2021 annual report
2021 • NETWORKS Sullivan Partnership Annual Report 1
Letter from the Chairman
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What if there is no tomorrow? There isn’t one today.
– Phil Connors (Bill Murray)
When writing a letter as chairman of an organization to lead into its Annual Report, it is important to remember that this is a document that can – and probably will – be read at various times over the next and future years. Our CEO reminds me of this regularly each year, telling me no Yule Tide themes. No New Year’s Resolutions columns. No cute analogies about pitching Northeast Tennessee as a spot for Santa to relocate his workshop. In looking back at 2021 – weird phrase to write, say, or even think – I’m more inclined to forego the end-of-year holidays and instead harken to Groundhog Day.
Well, not so much the actual holiday, but to the movie starring Bill Murray. You know the one. Murray plays Phil Connors, a misanthropic weatherman from Pittsburgh who is on location in nearby Punxsutawney, Pennsylvania to cover the famed groundhog Punxsutawney Phil as he makes his annual appearance to determine the length of the winter. However, the following morning, he finds it is Groundhog Day again, a trend that continues seemingly without end as he strives to get to February 3 and win the heart of his producer, Rita. In many regards, 2021 was just more of 2020, as we were (are) still dealing with COVID-19, trying to overcome political division, and struggling through social issues that continue to come between us as a nation. And it is easy to get into a rut as we seem to face much of the same news day in and day out. Like Phil, the NETWORKS staff at times has felt like they were reliving the days, weeks, and months prior. Worse yet, like the rest of us, they felt powerless to correct these circumstances. But they have done what the world has done and adapted, persevered, and continued to look forward to when that alarm clock-radio blasts a different tune when the sun comes up. During the pandemic, our focus on workforce development has never been more important. It has become a central part of Abby Mease’s focus as she was promoted to Workforce Development and Special Projects Coordinator this summer. Under the chairmanship of Dr. Sam Rowell of Northeast State Community College, our workforce development committee has met often and held several informative meetings with our existing industry, at times collaborating with NeTREP’s Alicia Summers for virtual regional roundtables. Our property development committee was busy in 2021 as well, working with TNECD to develop our 35-acre rail-served site in Partnership Park II in Bristol while working with the City of Kingsport to identify potential industrial sites to acquire and/or improve on the western end of Sullivan County. Fortunately, along the way, we were able to see some prospect activity pay off in the form of announcements. In Kingsport, following an announcement by Eastman that it was investing $250 million to create a depolymerization plant, we celebrated Domtar’s $350 million plant upgrade with a groundbreaking. As the year went on, USAntibiotics announced its location to Bristol where it will manufacture amoxicillin and potentially other medication. And in Hawkins County, Barrette Outdoor Living began yet another expansion of its facility where it makes vinyl fencing and rail products. All told – excluding the Eastman project – NETWORKS worked seven successful projects that will create 662 jobs and nearly $97 million of investment. The staff has several promising projects in the works, so we will start 2022 in much more promising fashion than we started the past year. In November, the NETWORKS Board of Directors discussed revisiting the work plan that was updated at a strategic planning retreat in 2018 and is targeting March to make that happen. After all, the sun will keep coming up and, eventually, we will find our way through this global pandemic (or at least learn how to make it a part of our lives) and we will push on. And, just as Phil Connor learned that he had the power to end his own time loop, we might just find our own answers to escape the stagnation of the past two years. Phil: Do you know what today is? Rita: No, what? Phil: Today is tomorrow… It happened!
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Bill Sumner
Bill Sumner NETWORKS Sullivan Partnership Chairman
New & Improved Locations and Expansions - A look at job growth & investment Near the end of the 2021’s second quarter, project activity – of both the new company recruitment and existing business and industry expansion variety – picked up a great deal of momentum as clients’ timelines were reduced and urgency intensified. While it was encouraging to see the activity show a semblance of normalcy, many projects and events were stalled, restarted, stalled, and restarted again as COVID breakouts, adjustments in protocols and mandates and corporate policies remained in flux. “While 2021 closely resembled 2020, I think what they most had in common was that each year was like no other one that came before it,” said Michael Parker, Director of Economic Development. “2020 was about survival mode for many of our companies, so our focus was stronger than ever on existing industry. The past year, we have still been dealing with COVID, but it’s been on virtual site visits, virtual consultant visits, planning physical, on-site visits, then having to reschedule time and time again. Through both circumstances, this pandemic has made us take stock in how we deliver our services, be even more diligent in our preparation, and in many ways given us all a sense of pride and worth as this work has never been more important.” By the end of 2021, a handful of recruitment and expansion projects were either complete or nearly complete. Although two companies chose to bypass announcements and two more are finalizing incentive packages prior to making their news public, NETWORKS and its partners worked seven successful projects by the close of the year. Excluding Eastman’s plastic recycling project that did not meet our criteria to count as a NETWORKS project, these successes totaled 662 jobs and just under $97 million in new investment.
Eastman announces plans to build new plastic-to-plastic molecular recycling facility Eastman Chemical Board Chair and CEO Mark Costa and Tennessee Governor Bill Lee jointly announced in January that Eastman would build one of the world’s largest plastic-to-plastic molecular recycling facilities at its site in Kingsport, TN. Through methanolysis, the facility will convert polyester waste that often ends up in landfills and waterways into durable products, creating an optimized circular economy. “With the growing demand for products made with recycled content and the urgent need to address the global plastic waste crisis, now is the time for Eastman to take this step,” said Costa. “We are grateful for our partnership with Governor Lee in making today’s announcement possible.” “Eastman has been a leader in the materials sector for over 100 years and continues to be a valued partner to our state,” said Governor Lee. “I’d like to thank the company for investing in Kingsport and its highly skilled workforce, and for focusing on innovative technology that enhances the quality of life for people not just in Tennessee, but around the world.” The new facility is expected to be mechanically complete by the end of 2022, and will contribute to the company achieving its ambitious sustainability commitments for addressing the plastic waste crisis, which includes recycling more than 500 million pounds of plastic waste annually by 2030 via molecular recycling technologies. The company has committed to recycling more than 250 million pounds of plastic waste annually by 2025. 2021 • NETWORKS Sullivan Partnership Annual Report 3
New & Improved USAntibiotics to establish new manufacturing and R&D operations in Bristol Tennessee Gov. Bill Lee, Department of Economic and Community Development Commissioner Bob Rolfe and USAntibiotics officials announced that the company will invest $16 million to establish new manufacturing and research and development operations in Sullivan County in August. USAntibiotics is a pharmaceutical production company that manufactures, tests, packages and distributes prescription antibiotics. The project represents the creation of 63 new jobs in Bristol. Located at 201 Industrial Drive, the 360,000-square-foot facility was acquired by Jackson Healthcare with plans to re-open the former pharmaceutical manufacturing site. The Department of Homeland Security has identified USAntibiotics as critical infrastructure since it is the only manufacturing facility in the United States that is authorized to produce Amoxicillin and Amoxicillin Clavulanate, commonly known as Amoxil® and Augmentin®. These are two of the most widely prescribed antibiotics in the U.S. and this investment will greatly bolster the U.S.’ capabilities to produce its own essential antibiotics. Over the past five years, TNECD has supported more than 10 economic development projects in Sullivan County, resulting in more than 1,800 job commitments and nearly $700 million in capital investment. “USAntibiotics is focused on what it does best – producing life-saving antibiotics and making them accessible to all Americans,” said Rick Jackson, CEO, Jackson Healthcare, parent company of USAntibiotics. “We are proud to have our operations in the state of Tennessee and of the role we play in manufacturing high-quality, made-in-America products that support health and wellness and that reduce our dependence on vital medications produced outside our country.” “When we heard about the selflessness of these individuals, we knew that the company would be a perfect addition to the Jackson Healthcare family of companies,” Shane Jackson, president of Jackson Healthcare said of the staff left behind by the previous operator. “Their dedication to making the vital medications Americans need, even in the face of adversity, is inspiring and demonstrates their commitment to solving the supply-chain challenges long term. This investment by USAntibiotics is a win not only for Tennessee, but for the entire country,” Governor Bill Lee said. “Tennessee is known globally as a hub for the healthcare industry, and we are proud to welcome the only American-made Amoxicillin facility to Bristol.”
Rogers Foam opening facility in Kingsport In a fast-paced search process, Somerville, MA-based Roger’s Foam leased a manufacturing facility in Kingsport in the third quarter of 2021. NETWORKS and TNECD visited with company leaders at their Duffield, VA, plant in early June. By the end of the year, the company had already set up shop in its eighth facility and was ramping up operations. Rogers plans to employ 37 people initially and has made an investment of about $3 million. The company has been fabricating flexible products for custom applications for more than 70 years. Its Kingsport facility will supply an undisclosed new customer base. 4 NETWORKS Sullivan Partnership Annual Report • 2021
New & Improved Barrette Outdoor Living to expand operations in Hawkins County Barrette Outdoor Living is a leading manufacturer of fencing, railing and exterior products. In July, the company accounces it will invest $33 million and create 162 new jobs in Bulls Gap, where it has operated since 2001. With a workforce of more than 700 employees, Barrette Outdoor Living is one of Hawkins County’s largest employers. Barrette will add 40,000 square feet of manufacturing space, including four new extruders, co-extruders and cooling tanks as well as additional fabrication and packaging equipment. Barrette was founded nearly 100 years ago in Canada and employs approximately 2,000 people today across North America. As the leading North American supplier of exterior home products to the residential market, Barrette Outdoor Living manufactures and distributes vinyl, aluminum, steel and composite fencing and railing, composite decking and other outdoor products. “As one of the top five employers in Hawkins County, Barrette Outdoor Living has established itself as a valuable corporate partner in the Northeast region of our state. These 160 new, family-wage jobs will make a tremendous impact on the area’s workforce, and we appreciate Barrette Outdoor Living for its continued investment and job creation in Tennessee,” said TNECD Commissioner Bob Rolfe. “The State of Tennessee along with Hawkins County, Bulls Gap and TVA have been excellent partners in our growth and we appreciate their continued support in the ongoing expansion of our business,” Gary Williams, vice president of Operations, Barrette Outdoor Living said. “Barrette Outdoor Living has been an outstanding corporate citizen in Hawkins County since acquiring Erwin Industries in 2002 and have experienced tremendous growth since converting to vinyl fence production the very next year,” said Ronnie Price, NETWORKS Economic Development Specialist. “This latest announcement is just further proof of the pro-business environment in Northeast Tennessee that we at NETWORKS Sullivan Partnership tout as Where Tennessee Begins Its Business Day!”
Construction completed on Piney Flats facility Goessling USA, located in the Tri-County Industrial Park, recently completed construction on its new 15,000SF building expansion. Goessling USA was recently acquired by a larger competitor who has voiced its intentions to keep the business operating in Piney Flats with no name change and continue to grow and expand the operations here. Goessling’s expansion represents an investment of roughly $2 million and will result in 15 new jobs being created.
Cardinal Glass acquires AGC’s Hawkins County Plant Cardinal Glass Industries announced in August that it has finalized the transaction to acquire the assets of AGC Glass in Churchill, Tennessee; Abingdon, Virginia; and Spring Hill, Kansas. According to AGC officials, “AGC has strived for improvements of the profitability and asset efficiency of its architectural glass business, which was designated as one of the AGC Group’s priority issues.” They continued, “AGC has concluded that it will create further growth opportunities by transferring it to Cardinal Glass Industry, which has business trading experience with AGC in the past and is expected to make the most effective use of AGC’s assets and personnel.” Cardinal Glass Industries, is a private, management-owned company headquartered in Eden Prairie, Minnesota. The company has over 8,800 employees, and operates from 40 factories nationwide. 2021 • NETWORKS Sullivan Partnership Annual Report 5
New & Improved
Domtar breaks ground on $300 million renovation Domtar officially entered the containerboard market in May with a groundbreaking ceremony for its $300 million renovation and expansion of the Kingsport mill. The event was held at Cloud Park with numerous state and local officials and several Domtar executives, including President and CEO John Williams. “This is an exciting day for the Kingsport mill and for Domtar, and we are glad to celebrate it in the company of many of those who are making this transformation possible,” said Williams. “The kind of collaborative spirit we’ve seen among city, county and state partners here in Northeast Tennessee is what allows successful, long-term business partnerships to flourish.” Domtar will construct a new warehouse and retrofit its existing building and site in order to transition from producing uncoated freesheet paper to manufacturing container board product made from 100 percent recycled cardboard. Construction began in late 2020 and is on schedule to be complete in the first quarter of 2023. The converted mill will employ approximately 150 people. Opened in 1916, Domtar’s Kingsport pulp and paper mill is a stand-alone energy source, which reuses up to 100 percent of its manufacturing waste. The facility has an estimated regional economic impact of $714 million. “Tennessee’s existing businesses are vital to the health of our state’s economy, and we’re pleased to support Domtar’s project as they invest more than $300 million in Northeast Tennessee,” TNECD Commissioner Bob Rolfe said. “Domtar’s investment demonstrates the company’s continued commitment to Kingsport, and we look forward to the economic impact this project will provide to Sullivan County.” “I am pleased that the City of Kingsport was able to reach an agreement with Domtar that will help enable them to smoothly transition to a new product line in a very competitive and turbulent business environment. Providing city assistance means that a long-standing community partner will stay in Kingsport and preserve a significant number of jobs,” said Kingsport Mayor Pat Shull. “We greatly appreciate the assistance from the State of Tennessee as well as the local assistance of NETWORKS Sullivan Partnership. Finally, we look forward to sustaining this collaborative and productive relationship well into the future.” “With this venture into the packaging business, we are also reaffirming our commitment to the community and are thankful for your support. The scope of our day-to-day business may be shifting, but our dedication to this region is resolute” General Manager, Troy Wilson said.
Cutters Resource builds facility in Blountville Cutters Resource, a Kuris-Group USA company, recently completed construction on their new 16,000SF facility located in Partnership Park I. NETWORKS Economic Development Director, Michael Parker worked with company owner Jack Joseph to help find a suitable location for their new manufacturing facility, which ultimately led them to locate in NETWORKS Sullivan Partnership’s Partnership Park I located near Northeast State Community College in Blountville, TN. The company is currently in the process of ramping up their hiring schedule to meet production demands for Q1 of 2022. Cutters Resource manufacturers specialized textile cutting machines for commercial and industrial applications. 6 NETWORKS Sullivan Partnership Annual Report • 2021
New & Improved Contura Energy Announced Name Change to Alpha Metallurgical Resources, Inc. Contura Energy, Inc., a leading U.S. supplier of metallurgical products for the steel industry, announced their name change, effective February 1, 2021, to Alpha Metallurgical Resources, Inc. The rebranding effort more accurately reflects the company’s strategic focus on the production of metallurgical coal as a critical feedstock for steel production. Contura’s recent divestiture of the Cumberland Mine in Pennsylvania largely marked the company’s exit from the thermal coal business. The new name, Alpha Metallurgical Resources, is both an acknowledgment of the company’s rich history and a commitment to a fresh, bold vision for the future. “Over a year ago, we outlined our vision to make Contura a premier metallurgical coal producer,” said David Stetson, Contura’s chairman and chief executive officer. “Thanks to the transformative work of our team over the last several months, that vision has become a reality. Bringing back the Alpha name is not only meaningful to us and our history, but it also serves as an outward display to external stakeholders of the sharpened focus we have on metallurgical coal. We are excited to announce this important milestone and we look forward to fully unveiling the Alpha Metallurgical Resources brand when it becomes effective on February 1.”
50 Year Anniversary In October, the Microporous team celebrated their 50th year of operation in Northeast Tennessee. The Piney Flats facility began operation in 1971, and the products manufactured at that time were bowling balls, Ace-Sil separators, and battery cases. Microporous employs 174 people at its Piney Flats facility. A wonderful time was had by all!
NETWORKS hosts an Existing Industry Appreciation Golf Outing Started with a bit of rain and wind, ended with about 50 industry representatives enjoying a day of golf, food, and getting to know each other, oh and a bit of laughter and sunshine, too!
2021 • NETWORKS Sullivan Partnership Annual Report 7
Marketing & Outreach Where Tennessee Begins Its Business Day, Albeit On-line… While each business sector faced unique and shared challenges, for economic development – often referred to as a relationship business – adjusting to another year of limited travel and personal contact brought out the creativity of its practitioners to not let relationship-building lapse. The Tennessee Economic Partnership (TEP), the state’s marketing arm comprised of TNECD, TVA, and the state’s business and economic development community, generates leads and cultivates relationships with key industry sectors and site location consultants through strategically planned networking events. The group shifted to virtual meetings with various consulting firms in 2021, with NETWORKS CEO Clay Walker, a past current chairman and board member, participating in several. Going Virtual Walker also worked with the marketing committee and Consultant Connect to organize a virtual conference with several selected consultants. The Zoom meeting began with a roundtable discussion about the future of front and back office projects post-COVID. The participating TEP members then broke into three groups by region for breakout sessions with the consultants, followed by the “reception” that included a whisky tasting where the participants learned to make three drinks using ingredients sent to them prior to the event with the help of a bartender from Liquor Lab in Nashville. In between drinks, Grammy award winning songwriter Tim Nichols, a regular on the Northeast Tennessee Red Carpet Tour, entertained the group by giving the backstories and performing some of his hits. “While our on-line marketing events and occasional site visits were lacking in the depth in which you can connect with people, there were certainly some advantages,” Walker said. “Travel costs were eliminated, and scheduling issues were lessened. And, as we view most any challenge on Team Tennessee, we had an opportunity to stand out from the other states, regions, and communities, vying for this important audience’s attention. I think in our regular visits and especially our virtual conference, we did a really good job of that. Still, I think we all look forward to getting back in front of consultants and prospects as soon as it’s safe to do so.” Recruit the Recruiters - Connecting with TNECD With site location consultants traveling much less, the region’s signature inbound marketing event, the Northeast Tennessee Red Carpet Tour, was canceled for the second consecutive year. So once again, NETWORKS and its partners turned the Bristol Night Race weekend into a TNECD appreciation event, hosting staff members and their spouses for a familiarization tour, filled with networking opportunities and, of course, VIP treatment at Bristol Motor Speedway for the Bass Pro Shops NRA Night Race. “Even when we have an extraordinarily close relationship with a site selector or company, they will almost always begin a search process through the state,” said Walker. “We need to stay front-of-mind with those first contacts as well as keeping them familiar with our product, especially changes, such as new workforce development initiatives, property additions or improvements, new branding campaigns, and the like, so when they are discussing us with a client, they are well-informed.” The Governor’s Conference on Economic Development was back live and in-person. Governor Bill Lee and TNECD Commissioner Bob Rolfe hosted hundreds of state and local officials, business executives and economic development professionals to share more about Tennessee’s strides in business recruitment and job creation, and the programs helping to build strong communities throughout the state. NETWORKS CEO, Clay Walker, along with several other representatives from Northeast Tennessee attended. Sullivan County was one of six across the state to be selected for TNECD’s Marketing Assistance Program. TNECD and the DesignSensory team were in town preparing for and shooting the Sullivan County Anthem video that was released in November.
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Marketing & Outreach IEDC Tennessee – NETWORKS, Region a big part of this International Conference If, as the saying goes, “All the World is a Stage”, there was no better venue for the International Economic Development Council’s 2021 Annual Meeting than the Music City Center in Nashville in October. After all, history is made on the stages of the honkytonks on Broadway and beyond. But there was a more distinct flavor to this year’s conference than being in Nashville; for the first time in its history, the conference was hosted by an entire state, rather than a city. As such, the Host Committee was made up of economic development professionals representing all three of Tennessee’s Grand Divisions. That reach extended into sponsorships as well. Northeast Tennessee was well represented, with NETWORKS CEO Clay Walker serving on the Host Committee and Ballad, NETWORKS, Seaman Corporation, and BTES among the sponsors. Ballad CEO Alan Levine was a keynote speaker and Walker, the Kingsport Chamber’s Aundrea Salyer, TNECD Regional Director, Lynn Tully, and other Northeast Tennesseans also participated. “The IEDC Host Committee is grateful for the support we have received from Ballad Health and NETWORKS Sullivan Partnership, along with Seaman Corporation and BTES,” conference chairman Bryan Daniels, President & CEO of the Blount Partnership said. “Even with the COVD-19 pandemic’s influence, we were able to gather in person or virtually with over 1,200 leaders in economic development over a four-day period.” “We are grateful for Clay Walker’s chairing of the publications committee and being an integral part of the Tennessee Host Committee. Our IEDC Board, which is comprised of 18 countries and all 50 US states, was thoroughly impressed with Tennessee’s economy and the conference’s program and speakers, Daniels said.” When not presenting or attending sessions, NETWORKS joined other sponsoring EDOs at the Tennessee booth in the exhibit hall to tout the advantages of the state as a business location. Additionally. NETWORKS participated in off-site activities that included a Tennessee Economic Partnership dinner with about a dozen site location consultants as well as hosting a dinner introducing several contractors and other representatives connected to major automotive projects to Northeast Tennessee companies pursing vendor relationships. In addition to conference attendees from the City of Bristol and BTES, Tri-Cities was represented on Day 3 of the conference by a group of representatives of the RegionAHEAD effort who received a pair of awards (see related story).
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COVID-19 Assistance RegionAHEAD Forges New Path, Purpose In 2020, as COVID-19 was shutting the US economy down, NETWORKS, NeTREP, and the chambers of commerce of Bristol, Johnson City, and Kingsport’s CEOs organized a series of conference calls to coordinate each organization’s outreach and assistance to existing business and industries. As part of that effort, NeTREP CEO Mitch Miller offered the region a project his team had begun: a website to advise consumers how to support their favorite local businesses as retailers and restaurants shifted to on-line sales, curbside pick-ups and contactless home delivery. So, rather than the site being a NeTREP project, all five organizations invested and gave input into the site – designed by Ashley Shutt, President/Creative Director and her team at ARO Creative Inc. – which launched as RegionAHEAD (Appalachian Highlands Economic Aid Directory). After several weeks, the original partners were approached by various individuals who had ideas to help the region get through the pandemic and asked if the RegionAHEAD website was an appropriate platform to launch and host those efforts: • Andy Dietrich, owner and vice president of Champion Chevrolet, joined the group with an idea to raise funds for struggling small businesses hit especially hard by the economic shutdown and restrictions. The group grew with a diverse group of volunteers to start the Small Business Recovery Fund that would generate grants totaling more than $250,000. • Tony Treadway, President of Creative Energy, utilized the website and social media presence to promote his “Tri-Kindness” campaign with a message of compassion and community as the pandemic’s challenges served to create conflict and tension. • The First Tennessee Development District received a grant of more than $500,000 for the distribution of vaccinations to isolated, rural areas and promoted the “Take a Shot” effort through RegionAHEAD. • Similar to the Small Business Recovery Grants, money was raised to distribute meals and various other appreciation gifts to honor and support front-line healthcare workers and first responders. “RegionAHEAD was originally established as a cooperative directory to help provide information to small businesses as well as for them to share information on how help them during COVID-19,” Miller said. “From the beginning, it allowed multiple agencies in the chamber and economic development fields to come together to unify efforts to show support for businesses and people that were impacted. From providing grants to small businesses to showing support for front-line workers, RegionAHEAD served as a way to look past geographical lines and lend support across the region.” In October, RegionAHEAD was recognized with two awards at the IEDC Annual Conference in Nashville. RegionAHEAD won the Silver Award for Regionalism and Collaboration among communities with a population greater than 500,000 and earned a Bronze Award in the category of Resiliency, Recovery, and Mitigation.
Blue Cross Blue Shield of Tennessee Gives Vaccinations a Shot in The Arm with Grant The BlueCross BlueShield of Tennessee Foundation provided $541,700 to the First Tennessee Development District (FTDD) for a vaccine-related communications campaign. The grant from the foundation supported the organization’s “Take A Shot On Life” communications campaign, encouraging residents of northeast Tennessee communities, including Bristol, Kingsport, Greeneville and Johnson City, to get vaccinated. “The First Tennessee Development District Foundation is proud to partner with the BlueCross Foundation, along with regional partners RegionAHEAD and the Regional DEI Alliance, to raise awareness for this lifesaving vaccine campaign in Northeast Tennessee,” said Mark Stevans, FTDD director of Special Projects. “In the face of this serious public health crisis, partnerships like this provide further evidence that with regional cooperation comes regional progress.” “We are extremely pleased in the support shown by Blue Cross Blue Shield of Tennessee to save lives by making vaccinations in our region more accessible,” says Lottie Ryans, Director of Workforce Development for the FTDD. NETWORKS also worked with FTDD which conducted a Regional Wage & Benefit Survey. Designed for the region’s manufacturers, the survey collected vital information on wages and benefits structure and
provided valuable insight into the true cost of doing business in Northeast Tennessee.
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Product Development In such an unconventional time, it was only fitting that in the process of developing a unique industrial site to Northeast Tennessee, NETWORKS and its partners would be tasked with taking on a rare, arduous process in order to properly obtain the funding required. While it took a great deal of effort, furthering the preparation of a site with rail access in Partnership Park II – just one of several key infrastructure projects of 2021 – exemplified the understanding of and commitment to site development as one of the core tenets of economic development, especially in the industrial sector. Partnership Park II Three years ago, NETWORKS received the first High Impact Grant through the Tennessee Department of Economic and Community Development’s Site Development Grant program. While NETWORKS and other partners in Sullivan County have historically been successful in winning such grants, the High Impact Grant of $1 million was twice the typical high-water mark of the program made available for extraordinary projects. With the lack of large, shovel-ready sites that can be rail served in the region, leveling the 35-acre site and bringing it down to align with the Norfolk Southern main line that runs along the site’s northern border certainly fit that description. The local portion of the $4 million project would come via a bond from Sullivan County in partnership with the City of Bristol and the City of Kingsport, with another $4 million to follow as other projects on the western side of the county are identified. The process was complicated when it was discovered that in order to use bond monies to cover such a project, the county and NETWORKS would need to obtain a Certificate of Public Purpose and Necessity – a process that state officials say comes into play only about once every four years. Bristol Business Park Site Development In March officials with Bristol, Tennessee and Bristol Tennessee Essential Services held a groundbreaking to celebrate the potential for future development at Bristol Business Park. The city says two grants made it possible for the project to come to fruition: a $500,000 Site Development Grant from TNECD and a grant from the TVA Invest Prep program. In addition, the city says BTES matched the funds for each of the grants. NETWORKS Sullivan Partnership assisted in securing the grants. The grants will be used, “for the clearing, grading, and seeding of two separate sites totaling approximately 22 acres to accommodate a 35,000-square foot building and up to a 200,000-square-foot building.” “When you and I look around, we see the beauty of our region, with this park nestled in the hills of Northeast Tennessee,” said Erin Downs, chairwoman of BTES board of directors. “But when a future industry owner looks at this site, they see time and money.” TVA/BTES Substation Bristol Tennessee Essential Services broke ground in June for a delivery point power substation along state Route 394 as part of Tennessee Valley Authority’s initiative to meet the Bristol area’s growing demand for power. The new South Bristol 161 kV substation, across from the Bristol Business Park, will add an additional connection between TVA’s 161 kV system and BTES’ distribution substations. Two power lines totaling 14.2 miles will be built. The Sullivan-South Bristol line will stretch 10.8 miles between the agency’s Sullivan 500-kV substation in Bluff City and the South Bristol substation. Together, TVA and Bristol Tennessee Essential Services will invest $40 million in the project. “Our employees determined that additional power supply facilities will be necessary in the very near future to maintain the availability, reliability, and resiliency of electric power for the customers in our service area,” Mike Browder, CEO of BTES said. “For economic development activities to continue and take root, it is necessary to have a power delivery system in place that can quickly meet the need for development,” says Browder. ThreeStar Development Grant Governor Bill Lee and Department of Economic and Community Development Commissioner Bob Rolfe announced that Sullivan County was one of 54 counties to receive a ThreeStar grant in 2021. In total, TNECD awarded $2.4 million in funding to Tennessee communities - Sullivan County was awarded $50,000. NETWORKS is working with its workforce development committee and other community partners, to create a web portal of compiled education assets and pathways. The portal will be accessible to any employee, employer, student, site selector, and prospect for recruitment. The goal is to have the portal available by the end of 2022. “I congratulate these 54 counties that are receiving ThreeStar grants and thank them for strengthening the quality of life and enhancing workforce development in their communities,” Governor Bill Lee said. 2021 • NETWORKS Sullivan Partnership Annual Report 11
Product Development ETSU Research Corporation East Tennessee State University President Dr. Brian Noland announced on Jan. 25 the launch of the ETSU Research Corporation, a regional effort to support and promote entrepeneurial growth. “With all of the many opportunities in our region to establish partnerships, innovate, and help drive prosperity, I feel strongly that ETSU should play an even greater role in this effort,” Noland said. “As such, today I am happy to announce that we are repurposing the ETSU Research Foundation and launching the ETSU Research Corporation with David Golden as our CEO. The Research Corporation will have a greatly expanded role to connect, convene, and create across our campus and our region. It will be a dynamic and forward-thinking partner as we work to enrich the region and impact the world.” Tennessee Department of Labor & Workforce Development Veterans Services NETWORKS invited and hosted Tennessee Department of Labor and Workforce Development, Director of Veterans Services, Eric Horton to Northeast TN to talk about the new State initiative helping our Veterans find meaningful employment in the civilian workforce around the State after they exit the military. We arranged for him to meet with some of our industries while in the region, answering questions about the program, and also learning about all Northeast TN has to offer. While he was in town, Mr. Horton toured the RCAM, Bell Flight and met with community partners and industry at Bristol Motor Speedway. When COVID got in the way of meeting with Eastman in-person, we adjusted and met with them virtually. NETWORKS offered a virtual industry meet and greet with Mr. Horton in October. Alicia Summers with NeTREP, Sullivan, Hawkins, Washington, Carter and Unicoi County industries participated. E2E Summit Focuses on Talent Retention & Diversity The 4th annual E2E Summit, sponsored by area chambers, economic development organizations and the Northeast Tennessee Local Workforce Development Board, was held in October. The event is coordinated by the First Tennessee Development District and is designed to be a true regional conversation to develop strategies to bolster Northeast Tennessee’s economy. Regional leaders in education, workforce development, government, and business and industry met to hear strategies for issues of common concern in developing and supporting talent for our region. Topics at this year’s Education to Employment Summit ranged from attracting and retaining top talent, partnerships in training, needs in mental health and childcare. Attendees also heard the results of the recently completed Regional Wage & Benefit Survey of manufacturers as well as data on a recent survey of professionals who graduated from area high schools but left the region. Attendees learned how school systems, are partnering to allow students to start their college experience while in high school with innovations such as the middle college experience. Eastman shared its work in creating internships for high school students which will grow to include multiple high schools and the framework for other sectors of the economy to create similar programs. Two key discussions centered on prioritizing mental health including the work of our educators and mental health professionals in the school system as well as how employers can help employees with support for their own needs or those of their children. The other discussion is the critical need in our region for greater access to affordable, quality childcare. Former Friendship dealership to transition to Tennessee High vocational center A vacant car dealership building will soon become a career and technical center for Bristol Tennessee City Schools thanks to a donation by Bristol businessman Mitch Walters and his company, Friendship Automotive Enterprises. The former Friendship Ford building on Volunteer Parkway will serve as the future location of the Friendship Career Center, which will house the Viking Academy, an off-site, work-based learning program for Tennessee High School and Tennessee Middle School. “The decision to donate the facility was a family decision,” Mitch Walters said. “Both my sons went to Tennessee High School, and we’re glad to give back to Tennessee High School. It means a lot. We all collaborated on it. It was a pretty easy decision.” “This will allow us to add three new programs to start with,” Bristol Director of Schools, Dr. Annette Tudor said. “Which is the automotive collision program, it will also allow us to start agriculture and then the mechanical, electrical and plumbing program.” 12 NETWORKS Sullivan Partnership Annual Report • 2021
Quality of Life/Amenities Several events returned after a year off due to the COVID-19 pandemic. Crowds turned out in record numbers indicating our desire to return to a normal life.
Bays Mountain
Bays Mountain Park & Planetarium celebrated 50 years of family fun and adventure in 2021, and invited everyone to a party that lasted all year long. On May 24, 1971, Bays Mountain Park opened the doors to the Nature Center, and has welcomed generations of Kingsport families into the park ever since. With a focus on education, preservation and wholesome outdoor fun, the park has become a staple attraction for the region, often referred to as Kingsport’s “crown jewel.” “Our Park staff is humbled and honored to be part of a destination that has had such a profound impact on so many lives and has helped so many create wonderful, vibrant memories,” Park Manager Rob Cole said.
BMS Spring Race
Food City 400 was run on dirt as Bristol Motor Speedway converted the World’s Fastest Half Mile to old school weekend racing. Excitement filled the air as the NASCAR Cup series raced on dirt for the first time in decades. Fans also turned out in large numbers for the Bristol Bass Pro NRA Night Race in September.
Kingsport Fun Fest
Kingsport Fun Fest celebrated it’s 40th anniversary, albeit a year later than planned. The annual event kicked off with the Fun Fest parade, ended with the Eastman fireworks display and a lot of fun in between. This nine-day event is one of the highlights of summer in Northeast TN.
Bristol Rhythm & Roots Reunion 2021
Bristol Rhythm & Roots Reunion music festival is an electrifying music experience that features the very best of various musical genres. The three-day event is a celebration held annually on State Street, the site of the 1927 Bristol Sessions and where Tennessee and Virginia meet, Bristol Rhythm salutes the roots and the far-reaching branches of those legendary recordings with an eclectic lineup of artists whose music not only touches on the twin cities’ historic past, but also transcends the boundaries of tradition. Known for its cross-genre grouping of artists and for fostering the talents of under-the-radar acts, this year’s festival was a cornucopia of Southern and roots rock, bluegrass, classic country, indie-rock, and even a little funk.
2021 • NETWORKS Sullivan Partnership Annual Report 13
Staff and Partner Updates NETWORKS Sullivan Partnership promoted Abby Mease to the newly created position of Workforce Development and Special Projects Coordinator. “Abby Mease, in her two-plus years here, has continued to overachieve beyond her duties,” said Clay Walker, NETWORKS CEO. “She was already carving this niche through her own initiative and activities. Based on the interest from members of our board and the needs of the business community, this is just good timing and a natural fit. We’re happy to have someone on board who can do this job as well as it can possibly be done.” Michael Parker, NETWORKS Sullivan Partnership Director of Business Development, was named as a member of the 2021 class of Leadership Tennessee’s NEXT program and he graduated the class in December This is Leadership Tennessee’s third class of Leadership Tennessee NEXT, a program designed to offer personal and professional career development for Tennessee’s “best and brightest early and mid-career professionals while fostering a greater understanding of Tennessee.” Leadership Tennessee NEXT is the state’s only statewide leadership program focusing on Tennessee’s existing and emerging leaders and spanning geographic and industry boundaries. LT NEXT offers early-to-mid career professionals in-depth personal and professional development while fostering a better understanding of our state. Each session features engagement with Signature Program members, highlights issues and opportunities specific to Tennessee, and promotes personal skill development. Leadership Tennessee NEXT is committed to bringing together diverse participants who are educated, engaged, and inspired to make Tennessee a better place while participating in a program that expands their personal, professional, and community networks. The third class of Leadership Tennessee NEXT was comprised of 29 up-and-coming professionals from every region of the state, representing a myriad of professional sectors and industries. Over the course of the program, participants enjoyed opportunities to grow their professional skills and connect to a cross-generation network of state leaders, while participating in collaborative, non-partisan dialogues on issues of state importance. Thank you, Carolyn Ferrell - you will be missed! NETWORKS has been fortunate to have Carolyn serve on its board of directors since 2014. During her time on the board, Carolyn has served as Secretary/Treasurer, Vice-Chair and Chairwoman. Carolyn was also awarded the TEDC Volunteer of the Year Award in 2019 for her service to the community which extends well beyond her contributions to NETWORKS Sullivan Partnership. From the entire NETWORKS Staff and fellow board members, we would like to express our sincere gratitude for her years of service to this great region. Carolyn is an exemplary community champion and are honored to have had her serve on our board. Welcome, Whitney Czelusniak – we look forward to working with you! We welcomed Whitney Czelusniak in March as she was named the Manager of Economic & Business Development for AEP in its Virginia and Tennessee area. In this role she will promote the AEP-Appalachian Power region to new customers, assist our growing existing customers, and assist our external economic development partners to achieve their goals. She previously worked in economic and community development for Washington County, Virginia. She is a graduate of Roanoke College and earned her Masters of Public Administration at Virginia Tech University.
Bluff City Mayor Irene Wells passes away. Mayor Irene Wells, a cherished member of the NETWORKS Board of Directors, passed away December 14th. Mayor Wells grew up in Bluff City and owned a print shop with her husband, Billy, who served as mayor from 1985 to 1991.She was elected mayor in 2011 and took over city manager duties in 2015. Before that, she had served as an alderwoman. “She was a bundle of energy and loved her city,” Sullivan County Mayor Richard Venable said. “She put her city first and she worked tirelessly for them. Irene was a wonderful person who gave her life to the city of Bluff City,” 14 NETWORKS Sullivan Partnership Annual Report • 2021
Residential Growth Sullivan County leads the region in net migration of personal income for the 6th consecutive year By: Jeff Fleming
One of the indicators of successful economic development is “the distribution of income and wealth as indicators of quality of life” (Source: EDA). As such, NETWORKS invests in the Move To Kingsport and Move To Bristol programs. These programs provide information on cost-of-living and quality of life. They support employers in workforce recruiting, as well as retirees considering the region as a forever home. Between the two they cover all of Sullivan County. Each year the IRS tracks the migration of personal income on a county-to-county and state-to-state basis, as well as internationally. The most recently-available data is 2019 (before the pandemic). Anecdotally, ask any realtor about the high-demand they are experiencing from newcomers during the pandemic. So, we eagerly await future data releases to assess the pandemic’s economic impact. It is important to note, these are measures of quality growth, not necessarily quantity. A high growth in personal income does not necessarily translate to high population growth. Rather, our population has been relatively stable. So, while disposable income is flowing into our county, we are not at risk of clogging our highways, overrunning our infrastructure, or adversely impacting the very things that brought them here in the first place. Rest assured, our quality of life is very much intact. During the 6 year period, the IRS reported net gains for every county in Northeast Tennessee. Sullivan County accounted for 29% of the region’s growth. During 2019 alone, $14,289,900 (or 35%) of Sullivan County’s growth was from out-of-state with 13% being from the Midwest, 9% from the South, 7% from the West, and 6% from the Northeast. Most real estate activity is local/regional and ours is no different. The top donors to Sullivan County for 2019 were Washington County, TN ($5.1 million), Washington County, VA ($4.9 million), Hawkins County ($2.3 million), Carter County ($1.9 million), Bristol, VA ($1.6 million), Scott County, VA ($1.6 million), and Wise County, VA ($1.0 million). The word is out on Sullivan County’s amazing quality of life and our economy is benefitting as a result. Jeff Fleming is the Move To Kingsport Relocation Manager at Visit Kingsport. Prior to that, he worked 35 years for the City of Kingsport, the last five as City Manager.
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E CO N O MIC D EV ELOPMENT
Where Tennessee Begins Its Business Day
NETWORKS Sullivan Partnership is the economic development organization serving the Northeast Tennessee communities in Sullivan – including charter partners Bluff City, Bristol, and Kingsport – and Hawkins counties. Our team of professionals is ready and able to assist you and your company reach your fullest potential here. VOTING MEMBERS: Bill Sumner, Bell – Chairman; David Wagner, Bank of Tennessee – Vice Chairman; CeeGee McCord, Eastman – Secretary/Treasurer; Pat Breeding – GRC Construction; Jerry Caldwell – Bristol Motor Speedway; Troy Wilson – Domtar; Erin Downs – BTES Board Chair; Mayor Mahlon Luttrell – Bristol; Lea Powers – Bristol; Mayor Pat Shull – Kingsport; Mark Vance – Sullivan County; Mayor Richard Venable – Sullivan County; Mayor Irene Wells – Bluff City EX-OFFICIO MEMBERS: Emily Ball – AEP; Dr. Michael Browder – BTES; Evelyn Rafalowski – Sullivan County Schools; Jeffrey Dykes – BrightRidge; Chris McCartt – City Manager, Kingsport; Dr. Jeff Moorhouse – Kingsport City Schools; Dr. Sam Rowell – Northeast State Community College; Bill Sorah – City Manager, Bristol; Dr. Annette Tudor – Bristol City Schools; Clay Walker – NETWORKS CEO
Clay Walker, CEcD
Michael Parker
CEO
Director of Economic Development
cwalker@networkstn.com
mparker@networkstn.com
Ronnie Price
Abby Mease
Economic Development Specialist
Workforce Development & Special Projects Coordinator
rprice@networkstn.com
amease@networkstn.com
PO Box 747, Blountville, TN 37617 • networkstn.com • 423.279.7681 16 NETWORKS Sullivan Partnership Annual Report • 2021