In August 1986 the board of trustees amended UT’s land acquisition plan to make it possible for UT to buy Tyson Junior High School, which had been declared surplus property by the City of Knoxville and was not in use following the end of the 1986 school year. In October 1986 UT offered the City $1.1 million—above the appraised price of $950,000–$1 million—for the school and the land upon which it was situated.
Mayor Kyle Testerman declined the offer, saying that he believed that a higher price could be obtained at auction and that to sell to UT would take the property off the tax rolls. He offered to swap the Tyson land for all the property between Cumberland Avenue and the river that UT had purchased following the 1982 World’s Fair. UT declined, saying that the land at the east edge of the campus was needed for parking and expansion of engineering and science facilities.
Failing to work out a swap, and believing that the property would bring $1.3 to $1.4 million, the City employed Furrow Auction Company to sell the property at public auction, and the mayor suggested that restrictions could be in placed at the auction or after a sale that would preclude UT from acquiring the property. UT announced it would not bid for the property but would stand on its offer. At the auction, Jim Clayton, CEO of Clayton Homes, purchased the property for $1,025,000 at the sale. Furrow Auction’s commission on the sale was 3.5 percent of the selling price. The city council unanimously voted to sell the property at the bid price and also did not place any restrictions on future sales that would affect UT. Clayton indicated he planned to hold the property for five to seven years and then develop offices or shops within it. He subsequently sold the property to Sam Furrow, who developed Tyson Place.
Tyson Junior High, named for Lawrence D. Tyson, was completed for use in 1938. Between 1939 and 1945, university plays produced by the fledgling division of speech and theatre headed by Paul Soper were held in the auditorium of the building.