Kingsport Economic Development Board to purchase State Theater

KINGSPORT — The State Theater in downtown Kingsport could see new life, thanks to the Kingsport Economic Development Board. KEDB unanimously approved an added agenda item Tuesday, brought forth by Dennis Phillips, for the board to buy the theater on Broad Street for $175,000. Phillips said the item has been many years in the making. "When Doug Beatty came along, we thought our prayers had been answered," Phillips said. "We've had other people that have worked on it. The latest one did a lot of work. There's been a tremendous amount of work done to this theater." He said in the past few years the interior has been cleaned out, a new roof installed and reinforced, as well as other improvements. According to Phillips, Bank of Tennessee made the property available at that price. He called KEDB purchasing the theater an "absolute no-brainer." Bank of Tennessee had two other offers on the table, but Phillips said it was important for the board to buy the theater to ensure its future as a strong business venture downtown in the years to come. "Northeast State, I can't say enough about Northeast State's partnership with the city and what they do for us, but they're willing to help us develop a plan of what to do with this," Phillips said. "Something good for our downtown can come out of the State Theater." Board discussion KEDB board member Bob Feathers asked about the theater's necessary maintenance and who would take on that part of the project. Kingsport City Manager Chris McCartt said the city has had the opportunity to walk through the property and it is in better shape than it was several years ago. "It's a good shell, in a good position to give us some time to ask a lot of questions, evaluate a lot of different avenues," McCartt said. "But I think where Dennis is coming from, and I think we're many of your all's thoughts are, at least at this point: we have it under our control. We can evaluate it, and through that evaluation, determine what's the next step." Stephen LaHair, KEDB secretary/treasurer, called the theater both a strategic and historic piece of property. He echoed the sentiment of the property being used with the right intentions. "If we don't control [the theater], we could lose it to somebody that doesn't do it right or do it justice," he said. "We've seen a lot of investment, especially in downtown Kingsport. You take, for instance, right across the street what's happening. If we're not going to invest ourselves, how can we get outside businesses to do so?" KEDB Vice Chairman CeeGee McCord acknowledged Robin Cleary, senior director of the Downtown Kingsport Association. She said she is looking forward to working with DKA as one of the community partners to be involved in the project. In a post-meeting statement, Cleary said KEDB's purchase is a "significant and exciting step forward" for downtown Kingsport, especially with the theater being a longtime landmark on Broad Street and an important part of the district's history. "This investment demonstrates a strong commitment to preservation, revitalization, and long-term economic growth in our downtown core," Cleary said. "Projects like this reinforce the growth and redevelopment we've seen over the past year and show continued confidence in Downtown Kingsport as a vibrant place to shop, dine, play and live." Next steps If all goes accordingly, McCartt said the city will be evaluating grant opportunities to help restore the property, as well as talking to others about the best way to restore an old theater. He pointed to the Jackson Theater in Jonesborough as a local example. The city also has at least two or three studies on the theater from the past 25 years that can help guide the decision for the property's future use. "I anticipate over the next several months that we and others will be looking at this and probably coming back to this entity and making a recommendation as to what is the next step, what is the best use of this property," McCartt said. "And then really, from there, see where this board wants to go forward with the project." Other than closing the deal, Phillips hopes to see a committee formed to discuss the future uses of the theater, building on some of the groundwork laid by past studies and stakeholders. "It's critical that we put together the right committee of people working on this, because we don't want to be sitting on this for two, three or four years," he said. "We need to make something happen so that it becomes a worthwhile project as soon as possible." Background The theater first opened in the 1930s and ran first- and second-run films for years, the Kingsport Times News previously reported. It closed in the 1990s and opened for a time as a cheerleading academy. Several owners have tried their hand at renovating the property, but none have seen it to completion. Local business owner Mark Hunt bought the property in January 2020 and was the most recent owner. The Cinema Preservation Group, a group based out of Asheville, North Carolina, who conducted an economic impact study on the theater, told KEDB in 2010 that a restored State Theater could generate as much as $660,000 in annual revenue. The study suggested the theater could draw more than 110,000 people annually to the downtown area.