No WhiteWash!

There are four positions on the Kingsport, Tennessee Board of Mayor and Alderman that are available for the term starting on July 1, 2009.

The current BMA members whose terms will expire are Mayor Dennis Phillips, Alderman Valerie Joh, Alderman Ben Mallicote (the vice mayor) and Alderman Pat Shull.

Any person who is a qualified voter of the city and who has resided within the city for at least one (1) year next preceding the election shall be eligible to election to the office of mayor or alderman.

Residence within any area annexed in a year preceding an election shall be counted in meeting the residence requirement of this section.

The City is governed by a seven member Board of Mayor and Aldermen, elected at-large and on a non-partisan basis for four-year staggered terms. The exception to this rule is that the Mayor is elected at-large for a two year term. Elections are held in May during odd numbered years. The new Board of Mayor and Alderman is seated on July 1 of each election year.

If you have a desire to be on the Kingsport Board of Mayor and Alderman, you will need to pick up your petition at the below location.   The deadline to submit completed petitions is noon on February 19, 2009.  25 signatures from registered voters are required on the petition.

City elections:  2009 schedule

Feb. 19 – Candidate petitions due in county elections office
April 20 – Last day of voter registration.
April 29 to May 14 – Early voting period.
May 19 – Election Day

There was a newspaper article below written by Bill Bovender, a local attorney in Kingsport, Tennessee, that attacked the views that many citizens of Kingsport have in the way the Kingsport government is run.

I am sure that Bill Bovender’s talking down to and labeling citizens as GDD (gloom, doom, and depression), that do not share his view will not go down easy.  In fact, I am sure that many will find his elitism views and name calling insulting.

If one compares Alderman Shull’s ”A New Direction for Kingsport” and Bill Bovender article, they can see he is not only criticizing Shull, but distorting Shull’s positions and is resorting to name calling.

It is easy to notice how the “elites” have rolled out the old attack machine against anybody who dared to present a different view?

It is also easy to see that Bill Bovender is not exactly an innocent bystander when one Googles his name and see his involvement in city/county affairs.  If one also does a Google search on Keith Wilson, Publisher of the Kingsport Times-News and Ted Como, Managing Editor of the Kingsport Times-News, one can see they they are also not innocent bystanders because of their involvement with the city and county affairs.

The Letter to the Editor below was submitted to the Kingsport Times-News for publication in response to Bill Bovender article.  Kingsport Times-News should print Alderman Shull “A New Direction for Kingsport” and his letter to the editor.

The Kingsport Times-News in my opinion can be very stubborn on many issues.  See previous posts from this blog and check out what this blogger had to do to get porn/spam off the Times-News webpages.

Feel free to leave a comment.

LETTER TO THE EDITOR

A few days ago I wrote an article entitled “White Paper: A New Direction for Kingsport”. I sent it to several citizens including Mr. Bovender and the editor. Therefore, folks that read my paper will recognize his column as a thinly veiled personal attack on me. Unless the Times-News publishes my paper Mr. Bovender will have it both ways, a forum for his attack and the ability to prevent his readers from understanding the context of my views.

I spoke to Bill at length a few months ago. His views about the “progress” that Kingsport has made are sincere, almost to the point of being emotional. In my view, this emotional aspect is what has caused him to attack me. He has not contacted me personally; instead he prefers to characterize me as “negative”. I’m sure that the soldiers that I led in Iraq, my co-workers, and the Kingsporters who share my political views would disagree with this characterization.

Bill is not an ignorant person. Yet the way that he describes my positions have little relation to the merits, they are simply belittling and unhelpful to any citizen trying to understand the issues. Why is it that some insist on demonizing the opposition rather that engaging in fair debate? The overriding question before the BMA is how much “progress” can we afford and at what pace?

I am open to discuss and explain my positions with any citizen. An examination of my voting record will reveal that I supported several measures that Bill would call “progressive”. Most importantly I “positively” supported a resolution to cut property taxes which was recently defeated 2-5 by the BMA.

Bill, some free advice – stick to the issues, simply attacking my credibility won’t work. Kingsporters are smarter than that.

Below, is the Kingsport Times-News article written by Bill Bovender that appeared in the Sunday December 7, 2008 newspaper.

In my opinion Bill Bovender attack on certain BMA members is not exactly stating their real positions and Bill Bovender appears to be speaking for the elites who can be labeled as TB&S (tax, borrow and spend)

Gloom, Doom and Depression crowd should get with the program

There are a few people around Kingsport with political aspirations who do not view the progressive sea change the Model City has experienced over the past few years as a positive thing. If one were to put a label on their attitude, it would be that they are purveyors of Gloom, Doom and Depression or GDD.

Some of the GDD’s ideas include: Let’s return to the good ole 1950s, because the city’s ruling class has gone too far, too fast. Debt reduction should be the number one spending priority — not education, infrastructure, etc. “Economic development” is deemed by GDD as a bad word. John Adams Elementary School is a waste of tax dollars. The at-large election of the Board of Mayor and Aldermen should be trashed, with a ward system being utilized. I cannot wait for the ward bosses to appear. Well be just like Chicago. GDD claims city leaders are “elitist” and have no “vision.” Want elitism? Go to an “old south” town. Kingsport is about as anti-elite as any place you can find.

The attitude of GDD reminds me of some of Spencer Tracy’s lines in “Inherit the Wind,” the great movie about the Scopes Monkey Trial. Tracy played a fictionalized Clarence Darrow, who actually defended Scopes. At one point during the movie’s version of the trial, he says something like “… with flags flying and banners waving, we’ll march back, backward into time.  “I’ll be the first to admit that there is merit in some of what the GD and D’ers are saying.

However, having lived here for 33 years, I find the many things going on — downtown education center, new restaurants, new retail, job creation — make this the most exhilarating and promising time I have experienced.

It is hard to understand negativity. Some just exude it. The glass is half-empty is their mantra. Is the country experiencing tough times? Yes. Must Kingsport prioritize? Yes. I thought that was what the city leaders have been doing.

Most of the BMA, Mayor Phillips, and City Manager Campbell have awakened a sleeping giant  Don’t think for a minute surrounding cities have not noticed.

There were plenty of people in John-son City who claimed John Campbell and the majority of the City Commission were without “vision,” even “fools,” for suggesting a new road be built connecting north Johnson City with ETSU. State of Franklin Road appears to have weathered those narrow-minded nihilists.

There is more “going on” in Kingsport than almost at anytime in decades. But, it is the progress and growth which Kingsport is experiencing which seem to bring out the cavedwellers, nay-sayers, and general “agin it” crowd.

There is real danger that, in writing this column and commenting on the ideas of GDD, I will end up aiding rather than hindering the movement GDD covets.

I hope that is not the case. Never in the past 30 years has Kingsport been as exciting—a fun place to live. The investments being made by the city will yield tremendous returns. We may well be able to keep our best and brightest kids around.

I was recently involved in a lawsuit where one issue was the alleged inability of a company to recruit people to come to this area to work.

Supposedly, the potential candidates described Kingsport as “backwards,” “nothing to do,” the “boondocks,” and just a “smelly little town.”

The various projects, expenditures, annexations and activities initiated by Phillips, Campbell, and the BMA fly in the face of those who were not interested in moving here. The Gloom, Doom and Depression coterie needs to get on the team.

Bill Bovender practices law in Kingsport E-mail him at [email protected]

UPDATE:  Alderman Shull sent his ““White Paper: A New Direction for Kingsport” via email to about 50 people and asked for comments.  Below is the Managing Editor of the Kingsport Times-News’s response that was obtained from a confidential source.  The reply to Alderman Shull also went to the same large group of people.

The response below from the Kingsport Times-News to me is disturbing in that the Times-News is dictating what the readers of the newspaper should read.  Ted Como should report the news and not control the news.  Let the citizens decide their own views.

It is easy to notice how the “elites” rolled out the old attack machine against anybody who dared to present a different view?

If one does a Google search on Keith Wilson, Publisher of the Kingsport Times-News and Ted Como, Managing Editor of the Kingsport Times-News, one can see they they are not innocent bystanders, because of their involvement with the city and county affairs.

The local newspaper can print what they want, but they should also be aware that the readers can also choose not to read the bias views of the Kingsport Times-News.

From the response below, it is my opinion that the Kingsport Times-News is in the tank for Mayor Phillips and his gang.  This, I am sure will be not be a surprise to the citizens of Kingsport.  From the tone on the email message below, it appears that Ted Como has an axe to grind.

—–Original Message—–
From: Ted Como

Sent: Thu, 4 Dec 2008 7:53 am
Subject: Re: White Paper

Pat:

Since you asked…

You basic presmise is that city government is out of control and that residents agree with you, to wit: “There is a growing dissatisfaction among many Kingsport citizens regarding the direction taken by the current administration of our city government…;” “…much of the citizenry… seriously question(s) the wisdom of certain decisions…; “Our citizens take a dim view regarding the millions of dollars spent on projects…;”  “many citizens have become disenchanted with their elected representatives…;” “A strong perception exists among the electorate that the BMA is only concerned with the views of an ‘elite’ and not the majority of citizens, and is unwilling to change;” etc.

Says who? How do you know what the majority of residents believe? Have you polled? Have you call everyone and asked?

Fact is, you have no clue what the majority of city residents believe (and of course, neither do I.) You simply assume that most everyone must agree with you – because they can’t see the forest for the trees, and you can. I’m not “from around here” and have only been observing Kingsport city government and all other aspects of this community for 26 years. But my sense is that the majority of city residents are very supportive and appreciative of efforts to expand the retail tax base and generally feel that due to progressive government of late, Kingsport has finally “arrived.”

You believe “city leadership has gone too far, too fast in spending taxpayer funds in an unfocused effort to be ‘progressive’, thereby raising municipal debt to dangerous, unprecedented levels.” What’s “unfocused” about these economic development efforts? It is simply ridiculous to state that municipal debt is at “dangerous” levels when – as you point out – it’s well within the city’s ceiling and ability to support. Further, “The cumulative effect of major spending decisions over the last 3 plus years has jeopardized the long-term financial health of the city…” To the contrary, the only way the city grows is by expanding the tax base and prudent managment of investment and debt makes that possible. And I believe that’s been the case.

Pat, I appreciate your point of view and your service to Kingsport. But frankly, I don’t know why you asked: I don’t think it matters to you what others think because I also believe that your mind is closed on these issues.

Ted

Came across an article written by Alderman Pat Shull, that is a must read if you care about the direction, the City of Kingsport, Tennessee has been headed.  Alderman Shull identifies problems and offers solutions.

A NEW DIRECTION FOR KINGSPORT

Patrick W. Shull, Alderman, City of Kingsport

There is a growing dissatisfaction among many Kingsport citizens regarding the direction taken by the current administration of our city government.  In a nutshell, the city leadership has gone too far, too fast in spending taxpayer funds in an unfocused effort to be “progressive”, thereby raising municipal debt to dangerous, unprecedented levels.  While some of the actions taken by the Board of Mayor and Alderman (BMA) have been very positive, the cumulative effect of major spending decisions over the last 3 plus years has jeopardized the long-term financial health of the city, caused much of the citizenry to seriously question the wisdom of certain decisions, and distracted the city from addressing several areas of concern.  The purpose of this paper, therefore, is to highlight problem areas and recommend solutions to those problems.

Municipal Debt: As recently as 2006 the City of Kingsport was on target to bring the overall debt down to the $100 million mark.  Since then, however, the debt has soared until it is now projected to exceed $200 million by early 2009.  So far, the city is still under the legal thresholds for municipal debt.  But the looming danger is that the current economic recession that the United States is experiencing will result in a downturn in city revenues via sales tax receipts and state shared taxes.  As of this writing Kingsport’s unemployment is rising, our bond ratings may be downgraded, and we look poised to start experiencing the severe economic problems already being faced by national and state governments.  The massive debt that the BMA has incurred equals a future tax increase.

Solution: The BMA must start prioritizing spending, something that it has refused to do during the current administration.  The next budget should be tailored to begin paying down debt, not continually increasing it.  We should limit the growth of the city workforce to the rate of growth of the city.  And, we simply cannot begin any new major projects unless we identify a method of paying for it which does not increase the current debt level. Further, the main thrust of major capital projects should be improving the infrastructure for the long term benefit of all citizens. This will require the ability to distinguish between “needs” vs. “wants”.  Finally, the BMA must resist the temptation to raise taxes, the exact wrong thing to do in the middle of a recession.

Annexation: The city has established a pattern of annexing “targets of opportunity”.  Annexation is important to the long-term growth of the city, but it needs to proceed in a reasonable, planned pace.  The major costs of annexation are heavily weighted on the front end and borne by the current city taxpayers – not the annexed areas.

Solution: Kingsport needs a 360 degree comprehensive annexation plan.  Because the Regional Planning Commission is an arm of the city, we have the obligation to plan annexation in a careful, rational manner, which considers the concerns of all the stakeholders including the county government and citizens within the urban growth boundary.  Simply jumping around as we are now only serves to unduly alienate our county constituencies and incur unnecessary un-programmed expense.

Economic Development: This term is probably the most imprecise term in the BMA lexicon.  Because it lacks definition, the current administration has justified a number of questionable actions by citing them as good for economic development.  The public has grown weary of targeted tax breaks and fancy projects aimed at pleasing narrow constituencies.  Our citizens take a dim view regarding the millions of dollars spent on projects while at the same time they are running over pot-holes in our streets.

Solution: The next administration must reach an understanding among the BMA members and our citizens about the proper role of the city government in the local economy.  Traditionally the most productive role the city can play is to help create a climate where the private sector can thrive by: providing superb schools; world-class infrastructure: outstanding public safety; low taxes; excellent public services; and assurance that all citizens will be treated fairly by their government.

School Support: Sullivan County has over capacity in its school system while simultaneously experiencing a decline in school age population.  Conversely, the City of Kingsport is building a new elementary school and is projected to have increases in school age children.  Simply put, this situation is a waste of Sullivan County taxpayer dollars which affects the majority of Kingsporters.  This appears to be a “political” problem beyond the ability of the county and city school boards to solve.

Solution: Kingsport must call for an Education summit between all city/county players.  State law provides ample authority for school districts located in the same county to cooperate in the best interests of the public.  It is certainly within the public interest to resolve this problem and stop wasting money.

City Employee Retirement Costs: The city is one of the few remaining employers with a Defined Benefit Retirement Plan.  This is increasingly becoming unaffordable.  The longer we wait to fix this situation the more expensive resolution will become.

Solution: The city staff must provide a transition plan soon which converts the city to a Defined Contribution system.  At this point there is still a small window of time remaining where this can be done and still keep faith with the current work force regarding their future benefits.

Under-represented Citizenry: There are no Aldermanic districts in Kingsport, all BMA members are elected at large.  As the city population has increased, especially due to growth from recent immigrants, many citizens have become disenchanted with their elected representatives, several whom they view as representing special interests and being “out of touch” with regular, ordinary citizens.

Solution: Kingsport needs four districts with a neighborhood blend of various levels of socio-economic status.  The resulting BMA would have four Aldermen representing districts, and the Mayor and two Aldermen elected at large.  This would provide a better balance of competing interests.

“Distant” Local Government: The majority of the BMA recently passed two controversial measures affecting the Meadowview area despite the majority of Kingsport citizens being opposed.  A strong perception exists among the electorate that the BMA is only concerned with the views of an “elite” and not the majority of citizens, and is unwilling to change.  The current leadership does not hold “town hall” meetings, and often rush resolutions and ordinances through the process before the citizens have had time to “catch-up” with what is occurring.  And the current leadership is not reluctant to wield the enormous power of government in questionable ways.

Solution: New leadership in City Hall is needed to reach out to all citizens.  The BMA needs to seriously consider the views of many, not just a few.  The next BMA needs to be focused on maximizing citizen freedom, not pleasing elite constituencies.

Lack of Leadership Vision: The current administration has never presented a coherent vision of Kingsport’s future which ties various major projects together or prioritizes spending in a logical, considered manner.  Instead the BMA approaches business in an incremental, “one-project-at-a-time” manner. This approach has been a model of adhocracy which renders it impossible for the public, or even other elected officials, to ascertain exactly what we are trying to accomplish.

Solution: The next administration needs to develop and explain a vision of Kingsport’s future which  the public can understand and embrace.  There are several potential contributors to this process which are currently shut out in favor of selected interests.  This vision can be linked to the budget and future planning in a systematic way.

The Kingsport Board of Mayor and Aldermen voted on November 18, 2008 to spend $15.3 million for the MeadowView Convention Center Expansion, which will benefit special interest groups. As hard as Alderman Marsh and Alderman Shull have tried, the balance of the BMA refuses to give back the 1/4 percent Regional Sales Tax back to the citizens of Kingsport. It is a SAD day for Kingsport. Also, the BMA voted to spend $7.1 million for V.O. Dobbins renovation and expansion and $12.3 million for capital projects such as roads and parking garage. Total approved at the meeting was $34,753,000.

I had reported earlier that this was the first reading and the second reading was to be held on December 2, 2008.   However, I have learned that there will be no second reading and  this was an “Initial” resolution, which means the city staff is authorized to go into the bond market to make a deal subject to BMA final approval.

If you have a concern about this debt or the items below, then voice your concern to the BMA members. You can express your concerns by going to the meetings, write letters to the editor, talk to them on the telephone, leave a comment on this blog

There were three bonds that were voted on at the November 18, 2008 Kingsport, Tennessee Board of Mayor and Alderman. A total of $34,753,000 was voted on and passed.

This was an “Initial” resolution, which means the city staff is authorized to go into the bond market to make a deal subject to BMA final approval.

The three bonds are as follows.

The items in green in the table below gives the details for the General Improvement Bond ($12,305,000) and it would have been nice if the items in the General Improvement Bond were listed separately. Politics, I am sure has something to do with it, because of the way it is listed. For example, if a BMA member had a strong desire against one of the items below in green, but was for the balance of the items, then it may force the BMA member to vote for something he/she was against to get the good items.

I have written many posts concerning the MeadowView Convention Center Expansion. This expansion of the convention center in my view, caters to the special interests. The current convention center has not made money and the taxpayers are keeping it afloat. Johnson City, Tennessee Millennium Centre has not made money since it was built in 1999. I do believe that the City Manager of Johnson City was John Campbell when it was planned and built. Now, John Campbell, who is now the City Manager for Kingsport wants to do it here.

On the V.O. Dobbins Center, Alderman Marsh and Shull voted against this project, because it had grown into something bigger than in the earlier discussions. Both, Marsh and Shull expressed concerns that the city was getting into the business of competing with the private sector.

Alderman Marsh stated that the City of Kingsport is attacking its own taxpayers by competing with businesses that has rental property that rent to nonprofits. The city is looking to have as renters, non-profits that are renting elsewhere in the city. For example, if the city is successful, United Way would leave the downtown area to relocate to the V.O.Dobbins Center and thus steal customers away from the private sector.

With the final approval of the three bonds below, the total debt would be $190.7 million and this does not include the aquatic center. Alderman Marsh has stated that the debt could go as high as $250 million in the next few years.

If you have a concern about this debt or the items below, then voice your concern to the BMA members. You can express your concerns by going to the meetings, write letters to the editor, talk to them on the telephone, leave a comment on this blog

The November 18, 2008 business meeting of the Kingsport, Tennessee Board of Mayor and Aldermen was a very lively heated debate concerning the MeadowView Convention Center expansion.

I saw political spin in action with the City of Kingsport attempting to justify the convention center expansion and using the Regional Sales Tax to fund it.  There was an attempt to explain how great things are going in Kingsport.  If Kingsport is doing all that great economically, then why not return the regional sales tax to the taxpayers

Vice Mayor Mallicote went on the attack with Mayor Phillips also jumping into the fray over remarks made by Alderman Shull.  Everyone on the BMA should be able to state their views without being attacked.

Vice Mayor Mallicote stated that he had researched and had found many newspaper articles concerning the MeadowView expansion and it was not be something that was kept from the public.  The problem that this BMA had was the cocky attitude displayed. There was a brief discussion on the economics of the expansion and there was a rush to railroad a vote on it the next night without public input.  It was like we have the votes and we don’t care what you think.  Alderman Marsh and Alderman Shull both attempted to delay the vote so the public could have input, but were voted down.

City Manager, John Campbell went over some numbers which no one could really see attempting to justify.  He even stated that 60% of the sales tax comes from people from out of town.  What he was saying was the citizens are really only out 40% as if that is going to make the citizens feel better.  How does he know if the sales tax comes from out of town?

Campbell also presented numbers that ranked tourism in the top counties.  By doing this he was riding on the coattails from Sullivan County tourists.  The number two tourist attraction in the state is the Bristol race held two times a year.

Campbell talked about the $85 million property tax values in the MeadowView area and then Phillips stated that they get $80 million in property taxes per year.  They can’t even get their facts the same.  $85 million appraised property value would give you $782,000 in property tax.  Currently the city gets $106,110 in property tax from the MeadowView hotel.

The additional property values should have no value in determining to expand the convention center.  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.

Mayor Phillips made a statement that unemployment in Kingsport was 6 percent.  I don’t know where the mayor gets his numbers, but the unemployment for Kingsport for the month of September was 7.7 percent using State numbers.

The bottom line to all of this folks is, you have kissed your regional sale tax goodbye.  You will not be getting it from the “gang of five”.  Maybe after the 2009 election things might change. Mayor Phillips was able to get his special parking lot that now is close to the restaurant at the Meadowview hotel.  Now he won’t have to walk so far to eat.

Listed below are past Kingsport Time-News articles relating to the MeadowView area.  When one looks at the articles, it is easy to see that Mayor Dennis Phillips had no intention of giving back the 1/4 percent Regional Sales Tax back to the taxpayers.  I think you will see that Alderman Marsh and Shull have been trying to discuss for some time the regional sales tax issue.  It was also interesting to see Alderman Munsey role in the early stages in the MeadowView issue.  Also, it my view, there is linkage between the aquatic center and the convention center.

It is indeed a sad day for the citizens of Kingsport!

BMA OKs $34.7 million in bonds to fund community projects

Marsh urges scuttling MeadowView expansion

Kingsport BMA hires architect for expansion at MeadowView

Convention center anchors booming development in Meadowview area

Kingsport readies for next step in aquatic center process

Kingsport BMA votes to put aquatic center at Meadowview, co-locate with YMCA

Divided BMA set to vote on site for aquatic center Wednesday night

Panel backs Meadowview for aquatic center site

Kingsport leaders plan bond issue for capital improvements

Committee close to vote on Kingsport aquatic center site

Aquatic center study supports Meadowview site

Kingsport BMA gets first look at $14 million MeadowView expansion

MeadowView breaks ground on $15 million expansion project

Mayor appoints panel to study sites for Kingsport aquatics center

Kingsport considering aquatics center sites

Two Kingsport hotel projects in the works

Kingsport BMA to consider reinvestment in MeadowView

Kingsport mayor urges look at MeadowView improvements

Kingsport leaders praise investment in MeadowView

Kingsport’s MeadowView Convention Center announces expansion: two new towers, 110 rooms

Kingsport BMA hears options for aquatics center

Kingsport may partner with YMCA on aquatics center

Kingsport alderman wants $800,000 in interest tacked onto MeadowView debt

Kingsport mayor believes higher ed center best use of ‘MeadowView tax’

Kingsport mayor hopes to use MeadowView tax to fund higher ed center

Shull suggests using sales tax to pay off debt

Marsh: Voters should decide whether to reallocate funds for higher ed center

See all posts on MeadowView

The City of Kingsport MeadowView Convention Center expansion does not appear to offer the citizens of Kingsport, Tennessee any benefits and does expose the citizens to great risk if the decision of the Kingsport Board of Mayor and Alderman stands.

The problem is that there are special interest groups that will benefit without putting up their own money.

Eastman Chemical who owns the hotel and who is also doing an expansion will benefit the most because of the hotel traffic that is generated by the convention center.  The current convention center loses money.  Also, the City of Kingsport Cattails golf course located at the hotel and convention center is also a traffic driver for the hotel.  The golf course also is not a money maker for the city.

Kingsport Times-News reported in the article below, the announcement of Eastman to expand the hotel.  Note the highlighted quote by MeadowView Resort and Convention Center Manager Andy King, that there was enough meeting space.

Kingsport Times-News article published 01/16/2008

MeadowView Marriott Conference Resort & Convention Center announced Wednesday it plans to add two 55-room towers to the hotel, bringing its total number of rooms to 305. Construction will begin in late summer.

MeadowView opened in 1996 and has achieved more than 70 percent occupancy for the last three years.

MeadowView General Manager Andy King said the expansion is needed because the hotel and conference center has missed opportunities to host larger groups that required more rooms.

“We have enough meeting space to accommodate the larger groups but we have lost some business opportunities because we could not accommodate them with enough hotel rooms,” King said. “This addition will allow us to utilize the meeting space more effectively and generate more revenue for the entire facility.”

MeadowView is a partnership between the city of Kingsport and Eastman Chemical Co. The city owns the convention center and adjoining Cattails golf course, while Eastman owns the hotel and restaurant. Marriott manages the property. See Thursday’s Times-News print edition for more information.

Eastman Chemical, who employ about 7,000 people in Kingsport, Tennessee, and who has manufacturing and offices throughout the world, gets a bailout/handout from the City of Kingsport, Tennessee.  Eastman’s sales revenue for third quarter 2008 was $1.8 billion, an 8 percent increase compared with third quarter 2007 and their operating earnings in third quarter 2008 were $174 million.

In November, 2007, the Kingsport Board of Mayor and Aldermen voted to give Eastman a $28 million tax break for an expansion Eastman wanted to do.  Eastman stated a few months after the vote on the tax break, that they expected to double earnings per share by 2012.  The citizens of Kingsport have done enough for Eastman.

Mayor Phillips puts his two cents in and charged the MeadowView Advisory Committee to examine the center’s operation.  Mayor Dennis Phillips stated that the hotel did not even have a pool, when in fact they did.  After the study, people got the Mayor’s religion and the MeadowView Convention Center expansion was born.   My guess is they did not consider that the current convention center was not a money maker for the city.  In my view, this project begin to get legs when folks realized that certain people in the City of Kingsport were for funding an expansion.  It is also my view, that there were commitments made without BMA approval and there could be a linkage with free land provided by Eastman for the aquatic center to be built in the MeadowView area.

See the Kingsport Times-News article published on 02/24/2008 below.

KINGSPORT — Mayor Dennis Phillips wants the Board of Mayor and Aldermen to re-examine the MeadowView Conference Resort and Convention Center to see what investment, if any, the city should be making to help improve the facility for the future.

Phillips’ comments come after Eastman Chemical Co. announced last month a $15 million expansion project for the hotel — adding two 55-room towers and bringing the total number of rooms to 305.

In addition to the hotel expansion, Eastman is also footing the bill to renovate the facility’s existing 195 rooms. Once completed, all 305 guest rooms will feature the latest technology, including 32-inch flat panel televisions that will allow guests to plug their laptops into the TV screen.

“I believe it’s time for this board to re-examine MeadowView and see what investments, if any, we should be considering,” Phillips said.

A couple of items that catch Phillips’ eye are the fact MeadowView does not have a pool, and when he takes his 85-year-old mother to lunch at the hotel’s restaurant, she has to walk “a half mile.” Read entire article on Meadowview improvements

The Marriott Corporation manages the hotel for Eastman, and Kingsport’s convention center and Cattails golf course.

The Marriott Corporation stands to gain a bigger contract with the city for the expanded convention center.  They are no innocent bystander.  Andy King, who is employed by Marriott is the manger for the MeadowView Resort and Convention Center has said, that there were enough meeting rooms, but later became a cheerleader for the expansion.  I think you can rest assured that any profits realized by Marriott from management of the properties at MeadowView, will never see the light of day in Kingsport.

Kingsport Convention and Visitors Bureau is funded  in part by the City of Kingsport via the hotel tax.  The main source of revenue for the Kingsport Convention and Visitors Bureau is the 87.5% cut of the hotel/motel tax that the city allocates to them for operation.  The Kingsport Chamber of Commence is involved with the visitor bureau by cutting paychecks for the employees and other administrative things.  Again, the Kingsport Chamber of Commence is no innocent bystander as well as their members.

The inability of Marriott and the Kingsport Convention and Visitors Bureau to make the current convention center a success as for profits needs to be looked at.  Better marching orders needs to be given to these two organizations that operating at a loss is not an option.  If they cannot return a profit on the taxpayer money, then they should be replaced.  The taxpayers, I am sure do not appreciate giving corporate welfare to Eastman, Marriott, or other special interest groups.  The taxpayer have spent $25.7 million for the current convention center and Cattails golf course.  Investing another $15.3 million should not even be considered until there is a proven track record of profit success at the current MeadowView Convention Center.

It has been stated that the convention center would make money if it was expanded.  As I understand it, the economic justification for the expansion was weak and there were requests to get input from the public, and more discussion by the BMA.  But, these request were denied and the convention center expansion was railroaded. to a vote.  Aldermen Marsh and Shull voted against funding the expansion.

The weekday hotel room rates range from $154 to $189 per night plus tax.  I do have a question whether the taxpayers are giving a cost break to the hotel guests for the Cattails Golf Course.  The corporate weekday rate of $154 does not include golfing, whereas the $169 rate include weekday golf package with cart.  The published rates for golfing for citizens would be $31 as compared for $15 for hotel guests.  If Eastman is absorbing the $16 difference, then there is no problem.  But, if not, then it is not fair to the local Kingsport golfers or other Kingsport hotels who have guests that wish to play golf.

What are your views?  Please leave a comment.

See all posts on MeadowView

I have written many posts concerning the City of Kingsport decision to spend $15 million to expand the Meadowview Convention Center.  However, I feel in view of the political spin that certain city leaders have been doing lately, I feel the public needs to be aware of some facts.

Apparently, the City of Kingsport is getting some heat on the decision they made to fund the expansion of the convention center and they are issuing misleading statements.

In an article written by Scott Draper for WJHL,

Expansion On The Meadowview Convention Center In Kingsport Upsets Some Alderman

it states “the city reports it collects 23-million dollars a year from Meadowview”.

Property tax collected by the city from the Meadowview helps keep taxes low in the city.  “That’s an additional 85-million dollars in real estate taxes the city can use that we don’t have to raise property taxes on homeowners.” said Phillips.

It has been reported that the Meadowview hotel revenue is $11 million and not $23 million.

Phillips is blowing smoke with 85-million dollars in real estate taxes. That is likely the assessed value of developments in the area – not taxes.  To get $85M of taxes, we would have to have an investment of $9,240,000,000 at Meadowview. That’s $9.2 BILLION.

Also, Meadowview hotel is appraised at $11,533,100 and not $85 million.  The convention center and golf course are exempt from taxes since the city owns them.  The above statement is reflective of all of the properties in the Meadowview area such as doctors offices, Eastman Credit Union, Dave Clark coffee shop, etc.

The total additional sales and property values should have no value in determining to expand the convention center.  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.  also, 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.

The facts are that the MeadowView Convention Center and the Catskills Golf course are not money makers for the City of Kingsport.  The taxpayers are the ones that keep the city portion afloat.

The city invested $19.7 million in the conference center and $6.2 million in Cattails Golf Course.  From what I can see, both are not moneymakers and are being given money from the Regional Sales tax fund.  Now if we throw in the $15 million for the expansion, the city would have a total of $40.9 million invested which does not include interest.

The Kingsport 2008-2009 budget shows how the Regional Sales Tax is distributed.  The $19.7 million debt for the MeadowView Convention Center was paid off in 2007 and the Cattails Golf Course will be paid up in 2017.  The table below shows that $1,233,500 is budgeted for the convention center, $783,100 for Cattails Golf Course, and $800,000 goes to the general fund for the City of Kingsport to spend.

Alderman Ken Marsh and Pat Shull proposed putting off the expansion plan, and giving the tax money that would be used to fund the expansion, back to taxpayers, by lowering property taxes.  the board voted the proposal down by 5 to 2. “I think the citizens of Kingsport need to realize a majority of the board turned down a plan to reduce their property taxes”, said Alderman Pat Shull.

The way I see it now is that the city currently has a lost leader with the convention center and golf course.  I do not see how the city /taxpayers are benefiting from the current situation at Meadowview and spending another $15 million for the expansion, in my view is simply lining the pockets of Eastman, Marriott and other businesses.  Dennis Phillips statement that the expansion needed to be built to keep from raising taxes doesn’t fly.  It may be if it is built, then taxes may have to be raised.

Eastman invested $12 million when the hotel was built, (which is now appraised at $11.5 million) and now gets $11 million per year in revenues.  City of Kingsport invests $25.7 million (convention center and golf course) and loses money.  I think there is some funny math going on here.

When times are tough, companies find cost savings wherever they can. Now some employers are doing away with the 401(k) match, a benefit once considered almost sacred or reducing/eliminating meetings to save money.

The convention center expansion puts all the risk on the citizens of Kingsport when there is a downturn in the economy.  In fact when the economy has been good, the taxpayers have been keeping the current convention center in operation because it has not been a money maker.  The big money interests in Kingsport tend to view the City Treasury as a means of facilitating their own interests

See other posts on MeadowView

Alderman Marsh presented a resolution at the October 21, 2008 Kingsport Board of Mayors and Aldermen to eliminate the quarter percent sales tax that voters approved in 1992 to fund the Meadowview Convention Center.  The quarter percent regional sales tax had served it’s purpose and the convention center debt was paid off in 2008.

The resolution was to use a portion of the regional sales tax to reduce the property tax rate for citizens. The citizens of Kingsport could have received a reduction in their city property tax, but the resolution was quickly voted down by the “gang of five”. (Mayor Dennis Phillips, Vice Mayor Mallicote, and Aldermen Munsey, Joh, Shupe)  See Kingsport Times-News article  “Marsh urges scuttling MeadowView expansion

The decision of the “gang of five” showed their true colors by voting against the citizens for a property tax refund and instead voting for special interest groups.

Alderman Shull and Marsh have in the past tried to discuss the future of the regional sales tax, but Mayor Phillips would always table the discussion.  It is my feeling that Mayor Phillips had no intention of ending the regional sales tax and had plans to use it for MeadowView Convention Center expansion.

The October 21, 2008 BMA meeting got a little heated with Vice Mayor Ben Mallicote going on the attack, Alderman Joh stated that Aldermen Shull and Marsh were just sore losers.  Mayor Phillips stated that without MeadowView the city would have to raise taxes.  He also made a statement that MeadowView is needed to keep from reducing police and fire protection and doing trash pick-up every two weeks. Mr. Mayor, stop the spin, it may be news to you, the convention center has been operating at a loss and the taxpayers are in fact keeping the convention center in business.  The voters of Kingsport are smarter than you think, Mayor Phillips.

Maybe, I will in the future do a post about the wasteful spending in the City of Kingsport by Mayor Phillips and his gang.

Famous Quotes from the Kingsport Board of Mayor and Aldermen

Mayor Dennis Phillips – ‘We need MeadowView to keep from reducing fire, police protection, and reducing trash pick-up to every two weeks.” October 21, 2008

Mayor Dennis Phillips –“We need to annex so we don’t have to raise taxes”  February 5, 2008

Alderman Munsey – “We need to do the MeadowView expansion to keep from raising taxes” September 15, 2008

Alderman Munsey – Debt is neither good or bad,”   June 3, 2008

Vice Mayor Mallicote – “I do not believe all of the doom and gloom about the economy”.  June 3, 2008

Mayor Dennis Phillips – “If the taxpayers wanted the city to cut the spending, then we could collect garbage every other week”  June 3, 2008

Mayor Dennis Phillips – “If there were no money to spend, then you would not need politicians”  October, 2007

On September 16, 2008, the Kingsport, Tennessee Board of Mayor and Aldermen voted to spend $819,000 for an architect to design the $15 million expansion at the Meadowview Conference Resort and Convent Center.  This was brought quickly to a vote without much detailed discussion or input from the public.  There were discussions on using the regional sales tax to fund the convention center expansion.

Again, this vote was another example of railroading a vote.  Alderman Marsh expressed concern that this was voted on within 24 hours and that there had not been ample time to study the the financial numbers.  He also asked what is in it for the citizens of Kingsport.  He said that this is more for the special interests of certain people.  He attempted to defer the vote to the latter part of October, but Alderman Marsh’s and Alderman Shull’s votes were not enough to postpone the vote.

Simply put, this is an example of the City of Kingsport catering to special interest groups and there seems to be no value to the citizens of Kingsport.  See posts Kingsport, Tennessee incestuous relationship with special interest groups, Convention Center issues plague cities, and More hissy fits in Kingsport, Tennessee Board of Mayor and Aldermen for more background information.

What are you views on the action of the BMA to not give back to the taxpayers the regional sales tax?  Leave a comment.

I am sure that most of you have had enough of elections lately, however there will be an election to elect members of the Kingsport, Tennessee Board of Mayor and Aldermen whose terms expire June 30, 2008.  The BMA members with expiring terms are listed below.

The election will be held in May, 2009 and candidates should be making their announcements sometime in the first quarter of 2009

Mayor Dennis Phillips

Vice Mayor Ben Mallicote

Alderman Valerie Joh

Alderman Pat Shull

Below, are the results of the last election for the City of Kingsport, TN. The number of people voting in this election has a lot to be desired for a city that has a population about 45,000. In the chart below, Dennis Phillips was elected as Mayor and Marsh, Munsey and Shupe were elected as Alderman. It is quite apparent that people are not getting involved in local politics, but do have an issue with the local politicians when things don’t go their way

There are a total of seven BMA positions that are determined by local elections. The BMA members choose the position of Vice Mayor. There are a five Alderman, Mayor, and Vice Mayor that make a total of seven votes on the Board of Mayors, and Alderman.

If you are happy with the current direction that the current BMA is going, then that is fine. But, if you have concerns, then you need to get involved and cast your vote.