Leadership gathering for East Tennessee Regional Megasite

Mark Sweeney of site selection firm McCallum Sweeney Consultants explains why the proposed East Tennessee Regional Megasite would offer advantages to major manufacturers planning expansions. Sweeney was one of several speakers, along with mayors from several counties and municipalities, at a Regional Leadership Breakfast Tuesday at Carson-Newman College hosted by the Jefferson County Economic Development Oversight Committee.

BUSINESS AND ECONOMIC DEVELOPMENT LEADERS, ELECTED OFFICIALS DISCUSS SUPPORT FOR EAST TENNESSEE REGIONAL MEGASITE

The Jefferson County Economic Development Oversight Committee (EDOC) hosted business, economic development and community leaders during a breakfast Tuesday to share information and garner support for the proposed East Tennessee Regional Megasite.

The gathering on the campus of Carson-Newman College in Jefferson City drew about 70 leaders from Jefferson and surrounding counties, including, Cocke, Grainger, Hamblen, Knox and Sevier.

On Jan. 9, EDOC officials announced plans to pursue the certification process for a proposed 1,800 acre megasite located at the junction of Interstates 40 and 81 in Jefferson County.

George Gantte, mayor of Dandridge and EDOC chairman, explained to the group that a commercial real estate firm that specializes in site selection has identified the area as an ideal location to attract a major manufacturer and its suppliers. That firm, McCallum Sweeney, was represented by Senior Principal Mark Sweeney, who explained the site certification process and shared facts and figures from other regional megasites that have already completed the process.

In addition to its proximity to two interstates and rail service, the site was also recommended because of the availability of a highly skilled workforce; visible and easily accessed location; and its strategic position in relation to other manufacturers and supporting suppliers.

“This development will be the first certified megasite in the Northeast Tennessee corridor and will have a huge, far-reaching impact on our economy,” Gantte said. “The East Tennessee Regional Megasite will bring thousands of new jobs to our region and millions of dollars in economic impact. If we are successful, everyone will benefit.”

Sweeney explained that McCallum Sweeney Consulting is primarily a site selection firm that helps companies decide where to expand and build new facilities. He said that East Tennessee, and the Southeast in general, is in a prime position to land a manufacturing site of one of the nine automakers that have reported plans to expand. That’s due to a number of dynamic changes in the auto manufacturing industry that are causing them to move away from a global supply chain, including: trends toward fuel efficiency, building vehicles in the place they will be sold, pent-up demand, currency exchange rates and natural disaster/war risks.

“There is a definite trend toward the South for automotive plants,” Sweeney said. “It’s generally known and expected that these manufacturers will only go to certified sites in the future. That to me spells opportunity.”

If the EDOC was to land such an automotive manufacturer, the company could be expected to invest up to $1 billion to start and hire 3,000-4,000 workers, Sweeney said. Those numbers could increase by 50 to 100 percent over the following 10 years. When workers needed for suppliers are added, the expected number of new jobs grows to 15,000-20,000.

Jefferson County Mayor Alan Palmieri told the leaders that the East Tennessee Regional Megasite has the potential to transform the region’s economic health. Other certified megasites were sold to VW, Toyota, Paccar, Severstal and Hemlock Semiconductor. Together, the five manufacturers have generated $5.5 billion in economic impact and created more than 32,000 jobs.

“Those are numbers to get excited about, and we can’t wait to see these impressive benefits come to our county and all our communities,” Palmieri said, before urging everyone gathered to support the effort.

“It’s time we all stand united,” Palmieri continued. “This is what we’ve got to do for our future, and it’s not our future – but a legacy that we leave to our kids and grandkids. If we don’t at least move forward to see if our community can benefit from this, we’re foolish.”

Hamblen County Mayor Bill Brittain said bringing a major manufacturer and its suppliers to the area would represent a game-changer. Brittain said he was proud to lend his support to the project, because it has the potential to act as a stimulus for an explosion of economic growth in counties across East Tennessee.

“We need to stand behind Jefferson County and the EDOC as they move through this process for the good of the citizens we represent,” Brittain said. “The days of flying solo in economic development are over – it takes a regional approach. We cannot let an opportunity to bring thousands of jobs to Jefferson, Hamblen and the surrounding counties pass us by.”

A website, www.ETNmegasite.com, and a Megasite Info-Line at 865-397-4285 have been set up to provide more information about the project.