NETWORKS Sullivan Partnership Annual Report 2023

2023 Annual Report

Letter from the Chair David Wagner, NETWORKS Sullivan Partnership Chair

“I love it when a plan comes together.” - Colonel John “Hannibal” Smith, The A-Team It’s probably unusual to see the lead character from the once (albeit briefly) popular television series, The A-Team, quoted in any type of annual report. Still, I will stand by the decision to quote George Peppard’s character based on its absolute appropriateness in summarizing 2023 for NETWORKS Sullivan Partnership.

As Sullivan County’s economic development organization (EDO), NETWORKS is charged with many roles. By design, one of those roles is bringing our three cities – Bluff City, Bristol, and Kingsport – and Sullivan County together for much of our economic development work, particularly that which has a direct impact on growing our primary-job-generating industry sectors.

That work is not limited to the headline-grabbing task of recruiting companies to make Northeast Tennessee their home. It is setting the stage for positive economic growth. It is developing properties and supporting and encouraging others to do the same. It is maintaining. It is championing, supporting, and communicating with education and workforce development partners, who are a great differentiating advantage for us. It is building and maintaining strong-asoak relationships with our local, state, and federal elected officials, particularly at the city and county level; not only do they fund our efforts, but their policies determine if we are to be a uniquely business-friendly community. It is also having solid relationships with lead providers at TVA, the Tennessee Department of Economic and Community Development, and site location consultants.

The work of NETWORKS is an important piece of a much larger puzzle. Completing a puzzle requires all the players to work together with a shared vision and set of values. Various organizations across the region focus on entrepreneurism, tourism, residential development, retail attraction, and other vital aspects of building diverse economic ecosystems and desirable communities. We collaborate with them and support their work. Without it, we will have an incomplete puzzle.

This report is more than a summary of the work and accomplishments of NETWORKS and its partners. Sure, all of that is in here, but beyond that, this report is meant to be an overview of who we are from an economic development perspective. Hopefully, it is reflective of the collaboration among all the stakeholders in our region on whom NETWORKS relies. We vow to continue to play a leading role in determining our path forward and advancing down it… so that our collective plan continues to come together.

As a bonus vow, I promise that I will not open my message next year with, “I pity the fool!” For those of you under the age of 50, give it a Google…

Product Development While new job and investment announcements garner most of the attention in the economic development world, they would not be possible without a desirable location. Workforce, availability of sites and buildings, proper infrastructure, accessibility to markets, and quality of place are some of the qualifiers when companies choose to expand or relocate. Communities making the proper investments and exhibiting consistent support of initiatives to better serve existing and potential businesses and industries are better positioned for success.

In 2023, NETWORKS and its partners saw a great deal of its past efforts rewarded and created new initiatives to differentiate this region when competing for primary job-creating projects, particularly in industrial site development.

NETWORKS Awarded 2nd $1 million TNECD Site Development Grant for Partnership Park II NETWORKS was recently awarded a $1 million grant from TNECD to complete additional site improvements within Partnership Park II, with the City of Bristol providing gap funding necessary to complete the project. Once completed, NETWORKS will have two new pad-ready industrial sites to market for industrial recruitment.

NETWORKS Participated in the TNECD Property Evaluation Program Prepared and available industrial properties are essential for a community to be competitive in industrial recruitment. However, developing and maintaining this inventory is difficult, and many communities have few quality properties available for the market. To address this, TNECD developed the Property Evaluation Program to assist communities with evaluating properties under consideration for industrial development.

Product Development

NETWORKS Completes Grading Rail Accessible Site in PPII

NETWORKS Moves Forward with Land Acquisition in Kingsport

BTES Awarded TVA InvestPrep Grant for Bristol Industrial Park

NETWORKS recently completed grading activities on the rail accessible site in Partnership Park II. The 35-acre site was immediately purchased by Seaman Corporation to accommodate their recently announced, new 350,000 SF manufacturing facility. This site was made possible by a $1 million grant from TNECD.

NETWORKS recently voted to purchase and improve some 40 acres near the TriCities Airport for future industrial development recruitment activities.

NETWORKS is working with its stakeholders to secure the necessary funding and is ready to begin engineering work related to the necessary site improvements.

NETWORKS worked with our partners at the City of Bristol and Bristol Tennessee Essential Services to help secure grant funding for site improvements in the Bristol Industrial Park. The roughly 14-acre sited owned

by BTES will be able to accommodate a 150,000SF building once completed.

New & Expanding Industry Securing private investment in our industrial growth – both through the recruitment of new businesses and the retention and expansion of existing industry – is not just a strategy, but a vital component of our economic resilience and long-term prosperity.

By attracting fresh ventures and facilitating the growth of established players, we are not only fortifying our economic foundation, but ensuring a sustainable and dynamic future for our community, marked by job creation, increased revenue, and heightened local vibrancy.

Six projects came to fruition this year with some exciting projects still to be determined, giving the region an economic boost and reason for optimism heading into 2024.

LeClerc Foods Expands Operations in Kingsport Leclerc Foods Tennessee LLC expanded manufacturing operations at its U.S. headquarters in Kingsport, Tennessee.

Leclerc Foods will invest $3.4 million and create 48 new jobs in Sullivan County.

Click for more Watch highlights from the event TNECD press release

Domtar Cuts the Ribbon at the Kingsport Mill A ribbon-cutting ceremony held at Domtar’s Kingsport Mill opened the latest chapter at a facility that has operated in Kingsport for over a century.

State and local dignitaries joined Domtar executives and employees to celebrate the two-year conversion of the Kingsport Mill from an uncoated freesheet paper machine into the second-largest 100-percent recycled containerboard machine in North America.

Read more here Click for more about the conversion Watch highlights from the event.

New & Expanding Industry

Seaman Corporation Announced a New Facility in Sullivan County Tennessee Gov. Bill Lee, Department of Economic and Community Development Commissioner Stuart C. McWhorter, and Seaman Corporation officials announced the company will build a new 350,000square-foot facility in Bristol, Tennessee.

Located at Partnership Park II, a Select Tennessee Certified Site, Seaman Corp will create 58 new jobs at its new manufacturing and distribution facility, which will be the company’s fourth facility in Bristol.

Click for more Watch highlights from the event TNECD press release TNECD Commissioner of Workforce Development - Stuart McWhorter

Seaman Board ChairRichard Seaman

New & Expanding Industry

BAE Awarded 10-year, $8.8 Billion Contract for Continued Operation of Holston Army Ammunition Plant

“Our team is proud to continue our work as the operating contractor of the Holston Army Ammunition Plant,” said John Swift, vice president and general manager of BAE Systems Ordnance Systems Inc. “BAE Systems is committed to delivering safe, reliable products for our customers at a time when it matters most, while modernizing the Holston Army Ammunition Plant to meet increased demand.”

Click for more

The Robinette Company Announced a $10.3 million Expansion in Sullivan County, Creating 70 New Jobs With a headquarters in Bristol and manufacturing operations in both Bristol and Piney Flats, the new facility will be The Robinette Company’s fourth location.

“Our strong business climate and skilled workforce make Tennessee the ideal location for businesses to thrive,” Lee said. “I thank The Robinette Company for its decision to invest in Sullivan County to ensure Tennesseans and our economy continue to thrive.”

Click for more TNECD press release

New & Expanding Industry

Palmex Plans to Lease Anita’s Facility, Manufacturer Investing $16.5 Million in Kingsport This fall, due to changing market conditions, Californiabased Anita’s Snacks agreed to a joint venture with Palmex – the largest snack pellet manufacturer in the US and Central and South America – to assume primary operations and lease agreement with the Kingsport Economic Development Board at its Gateway Park facility. The move turned a pending loss of several dozen jobs into a ramp-up of jobs and keeping payments to KEDB current.

Local officials praised the leadership of Anita’s for their concern for their Northeast Tennessee workers in finding a desirable new tenant for the building. The Palmex lease on the state-of-the-art plant runs through June of 2030 with an option for two five-year extensions and will increase employment from 38 to 103 people.

Read more

Stone Mountain Invests $13.9 Million, Creating 111 new jobs Governor Bill Lee, Department of Economic and Community Development Commissioner Stuart McWhorter and Stone Mountain Technologies, Inc. (SMTI) officials announced the company will invest $13.9 million to establish manufacturing operations in Piney Flats, Tennessee.

SMTI will create 111 new jobs in Sullivan County and launch production of ANESI, its brand of high efficiency gas-fired heat pumps.

Read more here

Marketing & Events Active participation in and hosting special events are indispensable tools in our economic development strategies, providing a direct avenue to showcase our community’s potential to a broader audience. These events amplify our visibility, foster partnerships, position our community as a destination for investment and growth, as well as “sharpen our edges” as economic developers through the continued education element of many such opportunities.

Whether through our own creations – such as existing business services or regional economic development summits – or through our professional alliances – such as IEDC, SEDC, TNECD, TEP, TEDC, and TVA – our team was quite visible this past year.

Industry Appreciation Golf Outing - CATTAILS AT MEADOWVIEW NETWORKS and our partners spent time with our Northeast TN industries for a day of golf, food, and fun. Thank you to the Northeast TN industries for investing in the community and its citizens; we appreciate all you do.

Existing Industry Networking Event NETWORKS got back to a live and in-person existing industry networking event. It was hosted by Domtar, with over 30 company representatives in attendance. It featured information from Nicole Townsend with the U.S. Chamber, about the Hiring Our Heroes Corporate Fellowship Program along with an opportunity to tour the newly converted Kingsport mill.

Marketing & Events

NETWORKS Joined Partners for Education 2 Employment Summit

Existing Industry Networking Event Jesse Smith, Manager of Industrial Partnerships and Economic Development at Oak Ridge National Laboratory, shared opportunities for collaborations and support available to our existing industry at an event hosted by Bell Flight in Piney Flats.

We look forward to taking a field trip to Oak Ridge in 2024

NETWORKS appreciated the opportunity to sponsor and participate in the annual E2E summit, hosted by the First Tennesee Development District. E2E is an annual meeting of employers, educators, elected officials, and community partners to discuss workforce challenges and opportunities.

The day was filled with topics related to AI, Veterans in the Workplace, the Hiring Our Heroes Initiative, innovation in our high schools, and meeting employee expectations.

Read more More about the event

Marketing & Events MRO Americas

NETVRIDA Hosts TVA Target Market Specialists

TVA Economic Development Forum

TEDC Day on the Hill

TEDC Fall Conference

Marketing & Events

TNECD Appreciation Event

TNECD Governor’s Conference on Economic Development NETWORKS joined partners and colleagues from around the state in Chattanooga to hear about Tennessee’s strides in business recruitment, job creation, and the programs helping to build strong communities around the state.

In appreciation of TNECD’s partnership and support NETWORKS Sullivan Partnership’s mission to improve the lives of all who call Northeast, TN home, NETWORKS hosted an evening of fun, food, and good company at Top Golf in Nashville.

Partnerships & Programs

NETWORKS Awarded TVA Workforce Invest Grant NETWORKS Sullivan Partnership was awarded a Workforce Invest Grant from TVA to incorporate Virtual Reality Training and Career Exploration Technologies to enhance the existing CTE offerings.

NETWORKS partnered with Bristol TN City Schools, City of Bristol, TN, Bristol Tennessee Essential Services, and TVA on this PILOT program.

NETWORKS Sullivan Partnership often partners or collaborates with numerous national, state, regional, and other local organizations on special initiatives and programs. While the NETWORKS role often varies on these projects, we remain committed and ready to aid when called upon. These joint ventures can yield a high return in terms of innovation and funding for special projects.

This work was especially evident in 2023 with the launching of new programs and products aimed to benefit our education and workforce development partners, our workforce/citizenry, and the corporate community.

NETWORKS Unveils New Career Pathways Web Portal NETWORKS Sullivan Partnership worked with the several designated employer and educational representatives to create a new Career Pathways Web Portal. The web portal, funded in part by a ThreeStar Grant from the TN Department of Economic and Community Development, is accessible to the public and makes connecting with future employees, or employers, a breeze.

Career Pathways Portal: www.NETNConnects.com

Workforce Development Highlights Robust workforce development initiatives are crucial for a region as they enhance the local economy by equipping individuals with the skills and knowledge necessary to meet the demands of evolving industries. A well-trained and adaptable workforce can be a catalyst in attracting new industry to the area as well as fostering innovation and ensuring sustained growth and competitiveness in the global market.

We consider our education and workforce development ecosystem to be perhaps our greatest selling point for Northeast Tennessee. As expected, they continued to shine in 2023.

NE State, TCAT-Elizabethton Sign Articulation Agreement

RCAM/LeClerc Foods Customized Training

Pre-apprenticeship Signing with Seaman

CareerQuest Tennessee

TN National Guard Hiring Event Brings Partners Together

FTDD Receives $1.5 Million Federal WORC Grant

Commercial & Residential Development While our organization does not traditionally focus on residential and commercial development, it's imperative to recognize its pivotal role in shaping our community's economic success.

The vibrancy of our local businesses and citizens not only contributes to a robust economy but also creates a thriving atmosphere that enhances the overall quality of life, making it essential for us to appreciate and strategically support residential and commercial ventures in our economic development endeavors.

Cement Hill Housing Development in Kingsport IMAX & Fort Henry Mall Redevelopment Walk-On’s Sports Bistreaux Coming to the Pinnacle

TN Hills Distillery Opening in 2024 Glades at Hawley Housing Development Weigel’s Opens in Bluff City

Quality of Life Although NETWORKS Sullivan Partnership does not focus specifically on quality-of-life initiatives, they are vital for its success as it directly influences the attractiveness of the area to residents, businesses, and potential investors.

Northeast Tennessee’s high quality of life not only fosters a thriving community but also contributes to its economic success by ultimately attracting and retaining a talented workforce that drives sustained prosperity.

Spring Race at BMS

Golf’s Longest Drive in Kingsport

TN Night Sky Trail

Night Race at BMS

Regional Partner Spotlight

Steven Bower 40 under 40

Holly Free-Ollard named VP , Economic & Workforce Development of Northeast State

Allison Woodward joins TNECD as BMS GM Caldwell honored as Tennessee Tourism Leader of the Year Business Development Consultant Click for more

We have the honor of working alongside some very talented individuals here in Northeast, TN. NETWORKS would like to congratulate and acknowledge the remarkable achievements of some of our valued partners whose dedication and accomplishments underscore our collective commitment to excellence, driving the continued success and prosperity of Northeast, TN

NETTA receives "DMO of the Year Small Organization" award at the Governor's Conference on Hospitality and Tourism

Tri-Cities Airport to receive SCAASDP Grant from Department of Transportation

Thank you to the past Chair, Bill Sumner who led NETWORKS Board of Directors for four years.

A New Era in Bristol

Thank you and Congratulations!

A new chapter - Bristol City Manager, Bill Sorah retires after a long career in government.

“You look forward to the next chapter, but you also have a lot of apprehension about the next chapter,” Sorah said. “I’ve had 45 years of local government service, over 31 with the city of Bristol, Tennessee, and I’m not sure what it is going to feel like that first morning when I wake up and I don’t have anywhere to go.”

Click for more In his words - WJHL

As we bid a fond farewell to our esteemed colleague Bill Sorah, whose years of dedicated service have left an indelible mark here in Sullivan County, we welcome a new leader with enthusiasm and optimism. The transition symbolizes both a rich legacy of accomplishment and the promise of fresh perspectives, ensuring Bristol’s continued growth and prosperity under new guidance.

We welcomed Bristol City Manager Kelli Bourgeois from Columbia Heights, Minnesota to the Tri-Cities.

“My primary goal is learning and getting to know people,” Bourgeois told News Channel 11. “One of the [most fun] parts of my job and a big responsibility is just to get out and meet people and see what we should be doing and what we could be doing to help and make sure businesses and residents have the best experience living and working here that they can.”

Click for more

Get to know Kelli Bourgeois

By The Numbers

$74,100,000 Direct Capital Investment Announced ___________________________ Commercial/Industrial Construction Permit Value: $86,000,000+ Residential Construction Permit Value: $225,000,000+

940 Jobs Created with $54,377,168 in Estimated Payroll 390 New Jobs Announced - $30,871,844 in Estimated Payroll 142 Indirect Jobs - $8,819,814 in Estimated Payroll 408 Induced Jobs - $14,685,510 in Estimated Payroll

Grant Dollars Secured

Total Employment Increased by

$1,156,000

1.3%

Average Weekly Earnings Increased by

Labor Force Participation Increased by

7.2%

1.2%

Data sourced from Bureau of Labor Statistics and Churma Analytics – JobsEQ

Estimated GDP $9,125,000,000

2.6% Growth

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 in reaching your fullest potential here.

Board of Directors VOTING MEMBERS: David Wagner, Bank of Tennessee – Chair; Erin Downs – Jones, King, Downs, & Peel, P.C. – Vice Chair; Pat Breeding – GRC Construction – Secretary/Treasurer; Mayor Richard Venable – Sullivan County; Mayor Pat Shull – Kingsport; Mayor Jeff Broyles – Bluff City; Bill Sumner, Bell; CeeGee McCord, Eastman; Jerry Caldwell – Bristol Motor Speedway; Lea Powers – Bristol; Mahlon Luttrell – Bristol; Sam Jones – Sullivan County; Troy Wilson – Domtar EX-OFFICIO MEMBERS: Chris McCartt – City Manager, Kingsport; Kelli Bourgeois – City Manager, Bristol; Clayton Dowell – BTES; Chuck Carter – Sullivan County Schools; Dr. Chris Hampton– Kingsport City Schools; Holly Free-Ollard – Northeast State Community College; Dr. Annette Tudor – Bristol City Schools; Emily Ball – AEP; Jeffrey Dykes – BrightRidge; Clay Walker – NETWORKS CEO

Staff Clay Walker, CEcD

Michael Parker, CEcD

Abby Mease

CEO

Economic Development Director

Workforce Development & Projects Coordinator

PO Box 747, Blountville, TN 37617 • networkstn.com • NETWORKS Sullivan Partnership Annual Report 2023