East Tennessee City pours more money into losing investment
I must admit that the decision of the Kingsport BMA to spend over $15 million for an expansion of the MeadowView Convention Center has really raised my blood pressure.
I have written many posts concerning this issue and feel that politics is playing a big part in the decision to expand the convention center. Good common business sense seems to be absent for the five BMA members (Phillips, Mallicote, Joh, Shupe, Munsey) who voted to expand the convention center. It appears that there is an incestuous relationship with special interest groups
Alderman Marsh implored the mayor to get public input before the vote, but the mayor railroaded the convention center expansion to a vote. Alderman Marsh and Shull voted to give back to the city property owners the 1/4 percent regional sales tax that was used to pay off the current convention center, but the gang of five prevailed.
The taxpayers have invested $25.7 million in the current MeadowView Convention Center and Cattails golf course. The convention center has never made money and the golf course barely breaks even.
The City of Kingsport is spending another $15 million to expand the convention center into an executive conference center.
One needs to ask, what is the real cost to the taxpayers for Kingsport’s part of MeadowView? The combined cost of the current convention center, golf course and the new expansion would be about $41 million.
To get the true cost, the interest expense for the bonds must be added to the cost. In the table below you will see the actual cost after applying the different interest rates. The bond life used is 20 years.
| Cost | Interest Expense | Real Cost | Interest Rate |
| 41,000,000 | 18,628,464 | 59,628,464 | 4.00% |
| 41,000,000 | 17,340,210 | 58,340,210 | 3.75% |
| 41,000,000 | 16,068,036 | 57,068,036 | 3.50% |
I would like to ask, are there any citizens in Kingsport that would invest $57 – $59.6 million in a project that did not make money for them?
It is up to you as voters to decide your future. Mallicote, Joh, and Phillips who are running for re-election voted to spend more money on the money-losing convention center.
Alderman Shull who is also running for re-election voted against the convention center expansion and instead voted to give the regional sales tax back to city property owners.
I must warn you to beware of the spin that the city officials have been putting out concerning MeadowView. If MeadowView has been that great for Kingsport, then why do we have a declining population, negative retail growth after inflation, and the highest unemployment rate in the Tri-Cities area. You decide…see data