State Supreme Court Decision in Grundy County Case Could have Implications for DeKalb County (View Video of Oral Arguments Here)

May 31, 2025
By: Dwayne Page

Oral arguments in the case of Tinsley Properties, LLC and others versus Grundy County over provisions of a county powers act there were heard at the Tennessee Supreme Court Thursday. No ruling is expected right away but the court’s decision could be significant not only for Grundy County but DeKalb County and perhaps statewide with similar County Powers Act issues.

In October, 2024 the DeKalb County Commission adopted a County Powers Act patterned after Grundy County’s resolution which, among other provisions, established a 5,000 foot minimum distance requirement between such operations as rock quarries and residences, churches, schools, etc.

Tinsley Properties, LLC, a quarry company, filed a lawsuit against Grundy County in Chancery Court and in September, 2022 the Chancellor there sided with the county. The ruling was appealed and upheld. Now it’s made it to the state supreme court.

Specifically, the Grundy County case concerns the validity of a county resolution prohibiting quarries and rock crushers within five thousand (5,000) feet of a residence, school, licensed daycare facility, park, recreation center, church, retail, commercial, professional or industrial establishment. The plaintiff landowners (Tinsley) argued that the county failed to comply with the requirements in Tennessee’s county zoning statute, Tennessee Code Annotated 13-7-101 to -115. In the alternative, they argued that state law expressly preempted local regulation of quarries. However, the county argued that it was exercising its authority to protect its citizens’ health, safety, and welfare under the county powers statute, Tennessee Code Annotated 5-1-118. The trial court granted summary judgment to the county on the ground that it had no comprehensive zoning plan. This appeal followed.

In April, County Attorney Hilton Conger informed the DeKalb County commission about the Grundy County case and urged all to go online to view the oral arguments before the state supreme court (May 29) especially since the issues are so similar to DeKalb County’s County Powers Act.

Under the regulatory resolution, which was approved by the county commission on October 28 “No quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment, or methadone clinic may be located within 5,000 feet of a residence, school, licensed daycare facility, park, recreation center, church, retail, commercial, professional, or industrial establishment. Measurements shall be taken from the nearest recorded property line of the business to the nearest property line or boundary of the foregoing”.

(The entire actual regulatory resolution as adopted by the DeKalb County Commission is as follows:)

A Resolution of the Board of Commissioners of DeKalb County, Tennessee to regulate Quarries, Rock Crushers, Gravel Pits, Cryptocurrency Mining, Landfills, Adult Entertainment and Methadone Clinics.

Section 1. Purpose

It is the purpose of this resolution to regulate the operation and location of rock crushers and/or quarries, gravel pits, cryptocurrency mining, landfills, adult entertainment and methadone clinics in the unincorporated areas of DeKalb County, Tennessee in order to promote the health, safety, economic development and the unincorporated areas of DeKalb County, Tennessee.

Section II. Definitions

The following definitions shall apply in the interpretation and enforcement of this Resolution:

(a) Blasting.  The term “blasting” shall denote a method of loosening, moving or shattering masses of solid matter by use of explosive compounds to prepare stone for crushing, building stone or other purposes.

 (b) Clerk means the County Clerk of DeKalb County, Tennessee.

 (c) Commission means the Board of County Commissioners of DeKalb County, Tennessee, which is the legislative body of DeKalb County, Tennessee.

(d) County means DeKalb County, Tennessee.

(e) Gravel Pit.  The term “gravel pit” shall mean any activity or enterprise, the purpose of which is to remove naturally occurring deposits of sand and gravel from the earth by excavating including topsoil and overburden removal.

(f) Person.  The word “person” shall mean any individual, partner, corporation, company, trustee or association, together with the respective servants, agents and employees thereof.

(g) Quarry.  The term “quarry” shall mean activity or enterprise, the purpose of which is to remove rock material from the earth by blasting and/or excavating including topsoil and overburden removal.

 (h) Residence means a place, in which a person lives or resides; a structure serving as a dwelling or living quarters. Residence includes but is not limited to single-family and multiple family dwelling units including without limitation, houses, apartment buildings, condominiums, dormitories and mobile and modular homes.

  (i) Rock-Crusher.  A rock crusher shall mean any device, machine, apparatus or equipment used either individually or in conjunction with any other device, machine, apparatus or equipment for the purpose of crushing, grinding, breaking or pulverizing rock or stone.

(j) Rock Crushing.  Operation of a rock crusher.

(k) Site.  The term “site” shall mean any separately described parcel of land with an individual real property tax, map and parcel number.

(j) Adult Entertainment. Any entertainment that is intended to be viewed by adults only. It refers to activities involving the direct provision of sex related services, such as prostitution, strip clubs, and sex related pastimes like pornography and sex movies. It can also include the exhibition or performance of specified sexual activities or the exposure of specified anatomical areas.

(k) Cryptocurrency Mining. A process that validates transactions and adds them to a blockchain.

(l) Blockchain.  A process in cryptocurrency mining that adds a link to each block of transactions to form a chain. Each block contains a set amount of cryptocurrency.

(m) Ledger Records the creation and movement of coins in the blockchain.

(n) DIY Supercomputers. A high-speed computer or series of computers used to mine bitcoins.

(o) High Decibel Noise. Sound which ranges in a level from 75-95 decibels. Normal human hearing range is 0-20 decibels.

(p) Landfill. A system of trash and garbage disposal.

(q) Methadone Clinic. A treatment center for opioid addiction using but not limited to Methadone and   Suboxone.

Section III. Application for License

 No person shall operate a quarry, rock crusher/ gravel pit, Cryptocurrency mining, landfills, adult entertainment and methadone clinic without first obtaining the following from the County Clerk of DeKalb County Tennessee  a standard Business License and a permit for the operation of a quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic

All state and or federal permits required and necessary to operate such an enterprise or activity regarding a quarry, gravel pit, or rock crusher, cryptocurrency mine, landfill, adult entertainment or methadone clinic shall be a prerequisite before obtaining an initial permit or business license to operate such an enterprise or activity from the County Clerk.

An applicant for a license shall furnish the following to the County Clerk in order to apply for a Permit to operate a quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic:

(a)  An application for a business license or permit to operate a quarry, gravel pit, or rock crusher,

cryptocurrency mine, landfill, adult entertainment or methadone clinic.

(b)  A copy of the Permit issued by the State of Tennessee for the applicant to operate a quarry, gravel       pit, or rock crusher, cryptocurrency mine, landfill, adult entertainment or methadone clinic at the proposed site of the quarry, gravel pit, or rock crusher, cryptocurrency mine, landfill, adult entertainment or methadone clinic, for which the applicant is seeking the permit;

(c)  A copy of the applicant’s deed or lease to the property on which the quarry, gravel pit, or rock crusher, cryptocurrency mine, landfill, adult entertainment or methadone clinic is proposed to be operated.

(d)  A map which shows the physical extent of the quarry or gravel pit operation, cryptocurrency mine, landfill, adult entertainment or methadone clinic as to area and depth, along with a description of the act cryptocurrency mine, landfill, adult entertainment or methadone clinic along with activities to be conducted on the property; and

(e)  A non-refundable application fee of $150.00.

Upon receiving the foregoing information, the County Clerk will forward it to the Office of the County Mayor, who will determine whether the site of the proposed quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic meets the location requirements provided for in this Resolution and report his/her findings to the County Clerk within ten (10) days.

(f)  If a corporation or company is exempted by the state of Tennessee from requiring a business license or permit, the corporation or company must still comply with the distance requirements in Section VIII of this resolution.

SECTION IV – ISSUANCE OF LICENSE.

If the Mayor’s findings confirm that the site of the proposed quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic meets the location requirements, the County Clerk shall forthwith issue the standard Business License and Permit to quarry, rock crusher or gravel pit cryptocurrency mine, landfill, adult entertainment or methadone clinic.

If the Mayor’s findings reflect that the site of the proposed quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic does not meet the location requirements, the County Clerk shall within ten (10) days notify the applicant that the application must be denied due to the failure of the proposed site to meet the location requirements.

 SECTION V – FEES.

• Application Fee for Permit to Operate a Quarry, Rock Crusher or Gravel Pit, Cryptocurrency Mine, Landfill, Adult Entertainment or Methadone Clinic. A non-refundable fee of $150.00 shall be paid to the clerk at the time of filing the application and required accompanying materials.
• Initial Fee for Permit to Operate a Quarry, Rock Crusher or Gravel Pit, Cryptocurrency Mine, Landfill, Adult Entertainment or Methadone clinic. If the license is granted, the applicant shall pay an initial license fee of $100.00.
• Renewal Fee for License to Operate a Quarry, Rock Crusher or Gravel Pit, Cryptocurrency Mine, Landfill, Adult Entertainment or Methadone Clinic an annual fee of $100.00 shall be required to renew a Permit to operate a quarry, gravel pit, or rock crusher, cryptocurrency mine, landfill, adult entertainment or methadone clinic.
• . The failure to pay the annual renewal fee shall not constitute a forfeiture or ground for revocation of any Permit granted under this Resolution provided such failure is rectified upon notification by the County Mayor.

The foregoing fees shall be in addition to the fees required for a standard Business License.

SECTION VI – ADMINISTRATIVE PROCEDURE AND REVIEW

• As used in this section, “application” means: An application for a Permit to operate a quarry, gravel pit, or rock crusher, cryptocurrency mine, landfill, adult entertainment or methadone clinic.
• Whenever an application is denied, the County Clerk shall notify the applicant in writing of the reasons for such action; such notice shall also advise the applicant of the applicant’s right to request a hearing before the County Commission.
• If the applicant desires to request a hearing before the County Commission to contest the denial of an application, such request shall be made in writing to the County Mayor within ten (10) days of the applicant’s receipt of the notification of the denial of the application. If the applicant timely requests such a hearing, a public hearing shall be before the County Commission at the next regularly scheduled County Commission meeting, which is at least ten (10) days from the date the request for hearing is received in the Mayor’s Office.

SECTION VII- APPLICABILITY OF RESOLUTION TO EXISTING BUSINESSES/GRANDFATHER CLAUSE.

The distance requirements set forth in Section VIII of this Resolution shall not apply to quarries, rock crushers or gravel pits, cryptocurrency mine, landfill, adult entertainment or methadone clinics in existence and in operation on October 28, 2024. Such quarries, rock crushers or gravel pits, cryptocurrency mine, landfill, adult entertainment or methadone clinic may continue to operate at the site where they are located on October 28, 2024. The owners of such quarries, rock crushers or gravel pits, cryptocurrency mine, landfill, adult entertainment or methadone clinic in existence and in operation on October 28, 2024 will (i) pay the annual fee for a Permit to operate such enterprises as provided in Section V of this Resolution; (ii)  continue to maintain such quarry, rock crusher or gravel pit,  cryptocurrency mine, landfill, adult entertainment or methadone clinic  in active operation at the site where it is currently located; and (iii)  submit an application to the County Clerk to continue the operation of the quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic, accompanied with a map which shows the physical extent of the quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic, operation as to the area, along with a written description of the current activities being conducted on the property and the location where the current activities are taking place.

The grandfather protection provided in Section VII applies only to the site where the current quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic was in operation on October 28, 2024. The grandfather protection provided by this Section VII may not be transferred or used to operate a quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic. at any site or location other than the site or location where the quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic is currently in operation.

The grandfather protection provided by Section VII shall be forfeited only for the failure to continue to maintain such quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone clinic in active operation at the site where it is currently located for a period of thirty consecutive days. Failure to pay the annual fee, submit an application, map and/or description of activities shall not constitute a forfeiture of the grandfather protection provided by this Section VII provided such failure is rectified upon notification by the County Mayor. Likewise, failure to pay the annual renewal fee shall not constitute a forfeiture of any Permit granted under this Resolution provided such failure is rectified upon notification by the County Mayor.

 SECTION VIII – PERMITTED LOCATIONS

  Except as otherwise proscribed in this Section VIII, quarries, rock crushers and gravel pits, cryptocurrency mine, landfill, adult entertainment or methadone clinic may be located in unincorporated areas of DeKalb County, Tennessee.

(B) No quarry, rock crusher or gravel pit, cryptocurrency mine, landfill, adult entertainment or methadone     clinic may be located within five thousand (5,000) feet of a residence, school, licensed daycare facility, park, recreation center, church, retail, commercial, professional or industrial establishment. Measurements shall be taken from the nearest recorded property line of the business to the nearest property line or boundary of the foregoing.

 SECTION IX – SEVERABILITY

 If any provision of this resolution is deemed invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the other provisions of this Resolution.

SECTION X – APPLICABILITY

• This resolution shall apply only in the unincorporated areas of the county.
• Nothing in this resolution may be construed to as prohibiting or in any way impeding any incorporated municipality in the county from exercising any power or authority the municipality may lawfully exercise, including the regulation of sexually oriented businesses.
• Nothing in this resolution shall preempt an ordinance, regulation, restriction or license that was lawfully adopted or issued by any incorporated municipality in the county prior to the enactment of this resolution, or prevent or preempt any incorporated municipality in the county from enacting and enforcing in the future other lawful and reasonable restrictions, regulations, licensing, zoning or other civil or administrative provisions concerning the location, configuration, code compliance or other business operations or requirements to operate a quarry, gravel pit, or rock crusher, cryptocurrency mine, landfill, adult entertainment or methadone clinic.

This Resolution shall take effect immediately upon its passage by a two-thirds vote of the Commission, the public welfare requiring it.

May 31, 2025
By: Dwayne Page

Shut down again?

Residents near the quarry location on North Driver Road at Snow Hill are again speaking out after learning that SRM Materials, LLC (Smyrna Ready Mix Smithville Quarry) for the third time in nine months allegedly has been ordered by the state to cease operations without the required National Pollutant Discharge Elimination System (NPDES) permit for the discharge of treated mine wastewater and storm water. SRM has filed an application for an NPDES permit but TDEC has apparently not yet approved it. Several people spoke out in person against TDEC granting the permit during a public hearing held in March at the county complex.

During Thursday night’s regular monthly meeting, Doug Walter of the second district addressed the county commission during the public comment period to bring awareness to the latest development and to urge enforcement of the county powers act.

“They (SRM) still don’t have a permit, and they started early in May. Citizens of the area contacted the state and for the third time the state had to shut them down for operating without a permit. I have heard that SRM has donated money to schools and potentially for the Jamboree to show good faith. But read the writing on the wall. This company has done basically what they want to do in Dowelltown since they first bought the property and blasted the next day,” said Walter. “This is not good corporate citizenship for the county and if you allow them to open the violations would probably continue within our county. I ask you to take the correct action and enforce the county powers act. Follow Grundy County’s lead and take up the fight. If you don’t I believe you are leaving yourself open for others to point out the lack of enforcement against SRM in this situation. The county mayor recently said in a meeting that they (SRM) are not in operation. I don’t see how you can grandfather a company that is not in operation at this time under the county powers act. You owe it to the citizens of this county to enforce the laws you passed be it a big or small fight and obviously this is going to be a big fight. This company has shown by their actions they don’t have a lot of regard for state, county, or local citizens. They do what they want with that quarry and we, the citizens of that area, are the ones who have had to contact the state to get them to stop. They don’t show enough respect to deserve being open and I think the county needs to take up the fight. When the time is right I am asking you to consider all the facts and not just the shiny thing they are doing up here in Smithville with money but what they are really doing in Dowelltown,” said Walter.

WJLE emailed a media inquiry this week to Jennifer Donnals, Senior Communications Advisor for the Tennessee Department of Environment and Conservation for a response about the latest citizen complaints regarding SRM.

She responded as follows: “SRM recently moved some equipment onto the site, but it is not operating on the site. When TDEC makes a final permitting decision, all citizens who participated in the public participation process will be notified of the decision,” said Donnals.

Neighbors in the Snow Hill area first became aware of SRM last summer after being shaken by a blast during the company’s prep work for the quarry at the site. Complaints were filed with the state and county.  In August the state found that SRM had been crushing without issuance of an NPDES permit.  (Inspection in response to a citizen concern regarding blasting debris and mining activities. Mining staff confirmed the presence of rock processing equipment on site and newly blasted limestone without permit coverage).

SRM submitted an application in September after which the site was determined to be inactive. (Inspection for Hydrological Determination (HD) Report received on September 12, 2024. Staff present included Daniel Lawrence, Bryan Epperson, Emily Bonts, and Rebecca Drennan. HD submittal was confirmed, though additional features further within the property were also identified and subsequently noted to the applicant. Site was not active at the time of inspection. Processing equipment was on site, as were several piles of crushed stone. All drainage was properly controlled. No discharge was occurring, and no condition of pollution was noted. Facility was out of compliance because a NPDES permit is not in place)

By November SRM was again found by the state to be in non-compliance for operating without a permit and halted activity at the site. (Processing rock without permit coverage. Mining activities on site have expanded since the last inspection via land clearing, and site entrances have been made accessible for construction and mine traffic).

According to the state, the permit application was deemed to be complete December 2 but SRM must wait until a permit is approved and in place before proceeding. SRM must also control drainage from the disturbed area.

County Commissioner Larry Green reported to the commission in April (last month) about a legal consultation he, County Mayor Adcock, and County Attorney Hilton Conger had in Nashville recently with members of a law firm who has expertise in this area on where the county stands regarding enforcement of the County Powers Act.

Some members of the public have argued that three companies — the McMinnville Energy LLC cryptocurrency mining and the Jones Brothers and SRM quarries should be subject to the County Powers Act claiming they were not already “in operation” when the commission passed the local regulations last October.

“Their advice to us was to be patient and do nothing right now because the way the County Powers Act is written they (companies in question) have to do certain things before they can apply for a permit from us (county) and until they get those things done and go into operation we don’t have a case. They said you can’t get a cease and desist until they do something,” said Commissioner Green.

 “Right now, they are not operating,” said County Mayor Adcock. “They are still in that period of trying to meet the prerequisites to be able to apply. Technically they are not violating anything because they are not in operation,” he said.

May 31, 2025
By: Dwayne Page

DeKalb County’s local option sales tax collections for April 2025 were better than the previous month and much higher than April, 2024 collections.

According to the Tennessee Department of Revenue, DeKalb County collected $226,958 in April, 2025, up from $179,966 in March, 2025 and better than $170,469 taken in during April, 2024

Local option sales tax collections in April 2025 were up in all four towns in DeKalb County compared to March, 2025 and April, 2024.

In Smithville, collections were $429,764 in April, up from $367,824 in March, and more than the April 2024 total of $426,387.

Alexandria’s collections increased from $32,698 in March to $56,812 in April and were up from $29,610 in April 2024.

Dowelltown brought in $4,030 in April 2025 compared to $3,322 in March and $3,342 in April 2024.

Liberty’s increased from $13,129 in March to $30,206 in April and came in over the total of $13,575 in April, 2024.

Net collections of local option sales taxes for the county and cities combined in April 2025 were $747,771, up from $596,942 in March and better than the $643,385 taken in during April 2024.

April 2025 sales tax collections reflect previous month activity.

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