Letter to Editor
Should local governments be in direct competition with private businesses? That is a question Powell County residents should be asking more often, especially as more land and property are purchased using taxpayer dollars and removed from the free market.
When a city or county buys property or a business with public funds and then leases it out or operates it themselves, it creates an uneven playing field. Government owned property is subsidized by taxpayers, meaning its chances of failure are greatly reduced. If it struggles financially or encounters unexpected problems, money is simply reallocated to keep it afloat. Private businesses do not have that luxury. This kind of arrangement allows government to pick winners and losers in the marketplace, something that should concern anyone who believes in fair competition.
There are also broader economic consequences when government goes on a buying spree of land and property. Property taxes are one of the primary revenue sources that fund local government. When government entities purchase land, that property is removed from the tax rolls entirely. The result is a reduced revenue base and a heavier tax burden on the remaining taxpayers.
At the same time, tax dollars must still be used to maintain, insure, and manage these properties even though the revenue pool has shrunk. If the government decides to operate a business on that property, taxpayers become the financial backstop, responsible for covering losses if the venture is not self‑sustaining. All the risk is transferred from private investors to the public.
If the government run operation is successful, it creates another problem: unfair competition. Local private businesses must compete against an entity that does not pay property taxes and has access to public funds. Taxpayers, as involuntary stakeholders, assume responsibility for the purchase price, legal fees, permits, licenses, maintenance, staffing, and ongoing operational costs. These are risks that should be borne by private enterprises, not the public.
Powell County offers several examples worth examining. Over the years, thousands of acres have been purchased by tax‑exempt entities and removed from the tax revenue stream:
* Approximately 227 acres purchased around August 2020 by the Powell County Tourism Commission, located behind the transfer station off Hatton Creek Road, currently sitting idle.
* Approximately 31 acres purchased around April 1999 by Powell County Industrial Development, located in Clay City on Winchester Road near the Mountain Parkway exit, also unused.
* Approximately 2,000 acres purchased around March 2021 by the Powell County Fiscal Court, commonly known as Hollerwood, which has been shut down since September 2025.
In addition to these large tracts, numerous smaller parcels have been purchased, foreclosed, or seized by local government. Conservatively estimating roughly 2,300 acres at $5,000 per acre places more than $11 million in property value off the tax rolls. That represents an estimated loss of hundreds of thousands, if not more, in annual tax revenue before accounting for acquisition costs, legal fees, and ongoing maintenance funded by taxpayers.
One has to wonder what that money could have supported over the past several years. Improved infrastructure? Expanded water and sewer systems? Road upgrades? Fiber connectivity? Investments that might have attracted new industries and created long‑term opportunities for residents of all ages? Sports facilities?
This is the heart of the issue. When government purchases land and businesses, it often creates ongoing financial obligations while reducing the very tax base needed to support essential services. When problems arise, as they inevitably do, the solution is rarely to sell the asset or cut losses. Instead, taxpayers are asked to shoulder more of the burden, often through higher taxes or reallocated funds.
A competitive free market, while imperfect, is better suited to manage risk, reward innovation, and allocate resources efficiently. Government’s role should be to provide core services, enforce fair rules, and create an environment where private businesses can succeed, not to compete with them using taxpayer dollars.
Powell County residents deserve an open and honest conversation about the long‑term impact of government land ownership and public business ventures. Do you believe government should be buying up land and property? Were you aware of how much acreage has been removed from the tax rolls? Has this raised questions about how public resources are being used?
I hope this perspective encourages thoughtful discussion and greater transparency on decisions that affect every taxpayer in our community.
(The author is a Powell Couty Resident and local taxpayer with an interest in economic development, fiscal responsibility, and community transparency.)
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