Mon
Jun 18 2007
07:36 am

In today's News Sentinel the headline story is the proposed sale of the Andrew Johnson Building ("AJ"). The AJ would no doubt make a fabulous condo development, with unmatched views of the river and mountains. It would also provide a nice tie-in the south end of Gay Street.

However, a couple of points should be noted. One, there seems to be a concern that the central school offices be physically close to the County Mayor's office. I would like to know a lot more about the necessary face to face meetings of the 200 or so employees with the Mayor or his staff. My advice here is to 'follow the money'. Someone is going to get a plum with the AJ and some real estate owner and agent will make a mint off the sale of a new building to the school system. As I said, follow the money.

Another interesting note. Board member Sam Anderson laments over the loss of the downtown lunch business of central staff employees. Has Mr. Anderson been living under a rock? These lunch-only customers would be replaced by residents who live, work, eat 3 meals a day and spend money downtown. They would also be property TAXPAYERS for these condos which would go for what, $200+ a square foot? I'm pretty sure the AJ is off the tax rolls with government offices.

Having had my office in the 500 Block of Gay Street for the past 14 years, I've seen first-hand the transformation of downtown. The influx of permanent residents has been the most notable change, with people in Market Square and on the streets making downtown alive beyond working hours.

CBT

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rocketsquirrel's picture

nice hotel, too

The AJ is almost identical to the Westin Poinsett in Greenville, SC. To sustain downtown, we've got to think beyond just "condorama." Many of the condo "owners" don't live in them, but rent them out. While we have hotel capacity, a historic hotel is its own draw. The Farragut Hotel could be converted too, but my money is on the AJ. Nashville, Chattanooga, Greeneville TN all have historic hotels. Knoxville, other than the St Oliver, a boutique hotel built in 1870, does not.

Next time you're in Atlanta, spend a night at the Georgian Terrace, across from the Fox Theatre. Incidentally, the AJ was originally called the Tennessee Terrace.

Factchecker's picture

Nice idea, RS. I do find it

Nice idea, RS. I do find it odd that some of the biggest proponents of development use the tax revenue argument, yet many of them would have you believe taxes are bad. Bad to collect. Bad for government to spend. It's the job generators' and wage earners' money, right?

CBT's picture

My question would be whether

My question would be whether there is sufficient demand for a downtown hotel. The AJ would certainly be a nice fit and beautiful hotel, but the demand downtown seems to be for permanent living.

As for taxes, there is a difference between expanding the tax base (between a willing buyer and seller) and increasing the tax burden.

rocketsquirrel's picture

beds

Bill,

If you approach it from convention perspective, sure, we have enough beds. I addressed that before, but not well in my oblique reference to capacity. What I meant is that a true historic hotel creates its own market, and isn't as reliant on business travelers as hotels like Cumberland House or the Hampton.

Be sure to check out historichotels.org, a site operated by the National Trust for Historic Preservation. Also, note that hotels that include spa facilities (Grove Park, for example), seem to do very well across the board. The new Carnegie Hotel in Johnson City, (a re-creation of a historic hotel that once was) offers spa facilities. Doesn't have to be at a resort to draw those customers in.

Bill Pittman's picture

I'm in agreement with Rocket

I'm in agreement with Rocket Squirrel; however, I have to wonder if the idea isn't a couple of years too late. Have the new Hampton and The Cumberland House delayed the need for additional hotel beds for decades?

bizgrrl's picture

I also agree with Rocket

I also agree with Rocket Squirrel. Bill may be correct, though.

We stayed in a wonderful, historic hotel in San Antonio, TX, The St. Anthony (Wyndham). It would be wonderful to have the AJ transformed. The location is good, near the waterfront and government offices, 3-4 blocks from the convention center, near the basketball hall of fame and coliseum, etc., etc.

CBT's picture

Historic hotels do create

Historic hotels do create some market for themselves. However, I don't believe that alone can keep the doors open.

I believe the Grove Park was purchased within the last few years and updated with increased marketing efforts. It depends heavily on convention business, which it can accomodate in-house. It also has a nice golf course, tennis facility, etc.

I understand the new Carnegie is struggling. It looks nice, but doesn't give the appearance of a historic hotel

The Hermitage in Nashville is a good example of a nice historic hotel in a city where there is a high demand for rooms. So is the Peabody in Memphis, which also now has the Madison.

Many of the cities you cite have demand for hotel rooms. I'm not sure that's true in Knoxville.

Maybe mixed use is the answer. Either way, it's a better use than the schools central office, despite the loss of the school lunch crowd.

rocketsquirrel's picture

well done

well summed, metulj.

KC's picture

Downtown Hotel

I think CBT is right, the best use for the AJ would be residential. It's a little bit of a stretch, isn't it, to compare the AJ building's locale with the Grove Park Inn?

To say that the Westin Poinsett in Greenville, SC is a draw in and of itself is a stretch too. Greenville, SC, with the Bi-Lo Center for one, and many other art galleries, coffee shops, nice restaurants, plus the Reedy River Park, and a nice minor league baseball stadium, all conveniently located, is the draw itself.

To compare the two cities is a mistake. Greenville has a lot more going for it, and Knoxville would do well to copy it.

rocketsquirrel's picture

more on heritage tourism

I didn't compare the AJ's locale to the Grove Park. In fact, I differentiated it. Historic hotels are draws in and of themselves. In fact, you can pick up little passport books to mark all of the historic hotels in which you stay. Just because you may not happen to be part of a consumer market does not mean that market does not exist. Wonder how many folks would like the chance to stay in the hotel where Hank Williams spent his last hours? Naah, country music and heritage tourism aren't that big a deal in Tennessee, are they? (cue current Dolly Parton and Elvis Presley commercial)

According to the 2003 The Historic/Cultural Traveler study by the Travel Industry Association and Smithsonian Magazine, 81% (118 million) U.S. adults who traveled in 2002 were considered cultural heritage travelers. These travelers included historical or cultural activities on almost 217 million person-trips last year, up 13 percent from 192 million in 1996.Visitors to historic sites and cultural attractions stay longer and spend more money than other kinds of tourists. Cultural and heritage visitors spend, on average, $623 per trip compared to $457 for all U.S. travelers excluding the cost of transportation. (Source: 2003 The Historic/Cultural Traveler, TIA). Perhaps the biggest benefits of cultural heritage tourism, though, are diversification of local economies and preservation of a community’s unique character. source

Funny, like Greenville, I think our downtown has a lot going for it, too, and could very well support a historic hotel. I've said for several years that we need to get county government out of the AJ.

From the Tennessee Theatre and the Bijou to the McClung History Center--a southeastern regional research center for history and genealogy. Plus Market Square. Sounds a lot like Main Street in Greenville to me. And the distance from the Poinsett to the Greenville County art museum is about the same as the AJ to the KMA. I know, we've stayed at the hotel and walked it. They have a nice collection of Jamie Wyeth's work.

Silly me, perhaps thinking that our local government might actually call in the Westin people and look at the Poinsett as a case study before just blindly turning it over to condos. Big picture, people.

CBT's picture

A different turn from the

A different turn from the use of the AJ (and more to the point of today's story), where should the school's central office locate? Does Central Office staff need to be able to walk to the courthouse and Mayor's office?

rocketsquirrel's picture

seriously?

low-cost pre-fab bldg on Middlebrook Pike corridor. or former strip shopping center like First Tennessee Bank and Nova operations centers have been doing very economically. How many square feet do they say they need? Let's find 'em something nice and inexpensive.

They also need to sell the old Knoxville High School. That building has great private sector potential as mixed use or condos, and is nicely between downtown, Parkridge, and Fourth and Gill.

edens's picture

>old Knoxville High School.

>old Knoxville High School. That building has great private >sector potential as mixed use or condos, and is nicely >between downtown, Parkridge, and Fourth and Gill.

Yep, could be a truly transformative project for the whole Central/Broad/Emory Place area.

Is it also, I believe, within the boundaries of the Downtown North/I-275 redevelopment district

edens's picture

>>well summed,

>>well summed, metulj.

Ditto. It's becoming a fairly common practice to mix condos and boutique hotels in the same building. Some office might do okay, too, considering the proximity of the courthouse.

However, I still think the Farragut would be a better place for a boutique hotel/condo concept - much closer to where the energy is.

rocketsquirrel's picture

farragut

Matt,

who owns the Farragut? Isn't it already in private hands? What are their plans for the building?

CBT's picture

"low-cost pre-fab bldg on

"low-cost pre-fab bldg on Middlebrook Pike corridor. or former strip shopping center like First Tennessee Bank and Nova operations centers have been doing very economically. How many square feet do they say they need? Let's find 'em something nice and inexpensive."

The quotes from school board members indicate there is a serious need for the central office to be close to the County Mayor's office. With telephone, email and the occasional car trip (and only monthly board meetings) I can't imagine that's really necessary. As I said, follow the money in this deal...closely.

I agree, strip center re-use or inexpensive pre-fab. And, keep the re-furb and decorating costs to a minimum. Actual schools get by on less.

Rachel's picture

I agree that the AJ would

I agree that the AJ would make a great historic hotel. But I do worry that the Cumberlnad House and Hampton Inn have sucked up any remaining downtown market. Wonder if anyone has done a serious - i.e., impartial - market study.

As for the school system, I believe it should be close to downtown, but I don't really see why it has to be within walking distance of the C/C Bldg. There's an old school in close-in south Knoxville just begging for rehab.

And I could live with strip center resuse. But please don't encourage more public institutions to build inexpensive - i.e., crappy - pre-fab.

rocketsquirrel's picture

pre fab doesn't always = crappy

agree, rachel. but if you look out Pellissippi Parkway, prefab isn't always crappy. but its a heck of a lot cheaper than the value of our county schools with riverfront window views.

Bill Pittman's picture

Just a couple of

Just a couple of thoughts:

*I thought that the Farragut was sold after a difficult contract (many, MANY owners if I recall correctly).

*As to the School Board's location, TVA would likely jump at the chance to lease a portion of the East Tower for an agreeable price...they can't sell the building so any payment would be better than their current situation and this would provide easy access to the C/C Bldg.

*As to someone in the city making recruitment phone calls, I couldn't agree more...but we must remember that there are only 3 ways to create competitive advantage: 1st to market; low price or a differentiated offering. I would like to see the city recruiting unique, eclectic businesses to the CBID even ones that might already reside in the area.

Bill

Bill Pittman's picture

Master Plan? Do we have one?

Master Plan? Do we have one?

I have to admit that I could be completely ignorant but given the various proposals over the last decade, I hope that I can be forgiven. Is there a true master plan for downtown? I would think that would be something that assesses all of the assets in place...be they buildings, businesses, etc. and basically as well as all of the liabilities, I-40 for example, in a meaningful way so that the correct pieces of the puzzle can be put in place to ensure a sustainable success.

I'm of the opinion that Knoxville has improved greatly and with particular emphasis on downtown. During the sad years of downtown (a.k.a. "The Victor Ashe era"), odd proposals continued to arise and of course, there was the ridiculous decision of attempting to use an unneeded convention center as the building block of a vibrant downtown...although common sense dictates that a successful convention center is the result of a vibrant downtown and not the catalyst for one.

Luckily, it was the "crazies", such as buZZ Goss, David Dewhirst, Cherie Piercy, Wayne Blasius, Leigh Burch and many others who had a vision that has become the cornerstone of success in spite of the incompetence of the Ashe administration. The current administration is doing much more to augment the efforts of the private sector rather than thwart them and for that, we are lucky.

There are certainly a variety of plans and I have attended many public input sessions (I40, Market Square, Cumberland Ave., Broadway/Fifth, Minvilla) but is there something that pulls all of this together? If one doesn't exist, shouldn't it?

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