Stone Brewing Company Johnson City, TN East Coast Proposal

Page 1

JOHNSON CITY/ Washington county, TENNESSEE

Mitch Miller, CEO Washington County, TN Economic Development Council 423.202.3510 miller@thewcedc.com


Table of Contents  Why Should Stone Brewing Company Locate Here  Proposed Site  Area Description

Page 3

          

Operational Requirements

Page 33

Climate Averages

Page 40

Biology/Quarry Report

Page 42

Sustainability

Page 45

Community Profile

Page 48

Commercial Activity

Page 56

Education

Page 60

Labor Force

Page 65

Healthcare

Page 71

Housing

Page 76

Incentives

Page 80

Page 5 Page 12

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WHY SHOULD

LOCATE HERE? 3


VIDEO – JOHNSON CITY, TN

http://www.youtube.com/watch?v=uP_fW7Rn18k 4


PROPOSED SITE

5


PROPOSED SITE  116 Legion Street Johnson City, Tennessee 37601

 Located in Washington County, Tennessee

 Located in the heart of

downtown Johnson City

Looking across Legion St. from the site at the Johnson City Cardinals ballpark.

Looking onto the site from State of Franklin Road 6


Proposed Site

Expansion Parcels


PROPOSED SITE Existing Buildings  Four buildings currently sit on the site.

 Could incorporate buildings into the design of brewery, or could demo and start fresh.

 Demolition for the four

buildings has been estimated at $130,000.

 Current Zoning  5 Acres zoned B-3

(Commercial Business) 11 Acres zoned I-2 (Industrial)

 Historical Use:  Tobacco Warehouse

 Current Use:  Abandon Buildings  Warehouse Storage  Vacant land 8


SITE CHARACTERISTICS The Site yields great visibility and access to Interstate 26. A short line rail road track runs along the southern portion of the site and switching services can be provided by CSX and Norfolk Southern to bring in materials by rail. Also, It is positioned right in the middle of the major growth area of Downtown Johnson City. A new 10 mile recreational trail (Tweetsie Trail) is being built 300 ft from the site and an existing trail network is located 0.4 Miles away. This site could serve as a major linkage between the two trails connecting Johnson City Medical Center/East Tennessee State University/Downtown Johnson City/Elizabethton, TN.

Directly across the street from the site is a Minor League ballpark home to the Johnson City Cardinals and a new community center used for recreational and entertainment purposes.

SITE PHOTO  LOOKING ONTO THE SITE FROM STATE OF FRANKLIN RD & LEGION STREET INTERSECTION

 BUFFALO MOUNTAIN IN THE BACKDROP

9


RELATIONSHIP TO THE SITE 5 Acres of the site is Owned by the City of Johnson City with an additional 11 acres owned by a private landowner but the Economic Development Council currently holds an option on the property. We have permission by the City to include their land as part of the project to locate Stone Brewing to Johnson City, TN.

 The 11 acre site is

privately owned and has been for sale for a few years

 TIF funds could be made available to purchase the site

 The City would

consider providing the land for this project

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SAMPLE CONCEPTUAL

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AREA DESCRIPTION DOWNTOWN JOHNSON CITY 12


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EVOLVE MILL CITY VIEW  Evolve Mill City View will begin construction in March of 2014.  Represents a $20 Million investment that will bring 216 new apartment units to Downtown.

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FOUNDER’S PARK  

$2.8 million, 5-acre green-space and flood mitigation project along State of Franklin Road One of the first projects in the city’s $30 million flood mitigation plan.

15


TUPELO HONEY CAFE  $2 million investment  New restaurant located in the old CC&O railroad depot in downtown Johnson City  Opening August 2014


DOWNTOWN PAVILION  With a price tag of $1.6 Million, the Pavilion will become the new home of the Johnson City Farmers Market and numerous events to bring folks to Downtown.  Opportunities are currently being explored to identify a corporate sponsor to hold naming rights to the pavilion.

 Construction is set to start in the Spring of 2014.

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TIPTON STREET REDEVELOPMENT  Known as one of the catalyst projects to spur redevelopment in Downtown Johnson City.  Tipton Street features unique downtown lofts and numerous dining & entertainment opportunities.  Businesses include One12 Downtown (Sushi), Tipton St Pub, Buffalo Street Downtown Deli, LIT Hookah Lounge, ETSU’s Tipton Art Gallery and Korean Taco.

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LONDON’S LOFTS AND MARKET  Scheduled for construction to begin spring/summer of 2014.  London’s Lofts will feature 40 residential units and Downtown Johnson City’s first natural meat market, which will include a craft beer brew barn.

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NORTHEAST STATE COMMUNITY COLLEGE  Set for classes to begin in January of 2015, Northeast State Community College will bring over 500 more students into the heart of Downtown.  Rehabbing the former Washington County Courthouse, this $3.2 Million dollar project will be a driving force for redevelopment.  Within three years, Northeast State expects enrollment to top 1,000 students.

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Paxton Place

PAXTON PLACE/ RESIDENTIAL PROJECTS 

Paxton Place features 26 new luxury apartment units in downtown Johnson City, completed January 2014. $2 million investment, taking place of two long-vacant buildings at the corner of E. State of Franklin Road and S. Roan Street.

Bank Building  The former Tennessee National Bank building on the corner of E. Main Street and Spring Street is soon to be converted into a mixeduse complex.  First floor will host a restaurant or retail store.  Second and third floors will host 12 apartments and studio lofts. 21


JOHNSON CITY CARDINALS  The Johnson City Cardinals are a rookie league baseball team affiliated with the St. Louis Cardinals organization.  They play with the Appalachian League, of which they are currently the two-time defending champions.  The Cardinals home field is located directly across Legion Street from the proposed site.

22


MEMORIAL PARK COMMUNITY CENTER 

The $15 million, 67,000square-foot recreation center is equipped with a 75-foot-long lap pool, splash pool and teaching pool. Outdoors features tennis courts, an amphitheater, wrought iron fencing, a plaza honoring veterans with the famous Doughboy as its centerpiece, as well as concrete walkways and other amenities. The center is located next to the home field of the Johnson City Cardinals and across the street from the proposed site. 23


TWEETSIE TRAIL

www.tweetsietrail.com

 The Tweetsie Trail is a 10 mile biking, walking, hiking, running, (multipurpose) trail, running from Alabama Street in downtown Johnson City to Sycamore Shoals in Elizabethton, that follows the old ET & WNC railroad line. Set to open by Labor Day 2014.  The trail is designed to run adjacent to the proposed site.24


One12 Downtown Sushi Bar

Downtown Restaurants/ Local Atmosphere  Downtown Johnson City is known as place to find a local flavor for food.  With 16 local restaurants located in the core of Downtown you can find almost any cuisine from Korean to German to the best burger in the Tri-Cities TN/VA Region.

One12 Downtown

Scratch Pizza

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DOWNTOWN ENTERTAINMENT Downtown Johnson City is on the upswing with venues for entertainment and festivals. The Memorial Park Community Center and the newly constructed Founders Park offer outdoor amphitheaters for events like the Blue Plum Festival and the Thirsty Orange festival, which bring thousands of folks to the downtown area.

Downtown Johnson City, TN

The Down Home – Downtown Johnson City, TN

Annabelle's Curse – Capones, Downtown Johnson City

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LADY OF THE FOUNTAIN  The Lady of the Fountain project truly showed the passion of the citizens for the community.  Over $25,000 was generated in 8 weeks from public fundraising efforts to restore the Lady of the Fountain, a historic icon in downtown Johnson City, and turn her back into a fountain, as she historically was.

27


State of Franklin Corridor Projects

28


DOWNTOWN JOHNSON CITY

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DOWNTOWN PROJECTS & IMPROVEMENTS

30


31


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OPERATIONAL REQUIREMENTS

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ELECTRIC Minimum utility Requirements A. Electric service

The Johnson City Power Board (JCPB) provides electricity in a 350 square mile region in and around Johnson City. JCPB purchases it electricity from the Tennessee Valley Authority (TVA). JCPB takes delivery of electricity at 5 different locations and distributes the electricity across 30 distribution substations and over 2,000 miles of line. JCPB is 99.99% reliable in regard to electricity delivery. JCPB serves over 76,000 customers that includes many business sectors and electrical load requirements. JCPB standard distribution voltage is 13,200 volts but we can provide different voltage levels as needed. JCPB has three different breakers that we can use to switch load to and from the proposed location for Project Brick in an emergency situation. JCPB has various rate option based on the customers demand (kW) usage and capacity. For loads in excess of 1,000 kW, we have seasonal time of use rates available. For commercial loads less than 1,000 kW but greater than 50 kW, we have seasonal electric rates (included with

II. Proposal Response). In addition to the base rates, JCPB passes through a total fuel cost adjustment from TVA that changes monthly to reflect the variable cost of generation fuels. Recently the TVA total monthly fuel cost adjustment has been in the 2 cent range. A detailed rate analysis may be performed if we have more specific usage details. Also, in conjunction with TVA, we have programs designed for manufacturing customers. Below is a list of some of the programs: 

TVA Valley Investment Initiative - possible credits for 5 years based on the customer’s electricity usage, capital investment, wages paid, and jobs created. See attached flyer.

Small Manufacturing credit - Credit for manufacturers on their monthly bill for firm power loads between 1,001 and 5,000 kW.

TVA Valley Commitment Credit - $.002 cent per kWh credit for manufacturing customers above 1,001 kW

TVA Economic Development Loans - Low interest loans for manufacturing customers. The most current rate quoted was .6%.

Comprehensive Services - In conjunction with TVA, JCPB offers energy audits, infrared scans, air leaks, power quality audits, etc., to major customers at no charge. JCPB and TVA pays for the cost of these services.

TVA Technical Services - TVA may be able to provide site evaluations and site development plans, along with photographic renderings and 3-D modeling. All to assist you in locating your business in our area.

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ELECTRIC RATES Seasonal Rate Periods (applicable to all rates) Summer Billing Months are defined as June, July, August, and September. Winter Billing Months are defined as December, January, February, and March. Transition Billing Months are defined as April, May, October, and November.

TVA Total Fuel Cost Adjustment In addition to the base rates listed in this schedule, the TVA Total Monthly Fuel Cost Adjustment (FCA) is applicable. TVA’s FCA is provided on a separate schedule as the rate changes each month. Johnson City Power Board will post the monthly TVA FCA schedule each month. Therefore, please apply the appropriate FCA rate when calculating bills. C General Power Rate – Schedule GSA2 (Rate Class 50) (For electrical usage levels of >50 kW & <1,000 kW, or <50 kW but > 15,000 kWh) Base Charge

$ 87.96 per month

Summer Demand Charge First 50 kW Over 50 kW

$ 0.00 per kW $ 13.33 per kW

Energy Charge First 15,000 kWh Over 15,000 kWh Winter Demand Charge First 50 kW Over 50 kW Energy Charge First 15,000 kWh Over 15,000 kWh Transition Demand Charge First 50 kW Over 50 kW Energy Charge First 15,000 kWh Over 15,000 kWh

$ 0.07942 per kWh $ 0.03982 per kWh

$ 0.00 per kW $ 12.47 per kW $ 0.07651 per kWh $ 0.03697 per kWh

$ 0.00 per kW $ 12.47 per kW $ 0.07470 per kWh $ 0.03573 per kWh

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NATURAL GAS SERVICE & RATES Request Min 20,000 CFH (5 psi)

Response Currently 2” line to site. Will require expansion of the distribution system – 2 month timeline to complete (cost $43,000)

Maximum Service to Site Available

Expansion would allow needed requirements needed to serve the site along with additional capacity

Character of Service Natural gas, with a heating value of approximately 1,000 Btu pel' cubic foot, supplied through a single delivery point and a single meter, at the delivery pressure of the distribution system in the area, or at such higher delivery pressure as agreed upon by Customer and Company. Service under this rate schedule may be terminated by either party following twelve (12) months notice to the other party. Customer Charge A monthly customer charge of $375.00 is payable regardless of the usage of gas, Monthly Rate All Consumption, per Ccf $.2036 Cost For Service – Rate Schedule Large Comm/Ind Total Unit Rate Base PGA Rider Facilities Charge

230 $ 0.7306 $ 0.2036 $ 0.5270 $ $ 375.00

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WATER/WASTEWATER Item

Request

Response

Domestic Water

Min 225,000 gal/day

Available

Source

Potable, odor free, clear

Available

Hardness

75-300 ppm

Range 29-71 ppm (46 ppm average)

Alkalinity

50-100 ppm

Range 15-65 ppm (36 ppm average)

Chloride

Less than or equal to 100 ppm

12 ppm

Maximum Service to site

Greater than 1000 gallons per min

Wastewater

Minimum of 100,000 gal/day

Available

BOD Strength

5000 ppm

Surcharges potentially apply for waste streams over 200 ppm. This Item will need further discussion on whether a poundage based limit might be developed.

Additional Building

80 gpm domestic

Available

4� Sewer Line

8� sanitary sewer available at public r.o.w.

3000 grease interceptor

Not provided by public utility service

Further discussions need to be held regarding an interim and long term discharge strength. Our understanding is that most breweries in Asheville provide a certain level of pretreatment. As mentioned previously that strength surcharge rates can apply to anything over 200 ppm at a rate of $503.07/ton discharged.

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WATER/WASTEWATER RATES Request Water @ 225,000 gpd Wastewater Flow @ 100,000 gpd

20 day production month $9947.00 $10,385.00

30 day production month $14,829.00 $15,575.00

JOHNSON CITY REGIONAL WASTEWATER TREATMENT FACILITY 38


HYDROLOGIC SYSTEM & WATER QUALITY The City of Johnson City has two water sources and surface water plants with a combined capacity of 28 million gallons per day (MGD). Present demand is 16.1 MGD. Both facilities have stand-by power to allow production during extreme weather events. One source is on a protected watershed, the other source is the Watauga River which at the withdrawal point is classified as Trophy Trout Stream. The prospective site in question can be supplied from either source in an emergency event. Water production was expanded in 2000 in accordance with our water master plan which projects and accounts for future growth. Main water customers are primarily institutional and include East Tennessee State University, Veterans Administration, and Mountain States Hospital. Our water system has an emergency operations plan to deal with most emergencies within reason and expected probability.

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CLIMATE AVERAGES

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CLIMATE NORMALS & RECORDS

SOURCE WWW.NWS.NOAA.GOV/CLIMATE/XMACIS.PHP

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BIOLOGY/QUARRY REPORT

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NATIVE VEGETATION Southern Ridge and Valley: Potential Natural Vegetation. K\"uchler mapped vegetation as oak-hickory-pine forest and southern mixed forest. The predominant vegetation form is needle-leaved, evergreen trees with cold deciduous, broad-leaved forest. The principal cover type is oak-hickory, which includes southern red oak, white oak, post oak, red maple, winged elm, flowering dogwood, pignut hickory, and loblolly pine. In some areas, loblolly and shortleaf pines are dominant. Southern Blue Ridge (from Patillo 1998 in Castanea): The contemporary vegetation of the southern Blue Ridge is complex and diverse (Figure 4). On the higher peaks (those generally above 1,500 m) a spruce-fir forest (Picea rubens, Abies fraseri) is still evident, though over a relatively small area (Saunders 1980, White et al. 1993) compared to the area occupied within the past hundred years. Below this is a mixture of hard-wood species usually described as high-elevation hardwoods with northern affinities (Fagus grandifolia, Betula alleghaniensis, Acer saccharum, Tilia americana var. heterophylla, Aesculus flava, Quercus rubra). Interspersed within these two types are Grassy Balds (DeSelm and Mur-dock 1993; Danthonia spicata, Carex spp., Deschampsia fle-xuosa) and Heath Balds (White et al. 1993; Rhododendron spp., Kalmia latifolia, Vaccinium spp.). The Grassy Balds may have persisted up to historic times as a subset of the high elevation vegetation as a function of grazing, fire, or other disturbances. Heath Balds can exist for long periods if there is adequate moisture but shallow soils that would preclude forest development (White et al. 1993). Some sites have successional with American chestnut (Castanea dentata). Northern red oak forest is confined to the higher elevations, whereas white oak (Q. alba) Heath Balds that occur in sites following fire, grazing, timber cutting, or other disturbances. At elevations below 1,500 m, deciduous oak forests dominate much of the region (Stephenson et al. 1993), though formerly this dominance was shared and chestnut-oak forests (Q. montana) often occupy sites in the 1,200-1,400 m elevational range (White et al. 1993, Schafale and Weakley 1990). Drier slopes, usually on southerly aspects, are occupied by mixed oaks and sometimes hickories on fertile soils (Q. alba, Q. montana, Q. coccinea, Q. velutina and Carya tomentosa, C. glabra; Stephenson et al. 1993). Often drier ridges are often dominated by pines (Pittillo and Smathers 1979, Stephenson et al. 1993), especially Pinus rigida, P. echinata, or P. pungens, though they are dependent to a large extent on periodic fire. In portions of the region, such as the Highlands area, Pinus strobus is commonly associated with oaks and other hardwoods, though mostly as a post-disturbance species. Cove Hardwoods, the most speciesrich vegetation type, occupy the valley flats and lower slopes, extending into the narrow upper-valley ravines (Whittaker 1956, Clebsch 1989). Among these rich forests are species such as Liriodendron tulipifera, Fraxinus americana, Tilia americana var. heterophylla, Fagus grandifolia, Carya cordiformis, Acer rubrum, A. saccharum, Aesculus flava, Prunus serotina, Robinia pseudoacacia, Halesia tetraptera, Betula alleghaniensis, and B. lenta. Cove Hardwoods often grade into Hemlock (Tsuga canadensis) forest that usually includes an admixture of hardwood species such as Magnolia fraseri, M. acuminata, Acer rub-rum, Betula spp., and in the higher plateau areas, Pinus strobus (Schafale and Weakley 1990). Although dominant vegetation can give us clues to the historical vegetational patterns, it is the presence of relict species that provides the most information on past vegetational distributions. At higher elevations, around grass balds and rock outcrops where light is abundant and trees sparse, we find many relict species (Quarterman et al. 1993). Among them are the alpine tundra-type species such as Geum radiatum, Huperzia appalachiana, Juncus trifidus, Trichophorum cespitosum, and Sibbaldiopsis tridentata (Wiser 1994, Wiser et al. 1996). These species have been able to survive since the last glacial maximum because they could occupy special habitats such as cool but exposed cliff ledges from which the more dominant vegetational types did not have competitive advantage.

SOURCE USFS PUBLICATION (ECOREGIONS OF THE U.S.) OBTAINED BY DR. FOSTER LEVY, ETSU BIOLOGY DEPT

43


QUARRY/MINERAL REPORT

SOURCE TENNESSEE DEPARTMENT OF ENVIRONMENT AND CONSERVATION

WATAUGA ROCK QUARRY • • • • • •

Formerly American Limestone Company Located 6 Miles from the Proposed Site Serving Northeast Tennessee For Over 50 Years Stone For Roads, Drain Fields, Masonry & Concrete Sand State Approved Stone In Business since 1954 44


SUSTAINABILITY

45


SUSTAINABILITY

46


SUSTAINABILITY

Johnson City Started Tennessee’s First Curbside Recycling Program in the 1980’s

Franklin Woods Tennessee’s First LEED Certified Hospital

Washington County is the first county in northeast Tennessee recognized by TVA as a Gold Sustainable Community in it’s Sustainable Valley Initiative program. The gold level designation recognizes that a community has taken a leadership role in implementing sustainable practices and has made a commitment to sustainability efforts focused on economic development.

47


COMMUNITY

48


REGIONAL MAP— CENTRALLY LOCATED

Johnson City/Washington County is the core of the Northeast Tennessee and Southwest Virginia region.

49


50


DEMOGRAPHICS— TRI-CITIES CSA Johnson City.. ..is the 8th largest city in Tennessee (64,344 - 2013) 

Largest City in the Johnson City/Kingsport/Bristol TN-VA CSA

Washington County increased in population from 2000 through 2010 over 15,500 people

Population Density (2010): 1470.7 people/square mile

Housing Density (2010): 710.5 housing units/square mile

Retail hub for the Tri-Cities Region (Over 600,000 Residents)

Home to East Tennessee State University (16,000 + Students)

Projected Growth for 2018  Johnson City - 66,542

51


TRANSPORTATION

HIGHWAY SYSTEM

Direct access from site to all points north, south, east, and west  Site is adjacent to I-26 (East, West)  Site is 15 miles away from I-81 (North, South) Distance to other major interstates:  I-40: 55 miles  I-77: 90 miles  I-75: 90 miles  I-85: 115 miles  I-64: 155 miles

RAIL NETWORK

 Site is adjacent to rail access  Over 275 trains run through Washington County weekly  Links to 22 states in the eastern US  Access to Foreign Trade Zone #204  CSX Transportation and Norfolk Southern Railway are primary service providers  Double stack trains  East Tennessee Railway (ETRY), located in Johnson City, is a 14-mile short line freight railroad that interchanges with CSX Transportation and Norfolk Southern

52


 

TRI-CITIES REGIONAL AIRPORT

 

Located 16 miles away from proposed site Provides non-stop service to major hubs such as Charlotte-Douglas International, Hartsfield-Jackson Atlanta International, Clearwater-St. Petersburg International, and Orlando Sanford Allegiant, Delta, and US Airways Express airlines The official administrator for Foreign Trade Zone #204

53


RECENT INDUSTRIAL/OFFICE ACTIVITY

$30,000,000 Investment 65 New Jobs

$750,000 Investment 120 New Jobs

$2,000,000 Investment 50 New Jobs

$2,000,000 Investment 25 New Jobs

$1,000,000 Investment 100 New Jobs

$1,000,000 Investment 900 New Jobs

$66,550,000 INVESTMENT 1,559 NEW JOBS

$13,000,000 Investment 164 New Jobs

$2,000,000 Investment 25 New Jobs

$6,300,000 Investment 35 New Jobs

$3,400,000 Investment 25 New Jobs

54


REGIONAL PROPERTY TAX RATES Johnson City has the lowest property tax in the Tri-Cities region, making it an affordable and desirable place to live and do business.

Commercial Property Tax Calculations (Includes County Rate) Personal and real property are taxed per $100 of the assessed value. Personal property is assessed at 30% of its appraised value and real estate at 40%. $4.3007

$4.5207

$4.5000 $4.0000

$3.4839

$3.5000 $3.0000

23.6% higher than Johnson City

29.9% higher than Johnson City

$2.5000 $2.0000 $1.5000 $1.0000 $0.5000 $0.0000

JOHNSON CITY, TN

KINGSPORT, TN

BRISTOL, TN

55


COMMERCIAL

56


JOHNSON CITY RETAIL  Johnson City has the largest presence and highest concentration of retail in the entire region.  Continues to lead the region in retail sales every year.  The Mall at Johnson City has over 565,000 square feet of retail space.  The “Roan Street Corridor” has over 1.15 million square feet of retail space.  The “State of Franklin Corridor” has over 1.5 million square feet of retail space. 57


2006

2007

2008

2009

2010

2011

2012

Johnson City

1.747 B

1.855 B

1.848 B

1.760 B

1.792 B

1.888 B

1.910 B

Kingsport

1.398 B

1.408 B

1.445 B

1.350 B

1.380 B

1.456 B

1.491 B

Bristol TN/VA

1.018 B

1.119 B

1.071 B

982.8 M

972.8 M

1.015 B

1.088 B

RETAIL SALES (2006 – 2012)

58


NEW COMMERCIAL ACTIVITY 2nd Freestanding Johnson City location

2nd Freestanding Johnson City location

59


EDUCATION

60


EAST TENNESSEE STATE UNIVERSITY (ETSU)  Enrollment: 15,000+ Graduate & Undergraduate students

Student Enrollment

08/09

09/10

10/11

11/12

12/13

13,841

14,677

15,234

15,532

15,404

 Colleges & Schools: College of Pharmacy, Education, Arts and Sciences, Business and Technology, Clinical and Rehabilitative Health Sciences, Nursing, Public Health, Honors College, College of Medicine, Continuing Studies & Graduate Studies  1.5 miles away from proposed site

61


UNIVERSITY EDGE & THOMAS STADIUM—ETSU  University Edge Apartments &  New ETSU Baseball Stadium (Thomas Stadium)  $28 Million Investment Downtown TIF Project

62


PERFORMING ARTS CENTER—ETSU  Expected to be a driver of economic development for the region.  A $38 million project, with approximately $5 to $6 million currently raised from private donations.  Can receive funding from the state once private donations reach $9.5 million.  Center is expected to have a 1400-seat concert hall, a 500-seat theatre and a 250-seat recital hall.

63


FOOTBALL PROGRAM—ETSU  Football stadium is an $18 million project with approximately $7.5 million to come from university fees, and $10.5 million to come from state and private funds.  First game to be held on September 3, 2015 against Kennesaw State.  Location of the stadium is approximately 2.5 miles away from proposed site

64


LABOR FORCE

65


INCOME—TRI-CITIES REGION Johnson City has the highest concentration of wealth, and the fastest growing household income in the Tri-Cities region.

AVG. HOUSEHOLD INCOME (2000)

AVG. HOUSEHOLD INCOME (2010)

PERCENTAGE CHANGE (2000-2010)

JOHNSON CITY, TN

$44,019

$56,619

28.6 %

Kingsport, TN

$44,263

$53,965

21.9 %

Bristol, TN

$42,721

$54,600

27.8 %

Bristol, VA

$38,457

$46,957

22.1 %

Golf course at the Johnson City Country Club

66 Home in The Ridges subdivision


EDUCATIONAL ATTAINMENT— TRI-CITIES REGION Johnson City has the highest concentration of people educated with both Bachelor’s degrees and Graduate degrees. This could be largely due to the presence of East Tennessee State University, and it’s Colleges of Medicine and Pharmacy.

BACHELOR’S DEGREE (2012)

GRADUATE DEGREE (2012)

JOHNSON CITY, TN

9262 (21.8 %)

5914 (13.9%)

Kingsport, TN

5169 (15.0 %)

2660 (7.7 %)

Bristol, TN

2944 (15.5%)

1064 (5.6 %)

Bristol, VA

1772 (14.1 %)

768 (6.1 %)

67


MEDIAN AGE BY COUNTY— TRI-CITIES REGION

Washington County has the youngest population out of all of the counties in the northeast Tennessee region.

WASHINGTON TN

68


TOP 10 EMPLOYERS IN WASHINGTON COUNTY, 2013

RANK 1 2

EMPLOYER Mountain States Health Alliance East Tennessee State University

NUMBER EMPLOYED 8,995

2,350

3

VA Medical Center

2,188

4

Citi

1,700

5

Washington County Schools

1,200

6

ACT

1,179

7

AO Smith

1,070

8

Frontier Health

998

9

Johnson City Schools

832 69

10

Mullican Flooring

420


Out of the top 20 employers in the region, with regard to number employed, 9 (45 %) of those employers have their headquarters in Washington County.

TOP 20 EMPLOYERS IN THE REGION 2013

RANK

EMPLOYER

NUMBER EMPLOYED

RANK

EMPLOYER

NUMBER EMPLOYED

1

MOUNTAIN STATES HEALTH ALLIANCE

8,995

11

ACT

1,179

2

Eastman Chemical Company

6,728

12

AO SMITH

1,070

13

DTR Tennessee

1,000

3

Wellmont Health System

6,225

14

FRONTIER HEALTH

998

4

K-VA-T (Food City)

5,201

15

Pal's Sudden Service

925

5

EAST TENNESSEE STATE UNIVERSITY

2,350 16

832

VA MEDICAL CENTER

2,188

JOHNSON CITY SCHOOLS

17

Laughlin Memorial Hospital

788

18

Nuclear Fuel Services

700

6 7

CITI

1,700

8

Sullivan County Schools

1,620

9

Hawkins County Schools

1,300

19

Bristol Compressors

656

10

WASHINGTON COUNTY SCHOOLS

1,200

20

Barette Outdoor Living

650

**Burgundy color indicates headquarters in Washington County

70


HEALTH CARE

71


HEALTHCARE— MOUNTAIN STATES HEALTH ALLIANCE

Johnson City Medical Center - Flagship Hospital

 The Regions Leading Level 1 Trauma Center  Serves 5 States – TN, VA, WVA, NC, KY  Offers Medical Surveillance Programs for Businesses & Industry  Children’s Emergency Department & Hospital located in Johnson City – Affiliate of St Jude Children’s Hospital

Niswonger Children’s Hospital

Services

72


HEALTHCARE—REGIONAL MEDICAL HUB

Johnson City Medical Center

Niswonger Children’s Hospital

Franklin Woods Community Hospital

Mountain Home VA Medical Center

Med-Tech Park

Med-Tech Park – State of Franklin Rd

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JOHNSON CITY MEDICAL CENTER       

3,514 Employees Mountain State Health Alliance’s flagship facility 445-bed regional tertiary referral center One of six Level 1 Trauma Centers in TN East Tennessee’s leading Heart Hospital Named as a Top 100 Heart Hospitals by Solucient Leading Cancer Center in the region, with relationships with Harvard, Duke, and Vanderbilt Universities The first, and one of two, Nurse Magnet hospitals in TN

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FRANKLIN WOODS COMMUNITY HOSPITAL   

Mountain States Health Alliance facility The first LEED-certified, “green” hospital in the state of Tennessee A not-for-profit hospital with 80 beds, offering a full array of primary care and some specialty services 240,000 +/- square foot building on a 25 acre lot adjacent to The Wellness Center inside Med Tech Park

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HOUSING

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HOUSING

 $52.1 million is the total value of single-family housing permits pulled in Washington County/Johnson City/Jonesborough in the 12 months ended May 2013.  9.3% is the increase in Washington County in the average home sale price in 2013 compared to 2012.

AVERAGE SALE PRICE

TOTAL HOMES SOLD

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REGIONAL HOUSING STATISTICS HOMES LISTED AT $400,000 OR HIGHER

HOMES SOLD AT $400,000 OR HIGHER WITHIN THE LAST YEAR

OF THOSE HOMES SOLD: LESS THAN 10 YEARS OLD

JOHNSON CITY

83

72

45

Kingsport, TN

29

18

5

Bristol TN/VA

16

4

1 DATA FROM NOVEMBER 2013

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NAHB/FIRST AMERICAN LEADING MARKETS INDEX (LMI)  LMI tracks the recovery in housing markets, and is calculated using current levels of three components: 1. Employment -Data from the Bureau of Labor Statistics 2. House Prices -Data from Freddie Mac 3. Single-Family Building Permits -Data from the U.S. Census

The Johnson City MSA is currently ranked 7th out of 359 MSA’s in the nation, with a score of 1.33, indicating that the housing market is recovering extraordinarily well.

Rankings as of January 7, 2014 Rank*

MSA

Score**

7

Johnson City

1.33

54

Clarksville, TN

1.00

117

Asheville, NC

0.90

136

Knoxville, TN

0.89

137

Kingsport-Bristol, TN

0.88

145

Greenville, SC

0.87

161

Chattanooga, TN

0.86

---

U.S.

0.86 *Rank is out of 359

**A score above 1 indicates the market has advanced beyond the previous sustainable level of economic activity. Source: National Association of Home Builders, http://www.nahb.org/reference_list.aspx?sectionID=2694

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INCENTIVES

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LOCAL PILOT (payment-in-lieu-of-taxes) Program Companies meeting the job creation and capital investment thresholds are eligible for varying levels of property tax abatements. Unique projects allow for a strong abatement to be negotiated between the prospect and Industrial Development Board.

Downtown Johnson City TIF District The site is located in the Downtown Johnson City TIF District and would be eligible for TIF funds to help: • Acquire Property/Buildings • Demo Existing Structures • Enhance Infrastructure to and on the Site • Create Public & Private Parking • Assist With Other Public Improvements • Example - Recreational Trail Extensions Other Incentives • Consideration of Stone Brewing Company as the preferred brewing partner to provide beer at Johnson City Cardinal games. • Extend the Tweetsie Trail & Millennium Trail to connect at the proposed site • Other recreational/entertainment amenities would be considered in conjunction with Stone Brewing Company 81


STATE OF TENNESSEE Employee training grants, Public infrastructure grants, Tax credits and sales and use tax exemptions. Incentives are based on - Number of new jobs created - Amount of capital invested - Type of business

FEDERAL TVA Valley Investment Initiative TVA can provide electricity bill credits to qualified power customers who make significant commitments to invest in the Tennessee Valley

TVA Economic Development Loan Funds TVA can provide loans with below-market interest rates to financially sound companies which are relocating or expanding their operations in the Tennessee Valley US Economic Development Administration Eligible projects could receive up to a $1.5 million grant with a $1.5 million match

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THANK YOU!

Mitch Miller, CEO Washington County, TN Economic Development Council 423.202.3510 miller@thewcedc.com

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