March 2015 by The Business Journal of Tri-Cities TN/VA

Multi-familyâ&#x20AC;&#x2122;s growing market share High end apartments filling new niche in residential construction

Plus: The New Brews in the Old Depot

and

Economic Developers Unite

Mitch Cox of Mitch Cox Companies and Shane Abraham of Universal Development and Construction. The site is the Villas at Lavinder Lane in Bristol, Tenn.

MARCH 2015

$3.00 Volume 27 Number 7

BJournal.com | March 2015 | The Business Journal of Tri-Cities TN/VA

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The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

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BJournal.com | March 2015 | The Business Journal of Tri-Cities TN/VA

Business Journal The

| COVER STORY

of Tri-Cities Tennessee/Virgina

10 The Multi-Family Boom

OFFICE 423.854.0140

A few developers in the region saw that the shifts in singlefamily residential lending would create an opportunity for them. Theyâ&#x20AC;&#x2122;re glad they did.

PUBLISHER William R. Derby bderby@bjournal.com 423.979.1300

Mitch Cox and Shane Abraham Photo by Scott Robertson

| FEATURES

Commercial Construction Starts Back After a February to forget weatherwise, commercial developers are kicking back into high gear.

Get Used to Low Boone 13 TVA: Lake Levels What started as filling a sinkhole has become a multi-year, multi-million dollar repair effort at the dam directly upstream from Kingsport (and its major chemical plant).

ASSISTANT PUBLISHER Jeff Derby jderby@bjournal.com 423.306.0104 MANAGING EDITOR Scott Robertson srobertson@bjournal.com 423.767.4904 ASSOCIATE EDITOR Jeff Keeling jkeeling@bjournal.com 423.773.6438 SALES & MARKETING Jeff Williams jwilliams@bjournal.com 423.202.2240 Robin Williams rwilliams@bjournal.com 423.794.6938 CREATIVE Derby Publishing, LLC Graphics Director / Judd Shaw jshaw@bjournal.com 423.833.2726

14 Old Depot, New Business

One of the entrepreneurs behind Ole Smoky Moonshine has purchased a former train depot in downtown Johnson City with plans to create a craft brewery unlike any the region has seen (or tasted).

20 Economic Developers Unite Economic developers from Washington, Carter and Unicoi counties in Tennessee are taking the first steps toward forging an alliance to compete more effectively in a marketplace dominated by large cities and regional organizations.

| DEPARTMENTS 7 From the Editor 8 FYI 24 On The Move

26 Awards & Achievements 27 Med Briefs 30 The Last Word

The Business Journal of Tri-Cities Tennessee/Virginia is published monthly by Derby Publishing, LLC 1114 Sunset Drive, Suite 2 Johnson City, TN 37604 Phone: 423.854.0140 ÂŠ2015 Periodicals postage paid at Johnson City, Tenn. and additional offices. ISSN#10406360

POSTMASTER:

Please send addresses to

Business Journal of Tri-Cities, TN/VA 1114 Sunset Drive, Suite 2 Johnson City, TN 37604 Subscription per year $35.

The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

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BJournal.com | March 2015 | The Business Journal of Tri-Cities TN/VA

The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

| FROM THE EDITOR

I’d rather have part of something good than 100 percent of nothing at all Mark Costa nailed it. The chairman and CEO of Eastman Chemical Co., during his annual breakfast for community leaders, absolutely hit the nail on the head when he broke from discussing the company’s strategy and began talking about regional economic development in the Tri-Cities. “We’re not combining as a team yet to figure out how we take all of our effort together on a topic and make the best pitch to bring people to the area,” Costa told the gathering of business and government leaders. “Unless we combine together as a team, just like Eastman is a team, it’s hard to get something done. “We look at other rural areas that have succeeded, that is how they did it. They said, ‘I’d rather have a part of something than 100 percent of nothing.’ If you don’t get scale – just look at Eastman, look at the site – it’s one of the three largest sites in the United States as far as a chemical engineering site. That gives us a huge competitive advantage and we win in the marketplace because we have that scale and all the resources to do fantastic things you can’t do at a small plant. Therefore we win. We create synergies with these companies we’ve bought. We have to think that same way in the region. We, together, can do something great. But if we’re all trying to do our own little thing in different pockets of the region, I don’t think we’re going to succeed.” Actually, there’s plenty of proof that we won’t. I’ve always maintained that if taxpayers knew how small a percentage of economic development efforts actually bring jobs and investment to the region, they’d be clamoring to do whatever it takes to improve the outcomes. And right now, doing whatever it takes includes, first and foremost, putting aside the petty border wars of the past and forging the scale of effort to allow us to compete with regions that are kicking our collective butt right now.

This is not, by any means, to say that our county economic development professionals are bad, or less than absolutely competent. The fact that some of the individuals involved in the old Regional Alliance seemed to think they were was a huge part of that organization’s eventual failure. Our economic developers know what to do. They just don’t, representing individual counties, have the firepower to go head-to-head with organizations of communities that have banded together already. As Costa said, “This is a competitive environment. The competition to bring companies to your area is fierce. You’ve got to be willing to wage a battle together here. As Eastman, we compete against the Chinese and a bunch of global players who are extremely aggressive. If we don’t bring our best game, we aren’t going to win. We’re going to lose. “The same is true here. If we want to develop our region, we have to bring our best game. We have to realize there are a lot of other guys who have better resources or are far ahead of us. So how do we meet our objective? How do we put the best offer on the table? “I know that we are very committed to helping play a role in that. That’s incredibly important to Eastman and of course to the region.” There’s no standing still in the economy. You are moving ahead or you are falling behind. If we’re bringing jobs and investment to the region, we’re moving ahead. More employed citizens means lower taxes per citizen. A stronger economy means we have the wherewithal to address issues like education and workforce development, which in turn drives the economy ahead. Failing to create jobs makes all those issues worse. Again, you’re either cycling forward or backward. The question is whether we’re finally ready to move forward. “It just now gets down to executing,” said Costa. “It’s like Eastman. It’s all about focus and drive for results at Eastman. I think that’s the same thing we have to apply to economic development in the region.”

BJournal.com | March 2015 | The Business Journal of Tri-Cities TN/VA

| FYI

| INSIDE THE NUMBERS

Get to know… Tony Keck, Senior VP and Chief Development Officer, Mountain States Health Alliance Background: Saline, Mich., native with a bachelor’s degree in industrial operations and engineering and master’s in public health from University of Michigan. Interests: Barbecue (he’s a certified barbecue judge in South Carolina); bicycling; travel; fishing (including fly fishing); political biographies (favorite subject: LBJ).

APSU - Austin Peay, TTU - Tennessee Tech, ETSU - East Tennessee State

Stops along the way: Johnson & Johnson, St. Thomas Health Services (New Orleans low-income clinic), Louisiana Department of Health and Hospitals. Most recent gig: Director, South Carolina Department of Health and Human Services (2011-2014). Why he came to MSHA: “In South Carolina I was advocating for integrated systems that were willing to take more risk for performance and were focused on population health and reached out into rural areas. This system’s got a head start. So when (MSHA CEO Alan Levine) called me and started describing, ‘look, we’ve got a health plan, we’ve got an ACO, we’ve got medical school relationships, half of our hospitals are rural – it was tailor made.” What he knew about the Tri-Cities before recruitment here: He has in-laws in Blowing Rock, N.C. (“we knew about the mountains”) and had spent a little time in Asheville. His most pleasant surprise about the area: How many friends he and his wife have already made, both from work and “people we meet when we’re just out having dinner and they’re at the next table and we just start talking. That’s been surprising.” Reflections on the local business/economic climate: “This is an attractive place for people who love the outdoors, who don’t necessarily want to be in a large metro area but want to be around interesting people. Once they learn about it, they’ll start to flock.” Why he loves what he does: It’s problem solving. Reducing wasteful or unnecessary costs in health care, then using part of the savings to reduce overall expenditures, and part of the savings to pay providers more for doing things that improve overall population health, leads to the Holy Grail of a healthier population and a lower health care cost burden. What’s not to love about being in the middle of working toward that goal? 8

The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

Northeast State Community College justifiably trumpeted its top-of-the-heap status among community colleges in Tennessee Higher Education Commission’s (THEC) 2013-2014 performance outcomes. Based on a funding formula calculation involving 11 categories, that performance meant a 7.9 percent budget recommendation increase – also the top of the heap. The outcomes-based funding model rewards institutions for the production of outcomes that further educational success. It was introduced as part of the Complete College Tennessee Act of 2010 and applies to the state’s public universities and colleges, community colleges and colleges of applied technology. The tables above are from THEC and show, respectively, the performances year by year of East Tennessee State University against its peer group, and the highest and lowest performers among four-year schools; and the performance year-by-year of Northeast State against its peer group and the highest and lowest performers among its peer group. Bottom line? Both institutions’ performance against the peer average, taken over time, has been fair to middling. During the same period, the share of state funding as a portion of total revenue at Tennessee public universities has remained at historic lows. Since 1988, state appropriations (adjusted for inflation) have decreased 35.4 percent, while tuition and fees (student costs, essentially) have increased by 253.5 percent.

| FYI

&Downs

Ups

A quick check of the conventional wisdom on who’s going what direction in Tri-Cities business

The Tennessee Aviation Initiative (TAI), Northeast State Community College and Bell Helicopter - Air industry writer and educator Ralph Hood gave Bell’s Piney Flats facility a major shout out in an article in the January-February issue of Aircraft Maintenance Technology. Hood lauded Bell’s relationship with the community, pointing specifically to the TAI. Hood referenced Bell’s involvement with the addition of special STEM classes, noting “Bell Helicopter employees will be teaching many of those classes.” Three employees are part of the instruction team for four aviation courses being taught this semester. “Make no mistake,” Hood added. “TAI can change this area and Bell Helicopter is determined to make that happen.”

Crown Laboratories, Inc. - Crown, the Johnson City-based company behind Blue Lizard Sun Cream, was tapped March 2 by Suneva Medical to help expand that company’s dermatology prescriber base for Suneva’s ReFissa product. A news release called ReFissa “the only FDA approved and marketed .05 percent tertinoin emollient cream indicated as an adjunctive agent for use in the mitigation of fine wrinkles, mottled hyperpigmentation, and tactile roughness of facial skin in patients who do not achieve such palliation using comprehensive skin care and sun avoidance programs.” In other words, Crown will help Suneva market its product to dermatologists thanks to Crown’s existing, “commercial presence across multiple segments within the U.S. dermatology market.”

Tebow > - Tim Tebow, the former University of Florida quarterback, through his charitable foundation, has funded a playroom at Niswonger Children’s Hospital in Johnson City. The goal is to provide patients with a place to smile, draw, create, play games, enjoy a positive atmosphere, and generally take their minds off their medical treatment. The “Timmy’s Playroom” projects began in Jacksonville, Fla., in 2012. This is the sixth such room. It is the only one that does not have a University of Florida theme (though a UF Tebow jersey is displayed). Tebow also has Bible verses etched into the walls. For this reason, The Business Journal will not protest having a University of Florida jersey displayed in front of impressionable children (Happily, the hospital also has a room funded through the foundation of former University of Tennessee tight end Jason Witten).

Bristol’s job market - Office Depot announced March 4 it would shutter its Bristol, Va. service center, which employs 140 people. The company, which completed its merger with OfficeMax in late 2013, will conduct the layoffs over a 10-month period starting in May.

BJournal.com | March 2015 | The Business Journal of Tri-Cities TN/VA

| COVER STORY

Ap The art of Develop ment:

The regional multi-family residential building boom continues unabated By Don Fenley, Jeff Keeling and Scott Robertson

Rendering of The Villas at Lavinder Lane courtesy Mitch Cox Companies.

“I

have a joke that I tell folks, but it’s actually really serious,” developer Kelly Wolfe says. “’You know what a first-time homebuyer is now? You call them a renter.’” Wolfe Development diversified from single-family home subdivisions into multifamily development more than a decade ago. Today that decision makes Wolfe look prescient. The great recession moved many would-be first-time home buyers into the rental market, which has been booming in Johnson City and is picking up in the rest of the Tri-Cities as well. Wolfe is far from the only developer to profit from the trend. Shane Abraham of Universal Development and Construction and Mitch Cox of Mitch Cox Companies have been the most active developers in the multi-family market over the last year. They say the economic forces that have driven the multi-family boom show no signs of abating. “It’s a combination of tight credit and hearing the negatives in the last few years for owning,” Cox explains. “Many of the younger people coming out of college have either seen first-hand or heard stories of families and friends losing their homes or struggling to pay their mortgages. If you look at home ownership statistics historically as a nation the home ownership rate greatly increased in the years leading up to the recession in 2009. We 10 The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

have since fallen back in line with historical percentages.” Cox and Abraham say the higher-end rent market seems to be driven primarily by young professionals who are not ready to buy. That fits the mold for both the national and local preference shift toward rentals over homeownership and it’s not restricted to the high-end market. Several factors figure into the young professional mindset: student loan burden, a generational preference for mobility over ownership, and tight credit overall. Says Cox, “as the credit market continues to loosen or tighten the demand for apartments will most likely ebb and flow accordingly.” Some analysts contend Millennials won’t assume the portion of homeownership of the Baby Boomers for at least 20 years. Abraham and Cox’s latest venture is in Bristol, Tenn., on a grayfield site that was once the Southside Shopping Center. Commercial developer Steve Johnson had purchased the property years ago as part of a threepronged plan to update retail space along Volunteer Parkway. Of the three sites Johnson purchased, one is now the site of a Food City while another is the site of a Lowe’s Home Improvement Warehouse. Only the Southside site on Lavinder Lane proved undevelopable for Johnson as retail space. In January,

Johnson sought and received tax increment funding from Bristol and the Bristol Tennessee Housing and Redevelopment Authority in the amount of up to $970,000 to redevelop the site. He then flipped the property to Cox and Abraham. The Villas at Lavinder Lane, as the development is now called, is listed in city documents as an $8.9 million project. Before taking on the Bristol project this year, Abraham and Cox were very productive in the Washington County, Tenn., multifamily market in 2014. They worked together on Pickens Bridge Village and Cherry Grove in Piney Flats and Stonecrest Townhomes and the Villas at Town Acres in Johnson City. Kingsport is also seeing some smaller new apartment complex infill north of the redeveloped Kingsport Press property. That’s within a stone’s throw of the Supermarket Row site where the Kingsport Economic Development Board is working on a proposed high-end project. Plans are also underway for another major Kingsport Housing and Development Authority property redevelopment. Six years ago the authority transformed Riverview Apartments, located adjacent to Eastman Chemical Company’s Employee Center and across the street from the firm’s new Corporate Business Center. Now it plans a similar project at the Lee Apartments and Midtown neighborhood. Preliminary plans

call for demolishing the 128-unit Lee Apartment complex and replacing it with a neighborhood footprint that includes 250 mixed-income housing units. Economic indicators belie worries some have expressed about overbuilding for market capacity in the Tri-Cities. A recent analysis by RealtyTrac found the fair-market rent for threebedroom housing units in Washington County this year is up 13 percent. The analysis of U.S. Department of Housing and Urban Development data put the current Washington County fair-market rate for a three-bedroom home at $997 ($861 in Sullivan County). Many rentals in both counties go for considerably more. Washington County’s 13 percent increase and the 7 percent hike in Sullivan were the highest in the state of Tennessee. Nationwide, apartment rents rose 3.6 percent last year according to a Reis analysis of 79 metro areas. Locally, apartment rent increases have ranged from 5 to 8 percent. Still, Johnson City is touted to have the lowest vacancy rate for Class A apartment homes in the state. Rhonda McMullen, president of the Tri-Cities’ Apartment Association and property manager at

Sterling Hills Apartment Homes, says her properties raised rents by 8 percent this year without dampening demand. “Three-bedroom units - we can’t keep them.” The new communities coming on line haven’t caused problems for her property. When asked if she thinks the multi-family sector is beginning to run out of steam, she said as long as demand remains strong that’s not likely to happen. And demand is strong. As for Wolfe, whose apartment inventory is around 270 (and filled to around 97 percent capacity), he believes there’s still room for growth around ETSU. “I think with what Dr. Noland (ETSU president Brian Noland) is doing to create an environment where ETSU is no longer a commuter school, that is still a very upwardly oriented trajectory as far as new projects.” The largest potential ETSU area project remains locked in court, as residents of a nearby neighborhood have filed appeals of previous suits aimed at stopping the demolition of the former General Mills property. North Carolina-based Evolve Development plans to build apartments on that site once legal hurdles have been cleared and it can close on the purchase of the property.

Commercial Construction heating up Commercial construction is resuming at a brisk-as-possible pace after February’s winter storms brought outdoor Tri-Cities activity to a halt. Retail developments will remain in the spotlight as development of The Pinnacle and The Falls in Bristol continues construction, new client announcements and grand openings. Another high-profile project will be the new Food City store in Johnson City. Developer Steve Johnson says the recent snow and ice didn’t dent work at the Pinnacle too badly since much of the current activity is inside. Belk opened in early March. Progress at The Falls is taking on a higher profile as speculation about the opening of the anchor, Cabela’s, builds. Meanwhile work on the Lowe’s retaining wall is progressing. Brent Roswall of Interstate Development told City Council members in early February that he expects the work to be completed shortly before the April 22 pad turnover date. Construction of the store is expected to begin soon after turnover. J.A. Street & Associates, Blountville, received a permit for the paving, utilities and storm water work for the new Food City on State of Franklin Road in Johnson City in late November. Plans center on a 62,000-square-foot Food City anchor and four or five outparcels.

Tri-Cities commercial construction permit activity slowed slightly last year from the pace set in 2013. According to The Market Edge’s Annual Commercial Building Permit Summary, 642 new permits were pulled in 2014 compared to 666 in 2013. The Tri-Cities was the only area in East Tennessee where permits declined. Although only January’s permits were available when this article was written 2015 is seeing a variety of new construction and build-out work on projects. Johnson City commercial permits in January includes dental offices at 720 Market St., buildouts and renovations of several medical suites, treatment centers and equipment rooms. Work at the Johnson City Farmer’s Market, and site work for 4505 Bristol Highway were also permitted in January as were renovations at several retail sites. In Kingsport, Eastman pulled two new industrial site permits as the work on the new Corporate Business Center progresses toward completion this year. Work on a pedestrian bridge over Wilcox Drive is progressing and plans to modify traffic of that gateway are being considered. There were also permits for three commercial roofing projects, 11 alteration permits, two additions and a new commercial tower.

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BJournal.com | March 2015 | The Business Journal of Tri-Cities TN/VA

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Drawn out drawdown

Boone Dam repairs to take more than a year By Scott Robertson

he drawdown of Boone Lake will likely last significantly longer than one year, John McCormick, vice president of Safety, River Management and Environment said during a Johnson City news conference. During the first year, TVA will use a grout compound to fill in the voids in the natural limestone layer more than 100 feet below the earthen section of the dam. At the same time, McCormick said, the authority’s engineers, along with outside private-sector engineers, will be working on a permanent solution to the problem of water seeping from the lake above the dam through the earth to the river below the dam. Implementing that solution, whatever it may be, will likely take significantly longer. TVA officials say they cannot put a timetable on that implementation until they know what the exact process will be. The geology of the region is the source of the problem. Most of Northeast Tennessee sits on an underground layer of limestone. Limestone can be dissolved, over time, by water. A layer of limestone pitted with voids created by this effect of water on stone is called karst. When these voids collapse, they create sinkholes in the surface of the ground above. Such a sinkhole, measuring 4’x6’x10’ was found in the parking area of the dam control building in October. In most situations, a 240-cubic-foot hole hundreds of feet away from the concrete dam would not be the impetus for a decision that would create a multi-year, multi-million dollar economic impact. Boone Dam, however, is more than just

the concrete construct people refer to as “the dam.” The entire earthen area from “the beach” north of the public overlook to the concrete dam is also part of the structure. The earthen portion of the dam holds Boone Lake from flowing around the concrete portion. It is under this earthen part of the dam that the sinkhole first revealed signs of voids in the karst, and became what McCormick called, “cause for alarm.” When TVA officials discovered that water and sediment were entering South Holston River below the dam, the project became much more than just an effort to fill a sinkhole. Since that time, TVA and private engineers have been working to determine the extent of the problem and prevent further damage. While McCormick said he understands that some area residents have boats sitting in the mud right now, he cannot justify raising the lake level in order to let them retrieve their watercraft. His reasons are two-fold. First, there is the issue of safety. McCormick says TVA will not put more strain on a structure that is not functioning as it should. “The safety of downstream communities, industries, the public and our employees is our top priority.” Second, McCormick added, the progress that has been made since October doesn’t need to be jeopardized by such action. “I do not want to do anything that is going to cause me to have to go back and do more work. We do not want to bring the water level up and have to go back down again.” The grouting – the first stage of the repair – will begin as soon as the mapping of the

John McCormick

underground voids is complete. But the grouting will take a year to complete, McCormick said. “This is a slow, tedious process. This isn’t art. We are using science to map what it looks like under the earth. You find the void, then you try to find where the next void is. That will give us an idea of what our permanent repair plan will look like.” At this point, the nature of that permanent repair is the question for which there is no readily available answer. There are, however, some known possibilities, McCormick said. “You could actually build another dam. You could build a concrete structure in the earthen dam and continue the concrete structure.” It will just take time to determine the eventual course of action, McCormick concluded. “Our engineers and experts, who are some of the best in the country, are working with independent industry leaders to determine the best long-term repair options for the earthen embankment.”

BJournal.com | March 2015 | The Business Journal of Tri-Cities TN/VA

| FEATURES

History and

hops

Entrepreneur, depot owner enjoys role in Johnson City downtown renaissance By Jeff Keeling

If not for a family-related twist of fate, attorney-turned-entrepreneur Joe Baker wouldn’t be standing in a 124-year-old former railroad depot in the heart of Johnson City. But it’s a cold February day, and Baker is in the warehouse section of the former East Tennessee and Western North Carolina, smiling as two dozen gleaming stainless steel beer brewing tanks – brightly contrasting with the old wooden joists and the unique metal trusses that provide the building such character – are placed in preparation for the May opening of Yee-Haw Brewing Co. Set to become the largest craft brewery in the Tri-Cities, and something Baker hopes will be a source of both civic pride and significant employment, Yee-Haw will occupy the second historic Johnson City depot Baker has purchased since 2012. The first, the former Carolina, Clinchfield & Ohio just across State of Franklin Road from the ET&WNC, is now restored and home to Tupelo Honey Cafe. Baker also owns the former Free Service Tire Center office building – once a hotel – next to the ET&WNC, giving the co-founder of Ole Smoky Tennessee Moonshine a substantial stake in some of Johnson City’s most historic real estate. Yet Baker, a Gatlinburg native, might 14 The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

Joe Baker

Photos by Adam Campbell

still be focusing his efforts primarily in Sevier County but for a complicated pregnancy with the youngest of their three children. The experience had inspired Baker’s wife, Jessi, who is also a lawyer, to pursue medical school. That, in turn, led the couple to Quillen College of Medicine and to Johnson City, where they were house hunting in 2011 as Jessi prepared to start med school (the Bakers eventually bought a home in the nearby Tree Streets). Baker remembers noticing the empty, dilapidated CC&O depot while the real estate agent drove them around. “It was such an interesting building, but it was in obvious disrepair and didn’t seem to be getting any better,” Baker said of the now 116-year-old depot. “Overall, just coming into the city it was interesting to see the potential that was there.” Baker’s relationship with Johnson City, and his interest in the community and downtown as a place to conduct business and accomplish some historic preservation along the way, was just beginning. He soon learned the Johnson City Development Authority (JCDA) had purchased the CC&O depot out of foreclosure. The JCDA was looking for a buyer who could appropriately restore the depot, secure good tenants and turn it into a source of community pride while also generating tax revenue and attracting people to downtown. Over a period of more than two years, Baker and a lot of others made that happen, with Tupelo Honey opening in late June 2014. Long before Tupelo’s opening, though, the depot across the road had caught his eye. Even in 2012, Baker was thinking about the possibility of a brewery/depot combination. Tupelo Honey’s first foray into the Tri-Cities put the brewery idea on hold, as the restaurant signed a lease with Baker to use the warehouse section of the CC&O for its Johnson City site. But about the time renovations began on the CC&O, Free Service Tire Co. was moving out of the even older depot directly across State of Franklin Road. The former East Tennessee and Western North Carolina (Tweetsie) depot had been construct-

ed starting in 1891, 18 years before the CC&O. “I would stand there and know we had a lot of work to do on that property, and across the road see something that was also pretty spectacular,” Baker recalls. “To me, because the foundation of this city exists among the three depots that were once here (the Southern depot was the other), to have two preserved, that’s more than just about any other city in America can offer.” With Ole Smoky’s runaway success providing him the means to continue pursuing his interests in Johnson City, Baker began inquiring about the ET&WNC, which at that point was owned by Genesee & Wyoming. With the JCDA, Baker had a willing seller that had completed the heavy lifting related to purchase. He simply needed to convince the board – which had used tax increment financing dollars to purchase the CC&O Depot out of foreclosure in 2010 – that his plans complemented its vision for the historic landmark. “After we got started on (the CC&O), it became apparent there was a lot of opportunity with this property, too.” So Baker went to work, and quickly learned that unlike development authorities, “railroads aren’t in the business of selling real estate. There wasn’t a whole lot of negotiating. They set the price and that was kind of how it was.” Baker had his second depot, though, and this time his sights were set clearly on a brewery.

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“I enjoy good beer,” Baker says as he strolls through the depot’s old warehouse and workers secure the gleaming, 60-barrel stainless steel brewing tanks onto the concrete floor. “For a long time I’ve wanted to create a product made here in East Tennessee that we could not only enjoy personally, but also promote, and create something that local people can be proud of and enjoy.” So Baker, again in partnership with high school friend, fellow attorney and Ole Smoky co-founder Cory Cottongim, embarked on a venture to SEE RENAISSANCE, 16

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create a craft brewing operation in Johnson City. The result is Yee-Haw, and Baker expects what he calls, “an undeveloped industry” in East Tennessee to flourish. He’s quick to point out the quality microbreweries dotting the TriCities – “we’re certainly not the pioneers” – but Yee-Haw is bringing capacity far beyond that present at the Depot Street (Jonesborough), Wolf Hills (Abingdon, Va.) or Holston River (Bluff City) breweries. Under the depot’s unique metal roof trusses and aged but still solid timber joists, Baker stops to watch progress. Each tank holds nearly 2,000 gallons of liquid, and Baker wants the product to make a quick impact across East Tennessee, from Chattanooga to Mountain City. “Our hope is to be able to produce a fairly substantial quantity of beer. We’re looking to try to share this in a lot of areas. This for us is about building a brand, and we want to make some of America’s best beer. We’ve built a team to do that. We’ve got some folks that are among the best in the business working with us to create beer that would stack up against anybody anywhere.” Chief among those, and also puttering around the premises on an unseasonably cold day, is Yee-Haw brewmaster Brandon Greenwood, late of Lagunitas Brewing Co., where he oversaw the California-based craft brewery’s foray into the Midwest. The Westchester, Pa. native, who got his start as head brewmaster at Philadelphia’s Nodding Head Brewery more than a decade ago, says East Tennesseans can expect something a little different than the focus on ales common to many craft and micro breweries. He is

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| FEATURES happy to oblige Baker’s interest in a greater focus on lagers and pilsners (a type of lager) than most craft breweries. Lagers take a month to brew, compared to half the time for ales, and many smaller breweries simply don’t have the capacity to let much of their product fill brewing tanks for twice as long. “People would argue with me, but lagers are more sort of subtle and refined – require a bit more attention to detail,” Greenwood says. “Lager yeast tends to be a bit more finicky, it’s not as robust as ale yeast is. But we’re set up to do proper lager brewing here, from the brew house all the way through to the finishing cellar.” Though the craft market has fewer lagers and pilsners available, Greenwood says East Tennessee and Southern beer aficionados are, “absolutely ready for what we’ll brew. The palates will be a little more refined, and softer – I’d say not so much in your face. Our intent is not to coat your tongue with hops. They’re social beers. Beer drinking is a social event. Now I need to be careful, so I’ll just smile at this point. But we’re not making red wine, we’re making beer, and we’re making beer that people can sit down and have more than one of.” Baker says Yee-Haw will offer a breadth of beer styles, including four main varieties, punctuated with plenty of seasonals and special runs. The two main accompaniments to the dark lager and the pilsner will probably be a pale ale and an IPA. “We probably will explore all different kinds of beer, but certainly a heavier focus on the pilsner, on the pale ale, the IPA and the dark lager. I think those will be the staples.” Baker chooses his words carefully when asked about growth outside East Tennessee, but the capacity exists to send bottled six packs to stores, and kegs to restaurants and bars into a wide swath of the Southeast. “This is an East Tennessee brand, but if we’re fortunate I think we’ll see it grow outside of that over time.” Yee-Haw’s fare will be readily available to locals, and not just in stores and establishments. Adjacent to the production facility at the depot’s west end, a tap room will offer people the chance to sit and sip while watching activity inside the brewing area. The third primary space, on the building’s east end and with the highest ceiling, is set to become home to a restaurant that hadn’t yet announced when the Business Journal went to press. In addition, porch space and tables

will be plentiful outside the building, with a garden and lawn games also planned to be on offer. “Both on the State of Franklin (south) side and the Founders Park side there will be outdoor space for people to sit and enjoy. It’s space that I think will be well-used. It won’t be a late night establishment and we expect it to be attractive to families,” Baker says. The inside of the building is what prompts Baker to nearly wax rhapsodic about its character. And indeed, a look at the ceiling shows many odd angles of joists, along with the variably sized trusses – all part of a

design that Baker’s father, Gary, says earned the building a mention in Architectural Digest when the warehouse section was built in the early 20th century. (Baker credits his dad for seeing that they get the most out of the old buildings’ potential, saying, “he’s got a vision for things that really allows us to do things right and create a good experience when you go into a building.”) Baker says he was fascinated by the rooflines as years of added ceilings were removed during demolition. “To see those open to the cathedral ceilings and see the SEE RENAISSANCE, 18

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work that had been done more than 100 years ago, it’s pretty awesome to realize not only what work was done, but how it’s lasted.” Baker says he feels fortunate to have the resources required to help bring some of a city’s most iconic structures back to viability while preserving their integrity. “When these things are gone, they’re gone, and you can’t rebuild them. The craftsmanship that’s there, the history, all of those things, if it’s lost, it’s lost for good.” ••••••••••••••••••

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Just because Baker wanted to start a craft brewery didn’t dictate that it would wind up in the Tri-Cities. But the shine Baker took to Johnson City during the year he lived there (2011-2012) when Jessi attended Quillen College of Medicine hasn’t worn off. With two brothers-in-law and a sisterin-law living in Johnson City, Baker says he hopes to be actively involved in the general community and the business community. Jessi Baker’s brother, John Edwards, occupies a key role at Yee-Haw and lives downtown. While he expects to have his hands full with the nascent brewery and leasing of the former hotel building over the next couple of years, Baker says his eyes are always open to opportunities in downtown. He hopes his investments to date will be part of a downtown boom that fuels economic growth and civic pride. “We’re certainly not alone in trying to improve a great downtown area,”

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Baker says. “We’re just hopeful over the next few years to be a part of a real renaissance.” Around the time he purchased the second depot, Baker bought the 15,000-square-foot former Greenwood Hotel next door, where some of Yee-Haw’s office work gets done on the still-unrenovated first floor. It’s about as old as the depot, and Baker calls it, “a great building. You can just feel all the historic elements around you.” Prowling that building’s second and third floors, now gutted to the studs, he adds, “These walls could tell a lot of stories.” Soon, Baker hopes, the walls will contain commercial or residential space on the upper floors. He already has a couple of prospective retail tenants interested in the first floor. And Baker probably isn’t done investing in the downtown, which he believes is on the cusp of significant growth. Baker says he’ll be happy creating jobs, something he’s found rewarding as Ole Smoky has grown in fewer than five years to an employee base of about 300. “I would say that the greatest return on my investment has been when I have employees come up to me and say thanks because they were able to buy their own home. To know that we’re affecting lives – it helps you sleep at night. “It’s the same working in a community like this, knowing that you’re creating energy and excitement and causing good things to happen for the community,” Baker says. “It’s a business, and we want to make money. But if you can do good things, have fun and also make money, that’s kind of the ideal scenario.”

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| FEATURES

Study could help guide regionalism discussion By Jeff Keeling

or several months now, area economic development and political leaders have quietly discussed the possibility of greater regional collaboration in economic development. Between now and June, a consultant with the International Economic Development Council will lead an investigation into whether pursuing increased “regionalism” at a formal level might make sense for the communities in the Johnson City Metropolitan Statistical Area (Washington, Carter and Unicoi counties). The work of Asheville, N.C.-based Louise Anderson – and a cadre of IEDC members with backgrounds in regional economic development – is being funded through a grant from the U.S. Economic Development Administration, an arm of the Commerce Department. Anderson met Washington County Economic Development Council (WCEDC) CEO Mitch Miller at a conference last fall and told him about the program. The study is being conducted specifically for the WCEDC, which applied for the grant, but several of that entity’s board members and Miller have been the ones reaching out to leaders in the other counties, as well as Elizabethton and Erwin. Theoretically at least, their desire to study a more coordinated approach has backers in Carter County Mayor Leon Humphrey and Erwin Mayor Doris Hensley, who met with Anderson and others March 4 to learn more. “Traditionally the individual counties (locally) have not enjoyed the success that other regions such as Middle Tennessee and the Nashville area had,” Humphrey told the Business Journal in late February. “I feel the primary reason is, they have put together a collaborative effort and they’ve branded and marketed that area and made it appeal across the country. We have not been able to do it on our own, so partnering seems to make sense. We just have to approach it from a larger scale. The days of the individual fiefdoms are no more if you’re going to survive and expand.” The funds are available to localities that have suffered federal disasters, and the WCEDC was eligible for the funds because of tornadoes that struck the area in 2011. After interviewing key stakeholders locally, Anderson and her team will produce a report suggesting different ways – which don’t necessarily have to include elimination of any existing economic development organizations – the communities can approach challenges regionally. That could involve the public and private sectors both. “It’s all within the context of post-disaster economic resiliency and diversification,” Anderson said during an early March stop in Johnson City. She said regardless of whether a disaster was or wasn’t the proximate cause of a great deal of job loss or economic transition, the study’s findings – and what area leaders do with them – could help the regional economy’s long-term outlook. The MSA’s labor force and employment numbers have not kept pace with national trends over the past several years. 20 The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

Washington County Economic Development Council Chair Joe Grandy, CEO Mitch Miller and the International Economic Development Council’s Louise Anderson. Photos by Jeff Keeling.

“When the economy is stronger and more diversified, it can weather problems that come along, whether natural or man-made,” Anderson said. She said the study will, “identify the assets and the gaps” within the MSA. A 12-year veteran of IEDC, Anderson told EDC executive committee members during a February visit that a regionalism study was, in her view, a good choice of how to use the grant funds. “That’s definitely what we see among our members,” Anderson said. “They recognize their workforce, their capacity to attract new investment, their range of assets they offer, their

industrial sites – everything is so much bigger when they’re working on a larger scale.” That is also what the people and companies looking to invest are wanting, she added. “We hear about firms and site selectors being much more interested in and attracted to communities that demonstrate they work together well. In the 12 years I’ve been at IEDC, it’s phenomenal the rate of change in those organizations, recognizing they have to move beyond their own specific jurisdictions to offer what people want.” It may be what the State of Tennessee wants as well. WCEDC board member Jeff Dykes, the CEO of the Johnson City Power Board and a vocal supporter of greater regionalism, said a former state economic development consultant told him the state never brought him past Knoxville. “From a regional basis, if we don’t start working together, that will continue,” Dykes said during a January EDC meeting. “That stronger voice of

Doris Hensley

Leon Humphrey

having a larger group talking to the state (Department of Economic and Community Development) has a huge impact compared to four or five individual little counties and cities going down there.” Humphrey agreed that state government may have been disinclined to go the extra mile for the region due to its

hesitancy to develop a unified voice in economic development. “They see it’s a dysfunctional relationship now, and we need to be as one in order to move East Tennessee forward.” For her part, longtime Unicoi County resident Hensley said she hoped any moves toward more coordination could

BJournal.com | March 2015 | The Business Journal of Tri-Cities TN/VA

address several challenges. Education and workforce development, marketing the region as a whole and collaborating on projects to do more with less were among the topics Hensley covered in an interview with the Business Journal. Like Humphrey, she mentioned that regional collaboration is an idea, “that has been kicking around for some five or six years.” The longtime Erwin city recorder who also did a short part-time stint as Unicoi County’s economic development director – an indication of the limited resources available – is in her second year as Erwin’s mayor. “I’m in favor of this because what benefits one community is going to benefit the others.” Unicoi County has some available industrial buildings, she said, where Washington County doesn’t. Carter and Unicoi have tremendous natural assets, and Johnson City has the university, medical services and urban amenities. Whether it involves collaborating on a new industrial park, banding together to confront educational attainment or prescription drug abuse challenges and

thus preparing a better workforce, or combining forces in some other way, Hensley said any substantive regional accomplishment will help improve the prospects of a region with much to offer. “We can market the entire region instead of just marketing one location. This region has got more to offer I think than any other location in the eastern part of the United States. We have the mountains, we have the rivers and a lot of potential for tourism dollars to come in here.” The region also has a shortage of good jobs, Hensley said, and a need to collectively prepare its workforce for a changed, and rapidly changing, economy. I think the job market has changed so quickly toward technology, I’m not sure we’re ready for it in Unicoi County. And we’re losing our young people to other areas. We want to gain some good-paying jobs to where we can keep our young folks here.” WCEDC leaders have discussed the potential of an even broader regional effort that would pull in Sullivan County and the less populous counties around

it, or potentially the eight counties of the First Tennessee Development District. Leaders from the private and public sectors representing the two largest counties (Washington and Sullivan) continue informal discussions, but the IEDC study will focus on the Johnson City MSA. WCEDC Vice Chairman Ron Scott, CEO of Appalachian Community Federal Credit Union, said in January it’s essential that the private sector participants in these discussions take the lead as much as possible. Previous attempts at regionalism and collaboration, even successful ones, have proven challenging from a political perspective. “We’ve got to have private sector investors willing to take a political interception, if I can put it that way,” Scott said. “Be the ones who go to the commissions and make the case, so that you don’t have politicians put in that position. “When you start getting private people in there that are constituents, it’s a little bit tougher to keep butting heads, beyond there being substantive disagreements.”

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22 The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

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BJournal.com | March 2015 | The Business Journal of Tri-Cities TN/VA

| ON THE MOVE Banking Abingdon native Matthew Eades has been named branch manager for Highlands Union Bank’s Old Airport Road office in Bristol, Virginia. Highlands Union Bank Matthew Eades is a community banking system that serves parts of Virginia, North Carolina and Tennessee. In his new role, Eades oversees all personnel and day-to-day operations, including all commercial and residential lending. A seven-year veteran of the banking industry, Eades comes to HUB after five years as branch manager at another banking institution in Johnson City. He holds a bachelor’s degree in business administration from the University of Virginia at Wise, and he has a master’s degree in business administration from Virginia Tech in Blacksburg, Virginia. He is also a graduate of the Virginia Bankers School of Bank Management. “We are pleased to welcome Matt to our HUB family,” says Highlands Union Bank President and CEO Sam Neese. “With his extensive background in commercial analysis and mortgage lending, Matt brings a solid skill set that we know will be of great benefit to our Bristol customers.” For several years, Eades has taught annual banking workshops through the Virginia Council on Economic Education’s Personal Finance Institute for secondary school teachers. Eades is a resident of Abingdon, where he lives with his wife, Julie, and son, Drew.

24 The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

Health Care Dee Warrington has joined CrestPoint Health, a division of Integrated Solutions Health Network, as chief compliance officer. In this capacity, Dee Warrington she is responsible for the continuing development, management and enforcement of CrestPoint’s compliance program for both the commercial and government lines of business. She also manages the health insurer’s relationship with the Centers for Medicare & Medicaid Services (CMS). Warrington brings to CrestPoint more than 15 years of experience in the health care compliance industry. She has proven expertise in regulatory compliance and corporate integrity matters. Prior to joining CrestPoint, Warrington was the chief compliance officer for APS Healthcare in White Plains, N.Y. She has held various management positions in compliance and also served in a voluntary role as the compliance committee chair for a national nonprofit organization. Warrington is a certified health care compliance professional through the Health Care Compliance Association. “I’m thrilled to be part of the CrestPoint Health team and part of an organization that upholds its core values of service excellence and integrity while adhering to state and federal requirements,” said Warrington. “My entire career has been spent in the compliance industry and I look forward to continuing that tradition by establishing new best practices and strategies for CrestPoint.”

David Brash, a 27-year health care veteran and member of the Wellmont Health System leadership team for more than seven years, has been named president and CEO David Brash of Wellmont Medical Associates. Brash has served as interim president and CEO since October. A physician-led and professionally managed organization, Wellmont Medical Associates includes 142 integrated primary care physicians and specialists in multiple fields, including oncology, pulmonology and obstetrics and gynecology. Wellmont Medical Associates has 66 medical offices and five urgent care facilities in Northeast Tennessee and Southwest Virginia. “David has served with distinction and has contributed greatly to our growth and reputation as the leading health care provider in the region,” said Bart Hove, Wellmont Health System’s interim president and CEO. “Our patients have benefited greatly from his leadership, and he is a natural choice to partner with our physicians and other medical professionals. Wellmont Medical Associates will be in excellent hands with David’s commitment to our delivery of superior care with compassion.” During Brash’s Wellmont career, he has served as president of Mountain View Regional Medical Center and Lonesome Pine Hospital and as regional vice president of Wellmont’s Virginia hospitals. He has also been senior vice president of business development and rural strategy.

| ON THE MOVE Wellmont Medical Associates was created in 2012 as part of a fundamental restructuring of Wellmont’s physician practice operations. In 2013, Wellmont Medical Associates received Level 3 certification for its patientcenter medical home from the National Committee for Quality Assurance. In 2014, Wellmont Medical Associates was named an honoree for the Acclaim Award by the American Medical Group Association and was one of only three organizations in the country to be recognized. Another honor Wellmont Medical Associates received that year was the Most Improved award among medical groups with fewer than 150 physicians from the American Medical Group Foundation and its Measure Up/Pressure Down hypertension campaign. Brash has a bachelor’s degree in health care administration from West Virginia Institute of Technology School of Business & Economics and a master’s in management and health care administration from West Virginia Graduate College. He is a fellow of the American College of Healthcare Executives and a member of the Virginia Hospital & Healthcare Association’s board of directors.

care skilled respiratory program. Hobson oversaw about 100 co-workers. Hobson previously served as senior pulmonary manager for Select Medical Corp. Tri-Cities and as a respiratory therapist at Holston Valley Medical Center. Among the patients she treated were those placed in the neonatal, critical care and trauma units. Hobson has a bachelor’s degree in business administration from King University. She is a member of the American Association for Respiratory Care and an Advisory Board member for East Tennessee State University’s Department of Allied Health Sciences.

Stacy Long has been named director of surgical services at Bristol Regional Medical Center. Long most recently served as the hospital’s Stacy Long assistant director of surgical services and previously was a charge nurse and staff nurse in that department. She has worked at Bristol Regional since 2006. During her career at the hospital, Long Loveland has helped identify ways to enhance patient Hobson, a 17-year flow through all areas of surgical services. medical professional She has also worked with the department’s in the Tri-Cities, has leadership to increase efficiency while been named system maintaining patient safety. director of procurement “Stacy has performed excellent work for Wellmont Health at Bristol Regional and made valuable System’s supply chain contributions to the quality of our surgiLoveland Hobson department. cal department,” said Tim Anderson, the Hobson will oversee hospital’s vice president of patient care the department’s value analysis and buying services and chief nursing officer. “She is teams, capital procurement, contracting and a respected leader, and we look forward to reporting. She began her new role March 9. working with her as we advance the caliber “The significance of this position has of care in surgical services to the next level increased immeasurably as the whole supply of achievement.” chain team works to standardize our organi- Among the areas that fall under Long’s zation’s product portfolio,” said Brad Price, responsibility in her new role are outpatient Wellmont’s senior vice president of resource surgery, inpatient surgery, the endoscopy management. “This requires a high degree lab, the post-anesthesia care unit, the holdof clinical and operational knowledge, which ing unit and sterile processing. Love brings to the table.” A native of Damascus, Virginia, Long has Hobson comes to the supply chain a bachelor’s degree in history from Emory & after serving the last three years as direcHenry College, a bachelor’s in nursing from tor of Bristol Regional Medical Center’s King University and an associate’s degree in pulmonary, neurophysiology and wound nursing from Virginia Highlands Community care departments. She was also responsible College. She is a member of the Association for the sleep laboratory and post-acute of PeriOperative Registered Nurses. BJournal.com | March 2015 | The Business Journal of Tri-Cities TN/VA

| AWARDS & ACHIEVEMENTS Creative Energy takes 10 Addy Awards Creative Energy, Northeast Tennessee’s largest locally owned agency, brought home 10 American Advertising Federation’s Awards, including “Judges’ Choice” for print advertising. The awards ceremony was held at Johnson City’s Old South restaurant Feb. 21. Conducted annually by the American Advertising Federation (AAF), the Northeast Tennessee Ad Club awards is the first of a three-tier, national competition. The prestigious award entered a new era with the adoption of a uniform design for all awards across the country this year. Winners of Gold ADDYs locally are forwarded to the district competition, and winners there compete nationally Profits Ad; Newspaper Full Page - McCall Farms Jobs Ad; 3-D for recognition. Five entries from Creative Energy will go on to the CHA! by Texas Pete Mailer; Elements of Advertising - Johnson district level. City Brewing Company Logo “Of the 10 awards we won, the work was distributed among eight different clients,” says Creative Energy President Tony Tread• Silver ADDYs: Book Design - Boy Scouts of America Booklet; way. “I think that not only shows our diversified client base, but Consumer or Trade Publication - Jackson Warewashing Airport our ability to deliver impactful collateral no matter the scope of the Ad; Texas Pete Recipe Book; Photography Digitally Enhanced project. Some entries had a larger budget for a national client, and Texas Pete “Fire Up” Ad; Animation - How Brick is Made Video some were local companies, even one nonprofit.” Creative Energy’s for General Shale winning entries: Formerly known as “The ADDY Awards,” The American Advertising Federation’s Awards are the nation’s oldest creative • Judges’ Choice and Gold ADDY, Poster Campaign - Fluor competition. This year’s competition for Northeast Tennessee Careers Poster included 129 professional entries. Creative Energy is a full-service advertising, marketing, social media and public relations firm with • Gold ADDYs: Consumer or Trade Publication - Red Gold High offices located in Johnson City, TN, and Asheville, N.C.

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26 The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

| MED BRIEFS MSHA comments on reaffirmation of BBB+, stable outlook by two credit rating agencies Fitch and Standard & Poor’s, two of the nation’s top credit rating agencies, have affirmed their BBB+ bond rating for Mountain States Health Alliance, citing continued strong operational performance, strong governance and management practices, and a sound, credible plan to manage leverage. The third agency to rate Mountain States, Moody’s, was set at Business Journal press time to issue its report soon, but currently maintains a similar rating with a stable outlook. These ratings are particularly notable given the considerable challenges hospitals are facing nationally. All three agencies recently called the overall national outlook “negative” for the U.S. not-forprofit healthcare industry. “Fitch and S&P are very aware of the difficulties facing notfor-profit hospitals nationwide and locally,” said Alan Levine, President and CEO of Mountain States. “The confidence they have in Mountain States is hard-earned by our board, our physicians, team members and management, and is an affirmation of our operating strategy and conservative balance sheet management. “We are proud that, even during the worst periods of the recession as we continued to invest hundreds of millions of dollars into our communities, our ratings have never been revised, and our outlook has always remained stable. Our bondholders have always been able to rely on us.”

Levine welcomed the commentary about the system’s deleveraging plan. He said MSHA’s heavy investments in the region, including the construction of three new hospitals, have helped the system’s strength and benefited the region’s health care and economy. “(W)hile we understand leverage is a credit negative, the people benefiting from these investments will argue these were well-placed investments in the long-term health of our region, which will pay dividends for a long time to come. Despite these investments, our ratings have never changed to the negative and our outlook has been uninterrupted as stable. In an industry where the outlook remains negative, this is a notable achievement.”

Dr. Morgan Lorio appointed by American Medical Association; Spine Health Foundation (SHF) Announces 2015-2016 Board of Directors and National Advisors The American Medical Association (AMA) has appointed Spine Health Foundation Spokesperson Dr. Morgan Lorio to represent the International Society for the Advancement of Spine Surgery (ISASS) as a Current Procedural Technology (CPT) Advisor. “Dr. Lorio continues to make a powerful impact raising awareness and advocating on behalf of spine patients for SHF,” SHF Executive Director Carol Conduff said. “We are enthusiastic about this appointment and know that he represents physicians and hospitals in areas vital to the future of spine care and spine patients.” SEE MED BRIEFS, 28

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| MED BRIEFS MED BREIFS, CONTINUED

Newly appointed National Development and Research Advisors:

28 The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

• John Nichols, President of Disability Resource Group • Laura O’Dea, S-I Bone • Dr. Jeffrey Snodgrass, Chair of Occupational Therapy, Milligan College Second Term Directors: • Dr. Michael Boggan; • Wes Burleson, Burwil Construction • Dan Cates, WJHL-TV 11 • Suzy Cloyd, Emeritus Rock Springs, A Brookdale Community • Carol Conduff, Spine Health Foundation • Barbara Street, J.A Street & Associates Foundation Advisors: • Dr. Stephen Owens • David Miller, Attorney • Betty Jessee, CPA Founded in October 2010, the SHF has provided access to more than 450 procedures and resources including 20 spine surgeries. Additionally, the SHF provides other vital resources such as access to mental health and education to help the whole person.

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The Spine Health Foundation, Inc. (SHF) has appointed directors for the 2015–2016 term. “Our Board of Directors offers a diverse amount of professional strengths, which will be invaluable as we work toward growing the organization, this next term,” SHF President Barb Street said. “These appointments reflect our continued commitment to finding the right leaders dedicated to strengthening our organization.” Newly appointed board members include: • Christopher Abla, Financial Advisor • Ron Banton, Medtronic Corp. • Benjamin Blessing, VP of NFI Corporation; • Melissa Clemens, Financial Advisor, Wells Fargo; • Yvonne Sanders, Sanders and Sanders Agency; • Randy Sharrow, CFO of Holston Medical Group;

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11/

| THE LAST WORD

How growth can be virtually assured By Jeff Keeling

got out of my pickup after my seven-minute crosstown commute this morning, and there he (or she) was: a beautiful hawk in a nearby tree, scouting breakfast. I drove five minutes to lunch this afternoon, and as I crested a hill, there it was: Buffalo Mountain, bedecked in a gauzy frost with a brilliant blue sky backdrop, pretty as a picture. I’ll go home this afternoon, and maybe the lovely and talented Angela and I will manage a quick run on the Tweetsie Trail (a three-minute drive) or a short hike on Buffalo before dark. Perhaps we’ll walk downtown (10 minutes) for a stroll through Founders Park, dinner in a restored, century-old railroad depot, or some great live music (if not all three). If we lived in Kingsport, Bristol or Elizabethton we could create a similar after-work experience, enjoy similar easy commutes, and enjoy the regular visual feasts offered by our natural surroundings. If we chose somewhere out of town, the area’s natural charms would be literally out the back door, the commute still far shorter than the typical daily driving grind common to larger metros. These things should have everything to do with the Tri-Cities’ economic future. For a couple of centuries, this region’s rugged terrain was a bane to effective transportation, and thus to growth and development. It also left the landscape relatively unspoiled, and allowed for development of a distinct culture with charms (may I have a G run, please?) of its own. Fortunately – though we have yet to fully capitalize – there’s a new highway out there, and this area’s beautiful mountains, ridges and valleys aren’t really an impediment any more. This highway means many well-educated, high-earning individuals and families can write their own tickets. Given sufficient download and upload speeds, they can as easily set up shop in a quaint holler 15 minutes from downtown Kingsport as they can in a regentrified row of brownstones in Brooklyn. Take, for instance, the patent attorney and his wife, who felt just a little stifled, just a tad squeezed, perhaps, there on the fast track to “having it all” in the Washington D.C. megalopolis. Her family was enjoying life down here in good ol’ Northeast Tennessee, and boy was it nice to come visit. It just so happened that Mr. Attorney wangled his way to the opportunity to conduct his relatively lucrative occupation at his choice of location. Well, wouldn’t you know it, they didn’t 30 The Business Journal of Tri-Cities TN/VA | March 2015 | BJournal.com

just have great music, fantastic fishing and hiking and a tolerable array of dining options and cultural diversity down in the Tennessee hills – they had good Internet. That couple (it’s a true story) lives in our metro now. They’re early adopters. By my reckoning, there are hundreds if not thousands more like them out there, spinning the lousy-commute, expensive-housing hamster wheel simply because they don’t yet know their ideal future lies in the Tri-Cities. By all means, we need to continue working to attract mid- and large-scale employers to this region. But let’s figure out what it takes to get on the radar screen of these folks who can ply their well-paid trades anywhere, thanks to 21st century technology. I believe we’ll find the money of a couple of hundred families with average incomes of $150,000 who earn their living at the home office benefits our economy just as much as 200 new mid-level management jobs. Their contributions to the community and our overall educational attainment won’t be anything to sneeze at, either. We’ve got the natural, historic, arts and cultural assets to attract those families and singles. Popular culture-wise, we occupy a nice little outdoorsy, hillbilly hipster niche. Private-public partnerships and the public sector have slowly been building our inventory of the kinds of amenities – parks, trails, aquatic centers, museums – this target audience expects in a community worth living in. All we need to do now is keep developing those amenities, keep being our musical, friendly, rural/urban selves, refrain from paving over paradise, and market the Jewel of the Mountain South to all these folks who want to live here and just don’t know it yet. I believe the rest will take care of itself, much to our benefit and that of our future neighbors and friends.

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Surgical quality With precise skills and quality outcomes, our surgical urgical caree is ranked among the highest in the nation and region. • Top 100 in the nation for patient safety in major cardiac surge surgery urgeryy – CareChex® 2015

n overall overaall surgical surg urgical care, caree, • Top 10 percent in the nation for patient safety in ery – CareCh Chexx 2015 coronary bypass surgery and vascular surgery CareChex

llence in major majo orthopedic pedic • Top 10 percent in the state for medical excellence surgery – CareChex 2015

fety in major • No. 1 in the Tri-Cities for medical excellence and patient safety neurosurgery and spinal fusion – CareChex 2015

• No. 1 in the Tri-Cities for patient safety in spinal surgery – CareChex 2015

The science of medicine. The craft of healing. Because every beat and every breath count.

To learn more, visit wellmont.org/MyTeam or call 1-800-464-0520. 32 The Business Journal of Tri-Cities TN/VA | March 2015 Message | BJournal.comyour doctor.

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