Alderman Shull’s perspective on the Kingsport Aquatic Center
I think that your readers may be interested in a quick history on the Aquatic Center.
Before I joined the BMA the board established a fund to repair the Legion Pool. Previous Boards “raided” that fund. The City tried patching the pool several times, but the pool continued to leak.
The BMA then considered starting over again with a new pool in current location. Then the board began entertaining the idea of also having an indoor pool, quickly emerged into the Aquatic Center concept.
Let’s pause – the entire BMA agreed that the current situation – leaking old pool was unacceptable. But then the differences in opinions began to emerge as the City staff provided different versions of an Aquatic Center. While ALL members requested that the City manager discuss the situation with the YMCA, it was never immediately agreed upon (as was inferred last night at the BMA business meeting) that the city would enter the type of agreement with the YMCA that we seem to be headed toward.
Last summer we had a special called session to decide 2 issues: 1) Location of the pool, and 2) Should it be co-located with the YMCA. I voted against BOTH for the following reasons.
- The Meadowview is not the ideal location for the pool. I won’t elaborate here, but I would be glad to discuss further with any citizen. I favored the Legion Pool area
- Co-locating with the YMCA gives them a tremendous competitive advantage over the other fitness center operators. In effect, the city would be subsidizing an already NON-PROFIT organization to the detriment of tax-paying enterprises in the city (Great Body Company and others).
I asked the question of Mr. Gray, the YMCA Board President, that night – what would the Y do if the city built a world-class outdoor pool at the legion area? He replied that they would go forth with their plans (an outdoor & indoor pool plus fitness center) at their site behind K-Mart. He ALSO assured us that they had the funding to do this.
I immediately proposed to my fellow members that we build the city facility at Legion (a great new outdoor pool) and let the YMCA build theirs. Please note that the citizens of Kingsport would then have two options for indoor swimming – the Dobyns-Bennett pool and the YMCA.
Not only do I believe this to be the best option, I’m even more strongly for it considering the Recession that we are now in. What’s wrong with saving tax-payer dollars.
As a side note about the DB pool. It belongs to the citizens – we simply need to get that point across to the BOE.
One other point – under the current concept the Y will only build a fitness center (no pools) right next door to the City Aquatic Center. This will save them a lot of money. I have nothing against the Y. But I’m interested in saving the City money.
Thank you.
Pat Shull, Alderman
Part II – The Regional Sales Tax
I noted that the Times-News reporter, Matthew Lane, stated that the BMA would pay for the Aquatic Center with proceeds from the Regional Sales Tax. While that is a possibility, the most discussion by the board in recent weeks regarding this tax was about using it to pay for the Executive Conference Center ECC to be added on to the Meadowview Hotel.
The Regional Sales tax is a 1/4 cent add-on sales tax which brings Kingsport’s total sales tax rate to 9.5% (except on certain food items). The tax was voted in by referendum in the early ’90’s to pay for the construction of the Conference Center. There was NO sunset provision. In other words it continues unless the citizens vote it to be terminated by another referendum.
The city estimates that 60% of the tax is paid by other than Kingsport citizens. Because of this I do not favor eliminating the tax. Besides, if we did eliminate it Sullivan County could pick it up and then we would only receive some of the revenue instead of the total amount. Depending on the economic climate the tax usually brings in between $3 to $4 million annually.
Another reason for Not ending the tax – the Conference center has to be maintained and it loses money which entails an operational subsidy each year. However, after these costs are discounted there still remains an unencumbered amount that the city can use any way it wants. Some insist that these revenues should be applied to some use in the Meadowview area, hence the justification for using against the Aquatic Center and/or the ECC. But legally the tax revenue can be used in any manner the city wishes.
Flashback a few weeks ago. Mr. Marsh and I formally proposed that the unencumbered revenues be redirect to the city property tax payers (the real heroes of Kingsport)in the form of reducing their property tax (by the way Eastman would be the largest beneficiary in this scenario). Mr Marsh and I lost this vote 2 to 5. Again, there was a formal vote taken and 5 BMA members voted against a tax cut. Wouldn’t it be a great thing to say we lived in a city (especially during this recession) where taxes were actually reduced?
A few related facts to consider. Eastman received a $21 million tax break from the City. I voted against this, Mr. Marsh abstained (Eastman retiree), the remaining 5 voted for it. I’m a free market capitalist – I don’t care how much they pay their CEO. But it seems sort of foolish for the city to give a $21 m tax break to a Corporation that pays its CEO $8m per year. At any rate, Eastman can well afford to add those 110 ten rooms onto the hotel (they own it) for $13 million.
The ECC proponents say that it will make a profit and that the Convention Center will become profitable also. If this is such an attractive deal why doesn’t the private sector step up? Why is it that the City (meaning taxpayers) is the only entity with “Skin in the game”?
Another thought – theoretically Eastman will fill the 110 rooms with more folks visiting Kingsport, I.E. a net increase in hotel occupancy. But what if it doesn’t work? In other words what if the Meadowview simply takes customers away from the other Kingsport hotels/motels? In that scenario the City would be guilty of favoring one interest over another (please refer to the Aquatic Center in the Meadowview area). And keep in mind, that while Marriott does a great job running the complex they are NOT in the ownership. They are contractors whose contract stands to get bigger with the ECC construction (not a disinterested, objective party).
I’m for Economic Development by the city providing world class services, great infrastructure, and outstanding schools. But I don’t believe it is the City’s job to pick economic winners and losers. Lastly, a city tax cut looks like a better stimulus to me than a short term construction project.
Thank you.
Pat Shull
If MeadowView and Cattails loose money. Is there anything that the city does in the private sector that makes money?
Is there anyway to get info on room usage? I go be there a few times a week and see nothing that looks like its full.
As I put in another thread
I would like to know what the maintenance cost a year will be. Where will this money come from. If its coming form the extra tax what happens when we run out of it?
Are we going to have a rate hike getting all that water in and out of there?
Will the drought have a effect on the cost?
Will this need a new water system ie bigger pipes to get water there? If so will the roads have to be redone? Who will pay for it all?
Mr. Haynes, Thank you for your interest in this issue.
The Meadowview Conference Center does lose money each year and has to be subsidized by the City (normally with Regional Sales Tax proceeds – the Meadowview tax). Although it would be hard to prove with exact numbers, the general feeling on the City Staff and BMA is that Kingsport profits economically overall by having the Center.
The proponents of the ECC believe that it will be so attractive to outsiders, that the ECC AND the Convention Center will become profitable. In their thinking the key was adding the 110 rooms by Eastman onto the hotel to make it overall more attractive to conventions that want all their folks under one roof. Maybe this would work out, but it is so speculative that I do not wish to risk taxpayer dollars on it.
The Cattails Golf Course is normally a “Break-even” operation. While the City has paid off the Convention Center debt to bond holders, we still have some debt remaining on Cattails.
I don’t recall seeing any projected maintenance costs on the Aquatic Center. I believe that the cost of putting in sewer and water was calculated in the projection. Note that the land is being donated by Eastman. Having said that, I still believe that the Legion Pool area is best (see my earlier blog).
Finally, I don’t remember the exact numbers on room occupancy at the Meadowview. I do recall that their average is above the industry standard on an annual basis. Please see my other blog called Part II.
Pat Shull
@Pat Shull Alderman Shull, I want to thank you for taking the time to explain this for us. You are doing a great service for the citizens of Kingsport
How do we know , for sure, the amount of water that is being leaked from the Legion Pool. Did they say 35,000 per day , or per week?
Since we can’t ask questions at the meeting. I’d like an answer from Mr. Shull and if they hired a consultant to tell them that. How much did the consultant charge?