1. Assistant City Manager for Development
Does your community understand the economic value of attracting newcomers? Retirees?  Do you want to learn how one small city spends $55,000 per year and attracts $25,000,000 in annual economic impact?  Hear from Jeff Fleming, Assistant City Manager for Development in Kingsport, Tennessee (Population = 47,356 (City), 153,210 (County) and 302,997 (MSA). Kingsport is located on the Tennessee-Virginia border at I-81/I-26 one hour from Asheville, NC, 1 ½ hours from Knoxville/Smoky Mountains, and 2 ½ hours from Virginia Tech
                                      
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. Logistically Correct Kingsport, Tennessee 399 miles 396 miles

4. 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

5. 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

6. 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 American Civil War
Reconstruction World War I "New" Kingsport incorporated (nearly 100 years after “Old” Kingsport)
2010 = 249 years after original settlement

7. Kingsport (1917)
A John Nolen planned city

8. Bloomingdale Lynn Garden Crown Colony Allandale Indian Springs
Preston Forest
Allandale
Indian Springs
Preston Woods
Rotherwood
Ridgefields
Fall Creek
Cook’s Valley
MeadowView
36-30 parallel
Colonial Heights
Sullivan Gardens
Rock Springs
Red = Kingsport (1917)
Yellow = Kingsport (2011)

9. 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.”

10. 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

11. Employment in Kingsport, TN-VA MSA
January 1990
% of All Jobs
March, 2011
Change (Jan 1990-Mar 2011)
Trade, Transportation and Utilities
22,900
21.60%
23,800
20.32%
900
Manufacturing
36,300
34.25%
20,800
17.76%
-15,500
Education and Health Services
10,000
9.43%
18,600
15.88%
8,600
Government
12,600
11.89%
16,800
14.35%
4,200
Leisure and Hospitality
6,500
6.13%
11,300
9.65%
4,800
Professional and Business Services
6,200
5.85%
7.34%
2,400
Mining, Logging, Construction
3,100
2.92%
5.55%
3,400
Financial
4,400
3.76%
1,300
Other Services
3.21%
4,000
3.42%
600
Information
1,900
1.79%
2,300
1.96%
400
TOTAL
106,000
100.00%
117,100
11,100
<= Net New Jobs
Source:
1-Mar-11

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

14. 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)

16. Knoxville area: Farragut, West, Oak Ridge Chattanooga area: -none-
Read more at:
Only 15 Tennessee Schools made the list (2010): Kingsport: Dobyns-Bennett
Knoxville area: Farragut, West, Oak Ridge Chattanooga area: -none-
Nashville area: Brentwood, Franklin, Ravenwood, Centennial, Hillsboro, Fairview, Hume-Fogg Magnet, MLK Magnet,
Memphis area: Collierville, Houston, White Station
Morristown: West 99 Virginia schools made the list – with Blacksburg being closest 61 NC schools made the list – with Asheville being closest 21 SC schools made the list – with 11 being in the Upstate 16 KY schools made the list – with none in Southeast Kentucky 4 WV schools made the list – with 3 in the Charleston metro area

17. Higher Education Initiative Northeast State, University of Tennessee, King College, Lincoln Memorial University
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

18. 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

19. 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)

20. San Francisco

21. Results: 5-Year House Price Appreciation Source: FHFA
Results: 5-Year House Price Appreciation Source: FHFA.gov 4th Quarter 2010
+13.45% Kingsport-Bristol, TN-VA
+9.66% Greenville-Mauldin-Easley, SC
+9.50% Roanoke, VA
+8.92% Augusta-Aiken, GA-SC
+8.90% Asheville, NC
+8.81% Knoxville, TN
+8.04% Nashville-Murfreesboro-Franklin, TN
+5.49% Charlotte-Gastonia-Rock Hill, NC-SC
+5.48% Chattanooga, TN
+3.87% Spartanburg, SC
-2.66% Memphis, TN-MS-AR
-5.24% Myrtle Beach-North Myrtle Beach-Conway, SC
-19.08% Chicago-Joliet-Naperville, IL
-34.02% Detroit-Livonia, MI
-37.04% Tampa-St. Petersburg-Clearwater, FL
-37.99% Fort Lauderdale-Pompano Beach-Deerfield Beach, FL
-44.16% Naples-Marco Island, FL
-51.18% Las Vegas-Paradise, NV

22. These stores have joined the Kingsport market since 2005

23. …and unique, local shops

24. MeadowView Marriott’s award-winning mountain resort
Cattails Golf
$30 million expansion completed December 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)

25. 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)

26. The Value Proposition of City Property Tax, Water, Sewer (on a county residential appraisal of $229,500)
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%

27. Measuring the Results Why do we measure?
Malcolm Baldridge Quality Award
Everything you measure doesn’t count.
Everything that counts, can’t be measured.

28. 4-Year Results 2,198 families from 49 states moved to Kingsport
Top Donor States
Virginia
Florida
North Carolina
Georgia
Kentucky
South Carolina
Texas
Ohio
California
Michigan
New York
Maryland
Pennsylvania

29. City of Kingsport Population

30. City of Kingsport 1990-2008 (Source: Census Bureau)
Population increased 30.2% from 36,365 to 47,356 (48,205 in 2010)
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)
55% of all householders moved into their home since 2000

31. 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

32. Utility Records

33. “New zip”
“New city”
“Old zip”
“Old city”

34. Net difference by zip/city
Net difference = “Install” minus “Cutout”

36. TN Counties by Natural Increase (Deaths vs Births)

37. TN Counties by Total Increase (including in-migration)

38. Retire Tennessee Communities www. retiretennessee. org Ramay. W
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%

39. Sullivan County is Ranks 29th of 95 Counties
TN Counties by Net Migration (International and Domestic)
Sullivan County is Ranks 29th of 95 Counties

40. SAMPLE MONTHLY REPORT
EXAMPLE OF 35 MI

41. Annual Economic Impact
Within 35 miles of:
FAMILIES
Annual Economic Impact
Charlotte 30
$ ,725,000
Orlando 27
$ ,552,500
Tampa 24
$ ,380,000
Washington DC
Asheville 21
$ ,207,500
Greensboro 18
$ ,035,000
Daytona 17
$ ,500
Jacksonville
Boone, NC 16
$ ,000
Melville NY (Long Island) 14
$ ,000
Fort Myers 13
$ ,500
West Palm Beach 12
$ ,000
Venice, FL 11
$ ,500
Columbus, OH 10
$ ,000
Miami 8
$ ,000
Raleigh
Melbourne
Naples 7
$ ,500
Parsippany NJ 5
$ ,500
Pensacola 4
$ ,000
Fort Pierce 3
$ ,500
Philadelphia, PA 2
$ ,000
Panama City 1
$ ,500
Greenwich CT
301
$ ,307,500
Another example using zip-codes.com to identify zip codes within a radius of a city. Zip codes are more specific than counties. Metros may span parts of several counties or states.
Metros moving to Kingsport since July, 2006

43. 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
Crossville
Cumberland Co,
Tennessee

44. 2008 Fortune Magazine Where Americans Are Moving http://www. forbes
Crossville
Cumberland Co,
Tennessee

45. Example: University Research Inmigrant Retiree Relocation Study East Tennessee State University Christian McMullin, Planning Intern
17.3% response rate (of 1,280 calls)
220 households responded to the telephone survey
25% of households consisted of at least one recent retiree
64% of all respondents reported had no previous ties to the area
Of the 55 retired households, 64% had previously lived in the Kingsport area and moved back
So there was in fact more of a tendency among retirees to “return to roots” than the rest of the newcomers.
44% of all respondents said low cost of living was a major factor in their decision to relocate to the area.
Among retirees, it was 55%

48. Positive Impact of In-Migrant Retirees
Any IMRs who have the means and wherewithal to make a significant move from another state or region to Sullivan County are likely to be more affluent than the average resident in Sullivan County.
Nationally, 25% of all IMRs have incomes in excess of $100,000. According to a 2005 Merrill Lynch Study, baby boomer household average income is $53k, well above the national average (Harris Interactive, 2005).
Over 30% of migrants to Tennessee between the years 1995 to 2000 had a least a bachelors degree. Only 19% of the Sullivan County population had a bachelors degree as of 2008, while 24% of Kingsport had at least a bachelors degree.

49. Positive Impacts of IMR’s
Increased average income levels for local economy
Increased # of positive tax payers
Increases in property tax base, bank deposit base
Property tax revenues rise
IMR professional expertise and financial resources
Less strain on environment and criminal justice system
Development of medical hub

50. Financial Impact of IMR’s
IRS filings for Sullivan County (earnings or taxable assets):
: net increase in 151 households, average income = $54,331
: net increase of 414 households, average income = $63,743
: net increase of 332 households, average income = $62,984
Compared to the median income of $33,529 of Sullivan County in 2008, the average income of new filings for 2008 were 88% greater than that of the median income.
This supports the idea that the majority of IMR households will increase county fixed income streams of taxable assets and work as a stabilizing force on the economy.

51. AARP Livability Survey Kingsport, Tennessee

52. AARP Livability Survey Kingsport, Tennessee

53. 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 – 50 meter lap pool, warm water therapeutic pool, zero depth pool, outdoor water park, birthdays, special events
Collocated with new YMCA
Construction 2011, Completion 2012

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

55. The Future: Kingsport Public Library Expansion
Total cost including construction/design/FFE is approximately $11.5 million
CIP funding provides $5.06 in FY14 and $3.5 in FY15 (total of $8.56 mm)
Fundraising campaign would result in the need for approximately $3.0 mm

56. Kingsport Carousel Project
The Carousel Project is a joint effort of volunteers and the Cultural Arts Division of the City of Kingsport. 
To date, there are four carvers from Kingsport working on animals
To get involved, please visit:
kingsportcarousel.org
Or call:

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