EDITORIAL: The $372 Million MAYBE Road—Why Local Taxpayers Shouldn’t Pick Up the Tab
For decades, the proposed 4.4-mile Pellissippi Parkway Extension has hung over Blount County like an expensive ghost. Stretching from State Route 33 to US 321, this controversial strip of asphalt has been packaged as a vital upgrade for regional connectivity. But a hard look at the reality of the numbers reveals a project that is a massive financial trap.
Alarmingly, the estimated price tag for this short, four-lane extension has ballooned to a staggering $372 million. Yet, despite decades of planning, the project is only funded to a meager $54 million.
No Legal Obligation for Local Governments
Amidst recent discussions of local funding, let one thing be completely clear: Blount County, the City of Maryville, and the City of Alcoa have absolutely no legal responsibility to fund right-of-way purchases for the Pellissippi Parkway Extension.
State Route 162 is a state highway. Legally and historically, the acquisition of land and right-of-way for state routes falls squarely on the shoulders of the Tennessee Department of Transportation (TDOT) and federal matching funds. Local municipalities are under no statutory mandate to bail out state-level shortfalls. Passing resolutions to inject local property tax or municipal dollars into right-of-way acquisition isn’t fulfilling a legal duty—it’s an unnecessary donation to a broken state plan.
A One-Sided Deal with No Guarantees
Even if local leaders succumb to the pressure to fast-track land buys, the current agreement provides zero security for the community. The contract does absolutely nothing to compel the state to pull in the completion date. Worse yet, it contains no binding commitment that forces the state to actually build the extension.
Local taxpayers could realistically see their money spent on seizing and buying up private property, only for the state to walk away or push the construction timeline out another decade. In fact, TDOT’s current 10-Year Project Plan places right-of-way funding all the way out in Fiscal Year 2032, with an estimated construction start of 2036. Signing over local funds today gives up our financial leverage for a string of empty promises.
The Power of Opportunity Cost
If local governments have millions in surplus capital burning a hole in their pockets, throwing it at a highly volatile, underfunded highway is the worst possible use of public funds. Consider what that money could do if it were simply held and invested elsewhere.
For perspective, if the pool of $10,970,000—were placed into a stable, long-term index fund reflecting standard market returns over the next decade, the financial outlook completely changes:
The Compound Effect: Over a 10.5-year horizon (matching the gap between now and TDOT’s projected 2036 build date), a historical conservative nominal return of 10% would turn that $10.97 million into roughly $29.48 million.
The Return for Locals: That represents over $18.5 million in unearned income —pure growth that could be used to directly fund local school modernizations, upgrade existing city infrastructure, lower debt, or reduce the tax burden on residents.
Even when adjusting for a 7% real return to factor in inflation, that money would still generate $11.33 million in true purchasing power growth , closing out 2036 with a total real value of $22.3 million.
Conclusion
Our local leaders in Maryville, Alcoa, and the Blount County Commission must protect local tax dollars. Pumping millions into a project that is short $318 million, without a single legal obligation to do so or a guarantee that a single shovel will hit the dirt, is fiscally reckless.
Let the state handle state roads on the state’s timeline. In the meantime, let’s keep local money where it belongs: working safely for the taxpayers of Blount County, not buried under conceptual asphalt.