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New Economic Challenges A new day in Kingsport...

New Economic Challenges A new day in Kingsport. Eastman Chemical Company 2,179 jobs cut between 1994 and 1999 after Kodak spinoff 1,200 jobs cut at end of 1999 8,500 employees, down from 11,879 (a 40% loss since 1994) Wellmont Holston Valley Medical Center 93 positions cut in Feb 2000

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New Economic Challenges A new day in Kingsport...

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  1. New Economic ChallengesA new day in Kingsport... • Eastman Chemical Company • 2,179 jobs cut between 1994 and 1999 after Kodak spinoff • 1,200 jobs cut at end of 1999 • 8,500 employees, down from 11,879 (a 40% loss since 1994) • Wellmont Holston Valley Medical Center • 93 positions cut in Feb 2000 • Willamette Industries Kingsport Mill • 150 jobs cut in Jan 1999 • Quebecor Printing • 100 layoffs in Dec 1998 • JPS Converter / Chiquola Fabrics • 800 employees in 1989 • 500 employees in 1999 • Present employment at 360

  2. Economic Summit • November 3-4, 1999 • 60 Community Leaders • Local Government, Business, Community/Neighborhood, State/Regional • Visioning and Strategic Planning • Consensus Building • Groundbreaking

  3. The company currently employs 60 people and expects to expand in the next 12-18 months. “We project Intellithought will employ approximately 120 people in the near future. Long term, we expect upwards of 200-300 people will be part of the Intellithought team,” said Frank Waldo, Jr., TeleOptics Chief Operating Officer. • 2 blocks from Transit Center

  4. Barker Building CompanyIn the Historic Bus Station • Regional construction company serving 5 states • $3,000,000 renovation and expansion project • Most significant new construction project in Downtown Kingsport in 20 years • Video conferencing capabilities, community access • 250 employees • Todd Interiors • New Restaurant • 2 other private companies • 3 blocks from Transit Center

  5. Economic Summit… A Path Forward • Benchmarks / Research • Major Plan Components • Structure • Communications

  6. BMA Economic PrioritiesApproved 3 Jan 2000 • Develop budget & staffing to support economic development • Economic Development is the #1 priority for projects within the proposed 5-Year CIP

  7. BMA Economic PrioritiesApproved 3 Jan 2000 • Create an infrastructure plan that supports economic development efforts with emphasis on the following areas: • a) MeadowView • b) Exit 56 / Tri-Cities Crossroads • c) Regional Center for Applied Technology, Northeast State • d) Redevelopment - Downtown & Core Urban Area • e) Kingsport Interstate Technology Park • f) RONA partnership • g) Small business incubator • h) New recreation and sports facility

  8. What the numbers say about our city...

  9. Key Demographic andEconomic Factors • Population • Age • Education • Job Distribution and Growth • Retail Sales • “Lifestyles”

  10. Summary of Key Issues • Slow growth • Manufacturing dependent economy • Older population • Well-educated, but limited local resources • Strong regional retail position likely to erode

  11. Age • The population of Kingsport is older, with a median age of 42.3 years. • Over 21 percent of the population is over the age of 65, compared to 13 percent for the state as a whole.

  12. Education • The population of Kingsport is relatively well educated. • Nearly 19 percent of the population has earned a college degree or above, compared to less than 14 percent for the state as a whole.

  13. Employment • Nearly 40 percent of Kingsport’s workforce is employed in manufacturing. • Compared to 24 percent nationally

  14. Lifestyles • How does Kingsport appear on the “radar screen” of national companies? • Fairly or not, “Factory and Farm Communities” represent over half of the households in Kingsport. The majority of these households are designated as “Rustbelt Neighborhoods.”

  15. The Tri-Cities and Peer Group CommunitiesLifestyles

  16. Technical Community College

  17. Commitment to developing educated work force • Applied learning • Emphasis on information technology jobs • Leverage employment opportunities, such as building/trades • Embrace Northeast State Technical Community College • Downtown facility • Implement tuition program • Build bridges between industry, secondary education, and community college

  18. Educate & Grow 2000Goals • To encourage our youth to seek advanced training and post-secondary educational opportunities • To provide an incentive to our youth to remain in the area • To act as a catalyst for downtown redevelopment • To address workforce development issues by creating a skilled labor force • To provide easier access for our current workforce to additional training

  19. Educate & Grow 2000Tuition Program • Intended to provide 4 semesters of tuition payments at Northeast State to graduating seniors beginning in Fall 2001 • Must be city resident, but not necessarily a D-B graduate • Approximately 350 D-B students eligible, 150 others

  20. Kingsport Area Transit System • Begun in 1996 • In response to community-wide visioning process • Now averages 6,000 riders per month • Taxi subsidy ended in 1999 • Transit Center opened 1/26/2000

  21. Kingsport Area Transit Center • 4,000 sf finished • 12,000 sf unfinished

  22. A seed is planted by... • December 1997 • A model program suggested • Transit - Training - Childcare • Every idea has its day...

  23. We Propose a Partnership • Federal Transit Administration • TN Dept of Transportation • City of Kingsport • TN Board of Regents (Northeast State) • Economic Development Partnership • Economic Development Administration • TN Economic & Community Development • Kingsport Times-News • Chamber of Commerce By working together in a community partnership, we can create a new paradigm that links mass transit, workforce training, and multi-faceted economic development to create a a healthy, well-connected city that is truly liveable.

  24. Center for Applied Technology (CAT) at Kingsport Area Transit System (KATS) One-time capital costs: • Building Renovation $ 768,000 • Site Acquisition $ 250,000 • Site Redevelopment $ 110,000 Total $1,128,000

  25. Center for Applied Technology (CAT) at Kingsport Area Transit System (KATS) Ongoing operating costs (5 year period): • Tuition program $ 450,000 • Advertisement $ 25,000 • Rent (CAT) $ 840,000 Total $1,315,000

  26. Center for Applied Technology at KATS Projected partnership costs (5-year period): • TDOT/FTA $ 400,000 16.4% • EDA $ 500,000 20.5% • ECD/ARC $ 100,000 4.1% • City of Kingsport (STP) $ 128,000 5.2% • City of Kingsport (tuition) $ 450,000 18.4% • Times-News (advertisement) $ 25,000 1.5% • Rent (CAT) $ 840,000 34.4% Total $ 2,443,000

  27. By working together in a community partnership, we can create a new paradigm that links mass transit, workforce training, and multi-faceted economic development to create a a healthy, well-connected city that is truly liveable.

  28. We invite you to join our partnership... By working together in a community partnership, we can create a new paradigm that links mass transit, workforce training, and multi-faceted economic development to create a a healthy, well-connected city that is truly liveable.

  29. Our collaborative partnership includes... • City of Kingsport • Scholarship program • Ongoing annual expense • FY2001 $50,000 / FY2002 $100,000 • We are seeking assistance from EDA/ARC to: • Purchase land adjacent to Transit Center • Up to $250,000 capital expense • Future expansion / parking • Possible support of childcare center

  30. Our collaborative partnership includes... • Kingsport Times-News will donate: • $25,000 free advertising space • Northeast State will fund: • Rent space at market rate • Operating revenue to Transit • Other businesses • Stand ready to assist

  31. Our collaborative partnership includes... • TDOT has funded: • Architectural assistance • Up to $10,000 for design and planning • We request that TDOT/FTA fund: • Renovation of Transit Center • To accommodate Northeast State • Up to 12,000 square feet • $768,000 • $64 per square foot

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