the same per acre price, that would mean the school property would be worth $581,760.00 which ironically is about what the property was appraised for back in 2006.

The board paid 2.2 million dollars for what could only be considered a marginal piece of property and it appears if we're lucky it might be worth $581,760.00. If you do the naught, naught and the goes intos, looks like the board took about a 1.6 million dollar beating. Or more precisely, the tax payers took about a 1.6 million dollar beating.

I kind of hope the $160,000.00 figure is wrong. I'll keep you posted.