CHATTANOOGA — Richard Johnson, former president of the Mountain City Club, filed a document in Circuit Court defending actions taken during his tenure. The filing addresses disputes over a $2 million loan to developer Jimmy White and the club's sale of its headquarters.

The Mountain City Club, founded in 1889, sold its Chestnut Street headquarters to Byron and Ken FeFoor for $9 million. The club acquired the yacht Lady Helen and moved into leased space at the Gilman Building across the street from its former headquarters. Johnson arranged the $2 million loan with White. Johnson stated the loan agreement included a site at The Bend for docks and for the Lady Helen, a site for a new club home, a 150-unit residential complex, and a two percent interest in White's Jail House Studios project.

Johnson stated the club planned to construct a new home within a condominium tower offering amenities like docks, a boathouse, a riverside restaurant, and a yacht for member use. He stated that the club faced "substantial tax implications resulting from the sale of its real property." Johnson said a management LLC wholly owned by club treasurer Chris Allen was established to manage operations and develop a tax strategy to defer $2 million of tax liability from the headquarters sale.

Johnson stated the club struggled for decades to attract younger members, experiencing "dwindling numbers and an ever-increasing mean age." He stated that during his tenure, the club achieved a 34 percent increase in members, generated over $180,000 in event revenue in 2025, and completed a renovation under a $500,000 budget. Johnson stated that White has not repaid the $2 million loan.