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A Brief History of East Ridge Economic Development
By Richard Cook from our partners at East Ridge News Online:
The announcement that Bass Pro Shop plans to build an 85,000 square-foot retail store on land adjacent to Camp Jordan created tremendous excitement in East Ridge.
Since 2008 city officials have tried to pump new economic life into the city by a number of means. Most have fallen flat, as evidenced by a proposed water park on Ringgold Road. Some have succeeded, like the opening of Speedway later this month on the corner of Ringgold Road and Tombras Avenue.
Here is a brief timeline of some of the events leading up to the Bass Pro Shop announcement on Monday, June 9.
2008 _ Under Mayor Mike Steele's administration, it is announced that a developer out of Birmingham plans to build a water park on Ringgold Road near Spring Creek. Ground is broken at the site where the Dollar General Store now stands. For several months there is anticipation about the construction, but the development falls flat.
Steele explained last week that the developer, David Mays, had a financial backer in Birmingham who passed away during the initial stages of development. When the financial backer died, so did the project.
Discussions about economic development continued, officials said. However, the "Great Recession" put the brakes on businesses expanding to new sites.
Mayor Brent Lambert said he was at a Chamber of Commerce board meeting and a budget line item was brought up about economic development. "Well, there's none to speak of," Lambert said the chairman of the committee stated. "Talk about stagnation. That's where we were."
2009 _ Elected officials included a $50,000 line item in the fiscal year 2009-10 budget. The money would be used to hire a full-time employee who would work to bring new businesses into the city. The position was never filled, however. Reviewing minutes from those years show that the money earmarked under the city's administration department was spent in part to augment the salary of an administrative assistant for the city manager.
2010 _ In April, city officials fly to Springfield, Missouri to speak with Johnny Morris, the founder of Bass Pro Shops. Officials are attempting to convince Morris that the site of the old K-Mart and Sears Essential building on South Terrace should be considered for his business to expand into the Southeast Tennessee market.
Steele said at that time that city officials had been informed by another developer that Bass Pro was looking in the area. However, during this time the Cumberland River overflowed its banks in Nashville inundating retail stores in the area, including Bass Pro. "Discussions sidetracked and blew up," Steele said.
Also in this year, the city announced that it was interested in acquiring the building and property that once housed the Hungry Fisherman restaurant. That effort fell through after vandals looted the building destroying mechanical systems in the building.
In April of this year, officials with Wolftever Development obtained an option to purchase America's Best Value Inn on Camp Jordan Drive.
In August, Steele said he was approached by Wolftever Development with the idea of acquiring more than 30 acres of state property on Camp Jordan Drive adjacent to Fire Hall No. 2. In order for this to happen, city officials would have to appear before a Department of Transportation committee to plead its case.
Initially, TDOT was not in favor of designating the land as surplus and allowing the city to purchase it, officials said. The proposal was being slow-walked through the state bureaucracy, officials said.
Rep. Vince Dean persuaded Commissioner Paul Deggs to take another meeting with East Ridge officials. Newly-sworn Mayor Brent Lambert, then-City Attorney John Anderson, Rep. Dean, Vice Mayor Larry Sewell and the principals from Wolftever Development met with Deggs in Room 103 of the War Memorial Building.
This time, the state had a more favorable attitude toward the land being declared as surplus, clearing the way to sell it to the city.
"We needed a real shot in the arm and acquiring this land would provide that," Mayor Lambert said.
2011 _ The parcel of land at Exit 1 moves through a subcommittee and on to committee to be declared "surplus." A survey must be done before any sale can be made, officials said. It takes about a year for that process to be completed.
During this time, the state legislature is considering a bill called the Border Region Retail Tourism Development Act. It's aim is to "increase tourism and the competitiveness of this state with bordering states," according to TCA 7-40-102. "It empowers local governments to encourage the development of 'extraordinary' retail or tourism facilities, including shopping, recreational, and other activities."
East Ridge officials meet with state officials to explore the idea of qualifying to participate in development under the "Border Region Act."
The legislation was geared toward helping businesses in upper East Tennessee, the home of Lt. Governor Ron Ramsey. Sen. Bo Watson sponsored the bill in the Tennessee Senate.
"We looked at this and said this is astonishing at what can be done," said Anderson. "This type of funding mechanism is how Nashville funded Titans Stadium."
In August, a group representing East Ridge met with the Tennessee Commissioner of Revenue to apply and hopefully qualify under the Border Region Act. Bristol and Kingsport follow suit.
2012 _ In March, the appraisal for the state-owned land at Exit 1 is completed. It is appraised at about $127,000. The city sells the land to Wolftever for about $150,000. That figure includes expenses the city incurred in buying it from the state.
Wolftever's John Healy said that in initial meetings with city officials, he told them that the entire site would have to be raised. This would cost a great deal of money and that the developers would need help in shouldering the financial burden.
Healy said that Wolftever went through dozens of renditions of how the property could be developed. The truth, he said, was that the money wasn't there to do it.
"When we bought it, at that time the city didn't agree to put any money into the deal," Healy said. "All along out intention has been to never flip the property but to develop it.
"The major thing to happen was the Border Region Act," he continued. This deal would not have happened without Border Region, period."
The Border Region Act passes the legislature and East Ridge, Bristol and Kingsport are the only three cities in Tennessee to qualify under the the legislation.
2013 _ Developers timber the site and clear the land at the site. Healy said that Wolftever did not have the approval to fall trees on state-owned land bordering I-75. He said the value in that land is the "visibility of 100,000 vehicles a day driving up and down the interstate."
Healy said that from the beginning Bass Pro Shops was the number one choice for a tenant at the Exit 1 site. Non-disclosure agreements prohibited Wolftever representatives from discussing any deals, Healy said.
2014 _ Wolftever got permission from TDOT to cut the trees along I-75, giving any potential tenant the valuable visibility it desired. Healy said the inability to clear the TDOT land kept the project from moving forward. Once that was done, things began to move fast.
In a special called meeting on June 6, the council passed a resolution pledging $5 million to "provide financial assistance and incentives" to move forward with the development at Exit 1.
The city had previously established an Industrial Development Board. The board was a requirement under the Border Region Act, officials said.
On June 9, the board met for the first time in the training room at City Hall. As the members of the new board were walking into the meeting, it was announced through a press release from Bass Pro Shops that it would build a new store at Exit 1.
Rep. Dean may have said it best: "It's not government's place to create jobs. It's government's job to create an environment where businesses would want to locate. This shows that the council can work together. That, to me, is more vital than anything.
"(Bass Pro Shops) is the triggering event," he continued. "The big bang is still yet to come."
More Business News
Last Update on September 19, 2014 17:24 GMT
NEW YORK (AP) -- Alibaba's stock is surging as the Chinese e-commerce powerhouse begins its first day trading as a public company.
The stock opened at $92.70 on the New York Stock Exchange this morning, up 36 percent from the initial $68 per share price set Thursday evening.
At that price the company would be worth $228.5 billion, more than companies such as Amazon, Ebay and even Facebook.
On Thursday, Alibaba and the investment bankers arranging the IPO settled on a price of $68 per share. The company and its early investors raised $21.8 billion in the offering, which valued Alibaba at $168 billion in one of the world's biggest ever initial public offerings.
But after a two-hour trading delay due to strong demand, it opened much higher than that price. If the stock closes at $92.70, the IPO will have raised close to $30 billion.
WASHINGTON (AP) -- A gauge designed to predict the economy's future health rose in August but at a much slower pace than in July.
The Conference Board says its index of leading indicators rose 0.2 percent in August, the seventh straight increase. But that was much slower than the revised 1.1 percent gain in July.
Conference Board economist Ken Goldstein says even with the slowdown in August, the index shows the economy is still gaining traction.
WASHINGTON (AP) -- Unemployment rates rose in nearly half of U.S. states in August, even as employers in two-thirds of the states added jobs.
The Labor Department says unemployment increased in 24 states, fell in 15 and was unchanged in 11. Hiring picked up in 35 states, while it fell in 15.
Unemployment rates can rise even when hiring increases if more people start looking for work and don't immediately find jobs. The figures suggest hiring was broad-based across most regions of the country last month, even as nationwide job gains in August were the weakest this year.
Georgia reported the nation's highest unemployment rate, at 8.1 percent, followed by Mississippi at 7.9 percent. That's the first time Georgia has had the highest rate since the Great Recession ended.
LONDON (AP) -- Businesses and investors have reacted with relief to Scotland's decision to reject independence from the United Kingdom.
The No campaign won 55 percent of the votes cast in Thursday's referendum. The 10-point victory margin was wider than expected -- most opinion polls on the eve of the vote showed a narrower 4-point victory.
British stocks responded positively to the news Friday, with the FTSE 100 index up 0.3 percent. Royal Bank of Scotland shares were up, and the bank, which is majority-owned by the U.K. government, said it was "business as usual" for its customers.
Some had warned that if Scotland left, uncertainty over the future value of the British pound and government debt would have rattled the U.K economy.
In the currency markets, the pound was solid too, rising to a two-year high against the euro.
IRVING, Texas (AP) -- Exxon Mobil says it will stop drilling an exploratory well in Russia's Kara Sea in compliance with U.S. sanctions against Russia over Russia's involvement in the Ukraine.
Exxon planned to drill the well between August and October. The latest round of sanctions called for the removal of U.S. workers on projects in the Russian Arctic by Sept. 26.
Exxon says it has received a license from the U.S. Treasury Department to wind down operations, but it is unclear whether the license will allow Exxon to stop drilling on the schedule it had already laid out. Exxon could not be immediately reached for comment.
NEW YORK (AP) -- The maker of Pabst Blue Ribbon beer is being sold to Russian company Oasis Beverages for an undisclosed sum.
In addition to its namesake beer, Pabst Brewing Co. makes Colt 45, Old Milwaukee and Schlitz. Pabst was acquired in 2010 by C. Dean Metropoulos & Co., which is known for investing in food brands.
Pabst Brewing, now based in Los Angeles, traces its roots back to 1844 in Milwaukee. Since purchasing it in 2010, Metropoulos has enlisted comedian Will Ferrell to market the company's beers. Pabst Blue Ribbon has also grown in popularity in part for its blue-collar appeal and cheap price.
Oasis is buying Pabst with TSG, an investment firm known for its work with consumer products companies. TSG Consumer Partners will take a minority stake in Pabst.
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