No WhiteWash!

MeadowView had its grand opening on August 18, 2009 for the expanded hotel that is adjacent to the City of Kingsport Convention Center.  There has been some confusing statements made in the Kingsport Times-News articles below.

There are conflicting statements as how much Meadowview has brought to the area. The Times-News editorial below states property values have increase to $83 million and the August 18 Times-News article below states two different property values ($60 million to over $80 million) and also two different property tax numbers ($1.16 million and $650,000).

Linking the MeadowView Hotel and the Convention Center with other building investments in the MeadowView area is wrong.  It is more of a case that the land was available to build on and developers took advantage of that.

When I visit my doctor in the Meadowview area, I do not stay at the MeadowView Resort and Convention Center at prices that start at $159.00 per night.  In addition, if I wanted to go to Eastman Credit Union, get my hearing checked, get a cup of coffee, get my teeth worked on, have plastic surgery, go to the Social Security office, etc., I don’t have a need for the MeadowView Resort and Convention Center.

It is apparent that the city leaders are attempting to ride on the coattails of the surrounding businesses to justify the MeadowView Convention Center Expansion.

I am sure that the surrounding businesses do not need to ride on the coattails of MeadowView Resort and Convention Center.  They would do just fine if there were no MeadowView Resort and Convention Center.

Meadowview Conference Center does not make money and the taxpayers are the ones that are keeping it afloat. $1.3 million is what is needed each year from the taxpayers to keep it operational and it is very clear that the City of Kingsport is not capable of managing the convention center to make a profit. It would be in the best interest of the taxpayers to give the convention center to private enterprise or to tear it down.

The city plans to expand the convention center at a cost of around $15 million, which would make the taxpayers investment in Meadowview about $41 million   This $41 million includes the golf course, current convention center and the new expanded convention center.

Kingsport Times-News Editorial – August 17, 2009

Three years before MeadowView opened its doors in 1996, appraised property values in the MeadowView Gateway area were $2.7 million. By last year, property values had increased more than thirty-fold to $83 million.

Renovated, expanded MeadowView Marriott marks grand opening – August 18, 2009

it has generated more than $60 million in new private-sector investments in that portion of town. Those investments in turn have generated more than $1.16 million in new property taxes each year.

….This is truly a partnership,” said Mayor Dennis Phillips. “It’s a win-win for the city.”

He said before MeadowView was built, the property was assessed at $2.5 million. Today, the value has jumped to more than $80 million.

“That’s an additional $650,000 a year to city coffers,” Phillips said. “This community owes you (MeadowView) a great debt of gratitude.”

See the following link for more information on MeadowView

It will interesting to see what pet projects, the Kingsport Board of Mayor and Alderman will fund in the upcoming 2009-2010 budget.

There has been discussions concerning the funding of the Summer Concert.  The Chamber of Commerce has requested $94,000 because corporate donations are down.  The city appears that they would be willing to give $70,000 which is what they gave last year.

It appears that the citizens of Kingsport in these tough economic times, will have to fund the Summer Concerts that for the most part benefit the downtown businesses.  I think you would hear downtown businesses get very vocal if the Summer Concerts were held somewhere else besides downtown.  If they want the Summer Concerts, then they should fund it.

One also needs to look at how the KNETIC organization was able to get the concessions and beer sales for the Summer Concerts.  In the past years, it was handled by the Chamber of Commerce who subcontracted to the Downtown Kingsport Association.  On the KNETIC website, they state their members ages ranges from 20 somethings to 40 somethings and they boast that they have 2 Alderman as members.  There are only two Alderman’s ages that fit that age range and only one of the two is running for re-election as an Alderman.  Also, one needs to ask are there any family members of Mayor Dennis Phillips that are connected to KNETIC.

Alderman Pat Shull has stated that the funding of the concerts is a very narrow interest type thing and the $70,000 could be spent elsewhere like fixing streets.

Below are some items that were in the 2008-2009 budget.

• Kingsport Ballet $5,000
• Summer Concert  $70,000
• Kingsport Theatre Guild  $5,000
• Kingsport Art Guild  $2,000
• Symphony of the Mountains  $5,000
• Art Council of Greater Kingsport  $7,000
• Kingsport Housing Redevelopment Authority  – Lincoln Street property  $200,000
• Kingsport Housing Redevelopment Authority – redevelopment program  $63,000
• Kingsport Chamber Foundation  $110,000
• Kingsport Tomorrow Inc community program  $23,000
• Networks  $225,000
• Downtown Kingsport Association  $40,000
• Children Advocacy Center of Sullivan County $5,900
• First Tennessee Development District  $3,200
• Sullivan County Humane Society  $36,000
• First Tennessee Resource Agency  $10,900
• Kingsport Chamber of Commerce – Move to Kingsport $45,000.  Plus Kingsport will pay another $45,000 matching funds
• Holston Business Group  $50,000.  Plus a percentage of the city annual budget.
• Kingsport Chamber of Commerce gets a large percentage of the hotel tax
• City Manager got a 4% pay raise on July 1, 2008 plus his performance increase

The Kingsport Chamber of Commerce needs to be careful about it’s role in the upcoming Kingsport Board of Mayor and Alderman election.

The Chamber might want to reward those on the BMA that voted for projects such as Meadowview Convention Center Expansion, Aquatic Center, etc.  Endorsing or even suggesting a certain candidate in the name of the Chamber of Commerce to me would be un-ethical because the Chamber receives taxpayer funding.

In my opinion, all of the members of the BMA are for pro-growth, pro-economic development, etc.  There are some on the BMA that have a different view on how taxpayer’s money should be spent.  One cannot say that they are anti-business.  In fact, Marsh and Shull were trying to protect local business by voting against the V.O. Dobbins Center.  Local business property owners that rent to non-profits will lose tenants when the V.O. Dobbins Center is completed.  The City of Kingsport does complete with the private sector in other areas and could be also be called anti-business.

The concern is that the Kingsport Chamber of Commerce gets a fair amount of city dollars and the city bends over backward to take care of the big businesses.  It is my felling that the Chamber needs to be very careful about what it says about the upcoming election for BMA members. 

Taxpayer money is given to the Chamber and if the mayor and certain members voted to help out special interest groups, then it could influence what the Chamber says.  If this does happen, then in my view would be un-ethical.

What are your views with the Chamber involvement in local elections?

Would it be un-ethical for the Chamber to hint that they are for certain candidates?

Is it ok for  the Chamber to take taxpayer’s money and then make statements that give the impression that they are for certain candidates?