Kingsport, TN City Officials Exposed
November 6th, 2009
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A reader of this blog has submitted information below on the series of events that certain Kingsport city officials took to help out their friends. In my view, the City of Kingsport should keep it’s nose out of other organizations business. See previous post on Kingsport’s downtown turf battle. Mayor Phillips photo is on the above left and Vice Mayor Mallicote is on the above right.
Summary: The recent numerous public accounts of continuing disputes in downtown Kingsport are unfortunately the result of extraordinary biased “leadership” by the Mayor and Vice-Mayor of Kingsport, that have emboldened and enabled bully tactics by the very small group of businesses that call themselves the downtown business alliance (dba).
The dba has been grossly misrepresented publicly as having over seventy members; while in reality it is led by two important downtown businesses (Adaptcore and Urban Synergy). The dba only has a handful of strong supporters, none paying membership dues while the Downtown Kingsport Association (DKA) has 160 dues paying members and represents a broad range of downtown interests and has been doing so successfully for 70 years. The leaders of the dba have been key campaign supporters of city leadership preferred political candidates while the DKA board has been perceived as political opponents of city “leadership” The DKA has taken extraordinary measures to accommodate the legitimate interests of the dba; the DKA has met 100% of its contract deliverables to the City of Kingsport, which has not been disputed; yet demands for extraordinarily detailed and unfortunately increasingly stringent organizational changes have been placed upon the DKA by the Mayor and Vice-Mayor accompanied by unwarranted public attacks and bias by them.
The dba has failed to meet its few minor commitments to the DKA, but the city “leadership” has never requested the dba to comply. These actions by city “leadership” have harmed downtown Kingsport and are apparently driven by personal vendettas and agendas by them and not by any desire to improve Kingsport This is the second effort by city leadership to destroy the DKA as the Mayor attempted to force a “merger” with the Chamber of Commerce last year that made no sense.
- In 2008 the Mayor demanded that the DKA enter into “merger” discussions with the Kingsport Chamber of Commerce or receive no funding with no explanation of why this was appropriate This was a bad idea by the Mayor, and after brief discussions between the Chamber and the DKA both parties agreed If the Mayor had been successful, it would have meant the end of the DKA.
- The DKA negotiated a detailed list of 8 pages of deliverables with the city for the fiscal year ending June 30; and every single deliverable was met successfully. which has not been disputed.
- Late 2008 an informal alliance of a few downtown businesses (dba) approached the city regarding what that they perceived as problems within the DKA. The Mayor apparently saw this as second opportunity to destroy the DKA. Despite the dba refusing to be members of the DKA and work from within for improvements, the city “leadership” encouraged and emboldened the dba to compete with the DKA, to demand board seats and to further demand a long list of detailed organizational changes still without even joining the organization. The city “leadership” should have advised the “dba” to join the DKA and work from within instead of encouraging the bullying tactics employed by the dba. If city “leadership” had acted appropriately at this point all the competition and disputes between downtown organizations would have been avoided.
- In February at a joint meeting attended by the Mayor, the dba and the DKA, the Mayor unfortunately showed his bias by opening the meeting prior to any discussions of the parties by advising the DKA to provide 6 board seats to the dba. He did not advise the dba to join nor make any suggestions to them on how to better work together.
- Also in February the DKA submitted a funding request with a detailed set of deliverables and at a proposed funding level to address increased downtown marketing as targeted by the dba. The city “leadership” provided no feedback on the proposal and the proposal was not even provided to the rest of the BMA for consideration. No opportunity was provided for the DKA to discuss this proposal with the BMA.
- Instead the city “leadership” scheduled a BMA work session in May regarding funding for downtown activities; they provided substantial advance notice to the dba who were given an opportunity to make a formal presentation while the DKA was given only one hours notice. This was a blatantly unfair by the city “leadership” The BMA tentatively split funding, which led to further competition between the groups and ultimately to formal mediation. This was a serious mistake as the dba was not a qualified non-profit organization legally able to accept city funding. In fact the dba were not even a legal entity, but only an informal alliance, which is still true today.
- City “leadership” is well aware that the dba has been grossly exaggerated in public descriptions of its size. In fact it is led by AdaptCore (owners of Bonefire Smokehouse, The Bus Pit, Kingsport Grocery and the apparent failed attempt to renovate the State theater) and Urban Synergy (developers of numerous lofts and business building renovations downtown) and a very small group of other moderate supporters. While these two companies are important to downtown, they do not represent broad interests downtown such as manufacturing, professional services, medical, banking, churches, etc. as the DKA does.
- Despite its funding cut, the DKA led an effort to have Kingsport’s greatest July 4th concert and fireworks display ever.
- At the first mediation meeting in July the Mayor and Vice Mayor were not neutral parties, they completely advocated on behalf of the dba; and made extraordinarily disparaging remarks about specific DKA board members. The dba had three pages of specific organizational demands and the DKA placed no demands upon the dba. The mediator stated that certain key corporate sponsorships were threatened unless the DKA met the demands of the dba and city “leadership” This meeting with two BMA members attending may have been a violation of State sunshine laws, which should be investigated.
- On September 28 at a BMA work session the Vice Mayor presented a completely one sided proposal to the BMA and falsely portrayed it as a “middle of the road” proposal. In fact if it had been accepted that evening by the BMA (which it was not), the DKA would have been required to meet 100% of every onerous demand by the dba, including a ridiculous demand for twelve Board seats or the DKA would receive no funding; and the dba would not have been required to do anything!
- At a DKA press conference on Oct 2, an extraordinary positive announcement was explained about downtown Kingsport. A joint arrangement had been reached between DKA and the Restoration Church located in the previous Strand Theater to lead to immediate and regular stage performances focused on family based dramas in this currently fully functioning state of the art performing arts facility. Instead of city “leadership” attending the press conference to praise these efforts, the Vice-Mayor attended, had no positive statements to make, and focused all his statements on creating false charges about timing concerns related to these actions. In the Kingsport paper the next day a great positive story for downtown Kingsport should have been the focus, but instead because of the Vice-Mayor’s almost unbelievable anti Kingsport actions another negative story was the focus.
- Alderman Munsey agreed to work over next two weeks (from Sept 28) to attempt resolution. During that period much real progress was made and only four detailed issues remained to be resolved by the next BMA work session on Oct 5, at which the BMA had targeted for final resolution. Note that while the DKA continued to make concessions in good faith the dba reduced its commitment to bring in new members to 15-20 from the 50-70 they first made in July and from the 30-40 new members promised just two weeks earlier.
- Well in advance of the Oct 5 BMA work session, the DKA prepared and submitted to the city manager’s office an 11-page presentation to be reviewed with the BMA that clearly laid out the case for the value of DKA and its rationale for funding. Unfortunately the Mayor advised the DKA ten minutes before the meeting that the DKA would be given no opportunity during the alderman discussion of potential DKA funding to discuss or review the presentation. Again this was grossly unfair.
- At the same meeting Larry Munsey covered the progress he made as described in his Oct 2 report and the four remaining issues were identified (number of board seats, term limits, election procedures this year and nominating committee). One alderman suggested the dba and the DKA representatives go outside the room and see if agreement between the parties could be reached. After a brief meeting, full agreement was reached, and it was explained orally to the BMA. The DKA, the dba and the DKA thought all of the BMA understood final agreement was reached that evening between the dba and the DKA, and that funding would be released right away to the DKA so that a completely unified downtown would be put into place immediately.
- Unfortunately the next evening the Vice Mayor continued his vendetta and convinced the BMA to impose additional requirements upon the DKA before funding would be released that had not been agreed to the previous night. The vice-mayor publicly criticized the DKA and funding was to be further withheld until the city attorney certified DKA had met its obligations. This was a serious mistake, and the BMA was advised of such as city “leadership” had previously demonstrated on numerous occasions they could not be trusted as described herein.
- Nevertheless the DKA continued to work in good faith to meet its commitments. Its Board met and made all the bylaw changes that it had agreed to. It added two representatives to the dba to the Board nominating committee and worked in good faith to pick six Board candidates from their list of 12 suggested (as was agreed to). The dba had agreed at the last BMA work session to have all of its board candidates join the DKA, generally for small business at the relatively small cost of $150, but unfortunately the dba did not comply.
- On Oct 28 a meeting of DKA, dba and city representatives was held. The dba admitted they still had not met their requirement for any of their Board nominees to join, but the dba now pushed ahead attempting to negotiate additional concessions from the DKA. On one issue the city attorney clarified that what the DKA had changed in its bylaws was consistent with the agreement previously reached and the dba position was wrong. On another issue the dba was again wrong as they were citing a preliminary report from Alderman Munsey not the final report. The DKA clarified such that evening to all parties. Despite the fact the dba had not met its meager commitments and the DKA had met 100% of its very demanding commitments, the Vice Mayor requested nothing from the dba, but insisted that the DKA make concessions beyond the agreement previously reached. The dba again agreed they would bring in the promised membership checks by the end of the day.
- By an Oct 29 called BMA work session, the dba still had not brought in any memberships as repeatedly promised and the DKA had met all its requirements that it agreed to on Oct 5. In fact the dba now was demanding several additional new concessions mostly of a technical nature. Instead of allowing the city attorney to discuss how the DKA had complied with its requirements and allow his certification for funding as the BMA had previously voted, the Vice Mayor convinced the BMA to support (subject to a final vote on Nov 3) funding for downtown through the KCVB, which already receives nearly a million dollars in city funding. There is no logical reason to take away DKA funding for additional funding to KCVB.
- At the November 3 BMA meeting the BMA voted by 5-2 to fund the KCVB. The two aldermen that voted on principle were Ken Marsh and Larry Munsey.
- The DKA has fully met all its commitments. The dba has not. The city “leadership” is continuing to deny funding to the DKA despite this, and has demonstrated that the Mayor and Vice-Mayor never intended to negotiate in good faith.
- It is now clear to the DKA that the Kingsport Mayor and Vice-Mayor are biased regarding the DKA.
Comments are welcome on this blog.
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.
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