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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 October 23, 2014 07:29 GMT
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- The Labor Department will report today on the number of people who applied for unemployment benefits last week. Economists forecast that weekly applications increased 16,000 to a seasonally adjusted 280,000.
Also today, Freddie Mac will report on average mortgage rates for this week. Last week, the average for the 30-year loan slid to 3.97 percent.
The Conference Board will release its index of leading indicators for September as well. In August, the index - a gauge designed to predict the economy's future health - rose but at a much slower pace than the previous month
On the business side: Southwest Airlines, United Continental, American Airlines, Union Pacific, 3M, Comcast, General Motors and Caterpillar will report quarterly financial results before the market opens.
Amazon and Microsoft will report earnings after the market closes.
APPLE PAY GLITCH
SAN JOSE, CALIF. (AP) -- Bank of America is apologizing for double-billing customers who made purchases using Apple's new mobile payments service.
A bank spokeswoman said Wednesday that the glitch involved about 1,000 transactions and that all duplicate charges will be refunded.
Some customers who used Apple Pay with debit cards issued by Bank of America have complained they were charged twice for a single transaction.
Apple says it was aware of the glitch, which it said affected "a very small number of Apple Pay users." The Cupertino, California-based company has not disclosed how many customers have used Apple Pay since it became available Monday.
CAMBRIDGE, Mass. (AP) -- The American Postal Workers Union called upon Harvard University's president to oppose a deal between Staples Inc. and the U.S. Postal Service, or resign her seat on the office supply company's board.
Staples, based in Framingham, Massachusetts, began providing postal services at some of its stores last year, under a partnership with the financially-struggling Postal Service.
The union, which represents some 200,000 workers, took out a full-page ad Wednesday in the Harvard Crimson, the Ivy League school's student newspaper, saying President Drew Gilpin Faust should use her position on the board to push for an end to the deal or resign from the company board. The union says Staples is using poorly-trained workers to handle mail in a low-security environment.
Neither Faust nor Staples responded to requests for comments.
YAHOO-CEO AT CROSSROADS
SAN FRANCISCO (AP) -- Signaling her reign has reached a pivotal juncture, Yahoo CEO Marissa Mayer is trying to convince restless shareholders that the long-struggling Internet company is heading in the right direction.
Mayer staunchly defended her strategy during a Tuesday presentation that addressed recent criticism leveled by activist investor Starboard Value LP, a New York hedge fund with a history of leading shareholder mutinies.
Starboard contends that since Mayer became CEO in July 2012, Yahoo has been wasting money on ill-advised acquisitions and a bloated payroll while mismanaging its lucrative stake in Chinese e-commerce company Alibaba Group.
In her rebuttal, Mayer described the $1.6 billion spent her more than 30 acquisitions as smart investments that have made Yahoo more competitive in the increasingly important mobile-device market. She also highlighted cost-cutting measures.
And she insisted that Yahoo wouldn't have been in a position to make as much money as it has on its Alibaba holdings if she hadn't taken steps to ease "years of tension and hard feelings.
Zuckerberg speaks Chinese; Beijing students cheer
BEIJING (AP) -- China may ban Facebook, but not its co-founder Mark Zuckerberg, and he entertained an audience of students with a 30-minute chat in his recently learned Mandarin Chinese at a prestigious Beijing university.
There was no explicit discussion of the ban or any Facebook effort to enter the China market during Wednesday's question-and-answer session at Tsinghua University.
But Facebook CEO Zuckerberg noted during his talk that the social media giant already helps some Chinese companies gain customers abroad. He cited computer maker Lenovo's ads on Facebook in India.
Zuckerberg married Chinese-American Priscilla Chan in 2012 and said he was learning Chinese.
His pronunciation was far from fluent, but he maintained the conversation for a half hour and the students responded with warm cheers for his effort and laughter at his humor.
BEIJING (AP) -- A gauge of the health of China's manufacturing industry inched higher in October but factory output was at a five-month low in a sign of slowing domestic and foreign demand.
HSBC said Thursday the preliminary version of an index based on a survey of factory purchasing managers rose to 50.4 from 50.2 in September. Figures above 50 on the 100-point scale indicate expansion.
HSBC's chief China economist says manufacturing likely stabilized in October but the "economy continues to show signs of insufficient effective demand."
Earlier this week, China reported economic growth in the third as growth based on trade and industrial investment runs out of steam.
KANSAS CITY, Mo. (AP) -- A World Series opener involving the San Francisco Giants set a record low TV rating for the second time in three seasons.
San Francisco's 7-1 win over Kansas City drew a 7.3 rating and 12.2 million viewers Tuesday night on Fox, according to fast national ratings by Nielsen Media Research.
That broke the previous low of a 7.6 rating and 12.2 million for the Giants' 8-3 victory over Detroit in 2012. San Francisco's 11.7 win over Texas in the 2010 opener got an 8.9 rating.
The rating for this year's opener began with a 6.9 from 8:05-8:30 p.m. EDT and peaked at 8.5 in the half hour starting at 9 p.m. With the Giants scoring three runs in the first inning and leading 5-0 by the fourth, the rating ended at 5.7 from 11:30-11:41 p.m.
Still, Fox said Wednesday it expects to win the prime-time night and have its best Tuesday night since February 2012.
Fox Deportes averaged 273,000 viewers, a record for Spanish-language World Series coverage.
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