Historic Magnolia home will not become a parole office – but it could still be demolished

The Magnolia, a historic home built in 1925, at 2651 E. Magnolia Ave on Friday, August 4, 2023.
The Magnolia, a historic home built in 1925, at 2651 E. Magnolia Ave on Friday, August 4, 2023.

The state of Tennessee has backed out of a lease agreement that would have relocated the state parole office in Knoxville to Magnolia Avenue where a historic home is slated for demolition.

The home at 2651 E. Magnolia Ave. still could be torn down and the owner has the proper permits to demolish it.

The state's Department of General Services, which planned to lease the historic Sterchi-Audigier home, said it was not aware of the extent of the damage from a fire last year.

Property owner John Davenport applied to demolish the home ahead of when the lease was supposed to start, according to a permit application from June 20 obtained through a public records request. News of the planned demolition caused local leaders and preservationists to ask the property owner to cancel demolition plans and ask the state to find a new home for the parole office.

The property owner had informed the state of the fire but said he could still build the offices to the Tennessee Department of Corrections' specifications, said Michelle Parks, communications director for the General Service Department, in a statement to Knox News.

"The agreement was that the state would use the existing building," Parks said. "The state only recently learned that the damage to the property was greater than 50%. According to the state’s lease agreement, this was cause for termination."

A demolition permit expiring Aug. 21, 2024, has been issued and is not contingent on the state lease.

Davenport has not responded to requests for comment.

Tennessee would have opened parole office on Magnolia

The state's 15-year lease with Davenport would have started in September with an average annual cost of $377,476, and it included plans to renovate the historic home before a fire last October damaged its second story.

A three-year lease for the county's current parole office at 1426 Elm St. will expire this December. Parks said the state is evaluating other options for relocating the parole office.

Major roof damage seen through a window of the Magnolia, a historic home built in 1925, at 2651 E. Magnolia Ave.
Major roof damage seen through a window of the Magnolia, a historic home built in 1925, at 2651 E. Magnolia Ave.

Leaders say historic home is key to East Knoxville's vitality

State Rep. Sam McKenzie advocated to save the Sterchi-Audigier home as part of a broader effort to revitalize East Knoxville. Magnolia, he said, is home to enough bail bondsman and halfway houses already, and the city should work to maintain its historical value.

McKenzie said he and others worked closely with General Services to convince them the parole office was "the wrong project at the wrong location and the wrong time" and he applauded the department's responsiveness.

Several local and state officials have been in conversation with Davenport to explore options other than demolition.

A federal historical tax credit offered through the state and the National Park Service could provide a 20% tax credit for work done to preserve the building.

McKenzie said he is optimistic that Davenport will consider selling the property to a developer interested in restoring the home, and said he should have no trouble finding interested parties.

"The owner-developer can say, 'I want to do it,' and he can take it upon himself to do it. Or, if he's not interested, he can sell the property and allow someone else with kinder hands to do it," McKenzie told Knox News.

Sterchi-Audigier residence is a vestige of Magnolia's past

The Sterchi-Audigier home, built by famed furniture maker W. H. Sterchi and later sold to eclectic collector Louis Audigier, is one of many large homes that once lined Magnolia. Very few of them are left, and the house "hearkens back to a different time," said Christine Cloninger, executive director of Knox Heritage.

In her conversations with Davenport, Cloninger said he had expressed concern that the fire rendered the property a total loss from an insurance standpoint. But a total loss means something different to preservation organizations.

"Data, facts and figures show that historic preservation spurs economic investment into areas, maintaining a sense of pride in the community that ultimately benefits everyone," Cloninger said. "We spend a lot of time advocating exactly in situations like this, in the hopes that we can make people understand why it's important."

Cloninger said Knox Heritage is making calls to private developers who work in historic preservation to see who may be interested in offering to purchase the property. Though the organization was pleased to learn the state had terminated the lease agreement, its work has not ended.

"We'll continue our efforts and we'll keep the community posted as we learn news, good or bad," Cloninger said. "We are still actively working for a good outcome."

The Magnolia Avenue Corridor Plan described the Sterchi-Audigier home as "a fine example of the Spanish Eclectic Style, nationally popularized between 1920 and 1940 but rare in Knoxville."

Daniel Dassow is a reporting intern focusing on trending and business news. Phone 423-637-0878. Email daniel.dassow@knoxnews.com.

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This article originally appeared on Knoxville News Sentinel: Knoxville historic home on Magnolia won't be parole office