No WhiteWash!

Below is a comment submitted by former Kingsport Alderman Pat Shull.  He raises some good points and I agree with his concerns about the two year contract at $35,000 per year and the pick-up truck gift.

I would also like to add that Mayor Phillips appointed his friends, Pal Barger , Dr, Bill Locke, and former Alderman Mike O’Neil to be on an oversight board for the Kingsport Convention and Visitors Bureau.  I think I am seeing a pattern of cronyism here.

The act of the BMA approving a $35,000 consulting contract for Dr. Bill Locke is clearly a conflict of interest.  During the deliberations regarding the City building the KCHE and RCHP it was absolutely crucial that the BMA receive assurance from the Dr. Locke, as Northeast State President, that NE State would fund the operating costs of these two centers IF the city would pay for construction of the buildings.  Also, there was no discussion for any need for a consultant to perform the services described in the Times-News article.  In my opinion, the city staff and elected officials are capable of performing the tasks cited.  Hiring Dr. Locke to fix problems that he should have anticipated and briefed the BMA about during the higher education discussions is simply absurd.

Several weeks ago Dr. Locke received a gift of a brand new pickup truck.  This donation effort was organized by the Mayor, Dennis Phillips.  The gift coupled with the consulting contract have the strong appearance of a political pay-off to Dr Locke for his cooperation during the BMA deliberations about higher education support.  Further, it is well known that Dr. Locke is good friends with the Mayor AND the publisher of the Times-News newspaper. Again, hiring Dr. Locke for various services appears to be the granting of a favor to a friend rather than a responsible, necessary action by the city.  Further, why would the current President of NE State (charged with administering the two centers) want her predecessor involved in her business?  This is a bad management precedent.

I am familiar with Federal regulations regarding "conflicts of interest".  Simply put, the above described acts would never be permitted at Federal level, and it is a disgrace that our BMA is so ethically blind that they would approve it at municipal level.  

Patrick W. Shull, COL USA (Ret). 

Below is a video from the KNETIC debate, that shows two different perspectives on economic development between Pat Shull and Ben Mallicote, who are both running for re-election for the Kingsport Board of Mayor and Alderman.

Ben Mallicote stated in the KNETIC debate that Cincinnati, Ohio is not recruiting businesses and instead recruiting people.  Read the Cincinnati 2009-2013 Work Plan at the bottom of this post and decide yourself if the statement that Ben Mallicote made concerning Cincinnati is a true statement.  Also click on the links below and I think you will see that Cincinnati has a lot going on concerning economic development.

He appears to be anti-smokestack type businesses, but I should remind Ben Mallicote, that the patents that he talks about most likely came from those companies like Eastman that have smokestacks.

Cincinnati also states the following.

Each new company that locates here fortifies the entire region. Research shows that one new company bringing 50 new jobs will create 51 additional jobs in other industries, generating $4.1 million in wages and salaries for the total 101 jobs. This triggers an estimated 67 new housing units with $6.8 million in sales and, subsequently, $2.6 million spent on food, clothing, vehicle, entertainment and other goods purchased. One company. 50 new jobs. Significant regional impact for everyone.

2008 Annual Report

2008 Regional Business Growth Report

2008 Regional Business Retention Report

City of Cincinnati

Below is page 16 from the 2008 Annual Report

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

Listen to the May 8 WJCW radio interview with Dennis Phillips who is seeking re-election as Mayor for Kingsport,  Tennessee

Click here for interview

In the radio interview, Dennis Phillips appears to attack the two Alderman (Shull and Marsh) and portray them as non-progressive.  Labeling Shull and Marsh by Dennis Phillips as non-progressive in my view cannot be backed up by Mr. Phillips if you check Shull’s and Marsh’s voting record.   You will hear him talk about how there are 5 votes for progression and 2 votes against.

Mayor Phillips is running unopposed in this election and it is clear to me that he wants Alderman Shull to be defeated.  Dennis Phillips does manage to get what he wants with the current BMA members that always vote with him (Munsey, Mallicote, Joh, and Shupe).  What he wants is more of a majority and have no opposing votes or views.  This would give the mayor free rein to do as he pleases.  To me this would be very unhealthy for Kingsport citizens.

He mentions that the two Alderman voted against the major employer in Kingsport (Eastman).  There was only one Alderman that voted against giving Eastman a tax break of $28 million and his reason is explained here.  I would like to add that at the time of this vote, Eastman was having a great year as far for sales and profits.

Dennis Phillips mentions Food City that the gang of five voted to give a tax break and the sales tax that was generated.  Take a look at the following link to see how well Dennis Phillips has done in the last four years as mayor   Kingsport Facts

Voting for Dennis Phillips will give him an endorsement that you agree with his “out of control” spending.

U.S. NATIONAL DEBT CLOCK

The Outstanding Public Debt as of 09 May 2009 at 10:09:02 AM GMT is:

The estimated population of the United States is 306,148,997
so each citizen’s share of this debt is $36,786.13.

The current debt of Kingsport is around $190,000,000.  There are plans on the drawing board to spend over $90 million more, which would make a total debt of $280 million This would make the Kingsport debt per citizen, $6,301 or $13,988 per Kingsport household.** For a small city, Kingsport debt seems very high as compared to the national debt.  Kingsport has not bailed out the auto industry, banks, or fought any wars, etc.

Is this debt what you want for your children and grandkids?  If you agree with Dennis Phillips Tax, Borrow and Spend tactics, then vote for him and his chosen BMA members that vote with him.  You can also not choose to vote for him or do a write-in vote.

**  U.S. Census data used.  2000 census – people per household was 2.22

I must admit that the decision of the Kingsport BMA to spend over $15 million for an expansion of the MeadowView Convention Center has really raised my blood pressure.

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

Ben Mallicote seems to be in a tight spot in this election over his vote to refuse to give the regional sales tax back to the citizens via a property tax deduction after it had served its purpose.  Alderman Marsh and Alderman Shull voted to give the tax back to the citizens.

I had a chance to watch the video of the Rotary Club debate on cable channel 16 and it was very clear to me that he was trying to justify his vote on the regional sales tax issue.  Mr. Mallicote, why didn’t you not at the time of your vote bring up the same reasons as you did in the Rotary Club debate.

Alderman candidates debate what’s best for city at Kingsport Rotary Club

Kingsport Times-News

Mallicote, also first elected to the BMA four years ago, said you couldn’t consider Shull’s suggestion without considering the cost and trade-off.

“In the midst of this great housing crisis, Kingsport is third in the nation in home price appreciation. When other municipalities are seeing double-digit drops in sales tax collections, Kingsport is seeing double-digit increases,” Mallicote said. “Without the investment this board has made, we wouldn’t have Target, the new Food City, East Stone Commons, all of the new residential options, the higher education and allied health facilities, the revitalization of downtown, the new concert series, and a nationally recognized school system.

Mr. Mallicote mentions double-digit sales tax collections, but I doubt he can back up that statement with data.  See previous post that debunks this statement.  I am sure that Pat Shull is is thankful that Mallicote mentioned all of the other investments that Pat Shull voted for.

Mr. Mallicote again I feel is on the defensive in the radio interview on WJCW on April 23 concerning the regional sales tax.

Could it be that Mallicote does not have the security of the other four members of the Gang of Five to help him defend his vote?   Phillips,Joh,Shupe, and Munsey also voted against giving the regional sales tax back to the property owners.

The October 21, 2008 BMA meeting got a little heated with Vice Mayor Ben Mallicote going on the attack when Marsh and Shull attempted to state their views in a business like way.

See the November 11, 2008 post below for more information.

Click on the More Info button for all posts that discuss  Ben Mallicote

Kingsport, Tennessee BMA refuses to rescind Regional Sales Tax after it had served it’s purpose

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.

A concern that I and many others have  is the current balance of power on the Kingsport Board of Mayor and Aldermen.  For example, the five members below very nearly vote the same.  This means that if Mayor Phillips wants something, he almost always gets it.

Mayor Dennis Phillips *	Vice Mayor Ben Mallicote *	Alderman Larry Munsey	Alderman Valerie Joh *	Alderman Jantry Shupe

Alderman Shull and Alderman Marsh have shown the most restraint in spending the taxpayers money.  Aldermen Shull and Marsh do vote for worthwhile projects such as the Higher Education Center, but draw the line on certain issues such as funding the MeadowView Conference Center Expansion ($15 million).

They voted to give the 1/4 percent regional sales tax back to the citizens because the current Convention Center has been paid off.  They lost the vote because of the gang of five above.

Aldermen Shull and Marsh both were in support of the V.O. Dobbins renovations, but withdrew that support when the project expanded putting the City of Kingsport in direct competition with the private sector as a landlord leasing space to non-profits.  They also had a problem with the citizens’ tax dollars being used to subsidize the non-profit organizations.

They both have shown restraint in their discussions and votes when it comes to bigger budgets and bigger government.

The three new Aldermen candidates below have stated that they agree with what the BMA has done in the past and they appear to be more like the gang of five.  Since we know what Mallicote and Joh have done in the past, there might be an advantage to elect two of the new candidates below to replace Mallicote and Joh.  Re-electing Pat Shull in my view is needed to have some form of check and balance on the BMA.

I fear that if Shull is not re-elected, then a blank check will be given to city government to do as they please when it comes to spending and new city budgets.

* Term expires June 30, 2009

It appears that Kingsport, TN Alderman Ben Mallicote, who is running for re-election, is trying to defend his vote to not give back the regional sales tax back to the property owners in Kingsport. 

The gang of five (Phillips, Mallicote, Joh, Munsey, and Shupe) voted to use the 1/4 percent regional sales tax for a new Convention Center Expansion.   Kingsport citizens back in mid 1990’s voted for the 1/4 percent regional sales tax to build the Meadowview Convention Center.

This became apparent in the Rotary Club debate yesterday when Alderman Shull stated that he voted to give the regional sales tax back to the citizens.  Since the Convention Center debt was paid off, Alderman Shull as well as Alderman Marsh were attempting to return the money back to the citizens via a property tax reduction.

I am not surprised at Ben Mallicote’s position.  He made the following statement in 2008, “I do not believe all of the doom and gloom about the economy”. 

The Kingsport Rotary Club held a debate for the candidates seeking a position on the Kingsport Board of Mayor and Alderman.

The Kingsport Times-News article below fails to mention that the moderator for the debate was Mayor Dennis Dennis Phillips who is running unopposed for a third term as mayor.

It is no secret that the Mayor would like certain candidates to win in the upcoming election.  I am shocked that the Rotary Club would select the Mayor as moderator and not surprised that Mayor Dennis Phillips accepted.

Kingsport citizens deserve better ethics.

KINGSPORT – Five of the candidates running for seats on the Kingsport Board of Mayor and Aldermen presented themselves to another local civic club on Wednesday, with two of the candidates sparring over their philosophy for the direction of Kingsport.

Kingsport’s city election is May 19, and six candidates are running for the three open alderman seats. The incumbents – Valerie Joh, Ben Mallicote and Pat Shull – are facing challenges from Wade McClellan, Mike McIntire and Tom Parham. Dennis Phillips is running unopposed for a third term as mayor.

Read more via Kingsport Times-News Online – Kingsport,