Legal Defense Fund to TDOT: Compensate Black farmers fairly for BlueOval City highway

Omer Yusuf, Memphis Commercial Appeal
Updated 5 min read
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The Legal Defense Fund sent a letter to the Tennessee Department of Transportation on Friday expressing concern that Black farmers aren’t being fairly compensated for their farmland to build a new highway for Ford’s BlueOval City project.

This letter follows Tennessee Lookout's reporting that TDOT is using eminent domain to seize the farmland from Black farmers in West Tennessee.

The highway will connect the future Exit 39 on Interstate 40 to the BlueOval City plant in Stanton. Currently, the nearest exit before Stanton on I-40 is Exit 35, which includes Covington and Somerville in Tipton County.

The Legal Defense Fund also encouraged TDOT in the nine-page letter to fairly compensate the farmers for their land and for them to guarantee “that the proposed highway to BlueOval City is constructed in a manner that does not run afoul of the agency’s civil rights obligations under Title VI of the Civil Rights Act of 1964.”

Construction continues on BlueOval City in Stanton on March 24, 2023. Production is set to begin in 2025.
Construction continues on BlueOval City in Stanton on March 24, 2023. Production is set to begin in 2025.

Founded in 1940, the Legal Defense Fund is the nation's first civil rights law organization.

“We are concerned that the Tennessee Department of Transportation’s attempts to seize land from Black farmers may violate civil rights laws and the U.S. and Tennessee constitutions. Both constitutions prohibit the use of eminent domain to take private property without just compensation, which in this case is the fair market value,” said Amalea Smirniotopoulos, Legal Defense Fund senior policy counsel, in a statement. “One farmer was reportedly offered only $8,165 for an acre of land that is likely worth at least $200,000. Such severe undervaluation of land, along with reports that TDOT may be constructing the highway to BlueOval City in a manner that disproportionately impacts Black communities, raises serious concerns that TDOT is violating its obligations.”

A TDOT spokesperson issued the following response in part regarding the BlueOval City project:

“TDOT is excited for the new economic opportunities and prosperity BlueOval City will bring to West Tennessee. When confronted with constructing highways to accommodate such projects, some private property that’s located near an existing or future highway may be needed, though the department makes every effort to avoid or mitigate these impacts. Many factors are considered when designing a best-engineered solution, however the identity of the individual property owner is never known until a formal request to purchase land has been made.”

First look: We toured Ford and SK On's BlueOval City. Here's everything we saw.

Local news: Collierville farm owners sold properties for millions to Orgill Inc. for expansion

Legal Defense Fund: 'Economic development should benefit all Tennesseans'

Ford and South Korean company SK On plan to invest $5.6 billion and create approximately 5,800 new jobs at BlueOval City in Stanton, about 40 miles northeast of Memphis. The future electric vehicle and battery manufacturing plants in Haywood County will be capable of producing 500,000 EV trucks a year at full production.

“Black community members deserve to share equally in the economic opportunities generated by the new plant,” said Jason Bailey, Legal Defense Fund assistant counsel, in a statement. “The number of Black farmers in Tennessee has already drastically declined after decades of government-sanctioned discrimination. The new construction provides the state with an opportunity to do right by its farmers. Instead, it has attempted to further dispossess them. It is time for the Tennessee Department of Transportation to provide fair compensation under the law and begin to correct course.”

About 3,200 people will be employed at the Electric Vehicle Center and another 2,500 at the BlueOval SK Battery Plant, which will produce EV batteries for Ford and Lincoln vehicles.

“We recognize that BlueOval City holds the promise to provide significant financial opportunities for the region,” the Legal Defense Fund letter states. “However, any economic development should benefit all Tennesseans and must not come at the expense of disproportionately harming Black communities. We are concerned that the land taking without fair compensation and highway construction are poised to harm Black individuals and families.”

Ford in Tennessee: How will 5,800 workers get to BlueOval City? What to know about TDOT's possible solutions

Business news: BlueOval SK is hiring 2,500 workers. Meet the Memphis native overseeing that process.

TDOT's eminent domain process

In the same TDOT statement, a spokesperson explained the state agency’s approach to the eminent domain process.

“TDOT follows federal and state law to ensure all negotiations go through a standard process for purchasing property at fair market value based on third-party, independent appraisal reports,” the statement reads. “There are well-defined rights under federal law that safeguard property owners from getting less than fair market value, while also protecting public funds. The offers made to purchase land for this new road to service BlueOval City reflect fair market value, as reported by the independent appraisers, and required by federal law. Property owners are always given the opportunity to negotiate just as they would with any property offer.”

If an agreement cannot be reached, TDOT turns over the case to the Tennessee Attorney General’s Office to acquire the land through legal proceedings. TDOT added it is “100% confident in the process. But just to be sure the AG’s office is requesting a second opinion appraisal on all property in condemnation (except on tracts where settlement agreements have already been reached) in conjunction with TDOT. The department is working with multiple groups to help assuage any concerns.”

Ford's statement on the issue

A Ford spokesperson offered the following statement Friday afternoon:

“Ford is committed to being a good neighbor and adding to the prosperity and quality of life in every community where we do business, including in West Tennessee. We have encouraged the Tennessee Department of Transportation, which is responsible for public road maintenance and development — including eminent domain scenarios — to meet with impacted property owners and local community groups to quickly reach an equitable resolution.”

Omer Yusuf covers the Ford project in Haywood County, FedEx, tourism and banking for The Commercial Appeal. He can be reached via email Omer.Yusuf@commercialappeal.com or followed on Twitter @OmerAYusuf.

This article originally appeared on Memphis Commercial Appeal: Legal Defense Fund criticizes TDOT over compensation for Black farmers

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