Jeff Fleming, AICP Jeff Fleming, AICP Assistant City Manager for Development Assistant City Manager for Development [email protected]Kingsport, Kingsport, Tennessee Tennessee 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 www.MoveToKingsport.com
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Jeff Fleming, AICP Jeff Fleming, AICP Assistant City Manager for DevelopmentAssistant 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
www.MoveToKingsport.com
489 miles
269 miles
392 mile
s399 m
iles
281 m
iles
396 miles
350 m
iles
Logistically Correct
270 miles Kingsport, Kingsport, TennesseeTennessee
Kingsport is…Kingsport is…the largest city in the largest city in Tennessee’s Tennessee’s 55thth Largest Metro Largest Metro
Census Bureau, Metropolitan Statistical Area: July 1, 2008Census Bureau, Metropolitan Statistical Area: July 1, 2008
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 - American 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 Kingsport’s settlement pre-dates the State of Tennessee by 35 yearsState of Tennessee by 35 years
Kingsport (1917)Kingsport (1917)A John Nolen planned city
8
Red = Kingsport (1917)
Yellow = Kingsport (2011)
Colonial Heights
Indian Springs
Fall Creek
Rock Springs
Sullivan Gardens
Lynn Garden
Bloomingdale
Ridgefields
Allandale
Rotherwood
Preston Woods
Preston Forest
Cook’s Valley
Crown Colony
MeadowView36-30 parallel
The 1999 Economic SummitThe 1999 Economic SummitEconomy in TransitionEconomy in Transition
► ““Last one out, turn out the lights”Last one out, turn out the lights”► Major manufacturing closures/lay-offsMajor manufacturing closures/lay-offs► Eastman spin-off from KodakEastman spin-off from Kodak► Major changes in elected officialsMajor changes in elected officials► Major changes in leadershipMajor changes in leadership► ““Rustbelt” cityRustbelt” city► Call to actionCall to action► A new day, a new planA new day, a new plan
Kingsport Manufacturing Jobs 1990-2010
MeadowView Convention Center
built
“Life is change. Growth is optional. Choose wisely.”
•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 WereWhere We WereThe 1999 Economic SummitThe 1999 Economic Summit
Six Major Non-Traditional Economic Development Six Major Non-Traditional Economic Development InitiativesInitiatives
Broad Street Redevelopment Concept Plan 2001
Employment in Kingsport, TN-VA MSA
January 1990
% of All Jobs
March, 2011
% of All Jobs
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% -15,500Education 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% 4,800Professional and Business Services 6,200 5.85% 8,600 7.34% 2,400Mining, Logging, Construction 3,100 2.92% 6,500 5.55% 3,400
Financial 3,100 2.92% 4,400 3.76% 1,300
Other Services 3,400 3.21% 4,000 3.42% 600
Information 1,900 1.79% 2,300 1.96% 400
TOTAL 106,000 100.00% 117,100 100.00% 11,100 <= Net New Jobs
NORTHEAST TENNESSEENORTHEAST TENNESSEEChange in Unemployment Rate During the “Great Change in Unemployment Rate During the “Great
Recession”Recession”Source: Tennessee Department of Labor and Workforce Development (updated July 2005 compared to July Source: Tennessee Department of Labor and Workforce Development (updated July 2005 compared to July
2010)2010)
Read more at: http://www.newsweek.com/feature/2010/americas-best-high-schools/list.html
Only 15 Tennessee Schools made the list (2010):Kingsport: Dobyns-BennettKnoxville area: Farragut, West, Oak RidgeChattanooga area: -none-Nashville area: Brentwood, Franklin, Ravenwood, Centennial, Hillsboro, Fairview, Hume-Fogg Magnet, MLK Magnet, Memphis area: Collierville, Houston, White StationMorristown: West
99 Virginia schools made the list – with Blacksburg being closest61 NC schools made the list – with Asheville being closest21 SC schools made the list – with 11 being in the Upstate16 KY schools made the list – with none in Southeast Kentucky4 WV schools made the list – with 3 in the Charleston metro area
Higher Education InitiativeHigher Education InitiativeNortheast State, University of Tennessee, King College, Lincoln Memorial UniversityNortheast 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
Direct Flights to 8 Cities
Direct flights toDirect flights to 6 Cities:6 Cities:
The Value Proposition of City Property Tax, Water, The Value Proposition of City Property Tax, Water, SewerSewer
(on a county residential appraisal of $229,500)(on a county residential appraisal of $229,500)
2010 2005Differenc
e
Gasoline $ 2,890 $ 2,124 36.0%
Mobile Phone (3) $ 2,496 $ 1,345 85.5%
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 $ 726 78.8%
County Property Taxes $ 1,222 $ 1,182 3.5%
Cable TV $ 1,214 $ 740 64.2%
City Property Taxes $ 1,113 $ 1,055 5.5%
Natural Gas $ 864 $ 881 -2.0%
Water + Sewer $ 598 $ 766 -21.9%
Measuring the ResultsMeasuring the Results
Why do we measure?Why do we measure?
Malcolm Baldridge Quality AwardMalcolm Baldridge Quality Award
Everything you measure doesn’t count. Everything you measure doesn’t count.
Everything that counts, can’t be measured.Everything that counts, can’t be measured.
4-Year Results4-Year Results2,198 families from 49 states 2,198 families from 49 states
moved to Kingsportmoved to Kingsport
Top Donor StatesTop Donor States
1.1. VirginiaVirginia
2.2. FloridaFlorida
3.3. North CarolinaNorth Carolina
4.4. GeorgiaGeorgia
5.5. KentuckyKentucky
6.6. South CarolinaSouth Carolina
7.7. TexasTexas
8.8. OhioOhio
9.9. CaliforniaCalifornia
10.10. MichiganMichigan
11.11. New YorkNew York
12.12. MarylandMaryland
13.13. PennsylvaniaPennsylvania
City of Kingsport Population
City of Kingsport 1990-2008 City of Kingsport 1990-2008 (Source: Census Bureau)(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
Annual Economic Impact of NewcomersAnnual Economic Impact of Newcomers
An example of Kingsport, TennesseeAn example of Kingsport, Tennessee
► 444 444 netnet new residential water connections new residential water connections (July 1, 2006 – October (July 1, 2006 – October 31, 2010)31, 2010)
► Census average = 2.3 persons per householdCensus average = 2.3 persons per household► 444 x 2.3 = 1,021 new residents 444 x 2.3 = 1,021 new residents (with City water/Sullivan County/Kingsport (with City water/Sullivan County/Kingsport
zip code)zip code)
► $25,000 economic impact per year per person $25,000 economic impact per year per person (UNC (UNC Wilmington, 2010)Wilmington, 2010)
► $25,000 x 1,021 = $25,000 x 1,021 = $25,525,000$25,525,000 Consuming services and creating demand for jobs in medical, Consuming services and creating demand for jobs in medical,
pharmacy, finance, insurance, real estate, food, retail, etc.pharmacy, finance, insurance, real estate, food, retail, etc. Not a bad return on investment for $55,000 annual budget for Not a bad return on investment for $55,000 annual budget for
“Move To Kingsport” program“Move To Kingsport” program
Utility RecordsUtility Records
“New zip”“New city”
“Old zip”“Old city”
Net difference by zip/city
Net difference = “Install” minus “Cutout”
TN Counties by Natural Increase (Deaths vs Births)
TN Counties by Total Increase (including in-migration)
TN Counties by Net Migration (International and Domestic)
Sullivan County is Ranks 29th of 95 Counties
EXAMPLE OF 35 MI
SAMPLE MONTHLY REPORT
Within 35 miles of: FAMILIES Annual Economic
Impact Charlotte 30 $ 1,725,000 Orlando 27 $ 1,552,500 Tampa 24 $ 1,380,000 Washington DC 24 $ 1,380,000 Asheville 21 $ 1,207,500 Greensboro 18 $ 1,035,000
Daytona 17 $ 977,500
Jacksonville 17 $ 977,500
Boone, NC 16 $ 920,000
Melville NY (Long Island) 14
$ 805,000
Fort Myers 13 $ 747,500
West Palm Beach 12 $ 690,000
Venice, FL 11 $ 632,500
Columbus, OH 10 $ 575,000
Miami 8 $ 460,000
Raleigh 8 $ 460,000
Melbourne 8 $ 460,000
Naples 7 $ 402,500
Parsippany NJ 5 $ 287,500
Pensacola 4 $ 230,000
Fort Pierce 3 $ 172,500
Philadelphia, PA 2 $ 115,000
Panama City 1 $ 57,500
Greenwich CT 1 $ 57,500
301 $ 17,307,500
Metros moving
to Kingsport
since July, 2006
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.
Free data (in this case, interactive!):Free data (in this case, interactive!):Fortune Magazine (2008) Where Americans Are MovingFortune Magazine (2008) Where Americans Are Movinghttp://www.forbes.com/2010/06/04/migration-moving-wealthy-interactive-counties-map.htmlhttp://www.forbes.com/2010/06/04/migration-moving-wealthy-interactive-counties-map.html
KingsportSullivan Co,Tennessee
CrossvilleCumberland
Co,Tennessee
WilmingtonMetroBrunswick Co,North Carolina
BristolWashington Co,Virginia
20082008Fortune Magazine Fortune Magazine Where Americans Where Americans Are MovingAre Movinghttp://www.forbes.com/2010/http://www.forbes.com/2010/06/04/migration-moving-06/04/migration-moving-wealthy-interactive-counties-wealthy-interactive-counties-map.htmlmap.html
CrossvilleCumberland
Co,Tennessee
Example: University ResearchExample: University ResearchInmigrant Retiree Relocation Inmigrant Retiree Relocation
StudyStudyEast Tennessee State University Christian McMullin, East Tennessee State University Christian McMullin,
Planning InternPlanning Intern► 17.3% response rate (of 1,280 calls)17.3% response rate (of 1,280 calls)► 220 households responded to the telephone survey220 households responded to the telephone survey► 25% of households consisted of at least one recent retiree25% of households consisted of at least one recent retiree► 64% of all respondents reported had no previous ties to the 64% of all respondents reported had no previous ties to the
areaarea► Of the 55 retired households, 64% had previously lived in Of the 55 retired households, 64% had previously lived in
the Kingsport area and moved backthe Kingsport area and moved back So there was in fact more of a tendency among retirees to “return to roots” than the So there was in fact more of a tendency among retirees to “return to roots” than the
rest of the newcomers.rest of the newcomers.
► 44% of all respondents said low cost of living was a major 44% of all respondents said low cost of living was a major factor in their decision to relocate to the area. factor in their decision to relocate to the area. Among retirees, it was 55%Among retirees, it was 55%
Positive Impact of In-Migrant Positive Impact of In-Migrant RetireesRetirees
► Any IMRs who have the means and wherewithal to make a Any IMRs who have the means and wherewithal to make a significant move from another state or region to Sullivan significant move from another state or region to Sullivan County are likely to be more affluent than the average County are likely to be more affluent than the average resident in Sullivan County. resident in Sullivan County.
► Nationally, 25% of all IMRs have incomes in excess of Nationally, 25% of all IMRs have incomes in excess of $100,000. According to a 2005 Merrill Lynch Study, baby $100,000. According to a 2005 Merrill Lynch Study, baby boomer household average income is $53k, well above the boomer household average income is $53k, well above the national average (Harris Interactive, 2005). national average (Harris Interactive, 2005).
► Over 30% of migrants to Tennessee between the years 1995 Over 30% of migrants to Tennessee between the years 1995 to 2000 had a least a bachelors degree. Only 19% of the to 2000 had a least a bachelors degree. Only 19% of the Sullivan County population had a bachelors degree as of 2008, Sullivan County population had a bachelors degree as of 2008, while 24% of Kingsport had at least a bachelors degree. while 24% of Kingsport had at least a bachelors degree.
Positive Impacts of IMR’sPositive Impacts of IMR’s
► Increased average income levels for local economy Increased average income levels for local economy ► Increased # of positive tax payers Increased # of positive tax payers ► Increases in property tax base, bank deposit baseIncreases in property tax base, bank deposit base► Property tax revenues rise Property tax revenues rise ► IMR professional expertise and financial resources IMR professional expertise and financial resources ► Less strain on environment and criminal justice Less strain on environment and criminal justice
systemsystem► Development of medical hubDevelopment of medical hub
Financial Impact of IMR’sFinancial Impact of IMR’s
► IRS filings for Sullivan County (earnings or taxable assets): IRS filings for Sullivan County (earnings or taxable assets): 2005-06: net increase in 151 households, average income = 2005-06: net increase in 151 households, average income = $54,331$54,331 2006-07: net increase of 414 households, average income = 2006-07: net increase of 414 households, average income = $63,743$63,743 2007-08: net increase of 332 households, average income = 2007-08: net increase of 332 households, average income = $62,984$62,984
► Compared to the median income of Compared to the median income of $33,529 $33,529 of Sullivan of Sullivan County in 2008, the average income of new filings for 2008 County in 2008, the average income of new filings for 2008 were 88% greater than that of the median income.were 88% greater than that of the median income.
► This supports the idea that the majority of IMR households This supports the idea that the majority of IMR households will increase county fixed income streams of taxable assets will increase county fixed income streams of taxable assets and work as a stabilizing force on the economy.and work as a stabilizing force on the economy.
► $15 million$15 million► Fitness, Competition, Wellness, LeisureFitness, Competition, Wellness, Leisure► Zero depth entries, ADA accessibleZero depth entries, ADA accessible► Family/assisted changing roomsFamily/assisted changing rooms► Indoor-OutdoorIndoor-Outdoor► All ages and abilities – 50 meter lap pool, All ages and abilities – 50 meter lap pool,
warm water therapeutic pool, zero depth warm water therapeutic pool, zero depth pool, outdoor water park, birthdays, special pool, outdoor water park, birthdays, special eventsevents
► Collocated with new YMCACollocated with new YMCA► Construction 2011, Completion 2012Construction 2011, Completion 2012
V.O. Dobbins, Sr.V.O. Dobbins, Sr.Community Community
CenterCenter► $8.2 million / 46,000 sf$8.2 million / 46,000 sf► Gym Space / BallfieldsGym Space / Ballfields► Community RoomsCommunity Rooms► Non-Profit CenterNon-Profit Center
The Future: Kingsport Public Library The Future: Kingsport Public Library ExpansionExpansion
• 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