BuildingABetterFuture

EconomicDevelopmentFoundation20132018
A FiveYear, $2,750,000 Public/Private Economic, Business,
Workforce & Tourism Development Initiative for Jefferson County

CaseForSupport

FiveYearEconomicDevelopmentPlan
20132018

JeffersonCountyEconomicDevelopmentOversightCommittee
JeffersonCountyChamberofCommerce

BuildingABetterFuture
In2007,JeffersonCountyresidentsandleadersimplementedamandateforcommunitychangea20
yearstrategicactionplanwithasoundimplementationprocessandclearbenchmarkscalledBuildingA
BetterFuture.
Under the Building A Better Future (BABF) plan, community leaders began proactive steps on six
foundationalareas:
I.
II.
III.
IV.
V.
VI.

Economic/BusinessDevelopment
Education
QualityofLife
Infrastructure
Environment
Public/PrivateLeadership

In order to fund and implement the Economic / Business Development Foundation Initiative, a five
year fundraising campaign (FY2008 FY2012) was instituted, raising $2.5 million from 29 public and
privatesectororganizations.
Astheinitiativeentersitsfinalyear,theEconomicDevelopmentOversightCommittee(EDOC)sought
input from key public and private sector investors and leaders on (i) the accomplishments of the
Building A Better Future campaign and initiative (20082012), and (ii) a proposed fiveyear economic
developmentinitiativetocontinueimplementationofthe20yearBABFplan,expandtheBABFinvestor
base, increase overall levels of public and private investment, and build on and expand on the
accomplishmentsofBABF.
Working together, Jefferson County public and private sector leaders provided input on the proposed
fiveyear Building A Better Future / Economic Development Foundation 20132018 plan to grow our
economyandimproveourcommunity.Theprogramofworkforthenextfiveyearshasbeenmodifiedto
reflect their combined vision for the future and the establishment of a goal to raise the necessary
$2,750,000tofundtheinitiative.

VisionforBuildingABetterFuture/Economic
DevelopmentFoundation20132018
BuildingonthesubstantialaccomplishmentsofBABF,JeffersonCountyspublicandprivatesectorswill
focusresourcesonthecommunityvisionofcomprehensive,sustainableeconomicdevelopmentwitha
balancedeconomy,increasedlocalemployment,environmentalstewardship,diversifiedlocaltaxbase,
andabetterqualityoflife.

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BuildingABetterFuture
EconomicDevelopmentFoundation20132018
A FiveYear, $2,750,000 Public/Private Economic, Business,
Workforce & Tourism Development Initiative for Jefferson County

EconomicDevelopment&BusinessRecruitment

$165,000(Annually)

Director of Economic Development implements and oversees core economic development

initiatives, including: product development, global marketing, industrial and retail recruitment,
corporateretentionandexpansion,andworkforceandentrepreneurialdevelopment.
NewBusinessAttraction

($150,000)

o AggressivelypromoteJeffersonCountyandseekpotentialnewinvestmentsfocusingon
the Countys five identified target sectors Automotive, Warehousing & Logistics, Food
ProcessingandPackaging,BusinessServices,andHighIncomeRetirees
Globalmarketing
SiteConsultantStrategy
CooperateinStateandregionalpartnerships
AnnualFamiliarizationTours(FAMTours)forState,TVA,andregionalpartners
andareacommercialbrokers
ContinueParticipationinRetireTennesseeprogram

RetailRecruitment ($5,000)
o Continue to identify and develop strategies for bestfit retailers in the 3 primary trade
areaswithinJeffersonCounty
o Maintainaccurateinformationonavailablecommercial/retailbuildingsandsites
o ParticipateinlocalandregionalICSCtradeshowsandotherretailforums
o Develop and implement communication plan to prospective retailers, highlighting new
availablesitesandanymajorchangesintheJeffersonCountytradeareasofinterest
o Educatepublicsectorleadersonretailincentivesandassistinthecreationoflocalretail
incentiveprogramfor"largescale"retaildevelopments

ProductEnhancementandDevelopment ($5,000)
o Maintainonlinedatabase(s)ofavailablecommercialbuildingsanddevelopablesites
o Educate local leaders and private landowners on new TN SelectSites program, identify
potentialcertifiablesites,andassistinfundingcertificationprocess
o Work with public and private sector in identifying larger tracts of land suitable for
industrialandbusinessparkdevelopment

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EntrepreneurialSupport

($5,000)

o Createonlineandinofficeresourcehubtoassistpotentialentrepreneursindevelopinga
businessplan,securingfinancing,andstartingtheirownbusiness.
o Createnetworkingeventsforlocalentrepreneursandarearesourceproviders.

AnnualBudget
FiveYearBudget

20072012Accomplishments

$165,000
$825,000

INDUSTRYRECRUITMENT

NewIndustryLocations:
o Overman USA Location (formerly BJS North America) 2009: Assisted BJS North
America, a Swedish furniture manufacturer, relocation to the Jefferson County
Industrial Park inDandridge.BJS located next to sister company, Klote International,
generating a projectinvestmentofnearly$8millionandcreatingmorethan150jobs
betweenthetwocompanies.

o AmericanBookCompany2010:AssistedAmericanBookCompanywithitsacquisition
of the former Magnavox facility in Jefferson City. ABC invested $6 million in the
property and currently employs 325 fulltime employees. ABC plans to create an
additional70100jobsinthenextfouryears.

o M.Block and Sons, Inc. 2011:Assisted M. Block and Sons locating in a 495,000 sq
ft building in Jefferson City. The company currently employs over 100 fulltime
employees and has invested more than $1.7 million in equipment and facility
improvement sinceAugust2011.

o Custom Apparel 2012 Provided guidance and assistance to Custom Apparel, a

smallapparel manufacturer, in its purchase of a 48,000 sq. ft. building in Dandridge.
Custom Apparel accessed funds from a local revolving loan fund to finance its
expansion plans. The company plans to employ 1215 people in 2012 and hopes to
growtomorethan30employeesinthenextthreeyears.

o EconomicImpactofNewIndustryLocations
20072013
BABFGoal
Direct&IndirectJobs
673jobs
Direct&IndirectPayroll
$20,006,926
RetailSpending
$8,006,457
SalesTax
$ 537,115
$ 181,495
ResidentialPropertyTax

Commercial&IndustrialPropertyTax

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20072012
Results
1,001jobs
$20,265,165
$3,749,056
$ 262,434State
$ 103,098County
$ 157,636
$ 237,486

20072012Accomplishments

RETAILRECRUITMENT

The Shopping Center Group: Partnered with The Shopping Center Group to develop, and
make available for public use (SelectJefferson.com), m a r k e t i n g packages w i t h key
demographicinformationonthreeprimaryretailtradeareaswithinJeffersonCounty.

International Council of Shopping Centers (ICSC):As a member, actively participate in ICSC

regional conference and dealmaking seminars. Relationship has led to current list of nearly
100potentialretailersordevelopmentpartnerswithapresenceinJeffersonCountyorsimilar
markets.

National / Regional Retailers and Developers:Annually, E.D. staff maintains regular contact
withmorethan20nationalorregionalretailersanddevelopers.

LocalRetailWorkshops: Hosted two workshops for existing retailers relating to consumer

buyingtrendsandcustomerservice.

RetailonSelectJefferson.com: Developed section of SelectJefferson.com website for

commercialandretailrelatedprojects,includingdemographic,keymarketinformation
andcurrentlistingsofavailableretailbuildingsandsites
Tennessee Downtowns Program:Supportedprogramaimedatrevitalizing originaldowntown
JeffersonCity

Targeted Development Sectors

ThefollowingtargetsectorswereselectedasJeffersonCountysbestopportunitiestogeneratenewtax
revenues while being careful to maintain thecountys rural character and plan for residential growth:
Logistics-warehouse & distribution
Tourism
Retail

Light manufacturing and processing

Services
High-income retirees

PrioritizingandtargetingthesesectorswillbalanceJeffersonCountyseconomy,increaseearningsper
jobandincreasethetaxdigest.Thiscomponentiskeytoprogressingandmovingthecountyforward.
Targeting strong sectors that capitalize on location and area strengths will accelerate and sustain
growth. Utilizing existing assets will create a competitive advantage for existing industries as well as
attracting others. An example of this would be the existing interstate system, rail system, geographic
locationtolargemarketsandtheUTsupplychainandlogisticprogram.

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ExistingIndustrySupport&WorkforceDevelopment

$115,000(Annually)

ExistingIndustrySupport

($95,000)

o Create an Existing Industry Council that meets quarterly and features presentations on
keyandtimelyissuesimpactinglocalindustry
o EnhancetheLocalIndustryVisitationProgram
o Continue to support the needs of local industries by acting as the liaison between
industriesandthelocal,state,andfederalgovernments

WorkforceDevelopment ($20,000)

o RegionalLaborMarketAnalysis:ConductaRegionalLaborMarketAnalysisofthecurrent
laborenvironmenttoidentifycriticalentrylevelskillsandtrainingneedsfortheexisting
andfutureworkforce,andidentifymethodsofexpandingthepotentiallaborsupplyfor
areabusinesses(Year1$40,000)
o Regional Labor Analysis: Work with industry, education, and government to set
attainable goals and implement programs to address any shortcomings identified in
RegionalLaborAnalysis(Years2through5$40,000annually)
o TNAchieves Scholarship Program: Assist in funding local portion of TNAchieves
ScholarshipProgramforgraduatingseniorsofJeffersonCountyHighSchool($20,000)
o Create Workforce Development Committee: Work with industry and educational
representatives to create educational programs to meet the skills and training needs
identifiedintheRegionalLabormarketanalysis.

AnnualBudget
FiveYearBudget

20072012Accomplishments

$115,000
$575,000

EXISTINGINDUSTRYSUPPORT

Annual Industry Visitation Program:Inperson meetings with more than 25 local industries
andsmallbusinessesannually

Annual Existing Industry Breakfast: Partnered with the City of Jefferson City to create
annual breakfast event at Carson Newman College, which has hosted more than 50 local
businessleadersannuallysinceitsinception

Business Research: Provided business research, potential customer lists, and key
demographic information to existing businesses to help assist industries expand their
customer base andcompetefornewcontracts

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20072012Accomplishments(Continued)

EXISTINGINDUSTRYSUPPORT

Entrepreneurial Support: Annually, E.D. staff averages 11 inperson meetings with

potential entrepreneurs interested in starting or enhancing a small business, utilizing small
businessresourcesareasonSelectJefferson.comwebsite.

Existing Employer Survey Developing survey to assess workforce development and training
needs, skills gaps, growth opportunities or potential employee downsizings and other
trendswithinthelocallaborforce

TourismDevelopment

$215,000(Annually)

MoreVisitors.StayingLonger.SpendingMore.
DirectorofTourismimplementsandoverseesthetourismmission:createandpromotetravelto
JeffersonCounty,providevisitorsapositiveimpressionandencouragethemtoextendtheirstay
andincreaselodgingtax,allofwhichcontributestoareaeconomicgrowth.
AggressiveTourismMultiMediaMarketingProgram
o Traditionalmedia:TV/Magazine/OutdoorBoardsonI40
o Interactive/Social Media: Continue to enhance Jefferson Countys tourism presence on
Facebook,blogs,Flickr,YouTubeandothersocialmedia
o Website: Comprehensive upgrade to www.vacationjeffersoncounty.com and the
developmentofresponsivewebsitesforlaptops,tablets,mobiledevices,etc.
o PublicRelationTours:Hostannualcountywidepublicrelationtours;createanddistribute
timelyandnewsworthyreleasesandphotographytogarnerunpaidmedia
o CooperativeAdvertisingCampaignswithlocal,stateandregionalpartners
o Professional Photography: Upgrade photographic images of Jefferson County used in
tourismmarketingofvenuesandevents
o TargetspecificMarketingMaterials:Tailormarketingmaterialstospecifictargetmarkets
andprospects
FAMFamiliarityTours:hostFAMToursspecificallytargetedtobustourownersandoperators
toincreaseovernightstaysbygroups
Industry / Consumer Tradeshows: Participate in sales opportunities, such as industry and
consumertradeshows,thatprovidestrongreturnoninvestment,i.e.:TravelSouthShowcaseand
HeartlandTravel
Professional Sporting Association Events: recruit, sponsor and promote outdoors and sporting
events to professional sporting associations, i.e.: B.A.S.S., Federation Nation Fishing, American
BicycleAssoc.,UnitedStatesSpecialtySportsAssociation(USSSA)
WebBasedAssistanceSeminarProgram:Developahandsonwebassistanceseminarprogram
toeducateandempowerthelocaltourismindustrypartnersonalltheresourcesavailable,i.e.:
TNvacation.com,stateadvertisingcoops,andFacebook
AnnualBudget
FiveYearBudget
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$215,000
$1,075,000

20072012Accomplishments

TOURISM

Director of Tourism: Effective March 2010, a director of tourism was hired to work with
tourism venues, events and volunteers in coordinating and implementing an aggressive
tourism development effort designed to increase retail, lodging and other economic
activities.

MultiMediaCampaign:
o TourismSlogan: DevelopedtheLakesideoftheSmokiessloganusedtomarket
JeffersonCountyasatouristdestination
o Printed & Outdoor Advertising Materials: Developed and distributed 50,000
tourismmaps,45,000tourismbrochures,andproduced4outdoorbillboards
o TennesseeVacation Marketing:TN Vacations Guide advertisement yielded401
directinquires.JeffersonCountybanneradsinTNVacations.comproducedsome4
millionannualonlinevisitors,resultingin1,376vacationpackagesbeingmailed
toprospectivevisitors.
o Internet / Website / Social Media: New
Jefferson County tourism website and social
media campaign resulted in 10,582 unique hits
and35,023pageviewstothewebsite.
o Television: Tourism Development efforts resulted
infivecableTVspotsviewedby1.2milliononTheAnglersChannel.
o Targeted Public Relations: With 428 public relation stories published, Jefferson
County reached 266.3 million people and received $339,530 in unpaid, free media
attention.
Event Attraction: Tourism development staff attracted several fishing tournaments (e.g.,
BassMasters Southern and Elite Series Tournament) and bike racing events (e.g., ABA/BMX
at EXPOCenter) resulting in over 7,000participants andover 10,000spectators coming to
JeffersonCounty.

MeasurableEconomicImpacts
(Years14)

DirectTourismImpact
IndirectTourismImpact
TotalTourismImpact

$1,140,000
900,000
$2,040,000

Visitors
Hosted3TourismFAMTours
TheBushFamilyVisitorsCenter: 135,000+AnnualVisitors
FishingTournaments:
1,238anglersrecruitedtoarea
FishingEvents:
10,000+spectatorsattendedfishingevents
ABA/BMXBikeRacing:
5,917participantsatEXPOCenter

150,000+

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20072012Accomplishments(continued)
RetailImpact
FederationNationFishingTournament(2tourneys)
JuneBassTournament June 1719
BassMastersFishing Tournament
DirectRetailImpact
IndirectRetail Impact (x 1.5)
TotalDirect&Indirect Retail Impact

TOURISM

$ 71,437
69,562
461,142
$602,142
903,213
$1,505,355

LodgingImpact
FY20112012lodgingreceiptsareup16%fromFY20102011

BuildingABetterFutureInvestorRelations&Support

$50,000(Annually)

Generate citizen awareness; support, and engagement through strengthen of the Chamber of
Commerce,expandinginvestorbaseandmanaginginvestorrelations
InvestorRelationsandReports($5,000)BuildingABetterFutureinvestororganizationsrequire
thorough,ongoingcommunicationsaboutimplementationandresults.TheChamberwillexpand
investor meetings, briefings and networking opportunities to meet the needs of an expanding
baseofpublicandprivatesectorinvestors.
Strategic Plan Support by Luke Planning ($3,000) Luke Planning helped develop the 20year
BABFstrategicactionplanforJeffersonCounty.LukePlanningwillcontinuetoassistEDOCwith
StrategicPlansupport,accountability,strategicdirectionandglobaleconomicreview.
Professional Services ($5,000) In administering the BABF Strategic Plan and multiyear funding
campaign,professionalservicessuchasaccountingservices(annualauditandquarterlyreview)
andlegalrepresentation(asneeded)areoftenrequired
ChamberofCommerceOperationalSupportforEconomicDevelopment($37,000)
o The Jefferson County Chamber of Commerce provides executive oversight,
communications and administrative support staffing, office space, office equipment,
utilities,phones,computers,postageandothersupportfortheBuildingABetterFuture
economicdevelopmenteffort.
EconomicDevelopmentSupportStaffing:($17,000)
ChamberAdministrativeSupportStaff(Time:22hours/week)
o OfficeRentandOperations($20,000):
o Rent,Utilities,Phone,Computers,Postage,Copy&Supplies

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BuildingABetterFutureStrategicActionPlan

$5,000(Annually)

Provide support and funding resources to thefive other foundation teams in Building A Better
Future:

Education
QualityofLife
Infrastructure

Environment
Public/PrivateLeadership

FundingrequirementstobemonitoredbytheEDOCBoardofDirectors

**********

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ProposedFiveYearBudgetSummary

EconomicDevelopment&BusinessRecruitment
ExistingIndustrySupport&WorkforceDevelopment
TourismDevelopment
BuildingABetterFuture
InvestorRelations&Support
StrategicActionPlan
TotalProjectedFiveYearBudget

Proposed
Annual
Budget

Proposed
5Year
Budget

$165,000
$115,000
$215,000

$50,000
$5,000
$555,000

$825,000
$575,000
$1,075,000

$250,000
$25,000
$2,750,000

ProposedFiveYearInitiativeGoals

NewandExistingIndustry
JobCreation

20082012Actual

1,000DirectandIndirectJobs

CapitalInvestment
Tourism
DirectandIndirectImpact
Visitors
Numberofevents(fishing
tournaments,Expocenter,
andothers)

$15.7Million

$2.04Million
150,000+annually
16events

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20132018Projected

1,000DirectJobs
1,950DirectandIndirect/InducedJobs
$25.0Million

$5.7Million
175,000+annually
95events

EconomicImpactAnalysis
I.
ImpactofNewJobs
BuildingABetterFuturesfirstfiveyearstarget(20072012)wastocreate345newdirectjobs.The
tablebelowshowsasummaryeconomicimpactestimateoftheprogrambasedonregionalmultipliers.
Thesemultipliersshowtheeffectoftheadditionofasinglejoborasingledollarinanygivenindustryto
theemploymentandearningsforallindustries.
Table1.EconomicImpactofJobs:2007
2

Indirect and

2007
Jobs
Earning (Payroll)

Direct Impact

345
$12,743,265.00

Induced
Impact

328
$7,263,661.00

Disposable Personal Income 4

Net Personal Consumption Expenditures5
Deposit Potential for Area Financial Institutions6

Total Impact
673
$20,006,926
$17,005,887
$14,455,004
$6,887,384

Theabovetablerevealsthat,throughthemultipliereffect,investmentsintheBuildingABetterFuture
initial345directjobsthatwerecreatedresultedinthecreationofan estimated673totaljobsinthe
region. The total job impact yielded a job multiplier of 1.95. That is, for every direct job created as a
result of attraction by Building A Better Future attraction and expansion efforts, an additional 0.95
indirectandinducedjobswerecreatedintheregionseconomy.
ThecalculationsreflectedinTable1werebasedonthefollowinginputs:
Creationof345newdirectjobsinthefollowingtargetindustries:
o Manufacturing
o CorporateandDivisionHeadquarters
o InformationTechnologies
o Tourism
Thedirectpayrollwascalculatedbasedontheaverage2007wagerateof$36,937whichisthe
Tennesseeaverage.
The impact is calculated with the IMPLAN input/output economic model reflecting Jefferson
Countyseconomy.

The second fiveyear phase of Building A Better Future projects a very reasonable goal of 1,000 new
direct jobs based on actual attraction and expansion experienced during the 20072012 period. The
directpayrollwascalculatedontheestimated2013wagerateof$47,279whichreflectsthe4.2%annual
earningsincreaserateperjobestablishedin2005.

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Table2EconomicImpactofJobs2013projected
2

Indirect and

2013

Direct Impact

Jobs
Earning (Payroll)

Induced
Impact

Total Impact

1000
951
$47,278,962.01 $26,949,008.16

Disposable Personal Income 4

Net Personal Consumption Expenditures

Deposit Potential for Area Financial Institutions6

1

1951
$74,227,970
$63,093,775
$53,629,708
$25,552,979

DirectImpact:ImpactgenerateddirectlyfromthejobscreatedwiththeassistanceofBuildingABetterFutureinitiative.

IndirectImpact:thechangesinemploymentandincomeinvariousindustrysectorsofthelocaleconomysupplyinggoodsandservicestothe
companiesthatexpanded.

InducedImpact:theincreasedsalesfromhouseholdspendingoftheincomeearnedonsupportingindustrysectors.

DisposablePersonalIncome:PersonalIncomelessPersonalTaxandNontaxPayments

NetPersonalConsumptionExpenditures:PercentageofDisposablePersonalIncomelessInterest,PersonalTransferPaymentsandSavings

DepositPotential:PersonalSavingsRatelessDepositLeakageEstimatewithareaturnover(ReserveReq.Ratio)

II.
Earnings/ExpenditureImpact
A portion of the total earnings is used for personal consumption expenditures. Table 3 shows the
estimated personal consumption expenditures for each category, allocated based on a consumption
patternconsistentwiththeSouthregion:
Table3DistributionofProjectedAverageAnnualExpenditures:$53,629,708

DistributionofConsumerExpendituresAmongLocalIndustries
Housing
Transportation
Food
PersonalInsuranceandPensions
HealthCare
Entertainment
CashContributions
Apparel
Education
Miscellaneous
PersonalCare
TobaccoProducts
AlcoholicBeverages
Reading

$Millions
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$2.00 $4.00 $6.00 $8.00 $10.00$12.00$14.00$16.00$18.00$20.00

III.
TaxRevenueAnalysis
Based on estimated consumer expenditures, the sales tax impact of the Building A Better Future
initiative estimated at approximately $2,666,125. Table 4 shows a breakdown of the estimated tax
revenueyieldedfromconsumerspendinggeneratedfromnewpayroll.
Table4EstimatedSalesTaxRevenue

CATEGORIES
Estimated Consumer Spending

$53,629,708

Estimated Taxed Expenditures

$29,704,866

Estimated State Tax Revenue (7%)

(Food is taxed at 5.5%)
Local County/City Sales Tax Revenue (2.25%)
TOTAL ESTIMATED TAX REVENUE

$1,992,758
$673,367
$2,666,125

Thesecomputationsdonottakeintoaccountanyfuturechanges(increasesordecreases)tothetax
rate.
PAIDSOLICITORSDISCLOSURE
JeffersonCountyEconomicDevelopmentOversightCommittee(EDOC),532PatriotDrive,Dandridge,TN37725,isrecognizedbytheInternal
Revenue Service as a Section 501(c)(3) nonprofit organization. Convergent Nonprofit Solutions is an independent paid solicitor who is
soliciting on behalf of EDOC. These funds are to be raised in support of EDOCs fiveyear $2.75 million economic development program.
Convergent Nonprofit Solutions is registered with the state of Tennessee Secretary of State Office, 312 Eighth Avenue North, 8th Floor,
Nashville,TN37243.AnauditedfinancialstatementofexpensesmaybeobtainedbycontactingEDOCattheaddressdisclosed.

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