October2011Commerce by Knoxville Chamber

INSIDE: Q&A with Robyn Askew

pg. 53

Monthly Economic Indicators

pg. 54

MEMBERSHIP MATTERS RIBBON CUTTINGS

CONNECT With The

CHAMBER

Top Achievers are recognized for their countless volunteer hours and dedication to the Ambassador Program’s mission of serving as an active volunteer extension of the Knoxville Chamber to cultivate, promote, and maintain positive relationships between the Knoxville Chamber, its members, and the community.

TOP ACHIEVERS

Regions Bank celebrated the grand opening of its new downtown location on Gay Street in the Miller’s Building. Hayden Oakley, branch manager and Jenks Bostic, consumer banking executive, flank the Knoxville Chamber’s Rhonda Rice (center of photo) along with other Regions executives, Chamber Ambassadors, and friends.

SHANNON WEBB Pella Windows

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JOANI LEEDS PostNet

JANA DAVISON

twitter.com/k_chamber CHAMBER STAFF Doug Lawyer @knoxoakridgeIV Jennifer Evans @knoxevans Justin Kropff @jkropff Kyle Touchstone @knoxecondevguy Mark Field @field101 Michelle Kiely @mkiely1

Humana

NEW MEMBERS / NEW PREMIER PARTNERS BRONZE

Xpress Paper & Chemical, LLC (865) 688-5757 www.xpaperchem.com Office Equipment, Furniture, Supplies & Printing Services: Business Forms & Systems

SILVER

Capital Financial Group, LLC (865) 246-1725 www.capitalfinancialgroupllc.com Financial Services: Investments AA Air Co. (865) 689-5290 www.aa-airco.com Building & Grounds Maintenance: Air Conditioning, Heating, and Climate Control AC Docs HVAC (865) 777-4822 www.ac-docs.net Building & Grounds Maintenance: Air Conditioning, Heating, and Climate Control

Bass Services (865) 951-0168 www.bassservices.net Construction & Contractors: Electrical Contractors Boyd’s Jig and Reel (865) 247-7056 www.jigandreel.com Restaurants - Eating & Drinking Places

Decorating Den Interiors (865) 982-6368 www.sandykozar.decoratingden.com Residential Services: Interior Design

Iorg Movers (865) 755-9068 www.knoxvillemovingco.com Residential Services: Moving/Relocation

Luke’s General Contracting (865) 824-2765 Construction & Contractors: General Contractors

The Flixn Group (866) 503-5496 www.flixn.com Computer & IT Services

Directory Assistants, Inc. (860) 633-0122 www.directoryassistantsinc.com Business & Professional Services

Iron Horse Software (423) 667-9106 www.ironhorsesoftware.com Computer & IT Services: Hardware/ Software Developers

Minter and Associates (865) 688-8175 www.minterandassociates.com Business & Professional Services

The Oliver Hotel (865) 521-0050 www.theoliverhotel.com Hotels & Lodging

Owens Home Improvements, Inc. (615) 663-8713 www.owenshomeimprovements.com Construction & Contractors

TSSD Services, Inc. (877) 965-8773 www.tssdservices.com Employment, Career, & Staffing Services

Douglas Outdoor Media (865) 588-3027 www.douglasoutdoor.com Business & Professional Services: Advertising

Jameson Inn (865) 531-7444 www.jamesoninns.com Hotels & Lodging

CAMPCAST (865) 544-8643 Business & Professional Services: Marketing & Sales

Eden Greenscapes (865) 777-3336 www.edengreenscapes.com Building & Grounds Maintenance: Landscaping

Kelly and Company (865) 230-2771 www.kellyadvco.com Business & Professional Services: Advertising

Capital Risk Management Group (865) 246-2960 www.capitalriskmgmt.com Insurance

Goody’s (Stage Stores, Inc.) (865) 922-9664 www.stagestores.com Retail Stores

Knoxville Fashion Week (865) 680-1707 www.knoxvillefashionweek.com Entertainment: Arts & Culture

BSP Deals (865) 253-7093 www.bspdeals.com Business & Professional Services

Pella Windows - Shannon Webb (865) 438-3900 www.pellaadm.com Construction & Contractors: Specialty Services Tennessee Diving (865) 974-8102 www.tenndiving.com Sports & Recreation

CONTACT THE KNOXVILLE CHAMBER (865) 637-4550 www.knoxvillechamber.com

FINANCE & OPERATIONS ljohnson@knoxvillechamber.com

THE DEVELOPMENT CORPORATION (865) 546-5887

MEMBERSHIP mfield@knoxvillechamber.com

PRESIDENT & CEO MICHAEL EDWARDS

DESIGN LADDY FIELDS

WORKFORCE & EDUCATION jevans@knoxvillechamber.com

TENNESSEE SMALL BUSINESS DEVELOPMENT CENTER (865) 246-2663

EXECUTIVE VICE PRESIDENT RHONDA RICE

WRITER JUSTIN KROPFF

ECONOMIC DEVELOPMENT dlawyer@knoxvillechamber.com

CENTRAL BUSINESS IMPROVEMENT DISTRICT (865) 246-2654 mhummel@downtownknoxville.org

THE KNOXVILLE CHAMBER’S MONTHLY NEWSLETTER

EDITOR LORI FULLER editorial@knoxvillechamber.com

KNOXVILLE CHAMBER 48

LEADERSHIP KNOXVILLE (865) 523-9137 U.S. DEPT. OF COMMERCE EXPORT ASSISTANCE CENTER (865) 545-4637

Turkey Creek Public Market (865) 671-5000 www.turkeycreekpublicmarket.com Event Planning, Catering, & Venues

A Downtown Destination! Knoxville’s Economic Heartbeat Pumping Life into City A stroll down Market Square today is quite a bit different from the same stroll five years ago. Gone are the majority of empty storefronts, crumpled buildings, and fading businesses. What visitors experience now is energy and excitement, bright lights and bustling patios, and an eclectic mixture of restaurants, bars, shops, and culture. The catalysts for the rebirth of downtown include the significant financial re-investment, partnered with a diverse mixture of events that bring people from the suburbs and surrounding counties into downtown. Market Square regained attention in 2001 with the return of Sundown in the City. The popular outdoor concert series, produced by locally-owned and nationally-renown AC Entertainment, features a variety of exciting musical performances and is a free event that often brings more than 10,000 people downtown. “I told (then) Knoxville Mayor Bill Haslam that relocating Sundown in The

See “DOWNTOWN” on pg. 50

KNOXVILLE CHAMBER 49

City back to Market Square from World’s Fair Park was a necessity because we needed to get people to where millions of dollars had just been invested,” said now-retired Knoxville Director of Special Events Mickey Mallonee. “People needed to see what was beginning to happen to downtown.” A renovated Market Square with its new retail shops and restaurants gave the city a location that previously was anything but a destination. Crowds of people started to congregate downtown for the first time in many years. Restaurants and retail shops filled during the concert series’ 12-week run. Of course, Sundown in the City is just one of many events that bring people downtown. Other events include the Farmers’ Market, Shakespeare on the Square, Movies on Market Square, Jazz on the Square, Gay Street’s Rossini Festival, the Dogwood Arts Festival, and the International Biscuit Festival. Both the Dogwood Festival and the Biscuit Festival have received national accolades and help boost tourism as well. While Market Square might be the “Most Liked” element of downtown, as a recent study1 revealed, downtown’s resurrection has been enhanced by development projects on Gay Street. These include Mast General Store, Regal’s Riviera Cinema, the re-opening of the majestic Tennessee Theatre, and the resurgence occurring on the 100 block of Gay Street. The Old City has also seen a good deal of growth with new restaurants, pubs, wineries, and breweries establishing themselves in the near-north neighborhood. As downtown has revolved back into the place to see and be seen, the influx of residents has increased exponentially. A recent study found that over the last 10 years the number of downtown residents has increased by 60 percent. The same report reflects a whopping 244-percent increase in employed downtown residents, and household income rose 63 percent.2 Over the same period, Knoxville and Knox County’s Metropolitan Planning Commission reports the addition of 2,516 residential units inside the city’s Central District. The influx of visitors and residents has been an entrepreneur’s dream. A multitude of retail establishments has opened downtown and Mast General Store’s commitment in 2006 was a significant milestone in the revitalization. The store brought jobs downtown, and its 20,000-square-foot retail space brought a diverse mix of merchandise including old-time goods for hearth and home, traditional and outdoor clothing and gear, rugged and casual footwear and more than 500 oldfashioned candy favorites. “There is a great deal of pride in Knoxville’s downtown and for good reason,” Mast General Store president John Cooper said. “With the revitalization of Market Square and many additional projects, Knoxville is on the move. We’re proud to be a part of that strong move to an even more vibrant and viable downtown for shopping, dining, entertainment and livability.” The grand opening of Regal Entertainment Group’s Riviera Stadium 8 cinema closely followed the Market Square renovations and Mast General Store’s opening. This Gay Street movie theatre complex is on the same site as the original Riviera Theatre established in 1920. Within the first three months of operation Regal reported the downtown location had become the second-highest grossing box office in Knoxville. “In addition to our strong sales numbers, we have found the downtown com-

munity of merchants to be very engaged and supportive of each other’s efforts,” Regal Entertainment Group president and chief operations officer Greg Dunn said. “Our theatre’s patrons include downtown residents and those who travel further to enjoy downtown.” The Regal Riviera is along Knoxville’s historic theatre row, which also includes the Tennessee and Bijou theatres that have both undergone multimillion-dollar restorations. The revitalization would not have been accomplished without the assistance of City of Knoxville, Knox County, the Central Business Improvement District, and other partners that have invested in the necessary public improvements. One very notable improvement has been free access to public garages and parking meters after 6:00 p.m. and all day on weekends. This benefit has been a key-factor in drawing the more than 30,000 University of Tennessee students and faculty into downtown from campus. Additionally, the private sector played a pivotal role by recognizing the diamond in the rough and selling commercial and retail business owners on downtown. The Central Business District’s sales tax revenues have consistently been one of the stronger segments in the local tax base. In 2007-2008, Downtown Knoxville’s sales tax revenue increase was 8.2 percent, compared to Knox County’s sales tax revenue increase of just .17 percent. The Central District showed even stronger increases in 2008-2009 with sales tax revenue growth at 5.6 percent while the county decreased by more than 6.8 percent overall. “These numbers clearly demonstrate the strength of the Downtown Knoxville market,” said Chamber president and CEO Mike Edwards. “Downtown provides the perfect combination of business, residential, and entertainment venues that fit the needs of many. We recognized the promise in downtown when we moved our offices to Market Square in 2004. We’ve been pleased to be a part of the unparalleled growth and revitalization that is occurring in Knoxville and encourage other businesses to take advantage of this ideal location.” City of Knoxville senior director of policy and communications Bill Lyons knows the signature to any city is its downtown. It’s often the first thing people think about when they think of a city. Lyons helped develop the “Everybody’s Neighborhood” downtown theme designed to help create Downtown Knoxville’s family-friendly atmosphere. He thinks so much of Downtown Knoxville that he moved his family there two years ago. “The downtown residential community has taken hold well and the retail market continues to improve,” Lyons said. “The area is a great economic driver.” Mallonee lives downtown too. She feels Downtown Knoxville’s become an economic driver that’s influencing bottom lines and so much more. “Downtown’s a ‘wow’ factor for me,” she said. “When I walk down Gay Street and see the signs of the Tennessee, Riviera, and Bijou Theatres, it sort of puts a lump in my throat. No longer are pieces of plywood over downtown windows. It’s amazing to me that downtown’s come this far in such a short period of time.” TRACI K. MCDONELL, CITY OF KNOXVILLE

“DOWNTOWN” continued from pg. 49

Central Business Improvement District’s (CBID) 2010 Perception and Usage Study DemographicsNow’s 2010 Demographic Detail Summary Report

1 2

KNOXVILLE CHAMBER 50

Public Education is Woodson’s Passion SCORE President and CEO Leading Reform Effort Jamie Woodson, former State Senate Speaker Pro Tempore, has spent her career helping improve public education. She now leads one of the nation’s most innovative education reform organizations – SCORE. As president and CEO of Tennessee’s State Collaborative on Reforming Education, Woodson has been charged with bringing about meaningful change for Tennessee’s children by working with educators, policymakers, philanthropists, business leaders, and parents. Her work at SCORE has in many ways been a natural continuation of the work she was already engaged in as a member of the Tennessee General Assembly. Supporting and improving public education in Tennessee has been her passion. She’s always felt like there’s no higher priority for parents, school systems, and our state. “Now that I am dedicating 100 percent of my time to improving public education, I am reminded on a daily basis about how important it is to successfully prepare students for college or the workforce,” Woodson said. “Seven of the ten fastest growing jobs in Tennessee require some form of post-secondary education, so the imperative to improve is economic as well as educational.” Since taking over as SCORE’s leader in July, Woodson has been impressed with the collaborative nature of the effort to improve public education in Tennessee. Parents, teachers, administrators, business leaders, and policymakers all believe in the growing sense of urgency to improve student achievement and are deeply invested in this work. She feels this is something you don’t find in every state. Similarly, this state has become a leader in the national education reform movement in the last few years. Many elected officials and businesspeople have worked to raise academic standards, bring effective teaching into every Tennessee classroom, place strong leadership at the district and school levels, and incorporate data to drive instruction in powerful and effective ways. “The difficult work, and the work that we are currently the most focused on, is implementation of these bold reforms,” said Woodson. “Successful implementation is taking these new policies and resources and using them to spur student achievement and growth. Whether it means highlighting educational success in schools (such as identifying the first annual SCORE Prize), or providing technical

assistance to help school districts succeed, we are dedicated to ensuring that policy changes turn into student achievement gains.” The SCORE Prize is a celebration of success. Public education faces many challenges – tightening state budgets, a wide achievement gap, and increasing academic demands to ensure all students are prepared for 21st century jobs. Despite these challenges, there are schools and school districts in Tennessee that are dramatically improving student achievement and achieving more. In awarding the SCORE Prize, SCORE aims to recognize the schools and districts that have done the hard work of education reform, highlight and share their best practices, and show other schools and districts throughout Tennessee that improvement is possible. Maryville City Schools won the inaugural $25,000 School District prize and Anderson County’s Fairview Elementary won the $10,000 Elementary School Prize for 2011. How can the business community continue to support SCORE’s efforts? The most important thing is to stay the course! The business community’s strong support of Tennessee’s recent efforts to improve public education has been critical. Continuing this support is very important as SCORE moves into the work of implementing these reforms in schools and school districts. Woodson also wants the business community to continue to highlight the connection between education and economic development every chance it gets. “Business community members need to form business-education partnerships with local schools,” said Woodson. “These partnerships will provide students with opportunities, such as internships and job shadowing, to help them make the connection between school and future career paths. The Knoxville Chamber and the local business community have truly been leaders in supporting these reforms to date. We must all remain committed to successful implementation and truly preparing students for the global marketplace that awaits them.” Prior to leading SCORE, Woodson served for over twelve years in the Tennessee General Assembly in both the House and Senate and held leadership positions that included Chairman of the Senate Education Committee and Senate Speaker Pro Tempore. She currently chairs Tennessee’s First to the Top Advisory Council, a panel of national and state education experts that provides strategic guidance on implementation of the state’s landmark Race to the Top reform. For more information about SCORE, call (615) 727-1545 or visit the initiative’s website at www.tnscore.org.

Chamber and NewsTalk Cohost Senate Debate Republican nominees for the Tennessee State Senate District 6 seat squared off during August’s senatorial debate sponsored by AT&T and held at The Square Room on Market Square. “AT&T’s proud to be a part of this debate because we think it’s important to have good communication and rigorous debate during any election,” said Alan Hill, AT&T Regional Director – External Affairs. Candidates Victoria DeFreese, Becky Duncan Massey and Marilyn Roddy answered business-related questions from a panel, audience members, and via Twitter. The debate was moderated by NewsTalk 98.7 FM morning show host Hallerin Hilton Hill and broadcast live during his show.

Sponsored by:

Media partner:

KNOXVILLE CHAMBER 51

NewsTalk 98.7 FM morning show host Hallerin Hilton Hill (center) and panelists presented debate questions to State District 6 seat senatorial candidates (from far left) Becky Duncan Massey, Victoria DeFreese and Marilyn Roddy

PREMIER PARTNER PROFILE

An Open Letter to the Business Community from Dr. Anthony Wise, newly appointed President of Pellissippi State Community College

Guidance When You Need It Most

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After four years as Vice President of the Learning Division, three years as the College of Liberal Arts department head, and nine years as a history professor, all at Pellissippi Community College, Dr. Anthony Wise took over as the new President on July 1, 2011. He is now in charge of the state’s secondlargest community college with a focus on increasing student performance and the college’s relationship with the area’s business community. Below is an open letter from Dr. Wise to the business community.

Dear Business Community, Pellissippi State Community College started the fall 2011 semester with a record enrollment of 11,260 students. This year marks the seventh-consecutive year in which fall enrollment has exceeded the previous fall’s enrollment. There are a number of factors contributing to our growth. We have worked with high schools in Knox and Blount counties to expand the opportunities for students to take courses for college credit; we have built a new campus in Blount county and improved facilities at our Knox county sites; we have partnered with the University of Tennessee-Knoxville on a bridge program for first-year students and a culinary arts program; we have supported the work of KnoxAchieves (now TennesseeAchieves) and BlountAchieves to provide scholarship opportunities to hundreds of first-generation and low-income students; and we have created opportunities for students to accelerate their progress toward the completion of a degree. Providing access to higher education has always been part of the community college’s mission. We will further that mission by opening a new campus at Strawberry Plains in 2012. This site will allow us to offer educational opportunities in a portion of Knox County where residents are far less likely to have a college degree and to provide new opportunities for training and workforce development through our Business and Community Services division. The reform of higher education in the state brought about by the passage of the Complete College Tennessee Act in January 2010 requires that Pellissippi State and other state supported institutions focus their attention on a series of performance outcomes designed to increase the number of Tennesseans completing certificates and degrees. I am pleased to report that the College had a record number of graduates during 2011’s spring semester and that we remained focused on improving the academic support and student services our students need to complete successfully in a timely fashion. As we work to increase the numbers of degree completers, it is critical that we continue to produce outstanding graduates of career programs ready for the workforce and excellent transfer students ready to complete a degree at a four-year college or university. Pellissippi State is this community’s college; I am proud to serve as its president and look for your support in our efforts to expand and fulfill educational opportunities.

For more information about Pellissippi State Community College, visit the college’s website at www.pstcc.edu.

KNOXVILLE CHAMBER 52

WITH

Q&A

ROBYN ASKEW

Board Chair, Central Business Improvement District

Q: What is the Central Business Improvement District? A: The Knoxville CBID Management Corporation was formed in 1993 by the City of Knoxville pursuant to State statue. CBID’s core mission is to enhance downtown’s existing assets and bring more people to Downtown Knoxville to live, work, and play. The CBID consistently works to renew and improve the District, so that it continues to be an asset to future generations. The special assessment District covers approximately .67 square miles, which includes the core of downtown from the Old City to Volunteer Landing and 11th Street to Hall of Fame Drive. The CBID uses its funds to leverage business recruitment and retention, marketing, parking and transportation, security, and to maintain the quality of life in downtown for businesses, residents, and visitors.

the people working in those companies. Recently, CBID worked with the economic development community and Innovation Valley on a recruitment project. While the company was not looking to locate its facility downtown, the corporate officials knew that it was important to their long term business model to move to an area that had a vibrant downtown. The decision makers stayed in downtown during their visit, ate at many of the downtown restaurants, and took the opportunity to attend a concert at the Historic Tennessee Theater. These folks wanted to know what they and their co-workers could expect in the overall quality of life in the area and the cultural experiences available in the area. The response to what we had to offer was so positive, and we hope, that this will end in a new company for our region.

Q: What led to your involvement with the Central Business Improvement District? A: I began the private practice of law in downtown Knoxville in 1983, in the building now known as First Tennessee Plaza, and have spent most of my legal and real estate development career working in downtown Knoxville or with professionals located downtown. I was elected to the Board of Directors by the CBID members (property owners) in 2009, when I returned to the private practice of law at The Bosch Law Firm, P.C., and was elected Chair of the Board by the Directors in 2010. In traveling over the southeast as a real estate developer, it became apparent to me that an exciting downtown appeals to residents, business professionals, retailers, and visitors and positively impacts the growth of a region. Downtown Knoxville has seen a great revitalization over the last several years, and the momentum to do more is here.

Q: What key items have played big roles in downtown Knoxville’s improvement? A: While there is not one magic bullet which has led to downtown’s revitalization, a combination of public dollars and private dollars have been key to the success. The City has assisted with infrastructure and public improvements, new parking garages/lots, incentives such as PILOTs or TIFs, and policy changes. The private side has invested in rehabbing old, blighted buildings, adding residential units to bring more people downtown, and moving their business to downtown. CBID assists with façade improvements, marketing the assets in downtown, sponsoring events, and working with the City to ensure we have a safe and beautiful District. The Regal Cinema and the Mast General Store helped kick off the fantastic eclectic mix of boutiques, museums, bookstores, galleries, and eateries within the CBID. Events such as Sundown in the City, Shakespeare on the Square, Christmas in the City, and many others have played a key role in downtown’s revitalization by bringing people downtown and adding a steady stream of customers to restaurants and retail establishments. The Old City has seen recent new investment from The Crown and Goose and The Jig and Reel, and I am so excited about the potential for more unique businesses. Downtowns are revitalized in pieces, and one only has to look at the 100 Block of Gay Street to see a wonderful new piece of downtown Knoxville coming into play.

Q: How has CBID worked to increase the downtown business community’s impact on the area’s perception? A: Working with our existing partners, we want the business community to know that downtown Knoxville and the region is a great place to locate your business. The Knoxville area has placed high on several national rankings such as #1 for Green Job Growth, #4 High Tech Hub, 5th Best Value Metro, and 9th Best Metro for Jobs. Those rankings reflect the efforts of the Chamber to promote the great things that we have to offer and the quality and efforts of the businesses that call Knoxville home. CBID reaches out to the brokerage community to assist in attracting and retaining business and works with the Chamber in its efforts in the region. Q: Is it vital that the entire regional business community understand the importance of a vibrant downtown? A: Yes. As I said above, having a downtown that is a destination point on a year-round basis is one factor that businesses look to when trying to determine whether it they can be successful. If a determination is made that they can be successful in an area, then the question becomes one of the quality of life for

Q: Why does CBID focus on both the downtown business and residential communities? A: A vibrant downtown is active twenty-four hours a day, seven days a week. It requires a robust climate for businesses, a nice neighborhood for residents, and quality retail businesses, which feed off each other for greater success. We have five large churches within the CBID and within walking distance of one another, bringing thousands of people down here each Sunday and during the week. We have parks where families and friends can gather, and we have museums that are beautiful and interactive, with more planned. Being able to live, work and play within one neighborhood is essential to downtown’s success.

KNOXVILLE CHAMBER 53

Monthly Economic Indicators

(August 2011)

Notes - Knoxville MSA includes: Anderson, Blount, Knox, Loudon & Union Counties.

Workforce

Resident Labor Force

Aug. 2011

July 2011

Aug. 2010

% Change July ’11- Aug. ‘11

Knox Co. 240,100 240,840 235,470 Knoxville MSA 376,110 377,830 369,160 Tennessee 3,129,900 3,144,800 3,072,400 U.S. 154,344,000 154,812,000 154,678,000

Non-Ag Employment

Knox Co. Knoxville MSA Tennessee U.S.

7.7 7.9 9.6 9.1

2.0 1.9 1.9 -0.2

323,600 2,618,100

1.3 0.7

19,900 31,780 328,310

-1.4 -0.4 -1.7

2.4 3.0 1.2

7.6 7.8 9.6 9.5

0.2 0.0 0.0 -0.2

0.1 0.1 0.0 -0.4

Knox Co. 20,370 20,090 Knoxville MSA 32,740 32,880 Tennessee 332,340 338,090

Unemployment Rates

-0.3 -0.5 -0.5 -0.3

7.5 7.9 9.6 9.3

Sources: Tennessee Dept. of Labor & Workforce Development/U.S. Bureau of Labor Statistics

Inflation Rates - Consumer Price Index (CPI) – All Items

Aug. ‘10-‘11

*Southeast Region Avg. U.S. Avg.

July ‘10-’11

4.5 3.8

Source: U.S. Bureau of Labor Statistics

Aug. ‘09-‘10

4.2 3.6

% Change July ’10- Aug. ‘11

1.2 1.1

0.3 0.2

3.3 2.7

August 2011

July 2011

Aug. 2010

% Change July ’11- Aug. ‘11

% Change Aug. ’10Aug. ‘11

Knox Co. $45,906,305 $48,216,085 $42,517,288 Knoxville MSA $64,783,169 $67,753,483 $60,170,495 Tennessee $562,362,748 $594,270,774 $535,126,694

Local Sales Tax

% Change Aug. ’09Aug. ‘11

*South – City Size Class B/C

Sales Tax Revenue – State & Local $ State Sales Tax

Knox Co. $13,079,260 Knoxville MSA $18,220,475

Housing Market

-5.0 -4.6 -5.7

8.0 7.7 5.1

$13,759,091 $11,741,638 $18,977,590 $16,646,599

Category

Aug. 2011

-5.2 -4.2

11.4 9.5

(in millions of dollars)

% Change Aug. ’10Aug. ‘11

July 2011

Total Retail Sales 400,352 Building Materials 25,851 Clothing Stores 18,958 Electronics & Appliances 8,287 Food & Beverage Stores 52,214 Food Svcs & Drinking Places 41,691 Furniture & Home Furnishings 7,787 Gasoline Stations 47,909 General Merchandise Stores 51,810 Health & Personal Care Stores 23,011 Miscellaneous Stores 10,257 Motor Vehicle & Parts Sales 72,338 Non-store Retailers 31,598 Sporting Goods/Books/ Hobby/Music 8,641

Aug. 2011

Residential Closings Residential Inventory Median Residential Price

979 15,555 $137,550

July 2011

Aug. 2010

897 15,718 $149,500

% Change July ’11- Aug. ‘11

815 17,396 $151,225

9.1 -1.0 -8.7

% Change Aug. ’10Aug. ‘11 20.1 -11.8 -9.9

Source: Knoxville Area Association of Realtors

Residential Building Permits

Aug. 2010

% Change July ’11- Aug. ‘11

391,807 25,980 17,736 7,889 53,098 43,025 7,430 48,101 51,160 22,105 10,241 69,805 28,486

369,199 23,722 17,960 8,082 48,597 40,228 7,611 39,528 49,848 21,835 9,514 66,085 28,282

2.2 -0.5 6.9 5.0 -1.7 -3.2 4.8 -0.4 1.3 4.1 0.2 3.6 10.9

8.4 9.0 5.6 2.5 7.4 3.6 2.3 21.2 3.9 5.4 7.8 9.5 11.7

6,751

7,907

28.0

9.3

July 2011*

Knoxville (City) Total Single-Family Multi-Family

10 10 0

% Change July ‘10July 2010 July ‘11 9 9 0

11.1 11.1 0.0

Knox Co. Total 75 66 Single-Family 66 66 Multi-Family 9 0 Knoxville MSA Total 87 134 Single-Family 78 134 Multi-Family 9 0 Tennessee Total 931 947 Single-Family 831 871 Multi-Family 100 76

13.6 0.0 100.0 -54.0 -71.8 100.0 -1.7 -4.8 31.6

*All 2011 building permit data is preliminary and therefore subject to revision throughout the year. Sources: U.S. Housing & Urban Development – SOCDS – State of the Cities Data Systems; U.S. Census Bureau – Building Permits Survey

Air Service (McGhee-Tyson Airport)

Aug.2011

Passengers 154,731 Cargo 8,137,960 Source: Metropolitan Knoxville Airport Authority

Source: Tennessee Dept. of Revenue

Retail Sales – National

Knoxville MSA 327,700 323,500 Tennessee 2,637,400 2,619,300

Available Labor

% Change Aug. ’10Aug. ‘11

Source: U.S. Census Bureau – Advance Monthly Retail Trade Report

KNOXVILLE CHAMBER 54

July 2011

Aug. 2010

176,616 7,555,184

% Change July ’11- Aug. ’11

149,716 7,842,113

-14.1 7.7

% Change Aug. ’10Aug. ’11 3.3 3.8

PROPEL MENTOR/PROTÉGÉ PROFILE Protégés: Gwen Brown, Barbara Pearman, and Richard Russell of Brown Pearman Russell, LLC Mentor: Cavanaugh Mims, Visionary Solutions, LLC Visionary Solutions, LLC’s Cavanaugh Mims credits people, systems, and opportunity as the three most important factors in creating a successful business. He feels without quality employees a company cannot accomplish any of its short or long-term objectives. “With good people managing good systems, a firm can provide necessary services to the marketplace, grow, and become profitable,” said Mims. “Our biggest challenge has been and will always be the ability to attract and retain well-qualified and highly-motivated personnel that can understand our business, market to our customers and perform to the levels we expect.” As a mentor in the Chamber’s PROPEL Mentor/Protégé program, Mims is sharing this principal of attracting and retaining a quality workforce with protégés Gwen Brown, Barbara Pearman, and Richard Russell of Brown Pearman Russell, LLC. Gaining Mims’ business-operations insight has been beneficial. “There is great comfort in knowing we have access to an established local business that’s been where we are today,” Brown said. “In addition, Cavanaugh has been able to help us enhance our business opportunities by introducing us to markets we’re not accustomed to working in.” The partners of Brown Pearman Russell, LLC provide planning services,

help secure funding, and bring together designers, engineers and other professionals to create livable communities in the designing of public spaces. The company’s combination of creative solutions and technical expertise has made significant impacts to the sustainability and character of cities, counties, and regions throughout the Southeast. Visionary Solutions, LLC is a small minority-owned business providing nonhazardous, hazardous, and radioactive material transport services; U.S. Department of Transportation specific training; and technical support for the disposition of nuclear materials, equipment and related activities. The company is U.S. Department of Energy Motor Carrier Evaluation Program-approved. For more information about PROPEL’s Mentor/Protégé Program, call Doug Minter at (865) 246-2662 or email him at dminter@knoxvillechamber.com.

Thank you to these presenting sponsors for their support of Schmoozapalooza V.

Check out next month’s Commerce to see photos from the Chamber’s popular networking event, which was held September 29.

Cellular Sales Of Knoxville is a management company that operates retail stores for Verizon Wireless throughout the South, Midwest, and Northeast regions of the United States. Cellular Sales, headquartered in Knoxville, is the largest independent Verizon Wireless authorized retailer in the U.S. and is still growing. The company prides itself on exemplary customer satisfaction. As the Chamber’s official wireless sponsor, Cellular Sales offers Chamber members access to wireless technology and training. The Chamber continues to utilize Cellular Sales’ Chapman Highway and Cedar Bluff training facilities and its wireless experts to provide ongoing training and education on smartphones and advanced Verizon Wireless business services. For more information about Cellular Sales of Knoxville, visit the company’s website at www.cellularsales.com. Why is Comcast Business Class the best solution for your business? Businesses of every size need to have the ability to extend beyond their physical borders to be successful. By using Comcast Business Class, businesses can communicate and collaborate with employees, partners, and customers, no matter where they are located. They provide world-class internet, phone, and TV services designed to speed up businesses, save time and money and give them the edge to stay ahead of the competition. With Comcast Business Class as a partner in technology, businesses have the confidence that their staff has

the most reliable network and safety for the most critical communication. Contact Comcast Business Class for a free consultation! To learn more, visit www.business.comcast.com.

ORNL Federal Credit Union is an award-winning local credit union that provides low-rate car, truck, motorcycle, ATV, boat, and RV loans as well as auto loan refinancing, home mortgages, mortgage refinancing, and small business loans throughout the greater Knoxville area. Unlike other financial institutions and banks, ORNL FCU exists to serve the people who own it – its members, made up of local families who’ve been members for years, residents who purchased a home thanks to affordable credit union mortgages, and small business owners who work hard and have built their dreams with credit union loans. ORNL Federal Credit Union is a not-for-profit financial cooperative locally-owned and operated by its members for the benefit of all who belong. Established in 1948 with 10 founding members, ORNL Federal Credit Union’s assets have grown to over $1 billion and membership has grown to over 150,000. Open to businesses and anyone who lives, works, worships, or attends school in the 16 counties of Central East Tennessee, ORNL Federal Credit Union currently serves members in 32 branches located throughout Anderson, Blount, Campbell, Hamblen, Knox, Loudon, Monroe, Roane, Sevier, and Union counties.

KNOXVILLE CHAMBER 55

PREMIER PARTNER PROFILE

Business After Hours at LBMC, P.C. Lattimore Black Morgan & Cain, PC (LBMC) sponsored a recent Business After Hours at its Knoxville Financial Center located off of Dutchtown Road. Attendees enjoyed a tailgate-themed event complete with a tent and disc jockey.

University of Phoenix Knoxville Grand Opening

New 11,488-square-foot campus features state-of-the-art classrooms University of Phoenix Knoxville Campus recently opened its doors to serve working adult students enrolled in associate, bachelor’s, or master’s degree programs in much-desired employment areas, from business and technology to health care and education. Through flexible schedules, challenging courses and interactive learning, University of Phoenix students achieve educational aspirations without putting their lives on hold. The university’s new 11,488-square-foot campus is equipped for the future of education, offering Knoxville students more than just the traditional classrooms and library. The campus provides a modern approach to a quality education experience using cutting-edge technology and simulations. The new facility offers eight state-of-the-art classrooms each including multi-media lecterns, meeting rooms conducive to collaborating with classroom learning teams, a student resource center with private computer workstations to access the university’s electronic library, a laptop bar with high-speed wireless Internet connections, a flat-screen television station for student socialization, and onsite success coaches who focus on addressing student needs. For more than 30 years nationwide and nearly 10 years in Tennessee, University of Phoenix has removed barriers to education for working professionals. It has done this by providing accessible scheduling and rigorous degree programs to develop the knowledge and skills necessary to achieve professional goals. It has also helped working professionals improve the productivity of their organizations and provided leadership and service to their communities. University of Phoenix serves a diverse student population offering degree programs from campuses and learning centers across the country and online throughout the world. University of Phoenix currently has Tennessee locations in Chattanooga, Clarksville, Memphis, Murfreesboro, Nashville, and now Knoxville. Located at 10133 Sherrill Boulevard (Suite 120), adjacent to Pellissippi Parkway, the Knoxville Campus is open from 8 a.m. to 8 p.m. Mondays through Thursdays, and 8 a.m. to 5 p.m. on Fridays. For more information about University of Phoenix’s Knoxville campus call (865) 288-6800 or visit the university’s website at www.phoenix.edu.

Aramark’s Jeff Hodge and LBMC’s Phyllis Hodge were among the many area businesspeople who enjoyed September’s Business After Hours sponsored by LBMC, PC

LBMC’s family of companies address client needs in the areas of accounting, human resources, technology, staffing, and investment advisory. Door prizes were also given out during the LBMC event. The winners were: Chris Barbee, Bandit Lites (Tailgate prize pack courtesy of Rita’s Italian Ice) Marcia Whyte, Transworld Systems (Pair of movie tickets courtesy of Regal Cinemas) Sandy Medford, Knoxville Utilities Board (Pair of movie tickets courtesy of Regal Cinemas) Mark Campen, Tennessee Izaak Walton League (Cornhole boards courtesy of LBMC) Sponsored by:

KNOXVILLE CHAMBER 56

Buy Downtown Knoxville Card Launches

LEADERSHIP PROFILE

Tim Matthews

Local Businesses Showing Corporate Citizenship by Supporting Local Economy Tired of giving and receiving gift cards to big-box stores? If so, Knoxville’s Central Business Improvement District has created a gift/debit card program that enables purchasers to keep their dollars local when they redeem the Buy Downtown Knoxville gift/debit card at a variety of downtown shops and restaurants. Some merchants will also offer promotions specific to the card. Rich Ray, Chief Financial Officer at 21st Mortgage, feels it’s important for companies like his to help support the local downtown economy. “The 21st Mortgage offices are located downtown, and we’ve been a part of this community since 1995, when we opened for business,” he says. “A vibrant downtown, with scores of interesting businesses and services, acts like a magnet in recruiting new team members.” One way 21st Mortgage has done this is to become a corporate partner with the Buy Downtown Knoxville gift/debit card in its first year. From the company’s unique vantage point in downtown, it has seen the positive changes that have occurred over the years, and Ray sees the card as a positive way to offer incentives to its team members who already shop and dine downtown. “We look forward to seeing the card become a successful way to support the fine local merchants we have here,” he added. “The diversity of merchants on the card is off to a strong start, and we expect more merchants to come on board and give the card a broader array of downtown shopping experiences.” Ray encourages other corporate leaders who give employee and holiday incentives to join 21st Mortgage in offering a fun and meaningful gift this year. “Downtown Knoxville offers unique shopping, dining, and entertainment experiences,” Ray adds. “It’s a fun environment which is easily accessible from communities outside the downtown area. Downtown Knoxville is pedestrian friendly, and you can park your car and take advantage of shopping and entertainment without having to move your car.” Look for card decals on merchant’s windows around downtown to find Buy Downtown Knoxville participating locations. To purchase Buy Downtown Knoxville cards or to find out more information, visit the program’s website at www.buydowntownknoxville.org. For more information on how to become a corporate partner with Buy Downtown Knoxville, call CBID Marketing Coordinator Elan Young at (865) 246-2653 or email her at eyoung@downtownknoxville.org.

Jewelry Television™ CEO and President Jewelry Television™ (JTV) CEO and President Tim Matthews took the helm at JTV when the shopping network was near collapse in 2008 and has helped navigate the company back to profitability. Matthews has faced ups and downs over the past four years. What’s been his greatest challenge? Reengineering the company to survive. “I don’t think any of us realized how low jewelry retail would sink,” Matthews said. “Our team had the foresight to make changes that would sustain us, but there were times when we wondered if women even wanted to buy jewelry in this economy. Naturally, they do, but they are more selective and are spending less. That is the new reality. We are more focused on customer loyalty and retention than ever.” Today, JTV has incorporated many initiatives that have helped restore the company to profitability. Meeting women where they shop is a key initiative, especially since customers are not always in front of a television. The company has ramped up www.JTV.com and web revenue is growing by strong double digits each year. Matthews is confident that JTV’s mobile marketing efforts including apps for both iPhone and Android will be great successes. Equally important, merchandising is in a full court press. New tactics include a multitiered promotional pricing structure, offering new specials daily and launching exciting new brands. Merchandising is laser-focused on identifying key products that deliver amazing value to the company’s customers. JTV headquarters has undergone an extensive remodel, and operations have been consolidated under one roof on Parkside Drive in West Knoxville. The need for closer employee collaboration and cost reduction were the key catalysts for the consolidation. Operating from multiple locations presented logistical problems and was not cost effective. For instance, the organization’s call center agents are the front line to JTV’s customers, yet they were in another building with limited interaction with other departments. The company’s goal has always been to consolidate in one space and provide its employees with a work environment and amenities they could be proud of. JTV’s future promises to sparkle. An IPO is likely forthcoming but the company remains focused on profitable growth. “We’ve been profitable for 32 consecutive months,” said Matthews. “We’re out of survival mode. Eventually, an IPO would enable us to tap public capital markets for accelerated growth.” Through the changes, Matthews credits others’ successes as his greatest reward. “Saving jobs was rewarding but the greater reward is seeing employees meet challenges and helping people step up to become great leaders in this company,” he said. “No one should credit me with this turnaround. JTV is only as good as our people. I believe I’m right where I am meant to be and hope to complete my career at Jewelry Television.”

KNOXVILLE CHAMBER 57

Six Things Every Business Owner Should Know to Thrive

UPCOMING EVENTS

OCTOBER 4 Political Insights w/ Tennessee House Speaker Beth Harwell 4:30 – 5:30 p.m., Knoxville Chamber, 17 Market Square Sponsored by:

OCTOBER 5 a.m. Exchange 8 – 9 a.m., Mercy Health Partners North, 7565 Dannaher Way

Presented by: Dr. Kevin Kragenbrink of Estrada Strategies, Wednesday, October 12