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Sunday, November 1, 2026Nov 1

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SMAC and town navigating insurance negotiations

When Tom Poteet bought the former Signal Mountain Middle School there was concern over whether the public would continue to be able to use the walking track and trails as they had for years. Last week the town of Signal Mountain took steps to ensure that space remains open for public use – at least for the next two years.

“If we don’t do this there’s a relatively realistic threat that it might go away for us,” said Police Chief Boyd Veal before council members voted to unanimously add the area to its liability insurance. Veal is standing in for Town Manager Honna Rogers while she’s on extended leave.

The issue came up because Poteet’s insurance carrier was going to require extra insurance from him if more than just his members were using the facility and lands.

Officials said the deal looks like a win-win situation. The town’s insurance premiums are not expected to go up with the addition, and Poteet is leasing the land to the town at a minimal cost, not to exceed $100, according to the adopted resolution. Included in the land deal is the football field.

“For us, something like this could be huge,” said Town Parks and Recreation Director Jarred Thompson. “As it stands right now we’re pretty well landlocked; we have what [facilities and practice areas] we have. Year in and year out the participation with kids keeps going up, and we’re running out of areas to put them.”

Allowed uses based on insurance purposes and the resultant premiums as well as parking issues still have to be worked out, but Councilman Dick Gee wondered aloud if it is all too good to be true. Signal Mountain resident Noah Long believes it isn’t good enough.

“I think [Poteet’s] going back on the commitments he made,” Long said. “I think you ought to go back, stop and listen to what he agreed to in both the zoning meeting and the council hearing. I really object to us passing a resolution that potentially increases our insurance cost to the town on something that this commercial operator agreed to provide the town. I say you should say to him, ‘You agreed to provide this and if you’ve got to go buy insurance for the town and public, that’s your requirement, not the town’s requirement.'”

Should anyone be hurt there, they could file a claim against the town, just as they could in any situation on town property, according to Town Attorney Phil Noblett.

“That’s what I’m worried about; if I had the choice between suing Tom Poteet and the town of Signal Mountain I’d probably pick the town of Signal Mountain,” said Councilman Bill Wallace.

Noblett said per the town’s insurance policy, claims against the town will not yield more than $300,000 to any individual should the claim be upheld in court.