1. Assistant City Manager for Development
                                      
Kingsport, Tennessee
Good morning. It’s hard to believe that 2 years have passed since the original economic summit. You know, we gathered in this very center in great uncertainty and rolled up our sleeves to figure out our path forward to the future. For the first 80 years of our city’s existence, it had been smooth sailing. We were dominated by several large corporations that in some ways seemed almost immune to the national and global economy – or so we thought. We got a big dose of reality and had to swallow hard. But the same mountain “can do” spirit that attracted them in the first place is the same spirit that is going to pull us up by the bootstraps and get us back on our feet.
I’m reminded of my pastor’s comments in church this past Sunday. He was talking about “storms” … at any given time, it’s quite likely that one or more of us is either in a storm or just got out of one. They are as predictable as the west-to-east weather pattern that dominates our valley. We’ve got to be prepared to weather it because one thing is for certain. It’s coming. No one is immune. But they’ll also pass and bright, sunny days will follow.
It struck me that the economy is much the same way. But we have a strong vision of what our city will be: a planned regional center for people and business – the community of choice for the Northeast Tennessee Valley. We’ve got to focus on that vision like a north arrow and never waiver, no matter what storms come along to blow us off course.
Jeff Fleming, AICP
Assistant City Manager for Development

3. Is Kingsport a suburb of Knoxville? No, here's a comparison:
Austin to San Antonio
1 hr 21 min
79.34 mi
Kingsport to Asheville
1 hr 33 min
85.69
Sacramento to San Francisco
1 hr 34 min
86.92
Kingsport to Knoxville
1 hr 40 min
101.71
Buffalo to Toronto
1 hr 45 min
94.58
Milwaukee to Chicago
1 hr 46 min
88.88
Hartford to Boston
1 hr 49 min
101.07
Tampa-St Pete to Orlando
106.49
Baltimore to Philadelphia
1 hr 50 min
97.04
Philadelphia to New York
1 hr 52 min
94.18
Richmond to Washington
1 hr 53 min
106.00
Savannah to Charleston
1 hr 54 min
103.74
Savannah to Jacksonville
1 hr 55 min
120.53
Kingsport to Gatlinburg, TN
103.35
Cleveland to Pittsburgh
1 hr 56 min
114.90
Richmond to Virginia Beach
1 hr 58 min
108.80

4. Logistically Correct Kingsport, Tennessee 399 miles 396 miles

5. Kingsport is… the largest city in Tennessee’s 5th Largest Metro
Nashville-Murfreesboro-Franklin, TN 1,550,733
Memphis, TN-MS-AR 1,285,732
Knoxville, TN ,152
Chattanooga, TN-GA ,441
Kingsport-Bristol, TN-VA ,689
Clarksville, TN-KY ,220
Johnson City, TN ,849
Morristown, TN ,914
Jackson, TN ,685
Cleveland, TN ,143
Cookeville, TN ,982
Sevierville-Pigeon Forge-Gatlinburg, TN ,835
Census Bureau, Metropolitan Statistical Area: July 1, 2008

6. Kingsport is… the largest city in the 5th Largest Metro in America’s Mountain South
Knoxville, TN 691,152
Greenville, SC 624,715
Chattanooga, TN-GA 518,441
Asheville, NC 408,436
Kingsport-Bristol, TN-VA 304,689
Charleston, WV 303,944
Roanoke, VA 298,108
Huntington, WV 284,234
Spartanburg, SC 280,738
Johnson City, TN 195,849
Charlottesville, VA 194,391
Anderson (Clemson) , SC 182,285
Blacksburg (Virginia Tech) 158,328
Census Bureau, Metropolitan Statistical Area: July 1, 2008

7. Kingsport’s settlement pre-dates the State of Tennessee by 35 years
British Fort Robinson (later taken by U.S. and renamed Fort Patrick Henry)
Sullivan County, NC (later TN) formally established The Lost State of Franklin Tennessee statehood from North Carolina "Old" Kingsport incorporated Civil War
Reconstruction World War I "New" Kingsport incorporated (nearly 100 years after “Old” Kingsport)
2010 = 249 years after original settlement

8. Kingsport (1917)
A John Nolen planned city

9. Planned City vs. Present City
DID YOU KNOW?
Most of us were annexed at some point. Only 29% of BMA, 20% of BOE, and 22% of City’s Leadership Team live in original city limit

10. The 1999 Economic Summit Economy in Transition
“Last one out, turn out the lights”
Major manufacturing closures/lay-offs
Eastman spin-off from Kodak
Major changes in elected officials
Major changes in leadership
“Rustbelt” city
Call to action
A new day, a new plan
Kingsport Manufacturing Jobs
MeadowView Convention Center built
“Life is change. Growth is optional. Choose wisely.”

11. Where We Were
The 1999 Economic Summit Six Major Non-Traditional Economic Development Initiatives
Higher Education (Educate & Grow)
Recruit people (educated with income)
Retail amenities
Accessibility (airport)
Quality of life amenities
Commitment to education
Small business & entrepreneurs
Public arts, sculpture, music, cultural amenities
Leisure/hospitality/sports tourism
Redevelopment (inc. downtown)
Broad Street Redevelopment Concept Plan 2001

12. Highlights 2007 – Record year for new investment ($164.48 million)
2008 – a record year for new investment (2nd year in a row) $180.9 million
Eastman’s $1.3 billion “Project Reinvest”
Holston Valley Medical Center $100mm “Project Platinum”
Holston Medical Group’s new 6-story building ($40mm)
#1 Walking City by Walk! Magazine
Dobyns-Bennett High School named Top 4% by Newsweek (x6)
2009 – new elementary school opens – first in nearly 60 years!
MeadowView won “best in class” in 4 categories from North American Lodging Association
Materials agreement stimulates creation of 750+ residential lots

13. Overall Positive Movement on All Fronts
Population increased 30.2% from 36,365 to 47,356 (10,991 new residents)
If incorporated, would be the 6th largest city in NE TN or SW VA
41% larger than Abingdon or Wytheville, VA
160% larger than Rogersville or Jonesborough, TN
Median age decreased from 42.3 to 41.9
Population <5 increased 33%
Population >65 decreased 27.8%
Labor force grew by 35.9% (or 5,695 people)
Median family income = $50,076 (up from $30,279 in 1990)
Families below poverty level decreased to 14%
Median value of owner-occupied homes increased 86%
6,859 new housing units (41% increase)
63.4% of housing units are owner-occupied (up from 58.7% in 1990)
More than 50% of homes were built prior to 1969
55% of all householders moved into their home since 2000
1,154 homes are valued over $300,000 (up from 38 in 1990)

14. Single females still highest risk:
CITY OF KINGSPORT, TN
2000
2008
Change
Female
54.3%
54.7% 1%
65+ population who is female
64.1%
63.5%
-1%
Families below poverty level
14.2%
14.0%
w/ female householder no husband present
42.3%
46.3% 9%
with children under 18
53.1%
60.8%
15%
with children under 5
62.6%
85.6%
37%
What are we doing about it locally?
Education! Education! Education!
Training-Transit-Childcare Cooperative
Educate & Grow Scholarship (free tuition to community college)
GED Test Scholarship (we’ll pay your testing fee)
Access to higher education opportunities (convenient to Kingsport)
Assessment Center in Academic Village to help with career path

15. Employment in Kingsport, TN-VA MSA
January 1990
% of All Jobs
July 2010
Change (Jan 1990-July 2009)
Trade, Transportation and Utilities
22,900
21.60%
23,100
20.09%
200
Manufacturing
36,300
34.25%
20,500
17.83%
-15,800
Education and Health Services
10,000
9.43%
19,000
16.52%
9,000
Government
12,600
11.89%
14,900
12.96%
2,300
Leisure and Hospitality
6,500
6.13%
12,400
10.78%
5,900
Professional and Business Services
6,200
5.85%
7,900
6.87%
1,700
Mining, Logging, Construction
3,100
2.92%
6,400
5.57%
3,300
Financial
4,200
3.65%
1,100
Other Services
3,400
3.21%
4,400
3.83%
1,000
Information
1,900
1.79%
2,200
1.91%
300
TOTAL
106,000
100.00%
115,000
<= Net New Jobs
Source:
26-Aug-10

16. Employment in Kingsport MSA
Where We Are Now
DIVERSIFICATION
9,000 Net New Jobs
Employment in Kingsport MSA

17. NORTHEAST TENNESSEE Change in Unemployment Rate During the “Great Recession” Source: Tennessee Department of Labor and Workforce Development (updated July 2005 compared to July 2010)

19. Why Kingsport? USA Today (Sept 2007): “1 in 8 workers leave by 6 a.m.”
My commute to Downtown is a grand total of 10 minutes
I can be at my daughter’s school in 6 minutes
I can be at 2 different hospitals in less than 6 minutes
I can be riding a bike on an 8-mile greenbelt in 5 minutes
I can be in a 3500 nature preserve in a mountaintop park in 19 minutes
I can be walking around a lakefront park in 12 minutes
I can be at the airport (& park at the front door) in 20 minutes
I can be at 100 different national retailers in under 6 minutes!!

20. For the same quality of life provided by $50,000 in Kingsport, you’d need:

21. Why Kingsport?
Total City & County property taxes on a $200,000 home = $2,035 per year
No solid waste, garbage, trash or recycling fees
No special school tax
No special district tax (fire, parks, etc.)
No wheel tax in Sullivan County
No state income tax on salaries/wages
No personal property tax
No vehicle inspection fees
No annual vehicle taxes of any kind
Internationally accredited police and fire departments

22. There is a place…
Where the hottest summer days are like New England, but the annual snowfall is 34 inches less
Where the annual high/low temperatures are like the California Wine Country (without the faultline)
Where the average winter days are like Atlanta or Charlotte, but the summers have 35 fewer days of sweltering above-90-degree heat
Where the #of days >90 degrees are half that of the Colorado Rockies at Denver (and the winters have 45 fewer inches of snowfall)
Where lush green vegetation is naturally maintained by rainfall amounts comparable to the Pacific Northwest
Where nature’s beauty unfolds in four balanced seasons 
Where the natural watershed scored a perfect 100 out of 100 
That’s equidistant from every major metropolitan market in the eastern United States
Oh, and did I mention it is consistently one of the most affordable places to live
Mix in some of the nicest, most accommodating people in the world… 
And you have Kingsport, Tennessee

23. Read more at: http://www. newsweek. com/id/39380/
Read more at: Only 8 Tennessee Schools made the list: Dobyns-Bennett (Kingsport)
Farragut (Knoxville area) Collierville (Memphis area) Ravenwood (Nashville area) Hillsboro (Nashville) Brentwood (Nashville area) Hume-Fogg Academic (Nashville) Martin Luther King Academic Magnet (Nashville) 82 Virginia schools made the list – Patrick Henry (Roanoke) being closest 52 NC schools made the list – Roberson (Asheville) being closest 19 SC schools made the list – with 12 being in the Upstate 11 KY schools made the list – with none in Southeast Kentucky 3 WV schools made the list – all in the Charleston metro area

24. 2 years free tuition to H.S. graduates Childcare Public Transit
$17 million local capital funding
2,100 students
2002 – Applied Technology
2008 – Health Professions
2009 – Higher Education
2009 – Advanced Manufacturing
Future – Automotive Tech
First LEED certified, publicly funded green higher education building in Tennessee

25. Direct flights to 6 Cities: Direct Flights to 8 Cities
Atlanta
Charlotte
Chicago
Detroit
Orlando
St. Pete/Clearwater
Closest Neighboring Airports:
TRI-Asheville (90 miles)
TRI-Knoxville (112 miles)
Direct Flights to 8 Cities

26. Variety of Housing Choices
Built: 1928, 5 BR, 2570 sf
$309,900 ($3,154 taxes)
Built: 2006, 4 BR, 2768 sf
$294,500 ($2,997 taxes)
Built: 1996, 5 BR, 6674 sf
$699,900 ($7,123 taxes)
Built: 2009, 3 BR, 1963 sf
$199,900 ($2,034 taxes)
Built: 2008, 3 BR Attached Home 2174 sf $239,900 ($2,441 taxes)
Built: 2008, 2BR Patio Home 1744 sf $199,900 ($2,034 taxes)

27. San Francisco

28. Alexandria, Virginia

29. These stores have joined the Kingsport market since 2005

30. …and unique, local shops

31. Kingsport is… Marriott’s award-winning mountain resort
Cattails Golf
$30 million expansion completed Nov., 2010
6 minutes from Downtown
$88,321,240 in spin-off private taxable investments
( Sullivan Co Public Tax Records)
The 1 year increase from ($22,576,400) was greater than the total property value in 1998 ($22,496,860)

32. Downtown Kingsport Renaissance
$37,666,900 in private taxable investment ( ), a 70% increase in 11 years
Excluding churches, hospital, higher education (an additional $129,000,000)

33. Results July 2006-October 2010
2,025 families from 1,574 different communities in 49 states moved to Kingsport
Top Donor States
Virginia
Florida
North Carolina
Kentucky
Georgia
South Carolina
Texas
California
Ohio
Michigan
New York
Maryland
Pennsylvania

34. City of Kingsport Population

35. Annual Economic Impact of Newcomers An example of Kingsport, Tennessee
444 net new residential water connections (July 1, 2006 – October 31, 2010)
Census average = 2.3 persons per household
444 x 2.3 = 1,021 new residents (with City water/Sullivan County/Kingsport zip code)
$25,000 economic impact per year per person (UNC Wilmington, 2010)
$25,000 x 1,021 = $25,525,000
Consuming services and creating demand for jobs in medical, pharmacy, finance, insurance, real estate, food, retail, etc.
Not a bad return on investment for $55,000 annual budget for “Move To Kingsport” program

36. Retire Tennessee Communities
Sorted by % Residing in Different State in 1995
Resided in Different State in 1995 (Total Population)
Resided in Different State 1 Year Ago* (Total Population)
Median Household Income
County
2000
% of Population
2008
Change
Cumberland County, TN
6,571
14.04%
1,933
3.66%
$ 30,901
$ 37,706
22.0%
Henry County, TN
3,610
11.60%
1,167
3.69%
$ 30,169
$ 36,758
21.8%
Hamilton County, TN
32,938
10.70%
11,710
3.55%
$ 38,930
$ 46,505
19.5%
Putnam County, TN
6,270
10.06%
2,375
3.40%
$ 30,914
$ 36,115
16.8%
TENNESSEE
567,966
10.0%
185,827
3.02%
$ 36,360
$ 43,662
20.1%
Jefferson County, TN
4,337
9.8%
2,146
4.28%
$ 32,824
$ 39,341
19.9%
Lincoln County, TN
3,051
9.74%
750
2.29%
$ 33,434
$ 42,699
27.7%
Sullivan County, TN
13,363
8.73%
4,738
3.09%
$ 33,529
$ 40,377
20.4%
Greene County, TN
5,061
8.0%
1,626
2.47%
$ 30,382
$ 36,192
19.1%
Hardin County, TN
1,868
7.30%
586
2.25%
$ 27,819
$ 31,231
12.3%
Robertson County, TN
3,437
6.31%
1,279
2.02%
$ 43,174
$ 48,375
12.0%

37. SAMPLE MONTHLY REPORT
EXAMPLE OF 35 MI

38. Free data (in this case, interactive
Free data (in this case, interactive!): Fortune Magazine (2008) Where Americans Are Moving
Kingsport
Sullivan Co,
Tennessee
Bristol
Washington Co,
Virginia
Wilmington
Metro
Brunswick Co,
North Carolina
Vicksburg
Warren Co,
Mississippi

39. YMCA and Aquatic Center
$15 million
Fitness, Competition, Wellness, Leisure
Zero depth entries, ADA accessible
Family/assisted changing rooms
Indoor-Outdoor
All ages and abilities
Collocated with new YMCA
Construction 2011, Completion 2012

40. V.O. Dobbins, Sr. Community Center
$8.2 million / 46,000 sf
Gym Space / Ballfields
Community Rooms
Non-Profit Center

41. Aquatic Center $15 million Fitness, Competition, Wellness, Leisure
Zero depth entries, ADA accessible
Family/assisted changing rooms
Indoor-Outdoor
All ages and abilities
Collocated with new YMCA
Construction 2011, Completion 2012

42. Wetlands Project
Reedy Creek and Horse Creek traverse 28 miles across Kingsport
1,600 acres of undevelopable floodway
8,000 acres of adjoining flood fringe
Cutting edge commitment to environmental stewardship
Kingsport has the greatest opportunity to make the biggest impact in the region
City assume ownership (or conservation easement) of undevelopable lands, natural filter for watershed
Tax break for landowners
First mitigation sites are adjacent to John B. Dennis Highway and East Stone Drive

43. Parking Garage $4.5 million / 364 spaces / 3 levels
Money already available
No additional bonds to be sold
Public restrooms for special events
Construction starts after Christmas
Opening late Summer 2011
10,000 sf of privately-funded development space (2-3 levels)
Parking will remain FREE for the foreseeable future
Developer has extensive experience in rebirth of Chattanooga and Knoxville downtowns

44. Mountain Region Family Medicine at Kingsport Press
Clinchfield at Sullivan
$18.5-$24 million redevelopment
Former Book Printing Factory
Downtown Kingsport
70,000 new medical visits per year

45. Food City at Kingsport Press
PRESS ST
ROLLER ST
CLINCHFIELD ST
CENTER ST

46. Farmer’s Market at Kingsport Press

47. Rendering of Possible Phase 2 Kingsport Press

48. The Future: Kingsport Public Library Expansion

49. Consumer Expenditures for Retail Marketing

51. Dunkin Donuts Retail Market Analysis
Requirements:
Residential population of 15,000 within 3-minute drive time
and 25,000 within 5 minute drive time (suburban)
and local median household income above $30,000 ($14.42/hr) – min wage is $7.25/hr

52. 1 pack of cigarettes/day @ $5 ea $ 1,825 Car Insurance (2) $ 1,727
2010
2005
Difference
Gasoline
$ 2,890
$ 2,124
36.0%
Mobile Phone (3)
$ 2,496
$ 1,345
85.5%
1 pack of $5 ea
$ 1,825
Car Insurance (2)
$ 1,727
$ 1,876
-8.0%
2-liters of bottled $1.99 ea
$ 1,453
Electricity
$ 1,298 $
78.8%
County Property Taxes
$ 1,222
$ 1,182
3.5%
Cable TV
$ 1,214 $
64.2%
City Property Taxes
$ 1,113
$ 1,055
5.5%
Natural Gas $ $
-2.0%
Water + Sewer $ $
-21.9%
Private garbage disposal ($26/month) an 11% increase since May $
Minimum wage = $15,080 per year
$17,746

53. Dunkin Donuts Retail Market Analysis
Convenience Stores
Specialty Foods
Nearest TDOT Traffic Count
5-Minutes
Potential
Actual
Surplus or (Unmet Demand)
120 E Stone (at Wellmont)
$ 1,395,756
$ 209,220
($1,186,536)
$ 820,978
$ 363,903
($457,075)
35,046
101 E Jackson / Jborough
$ 542,891
$ 440,168
($102,723)
$ 321,145
$ 266,615
($54,530)
30,197
1702 W Market St / JC
$ 1,757,267
$ 2,477,555
$720,288
$ 1,006,963
$ 2,049,263
$1,042,300
28,846
1600 W Stone Dr / Kpt
$ 1,361,788
$ 166,792
($1,194,996)
$ 800,156
$ ,866
($781,290)
27,804
4222 Ft Henry Dr / Kpt
$ 737,141
$ 205,098
($532,043)
$ 443,315
$ ,533
($398,782)
26,572
4101 Ft Henry Dr / Kpt
$ 724,175
$ 200,991
($523,184)
$ 435,660
$ ,329
($396,331)
3583 W Market St /JC
$ 652,914
$ 1,036,634
$383,720
$ 374,842
$ 879,591
$504,749
24,333
5690 Hwy 11E Piney Flats
$ 272,432
$ ,099
($210,333)
$ 159,456 $
($159,456)
23,505
2000 N Eastman / Kpt
$ 1,209,706
$ 161,990
($1,047,716)
$ 720,616
$ 581,850
($138,766)
23,230
3900 Bristol Hwy / JC
$ 400,236
$ 641,692
$241,456
$ 235,993
$ 829,554
$593,561
22,615
1716 Volunteer/ Bristol
$ 504,208
$ 114,633
($389,575)
$ 294,426
$ ,007
($289,419)
22,272

54. Dunkin Donuts Retail Market Analysis

55. Kingsport has the highest unmet retail market demand in the Tri-Cities
15-Minutes
Potential
Actual
Saturation
Motor Vehicle Parts & Dealers
$277,540,878
$331,279,619
$53,738,741
Furniture & Home Furnishing Stores
$31,415,265
$18,263,925
($13,151,340)
Electronics & Appliance Stores
$28,009,660
$29,380,697
$1,371,037
Building Material & Garden Equipment & Supply Dealers
$146,911,940
$133,741,856
($13,170,084)
Food & Beverage Stores
$160,960,266
$130,567,155
($30,393,111)
Health & Personal Care Stores
$80,214,559
$165,211,507
$84,996,948
Clothing & Clothing Accessories Stores
$50,982,929
$45,565,107
($5,417,822)
Sporting Goods, Hobby, Book & Music Stores
$22,606,195
$17,074,975
($5,531,220)
General Merchandise Stores
$154,998,941
$251,816,647
$96,817,706
Miscellaneous Store Retailers
$33,629,214
$36,970,388
$3,341,174
Foodservice & Drinking Places
$104,851,058
$164,465,744
$59,614,686
TOTAL
$1,092,120,905
$1,324,337,620
$232,216,715
Kingsport has the highest unmet retail market demand in the Tri-Cities
Johnson City is oversaturated in every category, Bristol is oversaturated in all but 3 categories

56. 2010 Market Potential Red = underserved categories
Kingsport
Johnson City
Bristol
Motor Vehicle Parts & Dealers
$277,540,878
$343,979,658
$184,741,741
Furniture & Home Furnishing Stores
$31,415,265
$38,262,933
$20,748,716
Electronics & Appliance Stores
$28,009,660
$35,966,932
$18,977,653
Building Material & Garden Equipment & Supply Dealers
$146,911,940
$172,085,453
$96,962,202
Food & Beverage Stores
$160,960,266
$193,112,698
$108,775,860
Health & Personal Care Stores
$80,214,559
$92,408,786
$55,339,720
Clothing & Clothing Accessories Stores
$50,982,929
$68,571,670
$33,848,621
Sporting Goods, Hobby, Book & Music Stores
$22,606,195
$30,722,220
$15,411,730
General Merchandise Stores
$154,998,941
$192,434,278
$104,191,661
Miscellaneous Store Retailers
$33,629,214
$41,608,765
$22,758,414
Foodservice & Drinking Places
$104,851,058
$134,737,927
$71,661,740
$ 1,092,120,905
$ 1,343,891,320
$ ,418,058

57. Assistant City Manager for Development
                                      
Good morning. It’s hard to believe that 2 years have passed since the original economic summit. You know, we gathered in this very center in great uncertainty and rolled up our sleeves to figure out our path forward to the future. For the first 80 years of our city’s existence, it had been smooth sailing. We were dominated by several large corporations that in some ways seemed almost immune to the national and global economy – or so we thought. We got a big dose of reality and had to swallow hard. But the same mountain “can do” spirit that attracted them in the first place is the same spirit that is going to pull us up by the bootstraps and get us back on our feet.
I’m reminded of my pastor’s comments in church this past Sunday. He was talking about “storms” … at any given time, it’s quite likely that one or more of us is either in a storm or just got out of one. They are as predictable as the west-to-east weather pattern that dominates our valley. We’ve got to be prepared to weather it because one thing is for certain. It’s coming. No one is immune. But they’ll also pass and bright, sunny days will follow.
It struck me that the economy is much the same way. But we have a strong vision of what our city will be: a planned regional center for people and business – the community of choice for the Northeast Tennessee Valley. We’ve got to focus on that vision like a north arrow and never waiver, no matter what storms come along to blow us off course.
Jeff Fleming, AICP
Assistant City Manager for Development
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