REVIEW OF THE SALE OF MEMPHIS PARKS AND …comptroller.tn.gov/repository/CA/2018/MemphisParkSaleReport-2-14...Memphis Code of Ordinances regarding the conveyance of property ... on

REVIEW OF THE SALE OF MEMPHIS PARKS AND

REMOVAL OF CONFEDERATE STATUES

February 14, 2018

Justin P. Wilson, Comptroller

ReviewoftheSaleofMemphisParksandRemovalofConfederateStatues

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February14,2018

TheHonorableRandyMcNallyLieutenantGovernorandSpeakeroftheSenate700CordellHullBuildingNashville,Tennessee37243TheHonorableBethHarwellSpeakeroftheHouseofRepresentatives4255thAvenueNorthSuite600CordellHullBuildingNashville,Tennessee37243TotheSpeakersofthe110thTennesseeGeneralAssembly:

EnclosedyouwillfindareportthatdocumentstheproceduresperformedbyourstaffregardingthesaleofHealthSciencesParkandtheeasementtoMemphisPark,bothlocatedintheCityofMemphis,toMemphisGreenspace,Inc.andthesubsequentremovalofConfederatestatueslocatedonthoseproperties.Pursuanttoyourrequest,wereviewedwhethertheMemphisCityCouncilcompliedwiththeTennesseeOpenMeetingsAct,TennesseeCodeAnnotated§§8‐44‐101etseq.,andwhetherthetransactionswereconsistentwithstateandlocallaw.Pleasecontactourofficeifyouhaveanyquestions.Sincerely,JustinP.WilsonComptrolleroftheTreasury


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SALEOFMEMPHISPARKSANDREMOVALOFCONFEDERATESTATUES

EXECUTIVESUMMARY

Following an unsuccessful request to receive a waiver from the Tennessee HistoricalCommission(THC)allowingfortheremovaloftheNathanBedfordForreststatuefromHealthSciencesPark,theCityofMemphissoldHealthSciencesParkandtheeasementtoMemphisPark,whichiscommonlyreferredtoasMemphisPark‐Front,toMemphisGreenspace,Inc.,aMemphisnon‐profit.Afterthesaleoftheproperties,MemphisGreenspace,Inc.removedthestatuesofNathanBedfordForrest,JeffersonDavis,andJamesHarveyMathes.AttherequestoftheSpeakeroftheHouseofRepresentativesandtheSpeakeroftheSenateoftheTennesseeGeneralAssembly,theOfficeoftheComptrolleroftheTreasuryreviewedthesaleoftheparksastowhethertheMemphisCityCouncilcompliedwiththeTennesseeOpenMeetingsAct,TennesseeCodeAnnotated, §§8‐44‐101etseq.,andwhether the transactionswereconsistentwithstateandlocallaw.BasedonthereviewbytheComptroller’sOfficeofOpenRecordsCounsel,wedeterminedthatthe Memphis City Council provided sufficient notice of its meetings and agendas to allowinterestedcitizenstheopportunitytoattend.Inaddition,Comptrollerstaffperformedprocedurestodocumenttheeventsthattranspiredandtoreviewallapplicablestateandlocallawsregardingthesaleoftheparksandtheremovalofthestatues.We have determined that, aside from the lack of certain documentation required by theMemphisCodeofOrdinancesregardingtheconveyanceofproperty, itappearstheCityactedwiththeauthoritygrantedbytheMemphisCodeofOrdinancestoselltheparkstoanon‐profitat less thanmarket value.The citymaintains thatonce theownershipwas transferred, theparkswerenolongerpublicpropertyandthereforearenotsubjecttotheprohibitionsoftheTennesseeHeritageProtectionActof2016.However,thereislitigationpendinginDavidsonCounty Chancery Court and a petition filed with the Tennessee Historical CommissionchallengingtheproprietyofthetransferundertheTennesseeHeritageProtectionActandotherstatelaws.


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TIMELINEOFEVENTS

Throughareviewofdocumentationprovidedandinformationobtainedduringinterviews,wehavepreparedthefollowingtimelineofevents,withinputfromBruceMcMullen,MemphisCityAttorney.February5,2013 MemphisCityCouncilrenamesandrededicatesthreeCityparks:Nathan

Bedford Forrest Park to Health Sciences Park; Confederate Park toMemphisPark;andJeffersonDavisParktoMississippiRiverPark.

March14,2013 Tennessee General Assembly considers and passes the Tennessee

HeritageProtectionActof2013,TennesseeCodeAnnotated§4‐1‐412.April1,2013 ThegovernorsignstheTennesseeHeritageProtectionActof2013into

law.TheActreferencesprotectionforwarmemorials.MemphiscontendsthatthestatueofNathanBedfordForrestisnotawarmemorial.

May29,2013 SonsofConfederateVeteransNathanBedfordForrestCamp#215(SCV)

files a complaint in Shelby County Chancery Court challenging therenamingoftheparks.

October21,2013 SCV amends its complaint, alleging that it had raised funds to place a

markeratForrestParkandclaimingtheCityofMemphishadremovedthemarker.

August18,2015 MemphisCityCounciladoptsOrdinance#5592insupportoftheremoval

oftheNathanBedfordForreststatue.January1,2016 MayorJimStricklandtakesofficeastheMemphisCityMayor.March2,2016 Tennessee General Assembly considers and passes the Tennessee

HeritageProtectionActof2016,broadeningtheapplicationoftheActtocoverhistoricalfigures.

March7,2016 CityofMemphisfilesawaiverpetitionwiththeTHCtoremovetheNathan

BedfordForreststatueunderthe2013versionoftheHeritageProtectionAct.

March11,2016 ThegovernorsignstheTennesseeHeritageProtectionActof2016into

law.October21,2016 THCdeniesthewaiverpetitionsubmittedbytheCityofMemphis.November4,2016 City of Memphis files a petition for declaratory order with the THC

challengingthecriteriausedbytheTHCtodenytheCity’swaiverpetition.


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August22,2017 FirstreadingofMemphisCityCouncilOrdinance#5658thatprovidesforselling city property to a non‐profit for nominal value. Second readingSeptember5,2017.ThirdreadingSeptember19,2017.SignedbyMayorStricklandonOctober19,2017.

September5,2017 FirstreadingofMemphisCityCouncilOrdinance#5661thatcallsforthe

MemphisCityAttorneytoworkwiththeCityAdministrationtodevelopandsubmitaplantotheCouncilfortheremovaland/orrelocationofallConfederate statues and artifacts from City‐owned property. SecondreadingSeptember19,2017.ThirdreadingOctober17,2017.SignedbyMayorStricklandonNovember8,2017.

September13,2017 CityofMemphisfileswaiverpetitionwiththeTHCforaDeclaratoryOrderas to the invalidity and the applicability of the Tennessee HeritageProtectionActof2013tothepoweroftheCityofMemphistorelocatetheForreststatue.

October5,2017 Non‐profit,MemphisGreenspace,Inc.,isformed.October13,2017 THCdeniestheCity’swaiverpetitionandrequeststheappointmentofan

Administrative Law Judge to give an opinion on the City’s Petition forDeclaratoryOrderchallengingtheTHC’sjurisdiction.AdministrativeLawJudgeselectedOctober23,2017.HearingdatesetforNovember13,2017.HearingpostponedtoDecember20,2017.HearingpostponedtoJanuary16,2018.

October17,2017 FirstreadingofMemphisCityCouncilOrdinance#5665,relativeto the

immediate removal of the Forrest Equestrian Statue and the JeffersonDavis Statue and other similar property from City owned property.SecondreadingNovember7,2017.

October24,2017 TennesseeCourtofAppealsupholdsFebruary24,2017,ShelbyCounty

Chancery Court order granting City of Memphis’ motion for summaryjudgment in thematter of SCV v. City ofMemphis regarding the City’sauthoritytorenametheparks.

December11,2017 MemphisfilespetitioninDavidsonCountyChanceryCourttoappealthe

THC’s denial of the City’s waiver petition. As per Davidson CountyChancery Court website, an order of voluntary dismissal was filed onJanuary29,2018.

December15,2017 MayorStricklandandMemphisGreenspace,Inc.signdocumentsrelated

tothesaleoftheparkscontingentontheMemphisCityCouncil’sapprovalofOrdinance#5665.

December20,2017 Third reading of Ordinance #5665 by Memphis City Council. Mayor

Stricklandsigns.


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December20,2017 MemphisGreenspace,Inc.removesthestatuesofNathanBedfordForrest,JeffersonDavis,andJamesHarveyMathesfromHealthSciencesParkandMemphisPark‐Front.

January11,2018 SCVfileslawsuitagainstCityofMemphisandMemphisGreenspace,Inc.

inDavidsonCountyChanceryCourt.January29,2018 Davidson County Chancery Court issues order barring Memphis

Greenspace, Inc. from selling, gifting, ormoving the statues of Forrest,Davis,andMathespendingacontestedcasehearingbeforetheTHCwithinthenextsixtydays.

January30,2018 DavidsonCountyChanceryCourtissuesanorderthattheCityofMemphis

and the SCV enter intomediationbyMarch16, 2018 as an attempt toresolvethedispute.

PROCEDURESPERFORMED

1. Did theMemphis City Council complywith theTennesseeOpenMeetingsAct,TennesseeCodeAnnotated§8‐44‐101etseq.?TheComptroller’sOfficeofOpenRecordsCounselreviewedtheactionsoftheMemphisCityCouncilrelativetotheintroductionandpassageofOrdinance#5665dealingwiththesaleofHealthSciencesParkandMemphisPark‐FrontandthesubsequentremovaloftheNathanBedfordForrest,JeffersonDavis,andJamesHarveyMathesstatues.TheTennesseeOpenMeetingsActprovidesthatallmeetingsofagoverningbodymustbeopentothepublicandmustbeproperlynoticed.TennesseeCodeAnnotated,§§8‐44‐102, 8‐44‐103. As a governing body, the Memphis City Council is subject to therequirementsoftheOpenMeetingsAct.Accordingly,theCouncil’spassageofOrdinance#5665 relative to the sale ofHealth SciencesPark andMemphisPark‐Front and theimmediateremovaloftheNathanBedfordForrest,JeffersonDavis,andJamesHarveyMathesstatuesoccurredatapublicmeetingforwhichtherewasadequatepublicnotice.WhethernoticeofameetingisadequateforpurposesoftheOpenMeetingsActdependsuponwhether,underthetotalityofthecircumstances,thenoticewouldfairlyinformthepublicandgiveinterestedcitizensareasonableopportunitytoexercisetheirrighttoattendthemeeting.Souderv.HealthPartners, Inc.,997S.W.2d140,149(Tenn.Ct.App.1998).TheMemphisCityCouncil holds regularly scheduledmeetingson the first and thirdTuesdaysofeverymonth.TheCouncilpoststhemeetingdatesonitswebsitealongwiththeCouncilagenda,committeeschedules,Councildocumentsandmeetingminutes.TheCouncilalsopoststhedatesandtimesforitsregularlyscheduledmeetingsonabulletinboardoutsideitschambersandpublishesitsagendainaMemphisnewspaperofgeneralcirculation before each meeting. The Memphis City Council’s website and meetingmaterialsrevealthattheCouncilintroducedOrdinance#5665,percuriam,ataregularly


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scheduledmeetingonOctober17,2017.TheOrdinancewentbeforetheCouncilforasecondreadingataregularlyscheduledmeetingonNovember7,2017andwasplacedon theagenda fora thirdand final readingduring theDecember19,2017, regularlyscheduledmeeting.WhiletheDecember19,2017,meetingrecessedpriortoaddressingOrdinance#5665,theCouncilreconvenedthefollowingday,heardpubliccommentsontheOrdinance, and subsequently voted to pass theOrdinance on the third and finalreading.TheCouncilplacedtheOrdinanceonthecouncilagendapriortoeachmeetingandpostedtheagendaonlinepriortoeachmeeting.VideooftheCouncil’sactionsontheOrdinanceateachmeetingcanbeviewedontheCouncilwebsite.

2. Were the transactions associated with the sale of the parks and subsequentremovaloftheConfederatestatuesconsistentwithstateandlocallaw?

ReviewedthePetitionstotheTHCfortheRemovalofConfederateStatuesAuditors reviewed theMarch7,2016,petition to theTHCrequesting to relocate theNathanBedfordForreststatuefromHealthSciencesParktoeitherSavannah,TennesseeortoBrice’sCrossRoadsNationalBattlefieldsitenearBaldwyn,Mississippi.OnOctober19,2016,theCityofMemphiswaivedanopportunitytomakeanoralpresentationtotheTHCbutsubmittedaletterinsupportoftheirapplication.TheTHCdeniedtheCity’s

request on October 21, 2016. Theycited Criteria #12 which states, “AhistoricsiteontheNationalRegisterofHistoric Places is not subject to awaiver.”MemphiscontendsthatHealthSciences Park is not on the NationalRegister of Historic Places. HealthSciencesParkwas formerly known asForrest Park and, once renamed,maintained no historic designation;

however,auditorsnotedthattheForrestParkHistoricDistrictremainsontheNationalRegisterofHistoricPlaces.OnSeptember13,2017,theCitypetitionedtheTHCforaDeclaratoryOrderastotheinvalidityandtheapplicabilityoftheTennesseeHeritageProtectionActof2013tothepoweroftheCityofMemphistorelocatetheForreststatue.OnOctober13,2017theTHCdeniedtheCity’spetitionforwaivertorelocatetheForreststatue,andgrantedtheCity’sPetitionforDeclaratoryOrderregardingtheapplicabilityofthe2013ActtotheCity’srelocationoftheForreststatute.TheCitythensubmittedapetitiontotheTHCtorelocatethestatuedeclaringthestatuewasnotawarmemorial.ThehearingonthismatterwaspostponedandtheCitydecidedtopursuetheoptionofsellingtheparks.InvestigatedtheApplicabilityoftheTennesseeHeritageProtectionActAuditors discussed why the City of Memphis took the position that the TennesseeHeritageProtectionAct(Act)didnotapplytothesaleoftheparksandtheremovalofthe statues with both the Memphis City Attorney, Bruce McMullen, and Mayor JimStrickland.TheybothstatedthattheActsof2013and2016dealtwiththeremovalof


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statuesonpublicproperty(e.g.,cityparks).TheycontendedthatneitherActprohibitedthe sale or conveyance of public property to a nonprofit. In February 2013, the cityrenamedNathanBedfordForrestPark,ConfederatePark,andJeffersonDavisParktoHealthSciencesPark,MemphisPark,andMississippiRiverPark,respectively.TheActof 2013 did not go into effect until April 2013. That Actwould have prohibited therenamingofsuchparks.Oncetheparkswererenamed,theCityofMemphisarguedtheparksnolongermaintainedanyhistoricsignificance.ReviewedtheAuthorityfortheCityofMemphistoSellCityPropertytoaNon‐ProfitatLessThanMarketValueTennesseeCodeAnnotated,§12‐2‐302,statesinpart:“Inordertoprovideprojectsforamunicipalityandtoenableconstructionandfinancingthereofonlandsownedbythemunicipality or by a not‐for‐profit corporation, but for no other purpose unlessauthorized by law, a municipality has the following power and duties: (1)Withoutlimitationbyreasonofanyotherprovisionsoflaw,thepowertosellandconveytitletoanot‐for‐profitcorporationanylandandanyexistingbuildingthereonownedbythemunicipality for such consideration and upon such terms and conditions as in thejudgmentofthegoverningbodyareintheinterestsofthemunicipality.”TennesseeCodeAnnotated,§12‐2‐501,states:“Notwithstandinganyrule,regulationorotherlawtothecontrary,anycounty,metropolitangovernment,municipalityorotherpoliticalsubdivisionofthisstate,uponmajorityvoteofthelocallegislativebody,maydisposeof realpropertyorpersonalpropertybyprivatenegotiationand salewhere(1) The real or personal property is significant for its architectural, archaeological,artistic, cultural or historical associations, or significant for its relationship to otherproperty significant for architectural, archaeological, artistic, cultural or historicalassociations, or significant for its natural, scenic or open condition; (2) The real orpersonal property is to be sold to a nonprofit corporation or trust whose purposesincludethepreservationorconservationofrealorpersonalpropertiesofarchitectural,archaeological, artistic, cultural, historical, natural or scenic significance; and (3) Apreservationagreementorconservationagreementisplacedinthedeedconveyingtheproperty from the county, metropolitan government, municipality or other politicalsubdivisionofthisstatetothenonprofitcorporationortrust.Thenonprofitcorporationortrustshallonlydisposeoforusesuchrealorpersonalpropertysubjecttocovenantsorotherlegallybindingrestrictionsthatwillpromotethepreservationorconservationoftheproperty,and,whereappropriate,securerightsofpublicaccess.”TheMemphisCodeofOrdinances(Section2‐16‐1(G)(1)(c))1specificallygivesauthoritytothecityrealestatemanagertoconveyordisposeofcitypropertyatreducedornocosttononprofitorganizationswhoseuseofthepropertywillbeforthebenefitofthecommunity.

1 Ordinance 5658 amended section 2-291 of the Memphis Code of Ordinances, but according to the 1985 Code Comparative Table, the current Code of Ordinances reference would actually be to section 2-16-1. For ease of reference in this report, we will refer to the current 2-16-1 naming convention.


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ReviewedCompliancewithMemphisCodeofOrdinances(Section2‐16‐1(G)(1)(c)Section2‐16‐1(G)(1)states, “Thecityrealestatemanager isauthorized toconveyordisposeofcitypropertyatreducedornocosttothefollowingentitiesinthefollowingorderofpriority:

1. Adjoiningpropertyowners;2. A neighborhood organization in an area targeted by the city for

redevelopment;3. Nonprofitorganizationswhoseuseofthepropertywillbeforthebenefitof

the community, notwithstanding section 2‐26‐1(D) of the Code to thecontrary;

4. A program implemented or assisted by a private entity or governmentagencywhichhasasitsgoalthedevelopmentofvacantorunderdevelopedlandortherenovationofexistingimprovementsoncity‐ownedlandforthepurposeofprovidingoccupant‐ownedhousingtopersonswhoqualifyforhousingprogramsdesignedformoderateandlow‐incomehouseholdsandwhowouldnototherwisebeeligibleforsuchhousing;

5. Otherentitiesororganization(profitornonprofit)which,intheopinionofthemayororchiefadministrativeofficeofthecity,areproperrecipientsofsuchproperty.

Wefoundnodocumentationthattheorderofpriorityas listedabovewasfollowed.The Memphis City Attorney, Bruce McMullen, contends that the order of priorityaddressedintheMemphisCodeofOrdinancesonlyapplieswhentheCityhasmultiplecompetingentitiesforapieceofproperty.Furthermore,hestatedthatthesaleoftheparkswasa veryunique situationand that theproperties couldonlybe sold to anorganization thatwould continue tomaintain the parks as parks and not considercommercialdevelopment.Thebuyerwouldhavetokeeptheparksmowedaswellasensureproperlightingandsecurity.AccordingtoMr.McMullen,Memphiswouldonlyconsiderconveyingthepropertiestoanon‐profitthathadthefinancialmeanstocarryoutthoseresponsibilities.MayorJimStricklandandMr.McMullenstatedthatsixorsevenentitieshadeitherbeencontactedorapproachedthemaboutbuyingtheparks;however,theseentitieseitherdidnothavethefinancialmeanstomaintaintheparksortheywantedtheparksforredevelopmentpurposes.Duringthesummerof2017,Mr.McMullenandVanTurner,Jr.,ShelbyCountyCommissioner,metanddiscussedtherelocatingoftheConfederatestatuesandthepossiblesaleof theparks.Atthesemeetings,Mr.McMullenandMr.TurnerdiscussedMr.TurnerformingMemphisGreenspace,Inc.Mr.DougMcGowen,MemphisChiefOperatingOfficer,madethedeterminationthatMemphisGreenspace,Inc.wouldbeasuitablenon‐profittopurchasetheparks.MayorStricklandsaidtheCityhadresearchedandwatchedhowothercitiessuchasBaltimore,Birmingham,andNewOrleanshadhandledtheremovalofConfederatestatues.


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ReviewedCompliancewithMemphisCodeofOrdinances(Section2‐16‐1(G)(2))

Section2‐16‐1(G)(2)establishestheprocessbywhichpropertyistobeconveyedtotheentitiesdefinedinSection2‐16‐1(G)(1).ThecodesectionrequiresthesubmissionofanapplicationtotheCityRealEstateDepartmentbytheentityseekingownershipoftheproperty.AccordingtoMr.McMullen,thepurposeoftheapplicationistogaugeanentity’sfinancialstrengthandoverallstability.Section2‐16‐1(G)(2)alsocallsfortheCityRealEstateDepartmenttocompleteaformprovidingbasicinformationabouttheproperty,andvaluationoftheproperty.Auditors reviewed the standard template used by the Memphis Real EstateDepartmentforentitiesseekingownershipofcityproperty.TheDepartmentdidnotrequireMemphisGreenspace,Inc.tocompletethestandardapplication.Instead,DougMcGowen, Chief Operating Officer,met with the directors and officers ofMemphisGreenspace,Inc.andevaluatedthecriteriaoutlinedintheapplicationprocess.Thereisnodocumentationtosupportthatthismeetingtookplace;however,auditorsspoketoMr.McGowenandhebriefedthemonthemeeting,toldthemwhowaspresent,andexplainedhowhehaddeterminedthatMemphisGreenspace,Inc.isfinanciallycapableof maintaining the parks. Mr. McGowen stated that the Memphis Greenspace, Inc.directors told City officials about several philanthropic organizations and privateindividualswhowereinterestedinservingasdonors,withwhomMr.McGowenwasfamiliar.TheCityAttorney,BruceMcMullen,alsostatedthatthosedonorswishedtoremainanonymoustothepublic,giventhecontroversialnatureofthetransaction.

AuditorsinquiredastowhetherMemphisroutinelysoldpropertywithoutrequiringan application to the City Real Estate Department. The Real Estate Departmentprovidedauditorswiththreeinstancesinwhichthecitydidnotrequireapplications.TheCitysoldbuildingstotheMemphisCollegeofArtsfor$10inDecember2010,theCitysoldlandtoCalvaryRescueMissionfor$1inMarch2011,andtheCitysoldtheformerBartonLibrarytoAlphaMemphisEducationFoundationfor$1inMay2013.TheCityRealEstateDepartmentobtainedanappraisalofHealthSciencesPark,whichvalueditat$950,000.TheCityRealEstateDepartmentdidnotobtainanappraisalfortheMemphisPark‐Frontpropertybasedontheirbeliefthattheywerenotrequiredtodososinceitwasaneasementratherthanapark.Mr.McGowenapprovedthesaleoftheparkproperty.TheMemphisCityCouncilandMayorJimStricklandsubsequentlyapprovedOrdinance#5665,providingforthesaleoftheparkstoMemphisGreenspace,Inc.andfortheremovaloftheNathanBedfordForrest,JeffersonDavis,andJamesHarveyMathesstatues.

Reviewedthedeedsfortheparkpropertiesforpotentialrestrictionsregardingtheuseanddispositionofthepropertyoranyprovisionsrelatedtothemonumentslocatedontheproperty.TheCityRealEstateDepartmentprovidedtheauditorswiththetitleworkandoriginaldeeds to Health Science Park andMemphis Park‐Front. Mayor Jim Strickland and


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Bruce McMullen, City Attorney, advised the auditors that all original restrictionsassociatedwiththepropertiesthatwereimposedontheCitywerealsoimposedonMemphisGreenspace,Inc.ExaminedtheBillofSalefortheTwoParks

TheCity soldHealth SciencesPark toMemphisGreenspace, Inc. for $1,000and theassignmentoftheeasementforMemphisPark‐FronttoMemphisGreenspace,Inc.for$1,000. Both bills of sale are dated December 20, 2017. The City and MemphisGreenspace,Inc.enteredintorestrictivecovenantagreements,whichrequiretheparkpropertiestobepreservedforpublicpurposes.ThebillsofsalealsoincludeprovisionsfortheCityofMemphistobuybacktheparksifMemphisGreenspace,Inc.decidestosellthemoriftheyfailtocomplywiththerestrictionsoftheproperties.

Reviewed the Contract Between Memphis Greenspace, Inc. and Allworld ProjectManagement

Bruce McMullen, City Attorney,providedtheauditorswithacopyofthe contract between MemphisGreenspace, Inc.andthecompany itcontractedwithtomovethestatues,Allworld Project Management. Thecontract was dated November 27,2017.Mr.McMullenadvisedauditorsthatnoneofthesub‐contractorsusedto remove the statues were city

employees.Mr.McMullenfurtheradvisedthatnocityequipmentwasusedtoremovethestatues.Consideration of Nathan Bedford Forrest Gravesite and Whether Statue of NathanBedfordForrestwasConsideredaGraveMarker.AuditorsinquiredofMayorJimStricklandandBruceMcMullen,CityAttorney,iftheyhadconsideredwhethertheNathanBedfordForreststatuemightbeagravemarker.Mayor Strickland and Mr. McMullen provided the auditors with documentationsupportingtheirviewthatthestatuewasamonumenttoGeneralForrestanddidnotconstituteagravemarker.ThefamilyofConfederateGeneralNathanBedfordForrestand the Sons of Confederate Veterans have filed a petition with the TennesseeHistoricalCommissionchallengingthepositionoftheCityofMemphisregardinggravemarkers.Furthermore, auditors also reviewed a letter from Van Turner, Jr., President ofMemphisGreenspace,Inc.andShelbyCountyCommissioner,totheTennesseeAttorneyGeneral, Herbert H. Slatery, III, in whichMr. Turner states that the gravesites andmarkersatHealthSciencesParkwerenotdisturbedbythedetachmentandremovaloftheForreststatueandthatMemphisGreenspace,Inc.haseveryintentiontocontinue


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torespectandmaintainthegravesites.InquiredastotheStatusoftheStatuesAuditors inquired about the status of the Confederate statues. The letter fromMr.

Turner to the Attorney General states that MemphisGreenspace,Inc.ensuredthatAllworldProjectManagementprofessionallypacked,relocated,andstoredthestatues.Mr.Turnerdidnotdisclosethestoragelocation.BruceMcMullen,City Attorney, stated that the statues are currently beingstoredinasecure,nondisclosedlocationandthatMemphisGreenspace,Inc.hasverballyagreedtorelocatethestatuestoamoresuitablelocation.Originally,theplanwastorelocatethestatuestotheCityofSavannahortoBrice’sCrossRoadsinBaldwyn,Mississippi.However,theCityofSavannahhasdecidedtheydonotwantthestatuesduetothecontroversysurroundingthem.Mr.McMullenstatedthateveryonewould

liketoseethestatuesremaininTennesseeandthatcurrentlythemostlikelylocationforthestatueswouldbeParker’sCrossroads.

CONCLUSIONSANDRECOMMENDATIONSBasedonourlimitedreviewofthesaleoftheMemphisparksandsubsequentremovalof Confederate statues, it appears that the Memphis City Council followed therequirementsoftheTennesseeOpenMeetingsAct.Ordinance#5665,whichcalledforthesaleofHealthSciencesParkandMemphisPark–FrontalongwiththeConfederatestatues and artifacts located in those parks,went before the Council three times atregularlyscheduledmeetingsheldopentothepublic.Additionally,theCouncilpostednoticeofitsregularlyscheduledmeetingdatesatthebeginningoftheyear.Anagendawas posted on the Council’s website prior to each meeting. Ordinance #5665 wasincludedonthoseagendas.ItisreasonabletobelieveacourtwouldfindthattheCouncilprovidedsufficientnoticeofitsmeetingsandagendastoallowinterestedcitizenstheopportunitytoattend.CitizensdidattendthemeetingsandprovidedpubliccommentonOrdinance#5665.TheCouncilalsoexerciseditsauthorityundertheMemphisCodeofOrdinancestosellHealth SciencesPark andMemphisPark–Front to a non‐profit for less thanmarketvalue.TheTennesseeHeritageProtectionActdoesnotallowfortheremovalofhistoricfigures frompublicpropertywithoutseekingapproval todoso fromtheTennesseeHistoricalCommission.TheCityofMemphiscontendsthat,oncetheparksweresoldtoMemphisGreenspace,Inc.,theparklandswerenolongerconsideredpublicpropertyandthenon‐profitwasabletocontracttohavetheConfederatestatuesremoved.Weunderstandthiscontentionisbeingchallenged in litigationpending intheDavidsonCountyChanceryCourt.Despiteaprecedent forsellingpropertiesat less thanfairmarketvaluewithout the


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documentationrequiredintheMemphisCodeofOrdinances(Section2‐16‐1‐(G)),webelievetheCityofMemphisdidnotbutshouldhavefollowedtheguidelinesasprovidedinitsCodeofOrdinances.WhiletheparkshavebeensoldandtheConfederatestatueshavebeenremovedandstoredinanundisclosedlocation,werecommendthattheCityofMemphisenterintoaformalmemorandumofunderstandingwithMemphisGreenspace,Inc.forthestorageandprotectionofthehistoricfiguresandartifacts.

Documents

REVIEW OF THE SALE OF MEMPHIS PARKS AND …comptroller.tn.gov/repository/CA/2018/MemphisParkSaleReport-2-14...Memphis Code of Ordinances regarding the conveyance of property ... on