The Future of Elizabethton's Economy

Thank you for the great feedback I got from my last column! I heard a lot of constructive comments and a few negative comments and I’m glad. I think it is extremely important for our citizens to be educated on and have these types of conversations about the future of our community.

With all of the feedback I received, I wanted to expand on the conversation from last week. I had a few comments along the lines of, “So what you’re telling me is Industry is dead in Elizabethton?” The answer to that is absolutely not! Elizabethton currently has many industrial businesses which employee a high number of people. As a matter of fact, 14 percent (over 1,500) of all of the jobs in Carter County are manufacturing jobs making it the third largest employer industry in the county. We must continue to build a symbiotic relationship with these industries and help them to grow and expand here locally.

With regard to recruiting a new industry, this also is still possible! There is, however, a realty that we must face. All of the low hanging, cheaply developable land has already been developed; therefore, the development of new industrial land (which I outlined last week) will be extremely expensive costing hundreds of thousands, even millions of dollars and those dollars will have to come from local city/county governments and possibly some local businesses. This must be something you, as a tax payer, must consider when you demand new industrial jobs from your elected officials. Are you willing to sacrifice city or county services or face a major tax increase to get those industrial jobs?

Another comment that I heard a lot was, “What alternatives do we have to industry?” Well, there are some tactics that can help grow the economy without large industry and we can look to economic theory to provide those answers. Economic base theory divides all businesses into two categories – basic and non-basic industries. Basic industries bring money from outside the local economy in and non-basic industries help keep the money brought into the local economy stay within that local economy.

Locally we can look to this theory and strengthen our basic businesses to serve as an alternative to industrial jobs. Tourism is a basic business that injects money into our local economy by bringing people from outside Elizabethton/Carter County to our area, having them spend money, then leave the community (think Blowing Rock, NC). Agricultural related production, such as vineyards, wineries and large scale farms hire local people and sell the produce in other communities and counties (think Scott’s strawberry farms). Industrial construction firms employ locals to run the business and send workers off to work in other cities and counties (think Whitehead Construction).

Bringing in and starting these businesses locally can provide the same impact that industries currently provide. Couple these industries with strengthening non-basic businesses by encouraging people to shop locally in Elizabethton and Carter County and this strategy could be a realistic path to economic progress in Elizabethton and Carter County. No progressive path forward is easy, but no one else is going to do it for us! Let’s talk about it!

What an Industry Wants, What an Industry Needs

Sometimes I feel this column has turned into an economic development column! I do think, however, it is very important for our citizens to understand the reality of economic development in Elizabethton and Carter County. This is information you can use to make household decisions and use when you go to the polls to vote for your local politicians. This time, I want to talk about what industries (specifically manufacturing, warehousing, and assembly) look for in a location and how that relates to future prospects for Carter County.

First, they want access to a 4-lane highway. This qualification immediately eliminates three-quarters of the county leaving only Hampton, Elizabethton, Hunter, and Happy Valley/Central areas with potential locations. Ideally, industries want to be near (usually within 10 miles) an Interstate. Many will locate away from an Interstate, but this would be a preferred or ideal site. This preference would eliminate all but Happy Valley/Milligan/Central and the Okolona area.

Secondly, industries must have access to utilities. Water, of course, is a must and usually most would desire to see a minimum of an 8-inch water line with the preference of a 10-12-inch water line. Access to sewer service is also another must. Phase 3 power must also be available at the industrial site in order to operate the electric sucking equipment. Not all industries need access to natural gas or fiber optics, but these are typically considered must-haves especially if sites in other communities offer access to these services. Access to water and sewer eliminates some of our remaining potentials leaving Elizabethton, parts of Milligan/Pinecrest and the Okolona area.

Now that we've narrowed down a few potential areas, let's look for some sites. A potential industrial site must be flat (ideally less than 6 percent grade) so we would start looking for as flat a site as we could find in the remaining areas. The flatter the site that can be found, the less grading that will have to be completed by local governments in order to sell the site. The site will also need to be around a minimum of 10 acres with a preferred size of 20 acres. It's starting to get a little tough now! Where around Elizabethton, Milligan/Pinecreast, or the Okolona area is there 10-20 acres of relatively flat (less than 10 percent grade) land that is owned by one, two, maybe three people. Ideally, we would like to see more like 50+ acres of relatively flat land owned by 4 maybe 5 people in order to spread the expense over multiple properties and industries.

Assuming there is such a site, the land owners must agree to sell at a reasonable price, the cities and county will need to work together to purchase the property, pay to grade the property, and pay to extend utility services to the site. After all of this is done, an incentives package will need to be put together and we must make sure there is an available, educated or trained workforce to meet the needs of the industry.

As you can see, this process has a lot of moving parts! I hope this gives you an idea of what it takes to recruit and bring new industry into a community. Keep in mind this whole process may take 10 years or more from start to opening day of a new industry and require hundreds of thousands of tax dollars. While we most certainly continue our efforts growing and working with our existing industry, it is my opinion that Elizabethton and Carter County must begin looking at other forms of economic infusion in our local economy and tourism is a great start! Let's talk about it!

UPDATE: Read my follow-up column to this one -- The Future of Elizabethton's Economy.

Creating Communities for Aging Boomers

Like it or not, we cannot stop the aging process. With each new year comes another tally added to our age. In cities and in urban planning, we attempt to make our communities places for all ages from 5 year olds up through 95 year olds. But there is a unique situation that is quickly coming upon us – the Baby Boomers (birth years 1946 and 1964). There are so many people in this generation that communities and cities must change how they view aging and the types of services they provide in order to accommodate this aging generation.

We see this in some of the activities and services some of our neighboring cities are doing. Johnson City built a new Senior Center a few years ago to accommodate more people and have focused on building trail systems and walkable areas in their city (data suggests this generation desires walkable communities and trail systems so they can remain independent longer). Kingsport has installed a new downtown passive park with a carousel and has been working to develop additional trail systems and birding tours. Jonesborough has just completed a new senior center to accommodate additional growth.

Today, in Elizabethton, just under 30 percent of the city’s population is over the age of 60. According to recent estimates, just under 40 percent of the city’s population will be over the age of 60 by 2036. This means over 1,400 additional 60+ year olds by 2036 than today or roughly 10 percent more of the city’s population will be over 60. Interestingly, the age group under 40 is projected to remain stable during this same time period.

So how do we deal with and prepare for this age wave? Well, I think one of the first things we must do is ask the boomers themselves! What type of community do they desire? What amenities would they like to have in place as they age? Are there any additional services they would like to have as they age that they do not have now? All of these questions must be asked in order to provide the type of community that Elizabethton Baby Boomers desire.

We can also look to generational research to give us an idea of what type of community this generation wants as they age. The AARP (American Association of Retired Persons) has completed research on what communities need in order to be friendly to retirees and compiled it into an easy to use interface. It’s called the Livability Index and currently Elizabethton is rated 55 out of 100 (Johnson City is a 54, Bristol 50, Jonesborough 50, and Greeneville 48). Using this index and input from citizens, we can work to create a desirable, and livable community to live in not only for our aging population, but everyone. Let’s talk about it!

Elizabethton's Projected Population by Age Percent

Local Festivals Serve As Tourism Tools -- But Must Be Supported

This past weekend I had the pleasure of working the City of Elizabethton/Elizabethton Twins booth at the Covered Bridge Festival. I have worked our booth for the past three years and I must say, this year, the crowds really came out! The booth is a great opportunity to meet with you, our citizens, and find out what your needs and desires are for the future of Elizabethton.

This year, as I talked with passing festival goers, I came across ten different families and couples that were from out of state. It was great talking with them, finding out where they were from, and inviting them back to visit our little city. They came from states like Pennsylvania, Ohio, Florida, New York, and Kentucky. With them being from out of state, I took the opportunity to get their opinion about our community and the festival. Comments like, “The mountain are so beautiful!” and, “You have the most quaint downtown.” and, “The festival is great, but I wish it were bigger.” abounded.

Talking with others outside our city, county, and even the region, gives us locals a better idea of what our biggest assets are! Often times, driving by the same mountain, gorge, or downtown everyday desensitizes us to the real uniqueness of those features – the festival included! How many cities have a covered bridge in the middle of their city and, furthermore, have a festival centered around it? While many of the visitors were not staying in Elizabethton or Carter County, they took some time to find out about the festival and come and visit us for a few hours. One couple staying in Bristol even commented, “We’ve been coming to Bristol for years and had no idea this place even existed! We will definitely be staying closer to Elizabethton next year.”

While this small festival doesn’t draw large crowds from outside the area, it does serve as just one more tourism asset for our community and county. Yes, it may have its downfalls and negative aspects, but none-the-less it’s something that this community and county need to continue to support. Think of the snowball effect, the more support our community gives this festival, the more it will grow and develop and the more others will want to attend. It’s easy to complain that it’s no Blue Plum (or what Blue Plum used to be) or substitute any other large festival, but we must support it anyway or it will never become the festival we envision. Purchase a drink from a food vendor, but a small, inexpensive product from a craft vendor, and volunteer to help with the festival next year. It’s important to remember, at one-time Blue Plum was in the same position as the Covered Bridge Festival is today. The difference is, the community supported it. Let’s talk about it!

A Quick Lesson in Historic Preservation

In Elizabethton we have a historic preservation commission. The job of this Commission is to oversee the improvements and development of the historic districts in the city. I am aware of a lot of misinformation that exists about being in a historic district, so today I want to take some time to help you better understand how this process works.

In every request brought before the Historic Zoning Commission there are two major questions they ask about the proposed change. First, does the proposed change affect or impact historic or original materials. Historic or original materials means any type of material that would have been original to the building. Often times this is windows, doors, or exterior materials such as brick.

Once a determination is made, the Commission will move on to a second question – does the project affect or impact the defining characteristics of the building, its site, or the surrounding environment? In this question, defining characteristics include the most noticeable elements of a building, such as the windows or door types, roof line, roof materials, exterior materials, and porches or balconies. I often tell my board imagine driving by the building after the change has been made and ask yourself is it noticeable or does it stick out. If yes, then it’s probably a defining characteristic. Additionally, the Commission also has the authority to review changes to a site or it’s environment such as the installation of fencing or other permanent changes to a site.

If the answer to either of these questions is ‘Yes,’ then the Commission will review the project to ensure that it does not violate nine different historic standards. If the answer to both of these questions is ‘No,’ then the Commission will likely approve the changes or the project.

I frequently hear a rumor that property owners don’t want to be in a historic district because they have the authority to regulate paint color. I am here to tell you this is absolutely not the case! You could paint your house or building hot pink with lime green trim if you want to and there is absolutely nothing the Historic Commission can say or do about it. The one exception is if the building currently has unpainted brick, in which case, the brick cannot be painted, but painted trim can be any color desired.

Lastly, being in the historic district does not mean that you will immediately be required to take your building back to how it looked when it was first constructed. Additionally, since many of the downtown buildings have been revitalized at some point, the Historic Commission will probably not even require any changes you want to make to be 1920’s appropriate so long as the building has had a more recent face-lift completed to it. The Security Federal building is a prime example. The Commission would only require changes to the building to be appropriate to the last major renovation (which would’ve been the 1980’s) and not require the building look like a 1920’s downtown commercial building.

The Historic Commission is a little know body, but it has great powers. I will say, working with our local commission that they desire to work with the applicant to come up with an appropriate solution rather than forcing a drastic change on a property owner. If you are in a historic district, I will be more than happy to visit your building and discuss with you how we can best accommodate your desires while still achieving the goals of the commission. Let’s talk about it.

Bonnie Kate -- A Next Step for Downtown Revitalization

I have only met a few people who have said in their opinion the purchase of the Bonnie Kate Theater by the community foundation was not a good idea. There are many valid reasons for putting the building into private hands – it could generate property taxes, the private sector takes on all of the risk, and, some would argue, the private sector could do a much better job of operating a business in that space.

While all of these benefits of the building being in the private sector may be true, we must equally weigh them against the benefits that the facility would provide when in the public sector hands. Some of these benefits include, bringing a new restaurant downtown, adding just one more destination to downtown, and creating a new asset for our community.

Talking with the foundation and the persons who have supported the preservation of the Bonnie Kate, they have already lined up a restaurateur to come and start a restaurant in the former café and bar spaces. I excited about this prospect because, while we already have many great restaurants downtown, we need more that will be open during evening hours.

The types of uses that have been discussed for the Bonnie Kate will make it another destination to our community and our downtown. This will serve as a revitalization tool to our downtown. One factor that we always consider in downtown revitalization is the number of destinations (think anchor tenants in a mall) in the downtown open during the day and during the evening. If the Bonnie Kate come to full realization, this will be a big addition to evening downtown destination.

Lastly, having the Bonnie Kate in the hands of the Foundation will create one more community asset to our city and county. The Foundation has intentions to bring in theatrical productions, musical concerts, and various other entertainment options. This provides something to this city and county that we have not had in the recent past. Community assets such as this bring people to our community from outside the area (like Johnson City, Bristol, and surrounding areas) and introduces them to our community. It also serves as a recruitment tool for people who are looking to move to East Tennessee and for business and industry.

Yes, the Bonnie Kate in the hands of the private sector could accomplish a lot with potentially similar outcomes. However, I would argue that with the vision and the building in private sector hands, it can become a permanent, historical institution to this community in the decades to come. Let’s talk about it.