New Economic Challenges A new day in Kingsport...

3. 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

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

7. 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

8. 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

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

10. 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

11. 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

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

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

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

15. 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.

16. 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.

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

18. 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.”

19. The Tri-Cities and Peer Group CommunitiesLifestyles

20. Technical Community College

21. 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

22. 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

23. 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

25. 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

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

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

28. 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.

29. 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

30. 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

31. 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

32. 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.

33. 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.

35. 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

36. 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

37. 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