Read the following article and the comments for more information on the out of control spending proposed by our elected leaders.  Kingsport to spend about $450,000 on ‘wayfinding’ signs

If the City of Kingsport has extra money to spend that comes from the hotel tax, then how about using it to pay for the money losing convention center and golf course at Meadowview.

Maybe it is the BMA that is lost and can’t find their way to make good sound decisions.  Maybe we should have a petition to recall the current BMA members?

Kingsport, TN’s Signs

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View Current Signatures

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To:  Kingsport TN Board of Mayor and Alderman

Kingsport has recently decided that we need more signs showing how to get to random places around Kingsport. I believe we need to work on fixing the roads that we travel on to get to these places. They are trying to spend $450,000 on these signs. The money is going to a Michigan based company, at that. If you have ever got a headache from the pot holes in Kingsport or waited in traffic downtown due to the lack of turn lanes, sign the dotted line and tell our BMA we don’t need their signs!

Sincerely,

 

The Undersigned

 

Click Here to Sign Petition

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Comments are welcome

In the table below, you can see what groups of people will get the most use from the aquatic center.  It appears that the lower income and seniors will be impacted more when the current Legions pool is shut down in the future.

Deputy City Manager Jeff Fleming crafted — at the committee’s request — a demographics report on all three sites and found the Meadowview site would be the closest to a majority of people living in the greater Kingsport area.

Click here to see the Demographic Analysis for Aquatic Center.  Study the data and the criteria used and you might see that the data might have been presented in such a way as to favor the MeadowView area.

“The Board of Mayor and Alderman has pledged that revenue from the tax increase will be used to fund the $20 million center’s construction”.

This “pledge”, many would have thought is fulfilled.  This is not so.  We are going to keep these taxes up and fund everything we can.  Of course this will be  at the expense of our atm or “market” , otherwise known as tax payers. It is high time to rid ourselves of this burden.

Kingsport, TN has a similar situation with the 1/4 cents regional sales tax that was voted on by the citizens to build the MeadowView Convention Center. The current convention center was paid off in 2007 and part of the regional sales tax money goes into the general fund to spend as they see fit. MeadowView Convention Center operates each year at a loss and about $1.3 million is used from regional sales tax fund to keep it operational. The Kingsport Board of Mayor and Alderman have voted against giving the regional sale tax back to the citizens.

In an effort that could yank the funding from a school construction and consolidation project, Concerned Citizens for Community Schools is filing a petition today with the Hardin County Election Commission for a referendum to repeal a 1997 sales tax increase.

Voters overwhelmingly approved the one cent hike after the Hardin County Board of Education published paid advertisements in The Courier touting it as the solution to the county’s long-term school building needs. The 1997 ads indicated the revenue would be used to renovate and expand the high school, and gradually address building problems at all the schools.

Instead, school and county officials broke ground last week for a program that shutters five schools and funnels their students into two new 550-student elementary schools in or near Savannah.

“The county said if you give us this money, we’ll spend it this way. Ten years later they forgot the promise they made and now they want to spend our money in ways we do not support or agree with,” said Selmer attorney Christopher Donovan, representing Concerned Citizens.

According to the Hardin County Election Commission, about 1,600 signatures of registered Hardin County voters are needed to get the measure on the ballot.

Concerned Citizens says the petition contains the names of 3,000 residents from all parts of the county.

via courier anywhere.com.

See also the following links:

• Hardin County Citizens Petition to lower sales tax
• Petitions
• Cattails in Kingsport not going as planned

Kingsport Times News Published August 27th, 2008

“Kingsport needs an aquatic center to be downtown. It’s more convenient for more Kingsport residents than Meadowview. If the goal is to make the center only accessible to the affluent and tourists, then absolutely it should go to Meadowview. If it’s something for the entire community, then it needs to go downtown,” Mallicote said. “Supermarket row is blighted, rundown and ugly. If the city doesn’t redevelop it, who’s going to do it? If the city can’t afford to do it, point to the developer who could do it. The reasons stated why we can’t do it downtown are the reasons why Kingsport should put it downtown.

“It’s the heart of Kingsport, and 20 or 30 years down the road, we’ll live or die by the strength of downtown.”

However in the short video clip below you can hear Ben Mallicote state that he will be excited to put the shovel in the ground.  I guess he can change his mind because he got re-elected.  So much for his conviction about putting the aquatic center downtown.

At an BMA meeting in early 2009, Kingsport stated that they would do the following in the quote from the Times-News below.    .

Kingsport Times-News Published February 14th, 2009

Kingsport plans to solicit input from the public through the city’s Web site, Channel 16 and public meetings. The Web site will also be updated periodically with updates and notices of meetings.

Construction was to start around the third quarter of 2009.  It looks like none of the above has happened or maybe won’t happen.  If it does happen, it will more likely be, here it is and this is how it is going to be.

Chris McCartt in the video talks about future expansions and the citizens of Kingsport should be prepared to spend more money to fund the expansions.  The cost for the first phase of construction is about $15 million.

A perfect storm of a terrible economy, tight credit and oversupply of hotel rooms has slammed the lodging industry into an epic slump, industry operators meeting in Memphis were told Wednesday.

The thunder that only made conditions worse was when elected officials demonized business travel after some companies that received federal bailout money took lavish trips, hotel and travel business leaders said.

Since then, some hospitality companies have “literally changed the name of their property to take ‘resort’ out of the property name,

Read more via Do not disturb, lodging industry asks during Memphis meeting : Business News : Memphis Commercial Appeal.

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

 Mallicote stated in a radio interview that if the regional sale tax goes into the general fund, then it should be taken to the taxpayer to decide what to do with the regional sales tax.  When can the voters expect the referendum Mr. Mallicote? 

It would not surprise me to see the trees planted in the Meadowview area to make it more attractive.

Voted on and passed at the August 4, 2009 BMA meeting

Consideration of a Resolution to Authorize the Mayor to Sign alt Documents Necessary to Apply and |Receive a Tennessee Agricultural Enhancement Program – Community Tree Planting Project Grant

Executive Summary:
The TAEP (Tennessee Agricultural Enhancement Program) grant funds for community tree planting were provided by the 2008 State Legislature to the Tennessee Department of Agriculture. The goal of TAEP community tree planting grants is to increase the tree resource base in cities and towns across the State of Tennessee. It is NOT to provide beautification. Trees are work horses for our communities, providing energy savings through shading, storm water mitigation through rain interception, and air quality improvement through filtration and absorption. Beautification should not be used as an objective for a TAEP tree planting project.

The city is eligible to apply for up to $20,000 with a dollar for dollar cash match required. This match will be provided from money in the budget for trees from the regional sales tax and visitor enhancement program.

The school system is a partner in the grant and will be implementing a project through the agricultural class at Dobyns-Bennett.

April 24, 2009 post

Listen to the April 23 WJCW radio interview with Ben Mallicote who is seeking re-election as Alderman on the Kingsport Board of Mayor and Alderman

Click here for interview

In the radio interview, he is asked about the regional sales tax and he stated that there is still debt that needs to be paid off at Meadowview.  The Convention Center was paid off in 2007 and the debt that Ben Mallicote mentioned must be for the debt for the Cattails Golf Course.  When the voters voted for the regional sales tax to be used for the convention center, I am sure that the golf course had not been dreamed about.

Since the Convention Center had been paid off, Alderman Marsh and Shull voted to return the regional sales tax to the citizens by the way of a property tax deduction.

Mallicote also stated that if the regional sale tax goes into the general fund, then it should be taken to the taxpayer to decide what to do with the regional sales tax.

Mr. Mallicote should check the current budget he voted for, because part of the regional sales tax is going to the general fund.  When can the voter expect the referendum Mr. Mallicote?

1/4 percent Regional Sales Tax Fund Revenue
$2,816,600

Transfer to Cattails
$ 783,100

Transfer to MeadowView CC
$1,233,500

Transfer to General Fund
$ 800,000

Gatlinburg Golf Course has been selected as the Best Municipal Golf Course in the State of Tennessee, as published in the August issue of Golf Digest magazine.

Using a combination of star ratings from Golf Digest’s “Best Places to Play” rankings and the magazine’s “Best In State” ratings, a panel of Golf Digest contributors and editors ranked the “Best Muny Course” in each state.

Read more via Golf Digest Rates Gatlinburg As Tennessee’s Best Muny Course : Gatlinburg, TN.

Below is one page from the CIP that addresses the Regional Sales Tax Fund.  Note that there is $3.7 million slated for General Fund Payback in years 2010 – 2014.  This payback is money owed the General Fund for the convention center operation and upkeep such as putting a new roof on.

See the link: Kingsport’s swampland convention center and golf course sink on losses that shows the recent approved 2009-2010 budget for Meadowview and it’s use of the Regional Sales Tax Fund.

I have written many posts concerning Kingsport’s regional sales tax that has served it’s purpose by paying for the MeadowView Conference Center.  The bond for the conference center was paid off in 2007.

The City of Kingsport, according to the proposed 2009-2010 budget will be using the money in areas that was never intended when the voters voted for a 1/4 percent regional sales tax.

In the table below, the money from the regional sales tax is divided between three funds.  The funds go into the Meadowview Convention Center, Cattails Golf Course, and Kingsport’s General fund.

The money that goes into the General Fund can be used in any way that the city want to spend it.

Regional Sales Tax Fund

The MeadowView Convention Center revenues and expenditures below show that the convention center is operating at a loss.  $1,325,100 is needed from the regional sales tax fund to make up the loss for the year.  Also note that the revenue from the  $102,300 room surcharge, and $158,600 FF&E Fees is not much income for the taxpayers investment of $19.5 million to build the convention center.

The City of Kingsport has voted to spend an additional $15 million to expand the convention center.

MeadowView Conference Center Fund

When the voters voted for the regional sales tax to be used for the convention center, I am sure that the golf course had not been dreamed about.  But we see that $763,400 from the regional sales tax fund is being used for the Cattails Golf Course and $658,000 spent for debt service. As we can see below in the table, the golf course is not breaking even and the investment of $6.2 million has not been a good investment of taxpayers money.

Cattails Golf Course Fund

Overall the taxpayers have invested $25.7 million in the current MeadowView Convention Center and Cattails golf course.  From the budget items above he convention center and golf course do not make money. The City of Kingsport is spending another $15 million to expand the convention center into an executive conference center.  This would make about a $41 million investment in MeadowView and would not include interest.

1/4 percent Regional Sales Tax Fund Revenue $2,816,600

Transfer to Cattails $   783,100

Transfer to MeadowView CC $1,233,500

Transfer to General Fund  $   800,000

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.

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