1. Jeff Fleming, AICP Assistant City Manager for Development JeffFleming@KingsportTN.gov Kingsport, Tennessee

3. Is Kingsport a suburb of Knoxville? No, here's a comparison: Austin to San Antonio1 hr 21 min 79.34mi Kingsport to Asheville1 hr 33 min 85.69mi Sacramento to San Francisco1 hr 34 min 86.92mi Kingsport to Knoxville1 hr 40 min 101.71mi Buffalo to Toronto1 hr 45 min 94.58mi Milwaukee to Chicago1 hr 46 min 88.88mi Hartford to Boston1 hr 49 min 101.07mi Tampa-St Pete to Orlando1 hr 49 min 106.49mi Baltimore to Philadelphia1 hr 50 min 97.04mi Philadelphia to New York1 hr 52 min 94.18mi Richmond to Washington1 hr 53 min 106.00mi Savannah to Charleston1 hr 54 min 103.74mi Savannah to Jacksonville1 hr 55 min 120.53mi Kingsport to Gatlinburg, TN1 hr 55 min 103.35mi Cleveland to Pittsburgh1 hr 56 min 114.90mi Richmond to Virginia Beach1 hr 58 min 108.80mi

4. 489 miles 417 miles 392 miles 399 miles 281 miles 396 miles 350 miles Kingsport, Tennessee Logistically Correct

5. Kingsport is… the largest city in Tennessee’s 5 th Largest Metro Nashville-Murfreesboro-Franklin, TN1,550,733 Memphis, TN-MS-AR1,285,732 Knoxville, TN 691,152 Chattanooga, TN-GA 518,441 Kingsport-Bristol, TN-VA 304,689 Clarksville, TN-KY 261,220 Johnson City, TN 195,849 Morristown, TN 135,914 Jackson, TN 112,685 Cleveland, TN 112,143 Cookeville, TN 102,982 Sevierville-Pigeon Forge-Gatlinburg, TN 84,835 Census Bureau, Metropolitan Statistical Area: July 1, 2008

6. Kingsport is… the largest city in the 5 th Largest Metro in America’s Mountain South Knoxville, TN691,152 Greenville, SC 624,715 Chattanooga, TN-GA518,441 Asheville, NC408,436 Kingsport-Bristol, TN-VA304,689 Charleston, WV303,944 Roanoke, VA298,108 Huntington, WV284,234 Spartanburg, SC280,738 Johnson City, TN195,849 Charlottesville, VA194,391 Anderson (Clemson), SC182,285 Blacksburg (Virginia Tech)158,328 Census Bureau, Metropolitan Statistical Area: July 1, 2008

7. 1761 - British Fort Robinson (later taken by U.S. and renamed Fort Patrick Henry) 1779 - Sullivan County, NC (later TN) formally established 1784-1789 The Lost State of Franklin 1796 - Tennessee statehood from North Carolina 1822 - "Old" Kingsport incorporated 1861-1865 - Civil War 1865-1877 Reconstruction 1914-1918 World War I 1917 - "New" Kingsport incorporated (nearly 100 years after “Old” Kingsport) 2010 = 249 years after original settlement Kingsport’s settlement pre-dates the State of Tennessee by 35 years

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 1990-2010 MeadowView Convention Center built “Life is change. Growth is optional. Choose wisely.”

11. Higher Education (Educate & Grow) Recruit people 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) Where We Were The 1999 Economic Summit Six Major Non-Traditional Economic Development Initiatives Broad Street Redevelopment Concept Plan 2001

12. Highlights ► 2007 – Record year for new investment ($164.48 million) ► 2008 – a record year for new investment (2 nd 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 6 th 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, TN20002008Change Female54.3%54.7%1% 65+ population who is female64.1%63.5%-1% Families below poverty level14.2%14.0%-1% w/ female householder no husband present 42.3%46.3%9% with children under 1853.1%60.8%15% with children under 562.6%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 % of All Jobs Change (Jan 1990- July 2009) Trade, Transportation and Utilities22,90021.60%23,10020.09%200 Manufacturing36,30034.25%20,50017.83%-15,800 Education and Health Services10,0009.43%19,00016.52%9,000 Government12,60011.89%14,90012.96%2,300 Leisure and Hospitality6,5006.13%12,40010.78%5,900 Professional and Business Services6,2005.85%7,9006.87%1,700 Mining, Logging, Construction3,1002.92%6,4005.57%3,300 Financial3,1002.92%4,2003.65%1,100 Other Services3,4003.21%4,4003.83%1,000 Information1,9001.79%2,2001.91%300 TOTAL106,000100.00%115,000100.00%9,000 <= Net New Jobs Source: http://www.bls.gov/eag/eag.tn_kingsport_msa.htm 26-Aug-10

16. Where We Are Now DIVERSIFICATION 9,000 Net New Jobs Employment in Kingsport MSA 1990 2010

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 nature’s beauty unfolds in four balanced seasons  Where the natural watershed scored a perfect 100 out of 100  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…  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/?s=kingsport Only 8 Tennessee Schools made the list: Dobyns-Bennett (Kingsport)http://www.newsweek.com/id/39380/?s=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 8 Cities Direct flights to 6 Cities: 6 Cities:AtlantaCharlotteChicagoDetroitOrlando St. Pete/Clearwater Closest Neighboring Airports: TRI-Asheville (90 miles) TRI-Knoxville (112 miles)

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 $30 million expansion completed Nov., 2010 6 minutes from Downtown Cattails Golf $88,321,240 in spin-off private taxable investments (1998-2009 Sullivan Co Public Tax Records) The 1 year increase from 2008-2009 ($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 (1998-2009), 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 1. Virginia 2. Florida 3. North Carolina 4. Kentucky 5. Georgia 6. South Carolina 7. Texas 8. California 9. Ohio 10. Michigan 11. New York 12. Maryland 13. 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 County2000 % of Population 2008 % of Population 20002008Change Cumberland County, TN 6,57114.04% 1,9333.66% $ 30,901 $ 37,70622.0% Henry County, TN 3,61011.60% 1,1673.69% $ 30,169 $ 36,75821.8% Hamilton County, TN 32,93810.70% 11,7103.55% $ 38,930 $ 46,50519.5% Putnam County, TN 6,27010.06% 2,3753.40% $ 30,914 $ 36,11516.8% TENNESSEE 567,96610.0% 185,8273.02% $ 36,360 $ 43,66220.1% Jefferson County, TN 4,3379.8% 2,1464.28% $ 32,824 $ 39,34119.9% Lincoln County, TN 3,0519.74% 7502.29% $ 33,434 $ 42,69927.7% Sullivan County, TN 13,3638.73% 4,7383.09% $ 33,529 $ 40,37720.4% Greene County, TN 5,0618.0% 1,6262.47% $ 30,382 $ 36,19219.1% Hardin County, TN 1,8687.30% 5862.25% $ 27,819 $ 31,23112.3% Robertson County, TN 3,4376.31% 1,2792.02% $ 43,174 $ 48,37512.0%

37. EXAMPLE OF 35 MI SAMPLE MONTHLY REPORT

38. Free data (in this case, interactive!): Fortune Magazine (2008) Where Americans Are Moving http://www.forbes.com/2010/06/04/migration-moving-wealthy-interactive-counties-map.html http://www.forbes.com/2010/06/04/migration-moving-wealthy-interactive-counties-map.html Kingsport Sullivan Co, Tennessee Vicksburg Warren Co, Mississippi Wilmington Metro Brunswick Co, North Carolina Bristol Washington Co, Virginia

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 CLINCHFIELD ST CENTER ST PRESS ST ROLLER 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. 20102005Difference Gasoline $ 2,890 $ 2,12436.0% Mobile Phone (3) $ 2,496 $ 1,34585.5% 1 pack of cigarettes/day @ $5 ea $ 1,825 Car Insurance (2) $ 1,727 $ 1,876-8.0% 2-liters of bottled water/day @ $1.99 ea $ 1,453 Electricity $ 1,298 $ 72678.8% County Property Taxes $ 1,222 $ 1,1823.5% Cable TV $ 1,214 $ 74064.2% City Property Taxes $ 1,113 $ 1,0555.5% Natural Gas $ 864 $ 881-2.0% Water + Sewer $ 598 $ 766-21.9% Private garbage disposal ($26/month) an 11% increase since May $ 316 Minimum wage = $15,080 per year $17,746

53. 10-Mar-10Convenience StoresSpecialty Foods Nearest TDOT Traffic Count 5-MinutesPotentialActual Surplus or (Unmet Demand) PotentialActual 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 $ 18,866($781,290) 27,804 4222 Ft Henry Dr / Kpt $ 737,141 $ 205,098($532,043) $ 443,315 $ 44,533($398,782) 26,572 4101 Ft Henry Dr / Kpt $ 724,175 $ 200,991($523,184) $ 435,660 $ 39,329($396,331) 26,572 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 $ 62,099($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 $ 5,007($289,419) 22,272 Dunkin Donuts Retail Market Analysis

55. Kingsport has the highest unmet retail market demand in the Tri-Cities 15-MinutesPotentialActualSaturation 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 Johnson City is oversaturated in every category, Bristol is oversaturated in all but 3 categories

56. 2010 Market Potential Red = underserved categories KingsportJohnson CityBristol 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 $ 733,418,058

57. Example: University Research Inmigrant Retiree Relocation Study East Tennessee State University Christian McMullin, Planning Intern ► To identify any impacts resulting from IMRs over the last ten to fifteen years. ► To assess implications of an aging baby boomer population and the potential economic gains through marketing toward and attracting IMRs. ► To determine what attracted new residents to Sullivan County with a specific focus on the level of satisfaction among IMRs.

58. Methodology ► A telephone survey was devised for the most recent new residents of Sullivan County. The study was intended to focus on the analysis of in-migrant retirees responses, but it was not possible to accurately determine the age and job status of new residents prior to contacting them. Thus, it was determined that responses from all new residents would be of value. This would enable a comparison of retiree responses to that of all new resident responses and create a quality of life/livability scoring based on initial perceptions of new residents. The survey was created to:  Determine the percentage of retirees or near retirees among the pool of most recent new residents  Determine the average age of new residents  Determine the top reasons/motivations to move to Sullivan County, in hopes of supporting future marketing efforts  Assess the level of satisfaction among new residents in Sullivan County and identify strengths and weaknesses of the community to support IMR attraction and tourism

59. Telephone Survey ► 17.3% response rate (of 1,280 calls) ► 220 households who 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%

60. Telephone Survey ► Median age of adult newcomers was 43.4 ► Median age of retirees was 59 (Baby Boomers!) ► Newcomers rated Sullivan County 7.9 in quality of life. ► Retirees rated it 8.1 ► A great majority of the respondents felt they did not want to give a 9 or 10 in responding to a local government for fear of government complacency and leaving room for growth.

63. Top Relocation Factors ► A minimum of 23% responses were related to amenities provided in Sullivan County  29% of retiree responses ► Among IMRs, 47% cited family as the biggest factor in their move  30% for all newcomers  “Return to Roots” (Southwest Virginia) ► 8% of new residents stated past visits (including tourism- related excursions) supported their knowledge of Sullivan County

66. Top Concern: Jobs Sullivan County has outperformed peer counties in private jobs created per population gain

67. 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.

68. 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

69. Medical Jobs in Sullivan County ► 2005-2009 Sullivan Co healthcare jobs increased by 1,880 jobs with the largest increase taking place between 2008 and 2009 (with 660 in 2009 alone). ► 2005-2009, healthcare support occupations grew by an estimated 580 jobs (with 240 support jobs created during 2009) ► Between May 2004 and May 2008, Sullivan County healthcare practitioner income rose by an average of $6,552 in actual spending power when accounting for inflation. ► No other retirement related occupation experienced a rise in spending power that matched these gains in the healthcare sector

70. ► The influx of IMRs helped drive up the demand for medical practitioners in the area and further raise the status of the local area’s health care. ► Although there were few IMRs in the telephone survey who directly cited the local healthcare options as the top reason for their move to the area, many cited access to services such as healthcare as a secondary reason. ► Correlated to influx of IMR’s  During 2003 alone, healthcare related employees in Sullivan County increased by 1,093 jobs.  Most of this increase appears to have occurred after the largest increase in retiree population. There was a net population increase of 2,729 with a majority ages 60-64 (2,115 people) Medical Jobs and Retirees

71. Cost of Living – A growing concern with ‘Great Recession’ of 2009 ► According to the 2010 Cost of Living Rankings of Relocation Essentials LC, Sullivan County’s cost of living is 25% less than the national average. ► The Tax Foundation estimates that Tennessee’s total tax burden is 8.3% of income, 44 th out of 50 states (Hagen, 2009) ► City + County Property taxes on a $ 200,000 home in Kingsport are $2,000 ► Tennessee has no income tax on salaries/wages

72. Cost of Living – A growing concern with ‘Great Recession’ of 2009 ► Compared to ten of the top retirement destinations throughout the U.S., Kingsport stacks up very favorably in terms of cost of living. $100,000 in real spending power in the Kingsport is the equivalent to the following amounts in ten of the top retirement cities.  Asheville, NC – $135,410  Sarasota, FL – $149,792  Prescott, AZ - $163,961  Paris, TN - $98,042  Winston-Salem, NC - $110,693  Athens, GA - $119,408  Green Valley, AZ - $135,040  San Diego, CA - $202,177  Austin, TX - $132,429  Phoenix, AZ - $143,576 ► Within the current recession of 2009 and 2010, baby boomers have lost an estimated 20% of their savings, an equivalent of around 2 trillion dollars. This bodes well for less expensive alternative retirement destinations like Sullivan County and Kingsport. Many young boomers even do not think that they will ever be able to retire, creating increased incentive in trying to attract these people to Sullivan County for their third stage of life. When the baby boomers who are currently forgoing retirement decide to retire, the pool of retirees will be even greater than estimates have anticipated. ► On a state level, the foreign born population of Tennessee has experienced a significant increase in relation to the rest of the United States. Between 2000 and 2007, Tennessee’s foreign born population rose from 159,004 to 249,552, a 57% increase. Nationally, the increase in foreign born population for the same period was 22%. According to US Census statistics, Tennessee ranked 4 th out of all US states for percentage change in foreign born population between 2000 and 2007 and 17 th for total numeric change. According to the Migration Institute, 4.1% of Tennessee’s population was foreign born at the start of 2008. The total foreign population breakdown is as follows: 48%-Latin America, 26.4%-Asian, 15%-European, 11%-Other. Sullivan County’s foreign born population grew by only 179 people from 2000 to 2008, but it should continue to rise over the next decade alongside the influx of boomers.

73. Cost of Living – A growing concern with ‘Great Recession’ of 2009 ► Within the current recession of 2009 and 2010, baby boomers have lost an estimated 20% of their savings, an equivalent of around 2 trillion dollars. ► This bodes well for less expensive alternative retirement destinations like Sullivan County and Kingsport. ► Boomers are less likely to retire in an organized, gated community. They want multi-generational amenities/facilities and do NOT want to be viewed as their parents were viewed in retirement

74. Financial Impact of IMR’s ► IRS filings for Sullivan County (earnings or taxable assets):  2005-06: net increase in 151 households, average income = $54,331  2006-07: net increase of 414 households, average income = $63,743  2007-08: 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.

75. AARP Survey *Most respondents were “Greatest Generation” and “Silent Generation” – very few Baby Boomers – which is a major gap because boomers will be the greatest retirement influencer for the next 30 years

76. AARP Livability Survey Kingsport, Tennessee

79. Jeff Fleming, AICP Assistant City Manager for Development JeffFleming@KingsportTN.gov Download this presentation at www.development.KingsportTN.gov/presentations