By Lewis Loflin
Bristol, Virginia, and Tennessee have focused on retail development, tourism, and retirement industries to drive economic growth. However, WCYB Channel 5 reported on March 12, 2014, that retail sales in Bristol dropped 12.9% to $260 million, reflecting challenges in this strategy. These industries often provide jobs that are lower-paying and less stable, prompting discussions about how to better support the local workforce and address out-migration among younger residents.
Both Bristol, Virginia, and Tennessee, along with Washington County, Virginia, have invested heavily in retail projects, often competing to attract businesses across state and county lines. These efforts have raised questions about balancing economic development with the needs of the local workforce, as the focus on sales tax revenue has sometimes led to retailer relocation rather than new job creation.
Bristol, Tennessee, committed $25 million in public funds to develop The Pinnacle near I-81 Exit 1, anchored by a Bass Pro Shop. This project drew retailers like Belk and J.C. Penney from the Bristol Mall on the Virginia side, leading to the mall’s decline. Meanwhile, Bristol, Virginia, invested up to $100 million in The Falls development near I-81 Exit 5, anchored by Cabela’s, a direct competitor to Bass Pro Shop. Lowe’s, previously located 0.5 miles away at Exit 7 in Washington County, relocated to The Falls. At the time, The Falls had commitments from two restaurants and a convenience store, with city leaders viewing these as steps toward economic revitalization.
The competition between the two projects led to tensions, with The Pinnacle developers lobbying in Richmond to oppose The Falls. Bristol, Virginia, already nearly $100 million in debt, faced delays in The Falls project. Governor Terry McAuliffe intervened, providing additional state funding to support Cabela’s presence, as noted by spokesperson Rachel Thomas: “The governor called Cabela’s CEO Thomas Millner to assure him of Virginia’s commitment to their company and their presence.”
Democratic Senator Phil Puckett emphasized the regional importance of The Falls: “This is important to all of Southwest Virginia. We are trying to achieve a level playing field for the city of Bristol, Va., because of two major developments being built within miles of each other. Without this, we don’t think they have it and will lose considerable development to Tennessee.” Despite these efforts, both projects were projected to create thousands of jobs, though the focus on retail relocation has raised questions about the sustainability of such growth.
Ref: Gov. McAuliffe Helps Support The Falls Project in Bristol, Bristol Herald Courier, February 28, 2014.
In August 2012, Bristol hosted a Mumford & Sons concert, organized by both cities, the Birthplace of Country Music nonprofit, and Believe in Bristol, in collaboration with A-C Entertainment. The event, held at the municipal parking lot near the Bristol train station, attracted 17,000 attendees and generated $1.8 million in ticket sales, with a $500,000 profit for A-C Entertainment. However, the city incurred $25,000 in uncompensated costs for security and cleanup, as reported by the Bristol Herald Courier on February 24, 2014.
Bristol Virginia Utilities (BVU) allocated $150,000 in Appalachian Regional Commission (ARC) economic development funds for the concert, aiming to boost tourism. EDC Chairman and BVU board member Jim Clifton supported the initiative, stating: “Here is a chance to tie in with the opening of the BCM [museum]. Here’s a chance to get another 20,000 or 30,000 people back to Bristol to visit downtown, to go to the museum, to stay in local hotels. This isn’t something BVU ought to do as a regular basis, but Economic Development looked at it as a possible one-time scenario.” However, BVU board members Archie Hubbard and Doug Fleenor expressed reservations, with Hubbard noting, “It’s not because I’m not for it. I just don’t think we should be in the promotion business. It’s not a utility function.”
At the time, BVU was under a criminal investigation for employee misuse of company credit cards, and former CEO Wes Rosenbaum received a $275,000 severance, which drew public criticism. Meanwhile, Bristol, Virginia, faced a $500,000 shortfall in its school system in 2014, highlighting the challenge of balancing cultural investments with other community needs.
The Birthplace of Country Music Museum, which relocated from the Bristol Mall to a refurbished downtown location with $12 million in public funds (ARC, Tobacco, Agriculture funds), aimed to enhance tourism. The project, expected to create eight jobs, was part of a broader effort to revitalize downtown Bristol, alongside the Bristol Train Station, which received $6 million in public investment. While Bristol’s 1927 recordings contributed to country music history, Nashville is widely recognized as the industry’s hub, and the museum’s branding reflects a strategic effort to attract visitors and funding.
These cultural projects aim to draw tourists, but their reliance on public grants has sparked discussions about sustainable business models and their long-term economic impact on the region.
The retail and tourism initiatives in Bristol, Virginia, and Tennessee demonstrate the complexities of economic development in a region divided by state and county lines. While projects like The Falls and The Pinnacle aimed to stimulate growth, the focus on attracting retailers often led to relocations—such as Lowe’s moving 0.5 miles—rather than significant new job creation. Cultural events like the Mumford & Sons concert and investments in the Birthplace of Country Music Museum sought to boost tourism, but their funding has raised questions about transparency and prioritization, especially amidst other community needs like education.
Moving forward, Bristol may benefit from greater regional collaboration, focusing on strategies that create sustainable jobs, balance public funding with measurable outcomes, and address the needs of the local workforce. By learning from these challenges, the region can work toward a more unified and effective approach to economic development.
