Kingsport Developer gets in over his head, thinks old theater may be haunted and wants city to bail him out

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Kingsport Developer gets in over his head, thinks old theater may be haunted and wants city to bail him out

September 24th, 2009 Leave a comment Go to comments

A developer comes from another state and buys the old State Theater on Broad Street in Kingsport, Tennessee. This developer (Douglas Beatty) starts work to renovate the State Theater building and finds that with the economy and his other investments that it might be better to sell his unfinished State Theater building to the City of Kingsport.

Doug Beatty, the developer has stated that he wants to get out what he has so far paid for the building and renovations which is about $450,000. He further states that the entire cost to renovate the building would be about $900,000.

It appears that Doug Beatty is well connected with Mayor Phillips, Vice Mayor Mallicote, BMA members and the Kingsport Economic Development Board recently voted to spend nearly $10,000 to fund a study to determine the economic impact of a restored theater in downtown Kingsport.

The Kingsport Times-News reports that Bob Feathers with the Kingsport Economic Development Board believes some type of investment can occur to complete the theater project — regardless of what the economic development study shows. I guess the question is, why is the city of Kingsport spending $10,000 for a study when they are going to do what they want to do to make this developer happy.

Let the private sector take care of this. The city of Kingsport has no business bailing out someone who got in over his head. I am sure that there are many folks in Kingsport would like for the city to bail them out of their current financial situation.

During the renovation process, Doug Beatty became aware of apparently paranormal occurrences inside. According to L.E.M.U.R Paranormal Investigation website, Doug Beatty met with L.E.M.U.R and permitted an investigation.

Kingsport Times-News

“I need to,” he said. “I want to at least get what I’ve got in it so I can satisfy the bank note.”

The theater is now appraised at $1.6 million by private professional appraisers, and at $1 million for county tax purposes.

Beatty said work is still progressing on the theater. But he doesn’t want to invest in any more big-ticket items such as $30,000 in sheet rock or new theater seats, until he’s in a better position or the city moves forward with an acquisition.

“I’ve got two restaurants that I really have to tend to and make sure that they’re able to pay their bills and stay open. That’s really distracting me financially and time-wise from the theater,” Beatty said.

“I really want to get it done, but I’m at a point right now, because the economy has taken so long to come back, that I’m not sure how much more I can plow ahead without putting myself at risk. I want to make sure that I’m acting responsibly and cautiously as it relates to all the development we’re doing downtown,” he said.

Feathers said he believes some type of investment can occur to complete the theater project — regardless of what the economic development study shows.

“I sincerely doubt it will be dropped altogether. But you never know,” Feathers said. “Economies could drive something different from our perspective and what we’re trying to do from an economic development perspective.

“But from a priority standpoint, this is a very important component to what we see as a good fit for the community.”

The owner of the State Theater is DB3 Development Company, LLC and is North Carolina company. DB3 Development Company, LLC is listed as a FOREIGN company according to the Tennessee Secretary of State. Below is from the State of Tennessee website

Name	I.D. Number
DB3 DEVELOPMENT COMPANY, LLC	0533682


*Business Type:**	LIMITED LIABILITY COMPANY
Profit/Nonprofit:	FOR PROFIT
*Status:**	ACTIVE
Date of Formation/Qualification:	11/07/2006
Domestic/Foreign:	FOREIGN
Place of Incorporation/Organization:	NC
Duration:	PERPETUAL
FYC(Fiscal Year Closing) Month:	DECEMBER

Principal Office:
Address Line 1:	11346 TOOLE CREEK RD
Address Line 2:
City:	ABINGDON
State:	VA
Zip:	242108626
Other than USA:

Registered Agent:
Name:	DOUGLAS BEATTY
Address Line 1:	501B E. MAIN ST.
Address Line 2:
City:	KINGSPORT
State:	TN
Zip:	376600000

According to Sullivan County, DB3 Development Co LLC also owns property at 227-229-23 Sullivan St. It appears that there is construction work occurring at this location and the 2008 Sullivan County property taxes are not paid.

Let your Kingsport Board of Mayor and Alderman know your concerns about bailing out one of their pals. Keep in mind the money spent to buy the State Theater will be your tax dollars.

email Kingsport BMA