The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Eminent Domain for Industrial Parks

Reference Number: MTAS-1267
Tennessee Code Annotated
Reviewed Date: September 11, 2017
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A municipality may exercise the power of eminent domain to develop an industrial park only with respect to property located within or without the municipality or partially within and partially without the municipality. A municipality or county, or both, operating a joint park may exercise the power of eminent domain for development of the park within the boundaries of the county and within an urban growth boundary and a planned growth area. A municipality must obtain a certificate of public purpose and necessity from the Department of Economic and Community Development for the exercise of the power of eminent domain even if no funds will be borrowed. The certificate must be based upon a finding that the municipality was unable to acquire the property through good faith negotiations or to acquire any alternative property of comparable suitability. Good faith negotiations are established if the municipality made an offer to purchase the property for an amount equal to or greater than the fair market value determined by the average of at least two appraisals by independent qualified appraisers. T.C.A. § 13-16-207(f).