Skip to main content
Thursday, October 29, 2026Oct 29

This story is free to read.

Chattanooga audit office clears Mayor Kelly of any conflict in homeless displacement and land sale

Staff Photo by Matt Hamilton / Chattanooga Mayor Tim Kelly was cleared by the city's internal audit office after a review of whether there was a conflict of interest in displacing a homeless encampment at the former Southern Honda Powersports location on Workman Road before selling the property.
Staff Photo by Matt Hamilton / Chattanooga Mayor Tim Kelly was cleared by the city's internal audit office after a review of whether there was a conflict of interest in displacing a homeless encampment at the former Southern Honda Powersports location on Workman Road before selling the property. Staff Photo by Matt Hamilton / Chattanooga Mayor Tim Kelly was cleared by the city's internal audit office after a review of whether there was a conflict of interest in displacing a homeless encampment at the former Southern Honda Powersports location on Workman Road before selling the property.

Chattanooga’s internal audit office has cleared Mayor Tim Kelly of any potential conflict of interest after reports a homeless encampment was removed from a property that he later sold for nearly $3 million.

The office’s findings came two weeks after the Times Free Press, based on emails and documents obtained through a public records request, inquired about the city’s actions leading up to the mayor’s private transaction.

The newspaper reported that government officials and homeless organizations beginning in the spring discussed working to address litter issues and later the displacement of an encampment at the former location of Kelly’s Southern Honda Powersports at 1394 Workman Road.