By Lewis Loflin
Bristol, Virginia, and its surrounding areas have long pursued economic development initiatives to stimulate growth and create opportunities for residents. However, the use of significant public funds in projects like The Falls and The Pinnacle has sparked discussions about their effectiveness. These efforts, while well-intentioned, highlight the challenges of fostering sustainable economic growth in a region divided by the Virginia-Tennessee state line.
The Bristol Herald Courier reported that councilman Jim Steele, who chose not to seek re-election due to council disagreements, highlighted several economic development projects he supported during his tenure:
Steele cited economic development efforts, including securing new restaurants and a hotel at Interstate 81's Exit 7, a new Food City store on Bob Morrison Boulevard, and a proposed hotel and Quaker Steak restaurant downtown as the accomplishments he is most proud of. He also mentioned the ongoing expansion at the Shearer’s snack plant. He is guardedly optimistic about The Falls project being developed near I-81 Exit 5.
The Food City project involved a $6 million incentive package to relocate its offices within Abingdon, though the store itself primarily moved across the street in Bristol, Virginia. Similarly, the Shearer’s snack plant, which has undergone multiple ownership changes (previously Snack Alliance and Moore’s), received incentives with each transition but has not resulted in significant new job creation, as the workforce largely remained the same. Learn more about the Food City relocation.
Bristol, Tennessee, invested over $25 million in public funds to develop The Pinnacle, a retail complex near the existing Bristol Mall on the Virginia side. This led to retailers like Belk and J.C. Penney (resulting in 35 job losses) relocating to The Pinnacle. National retail trends, as reported by Fox and CNN, show declining mall traffic, which has posed challenges for such developments. Nearby, Sears and K-Mart have also faced closures, reflecting broader shifts in the retail landscape.
In Bristol, Virginia, The Falls project involved a $65 million investment, including $225,000 for a Red Lobster and $3 million for an earlier development that did not succeed. A new hotel at The Falls received $300,000 in incentives. Lowe’s, previously located just 0.5 miles down the road in Washington County, relocated to The Falls, though the specifics of its incentive package were not disclosed. Bristol, Virginia, agreed to pay Washington County $300,000 annually for seven years to address jurisdictional concerns, with negotiations ongoing as of 2014.
Years earlier, Bristol, Virginia, and Washington County engaged in a competitive bidding process for the Clear Creek development, offering significant incentives to attract the project. The competition led to $2.5 million in legal fees and the displacement of 50 families from a trailer park. Ultimately, the project relocated to Washington County on Lee Highway, where it received $7 million in public funds and resulted in the opening of a Target store.
Update, January 2014: Target announced that its part-time employees would transition to healthcare plans under the Affordable Care Act (ACA), reflecting a broader trend in the retail sector as companies adapted to new regulations.
The economic development efforts in Bristol, Virginia, and Tennessee illustrate the complexities of using public funds to stimulate growth. While projects like The Falls and The Pinnacle aimed to attract retailers and create opportunities, they often resulted in the relocation of existing businesses—such as Lowe’s moving just 0.5 miles—rather than significant new job creation. The competition between jurisdictions to attract retailers through sales tax incentives highlights the challenge of fostering regional collaboration.
Moving forward, Bristol and surrounding areas may benefit from strategies that prioritize sustainable job growth, transparency in funding decisions, and partnerships that address the region’s unique economic needs. The Falls has seen progress in recent years, with retailers like Lowe’s establishing a presence by 2023, suggesting potential for future development if lessons from past challenges are applied.
Note: This article has been edited for clarity and to adopt a more neutral and positive tone, while preserving the original intent and factual content.
