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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 July 25, 2014 17:51 GMT
WASHINGTON (AP) -- Orders for long-lasting manufactured goods rebounded in June after a May decline, helped by a recovery in demand in a key category that signals business investment plans.
The Commerce Department says that orders for durable goods increased 0.7 percent in June on a seasonally adjusted basis following a 1 percent decline in May.
A category viewed as a proxy for business investment plans rose a solid 1.4 percent, recovering after a revised 1.2 percent drop in May. It was the best showing since orders in this core capital goods category rose 4.7 percent in March.
The strength last month came from solid gains in demand for commercial aircraft and machinery. Economists expect economic activity will strengthen in the second half of the year, helped by stronger factory production.
DETROIT (AP) -- U.S. safety regulators are investigating whether an electrical problem can knock out the air bags on some older Hyundai Sonatas.
The probe announced Friday covers about 394,000 midsize cars from the 2006 through 2008 model years.
The National Highway Traffic Safety Administration says it has received 83 complaints about the problem. The agency says a sensor inside the seat belt buckle might fail. This can cause the air bags to malfunction or not inflate if there's a crash.
The problem also can affect the mechanism that tightens the seat belts before a crash. The problem can happen in either the driver or passenger buckles. In most cases the air bag warning light came on.
Investigations can lead to recalls but none has been issued so far in this case.
CHILD TAX CREDIT
WASHINGTON (AP) -- The House has passed a bill that would gradually increase the child tax credit and make it available to more families with higher incomes.
But millions of low-income families would lose the $1,000-a-child credit in 2018, when enhancements championed by President Barack Obama are set to expire.
The bill also aims to make a dent in illegal immigration by prohibiting people without Social Security numbers from claiming a portion of the credit reserved for low-income families.
The White House has threatened to veto the bill, saying it favors high-income taxpayers over the poor, while adding $90 billion to the budget deficit over the next decade.
House Republicans say the bill strengthens the tax credit by increasing it as inflation rises, and by making it available to more middle-income families.
LONDON (AP) -- Official figures show Britain's economy has surpassed its pre-recession size for the first time since the 2008 global banking crisis.
The Office for National Statistics says gross domestic product grew by 0.8 percent in the three months through June compared with the previous quarter. It grew 3.1 percent over the year, putting it 0.2 percent ahead of its pre-crisis peak in early 2008.
The global financial crisis triggered a deep downturn for the British economy. By mid-2009, GDP was more than 7 percent below its pre-recession level.
Treasury chief George Osborne said Friday's figures marked a "major milestone in our long-term economic plan."
Government critics say the recovery is not built on solid foundations and point out that per-capita GDP remains about 6 percent lower than before the crisis.
BERLIN (AP) -- German business confidence is down for a third month in a row amid ongoing concerns about the economic impact of the crises in Ukraine and Iraq.
The closely-watched Ifo Institute survey fell to 108 points in July from 109.7 points in June. Economists had widely been expecting a slight rise over June's figure.
The institute said Friday that businesses' assessment of their current situation fell to 112.9 points from 114.8 the previous month, while their expectations for the future fell to 103.4 from 104.8.
The Ifo survey is based on monthly responses from about 7,000 companies.
MOSCOW (AP) -- Russia's central bank has unexpectedly raised its key interest rate in a bid to stem inflation and support the currency as the country faces increasing economic pressure over its policies in Ukraine.
The bank said Friday it has lifted its one-week auction rate by 0.5 percentage points to 8 percent. The central bank cited "heightened geopolitical risks" that are likely to push down the Russian ruble, fueling consumer price inflation. Higher rates tend to support a currency but can hurt economic growth.
The rate has risen from 5.5 at the beginning of the year. That has helped support the ruble after a period of weakness, but growth is sliding.
The United States last week imposed tougher sanctions on Russia over its alleged unwillingness to help end the conflict in Ukraine.
BERLIN (AP) -- Germany's biggest airline, Lufthansa, says it and subsidiaries in other European countries will resume flights to Tel Aviv on Saturday after canceling operations for several days over safety concerns.
Lufthansa said Friday that it made the decision "on the basis of the most up-to-date information we have available and our own assessment of the local security situation."
It says flights will resume in stages starting Saturday morning. The decision also applies to subsidiaries Germanwings, Austrian Airlines, Swiss and Brussels Airlines.
The European Aviation Safety Agency on Thursday lifted a recommendation that airlines refrain from flying to Israel's main airport, which it made because of security concerns after a Hamas missile landed nearby this week. However, Lufthansa canceled flights scheduled for Friday.
AIR CANADA- ISRAEL FLIGHT
TORONTO (AP) -- An Air Canada flight had to circle Tel Aviv's airport for 10 minutes after air traffic control said the conditions needed to be confirmed as safe for landing.
Airline spokeswoman Isabelle Arthur said Friday Flight AC84 was advised to circle by Israeli Air Traffic Control shortly before 12 p.m. local time. She says the plane altered its course about 5 miles from Ben Gurion airport and landed 10 minutes later without incident. She did not say why.
Arthur says the return flight to Toronto departed Tel Aviv about two hours later. The airline plans to operate this evening's flight to Tel Aviv.
Flights by Air Canada and other airlines to Tel Aviv resumed Thursday after a suspension Tuesday following a Hamas rocket strike nearby.
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