No WhiteWash!

There is a turf battle occurring between the DKA (Downtown Kingsport Association) and DBA (Downtown Business Alliance).  These two competing organizations are trying to get funding from the City of Kingsport.

It is documented that Mayor Dennis Phillips has in the past attempted to merge the DKA into the Kingsport Chamber of Commerce.

The Kingsport Times-News reports that Mayor Phillips stated that at the Oct. 6, 2009 BMA meeting they would vote on Vice Mayor Mallicote proposal to withhold funding to the DKA if the DKA did not change their board leadership guidelines.  To me, this sounds like blackmail and it also points out that Mayor Phillips and Vice Mayor political allies are in the DBA organization.

If the DKA has a problem with the current BMA decisions, they could band together and vote out the current BMA in the next election.

There has been much that has been written on this dispute in the last few years.  See the links below.

Drama unfolds at DKA press conference on old Strand Theater

Kingsport leaders seek resolution to DKA, DBA dispute

Merchants air concerns over concert stage, moving concert location

Concerts causing friction between downtown organizations

DKA, DBA at loggerheads over best way to promote downtown Kingsport

DKA leaders set for merger meeting with chamber

City may consider buying State Theater building

DKA to partner with Restoration Church on Strand Theater project

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

Comments are welcome.

Sullivan County, Tennessee again is left out of the picture for job creation.  Does Sullivan County have any elected officials that will step up to the plate and get something done about good paying jobs for the area?  Maybe the local republican elected officials lack the clout with the state government?

Contact your elected officials and express your concern.

• Kingsport BMA Members
• Sullivan County Mayor and County Commissioners
• Tennessee Legislators
• U.S. Congress

NASHVILLE — After two hours of testimony by proponents and opponents, the State Building Commission on Tuesday approved the $40 million purchase of 3,836 acres of farmland in southwestern Haywood County for the West Tennessee industrial "megasite."

State and local officials hope to use the site between Interstate 40 and U.S. 70 about 40 miles northeast of Memphis as a red carpet for a large, job-creating industrial or business development similar to those under way at Tennessee’s two other TVA-certified megasites: the Volkswagen automobile plant in Chattanooga and the Hemlock Semiconductor Corp. plant in Clarksville.

Read more via State panel approves purchase of land for Haywood megasite : Mid-South : Memphis Commercial Appeal.

The data below shows that Johnson City has increased its retail sales share of the total retail sales in the Tri-Cities area.  The new retail establishments added in Kingsport in the last few years has not stopped its loss of market share.

Source:  Dr. F. Steb Hipple – ETSU

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

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

• Mayor Dennis Phillips
• Vice Mayor Ben Mallicote
• Alderman Larry Munsey
• Alderman Jantry Shupe
• Alderwoman Valerie Joh
• Alderman Ken Marsh, Jr.
• Alderman Tom Parham

Feel free to leave a comment.

State and local officials have been working hard to finish the West Tennessee megasite.

It appears the republican controlled Sullivan County in East Tennessee is not getting the attention it should have from the state.  Click on the link below for the entire article.

The Haywood County site is the only remaining unoccupied megasite in the state, and officials are working to bring the site up to “shovel ready” standards that major corporate investors expect. Volkswagen Group of America announced its decision in July 2008 to locate a $1 billion auto manufacturing facility on the Enterprise South megasite in Chattanooga. Hemlock Semiconductor announced in Dec. 2008 it would locate a $1.2 billion polycrystalline silicon manufacturing plant at the Commerce Park megasite in Clarksville.

Read more via Kisber to Building Commission: Hold Up on Megasite | Humphrey on the Hill | knoxnews.com.

Update: This blog has sent the post below to 83 people via email or U.S.Mail that are in the list below.

Kingsport Board of Mayor and Alderman
Mayor of Sullivan County
Sullivan County Commissioners
Bristol City Council
Bluff City Mayor and Alderman
Kingsport Chamber of Commerce
Tennessee Legislators for North East TN
U.S. Congress Legislators for North East TN
Commissioner Matt Kisber- TN Economic & Community Development
Governor Phil Bredesen
Tennessee Candidates for Governor
NETWORKS Sullivan Partnership Board of Directors and Members

I am sure that the past and current elected leaders will want this graph and the facts below to disappear because it reflects on their lack of response to address the problem with Sullivan County and its cities in its declining population and other problems in the Sullivan County area.  This blog will continue to expose the facts and there will be ”No Spin” and “No WhiteWash! of the data presented on this blog.

Top Eleven Largest Counties Population – 1980 to 2030

Data for the graph and the table below is from the following links State and County Population and Population Projections for the State of Tennessee

Other Facts

• In 1980, Sullivan County was the fifth largest county and it is estimated that in 2030, Sullivan County will be the eleventh largest county.
• The population of Sullivan County is an older population and the median age for Sullivan County is 42.9 years, Tennessee is 37.2 years and Florida is 39.8 years.  The Percent 65 Years and Over for Kingsport is 20.1%, Bristol is 19.5%, Sullivan County is 17.8% and Florida is 17.4%.
• Sullivan County and its cities, (Kingsport and Bristol) have a large number of young adults leaving the area.
• The death rate for Sullivan County is more than the birth rate.
• Sullivan County birth rate is low as compared to the state.
• Sullivan County only gained 852 people between years 2000 to 2008 which gave a net gain of 0.56 percent growth.
• Average Household median income is low for the area.  Kingsport is $34,391, Bristol is $36,454, and Sullivan County is $37,559. Two people in the same household making the new Federal minimum wage of $7.25 per hour would make $30,160 per year.
• The percent of poverty for those 65 and older in Sullivan County, TN is 12.2%, Kingsport is 11.6%, and Bristol is 16.2%. These percentages are 2007 numbers and could be higher due to the recession.  The household median income for 65 and older in Sullivan County is $28,070.
• The poverty level for Kingsport is 18%, Bristol is 14.6%, and Sullivan County is 15.8%.  These percentages are 2007 numbers and could be higher due to the recession.  Poverty level for 2009 is defined for a person’s income to be $10,830 per year.
• Kiplinger’s Personal Finance survey rates the Kingsport MSA as having the highest cost of living, low median income and the worst job growth out of 10 major cities/metro areas in Tennessee.
• The area unemployment is high with Kingsport having the highest unemployment – See link for more details Jobs/Unemployment
• The Republican Party has continuously controlled Tennessee’s 1st Congressional District since 1881.  It appears for the most part that most of the new jobs are going to the more Democrat Party area.
• Kingsport has publicly stated that they would like to make Kingsport a destination city for visitors to the area while not addressing the real problems the area faces.  Spending the tax payers’ money to obtain a short-cut to generate revenue, in my view, does not help the average citizen. Spending money for a conference center expansion and aquatic center will not solve the area’s problems.  The aquatic center will not make any difference when one needs a job and there is not one available locally.  By the same token, if a job exists in the area and you need it badly, then the aquatic center does not enter the picture.
• The area has one of the largest employers (Eastman Chemical) in the state and a major tourist attraction (Bristol Nascar Race).  It appears that the elected leaders have become complacent about finding new good paying jobs because these two businesses have not increased the population and/or stopped the exit of young adults leaving the area.
• Kingsport is the largest city in Sullivan County and is proud of its reputation for having good schools.  Dobyns-Bennett High School has been named by Newsweek magazine as one of the top high schools in the country.  Having great schools apparently is not enough to keep the young adults from leaving the area in search of good paying jobs.
• Kingsport has built a Higher Education Center, but I have a concern that there will not be the needed jobs in the area for those who finish their education.  I am for education, but with the large number of students, and with nothing major coming in as far as jobs, many will leave to look elsewhere for jobs.  Increasing the percentage of college graduates in the area is good, but the percentage of college graduates might be skewed because of the number of college educated young people leaving the area and the fact that the large percentage of older folks that do not have higher education.
• It appears that local cities are striving to get new retail business into the area as an easy way to increase revenue.  Having retail is a quick way to get revenue, but as retail increases in a given city, then the share that retailers gets decreases because they have to share retail sales among many retailers.  I think a better approach would be to increase the flow of money into the area via good paying jobs, which would  provide for longer term stability for these retailers and this will also increase the standard of living for city/county citizens.
• Because of declining revenues or increased spending, cities in Sullivan County have chosen to annex new areas for the tax revenue, increase their population, and to enable the city to borrow more because of the increased asset value.  This helps the cities, but decreases the already low standard of living for the citizens.

Conclusion

The facts presented above may concern some that bringing out these issues will cause folks or businesses to avoid the North East Tennessee area.  The facts presented above are available to anyone who desires to do research.  I am sure that any large company would do their research before deciding to invest in Sullivan County.  I also feel that “enough is enough” and the issues need to be up-front and center stage to be addressed.  No more hiding the issues….deal with them head on so the region will begin to respond economically. Good paying jobs in my view is what is needed to restore what has been lost.

There must be lots of jobs and a few hundred will not do.  It should be a broad mix of jobs that would be attractive to different types of workers who have different skills or educational training.

We need elected officials that will not cater to special interests groups or use get rich quick schemes to get revenue into the local government.  Get the money flowing into the area via good paying jobs and then the region might become attractive to those job seekers. The current and past economic development efforts are not working and efforts need to be stepped up and action is needed now.  If the economic development people are not capable of delivering results, then they need to be replaced.  If local politics are hindering the economic development efforts, then that needs to be exposed and addressed.

If you are an elected official or economic development person and your views or lack of vision is holding up the region from rebounding, then you need to step aside.

What you can do?

• Go to BMA and Sullivan County Commissioners meetings and make your views known.
• Talk to your BMA or Sullivan County Commissioners individually.
• Talk to your neighbors and friends and get them involved.
• Send this post via email to your friends and neighbors.
• Talk to your U.S  Congress Legislators. and Tennessee Legislators
• Vote in the next election for those that can address the area’s problems
• Keep the pressure on the elected officials.
• Write letters to the editors at the local newspapers (Kingsport and Bristol).  Let this blog know if your letter to the editor is refused and provide a copy via the “You Report It! menu item at the top of the this page.
• Participate in local talk radio shows to express your views.
• Start your own blog.
• Now is the time to voice your concerns before taxes are raised in the future

Comments are Welcome

Please feel free to add comments via this blog

Jobs to be added in Chattanooga

The Chattanooga area’s position in the clean energy sector received a gust of confidence Friday with a German company’s purchase and expansion plan for a wind turbine tower manufacturing plant, officials said.

SIAG Schaaf Industrie AG has bought Aerisyn LLC’s plantlocated off Riverfront Parkway with plans to add 120 jobs and invest $3 million.

SIAG officials expect the Aerisyn plant to reach full production by mid-2011 and employ 240 people.

Read more via Chattanooga Times Free Press | German firm buys Aerisyn operation.

Now there are three states trying to get a Harley-Davidson motorcycle assembly plant.  It appears that Sullivan County is not in the picture for jobs that could help the declining population, young adults leaving the area, and high employment rate in the Kingsport area.  Where are the Sullivan County economic development people and what are they doing?

Indiana is trying to edge out Kentucky and Tennessee and land a Harley-Davidson motorcycle assembly plant that could employ at least 1,000 workers.

Economic development leaders in Indiana have met with executives of the motorcycle company and touted the state’s pro-business tax climate, a state official confirmed Wednesday.

Read more via State vies for Harley-Davidson site | IndyStar.com | The Indianapolis Star.

How is it that Sullivan County, Tennessee is not mentioned?  I guess we don’t  need the jobs or someone is asleep at the switch.

Shelbyville, Ky., wants a Harley-Davidson motorcycle plant. So does Murfreesboro, Tenn.

People in both areas stated their case Wednesday.

Murfreesboro is a friendly place, said Landon Kliewer, manager of Crescent Manufacturing, a local company.

Shelbyville needs the jobs, said Donnie Hill, a 73-year-old saddlebred horse farmer and life-long resident.

Read more via Southern towns: Harley plant welcome – The York Daily Record.

Below is a 2007 Average Annual Wage by Major Industry comparison for Sullivan County and Tennessee.  The graph below is from the State of Tennessee and shows the average wages if you were employed.  The unemployment rate for June 2009 was 12.7 percent for Kingsport

Median household income (in 2007 inflation-adjusted dollars)

• Kingsport $34,391
• Bristol $36,374
• Sullivan County $37,559
• Tennessee $41,821

  

Manufacturing is the winner in the above graph, but Vice Mayor Ben Mallicote in his election debates made some statements that appears that he was anti-smokestack business.  See the short clip below.