The Cleveland/Bradley Chamber of Commerce

is a quality organization dedicated to the business

development of our members, the economic

growth of our region, and the highest quality of life for

our community, the Ocoee Region of Tennessee.

CLEVELAND/BRADLEYCHAMBER OF COMMERCE

ANNUAL REPORT2016

message from the CHAIRMAN OF THE BOARD

3 Attracting investment and jobs

4 Improving infrastructure

5 Preparing the workforce

6 Strengthening industry

7 Advocating positive change

9 Promoting the community

10 Connecting and educating members

11 Working for you

CON

TEN

TS

2016 was a busy year at the Cleveland/Bradley Chamber of Commerce with many new and exciting things happening! We transitioned to a tiered investment schedule after much study and planning, allowing members to determine at which benefit tier you would like to join. We held an intense three-day membership drive during which we gained 256 new members and brought our total membership to nearly 1,000 members. The Chamber was also accredited for the 35th continuous year, ranking us in the top 3 percent of chambers nationwide. Of the over 7,000 chambers across the country, only 209 are accredited. The entire staff deserves a lot of credit for being able to complete all of these formidable undertakings with great professionalism and determination in order to be a proud asset to our community.

The Cleveland Metropolitan Statistical Area has experienced the fastest growing labor market in the state and nation over the past year! Presently, we are the No. 1 metro area in the U.S. for job growth. Recently published data from the Tennessee Department of Labor and Workforce Development for the same period shows the metro area added 4,430 jobs, an 8.2 percent growth in employment over the past year. The rate of growth is nearly twice as fast as Tennessee’s overall job growth and more than four times as fast as the U.S. rate for the past 12 months!

With the opening of Spring Branch Industrial Park later this year, there is tremendous potential for new industry to locate in our community. This will bring new opportunities to the citizens of Cleveland and Bradley County with workforce development an extremely important aspect to success.

Our community is also blessed with steady tourism growth. The current annual tourism revenue is $137.2 million, the highest ever reported for Bradley County, Cleveland and Charleston. These revenues, and the just over $11.5 million generated in local and state taxes, are vital to our local economy and are a strong reminder that tourism works for our community.

What a tremendous year for our City With Spirit!

Owner, ChefCafe Roma

Shannon Ritzhaupt

Attracting investment and jobsThe Cleveland Metropolitan Statistical Area has experienced the fastest growing labor market in the state and nation over the past year. The rate of growth is nearly twice as fast as Tennessee’s overall job growth and more than four times as fast as the U.S. rate for the past 12 months!

3

Wacker Chemie AG officials will build a new production plant for its HDK® brand of pyrogenic silica at its Charleston site in Southeast Tennessee. This December 2016 announcement capped the year’s

efforts in Bradley County to remain focused on continuing improvement of the community’s capacity to retain and attract investment and jobs. Wacker will invest $150 million in the new production facility and create 50 new jobs in Bradley County.

Located adjacent to and integrated with WACKER POLYSILICON North America’s existing polysilicon plant, the new production plant will have an annual capacity of 13,000 metric tons. Construction will begin in the second quarter of next year, with completion planned for the first half of 2019.

“Wacker announced its plans to join the Charleston business community less than eight years ago and in that short time, it has had a significant impact on the state. The company’s $2.5 billion investment represents the largest single investment in Tennessee’s history, and we’re proud to see that Wacker’s continued confidence in the state’s highly skilled workforce and dedication to innovation has resulted in expanding its Tennessee footprint,” Randy Boyd, Economic and Community Development commissioner, said at the time of the announcement.

At the end of the year, we proudly could report also that our local economy

is near, if not at, full employment with a November 2016 Bradley County unemployment rate of 4% and a Cleveland Metropolitan Statistical Area (Bradley and Polk County) rate of 4.5%. Only the Nashville MSA has a lower

unemployment rate of 3.8%. Bradley County’s November unemployment rate was the 11th lowest rate in Tennessee when compared with all 95 Tennessee counties, and the Cleveland MSA rate has dropped .6% over the past 12 months. The result is that the Cleveland Metropolitan Statistical Area has experienced the fastest growing labor market in the state and nation over the past year!

According to the U.S. Department of Labor, the Cleveland MSA added 3,200 net new jobs between October 2015 and October 2016, giving the community an over-the-year percent change of +6.7%. Recently published data for the same period from the Tennessee Department of Labor and Workforce Development shows the metro area added 4,430 jobs, an 8.2% growth in employment over the past year. The rate of growth is nearly twice as fast as Tennessee’s overall job growth and more

than four times as fast as the U.S. rate for the past 12 months.

The newest company to locate in our community is The Dilling Group Inc., a mechanical contractor from Indiana that worked on the construction of the WACKER facility in Charleston. The company purchased a 3.39-acre parcel in

continued on next page

Distillation columns at the Charleston site, where WACKER produces hyperpure polysilicon for the solar sector. At its new pyrogenic silica plant, WACKER can further process the resultant tetrachlorosilane byproduct from polysilicon manufacturing into HDK® to create added value.

the Hiwassee River Industrial Park in July. Construction is underway on an office and fabrication facility that will employ approximately 100 skilled craftsmen to perform ongoing maintenance and fabrication for WACKER and other companies in the region.

Another company that quietly settled into operations in Cleveland during 2016 is Rising Dragon USA LLC, a subsidiary of the Chinese company Rising Dragon Electronics & Plastic Technology Co. LTD. Located on Randolph Drive, the company purchased an existing warehouse and established a six-person sales, service and distribution facility to supply spa and pool accessories to the U.S. market. According to company representatives, future plans include U.S. manufacturing, and staff is hopeful their experience in Cleveland provides an opportunity to attract their manufacturing operation. Parent-company product lines include spa and pool accessories, agricultural/commercial/residential LED lighting, injection molding and custom tooling, and billiard and cues production.

Existing industry activity remains the core focus of staff efforts and, as in past years, represents the bulk of new job creation in the community. Companies such as WACKER POLYSILICON North America LLC, Whirlpool Corporation and Polartec Tennessee Manufacturing continue multiyear expansion and modernization programs. WACKER POLYSILICON North America LLC completed construction of their $2.5 billion, 650-employee facility in early 2016 and ramped up operations to full-production levels over the course of the year. Activity also included the April 18 Grand Opening Celebration where company leadership, federal, state and local officials, as well as existing and new customers, officially put everyone on notice that “Silicon Valley now begins in Southeast Tennessee!”

Whirlpool Corporation, Bradley County’s largest employer with over 2,100

employees between manufacturing and the customer experience center, invested $10 million in equipment upgrades, including a new laser, mill and additional robotics. The investment also included new tooling and equipment associated with new product launches for Whirlpool, Amana and Maytag cooking

products and an IKEA microwave oven redesign. Manufacturing employment increased by 40 positions as a result of 2016 investments, and staff continues to support the local plant as it pursues an additional $28 million of potential project investment over the next two years.

Polartec Tennessee Manufacturing LLC purchased long-time Bradley County manufacturer United Knitting in October 2015 and announced an $11,655,000 expansion that will add 139 new full-time positions to the existing workforce of 58 within five years. As 2016 ends, the company is continuing the installation of new process equipment and reports a total employee count of 182, including 132 full-time and 50 temp-to-hire employees. Chamber staff secured a $347,000 FastTrack Economic Development Grant from the state of Tennessee to assist the company with the cost of relocating new equipment and retrofitting the building to accommodate the expanded production.

continued from previous page

4

Attracting investment and jobs

Improving infrastructureCompletion of the Exit 20 interchange and improvements and the beginning of construction on the new APD 40 interchange providing access to the Spring Branch Industrial Park, as well as more than 300 acres of future commercial properties on the east side of Interstate 75, in 2015 led to improved intrastructure.

5

The new interchange and connector road on APD 40 are open now, and both the city of Cleveland and Bradley County officials have identified the industrial park project as a high priority for funding in 2017. Both

governments have identified sources of revenue to cover their portion of debt service obligations and further authorized the Bradley/Cleveland Industrial Development Board (IDB) to finalize improvement plans and secure state authorization to incur debt for the infrastructure phase of the project that will complete the project.

The IDB goal is to begin construction of the internal roadway, as well as off-site and on-site utility installation, in the spring of 2017 so the park will be completed by the end of 2017. Staff is moving forward with construction permitting and lot clearing, and the site was actively being marketed as 2016 ended.

The IDB projects the development of the industrial park will cost $18,929,029 (including interest and maintenance expenses) and will provide $56,300,040 in total land sales and property tax collections through 2037. Additional community benefits from the industrial park at build-out include 2,316 direct jobs and an additional 3,173 indirect jobs creating $190,017,457 in new annual payroll, an additional $1,638,498 in annual county and city sales taxes, and an increase in annual residential property tax collections in the county and city of $2,420,028. The adjoining commercial development area is modestly projected to generate an additional $1,437,072 in annual city and county property taxes upon completion.

Preparing the workforce

Under the auspices of the Education & Workforce Development Committee, the Chamber of Commerce administers a variety of education programs to help achieve the goal to ensure a more qualified workforce for Charleston, Cleveland, Bradley County and the state of Tennessee.

Career Awareness1,200 8th-grade students

50 exhibitors

Senior Interviews1,000high school seniors

36business professional interviewers

20th Job Shadowing24711th-graders

55business, industry and school hosts

Teachers Academy6teachers placed

4local industries hosting

In 2016, under the direction of Bob McIntire, chairman of the Economic Development Council, the Preparing for Workforce Needs Task Force continued to work toward determining the Chamber’s role to meet the needs

of having a qualified and prepared workforce for Cleveland and Bradley County. After several meetings and school tours, the task force determined there is a need to educate students, parents and educators about advanced manufacturing and

other technical careers and the opportunities available to students. Waterhouse Public Relations was selected to launch a marketing and public relations campaign that will target students, parents, educators, and unemployed and underemployed adults. The campaign—”Your Skills. Your Future.”—will be launched in January 2017.

6

Strengthening industry

Over 100 individuals representing 4,400 employees in Cleveland/Bradley County attended the Chamber’s annual Industry Appreciation Luncheon. Dr. Linda Cash, Bradley County director of schools, and Dr.

Russell Dyer, Cleveland City director of schools, provided an overview of the Career and Technical Education (CTE) programs offered in both school systems. An Industrial Showcase held prior to the luncheon featured students from the three public high schools displaying samples of their work and information regarding the CTE programs at their respective schools.

The Cleveland/Bradley County Safety Council, completing its fifth year of existence, continued to provide increased safety awareness in the workplace and the community by providing education and promoting safety awareness through

The Chamber promotes and facilitates the retention and expansion of existing local business and industry in Cleveland/Bradley County by providing staff support and technical assistance in addressing issues within the community that influence the performance and profitability of individual companies.

such programming topics as Worksite Inspections, Ergonomics, and Active Shooter Myths and Realities.

The Chamber of Commerce also co-sponsored the fifth annual Job Fair with the Cleveland Family YMCA and Southeast Tennessee Development District in October. The Job Fair was held at the YMCA with 50 businesses participating and 220 job seekers attending.

The annual Wage & Benefits survey, which targets industries/manufacturers for a range of positions, is used to respond to inquiries about the community’s labor force and can be used to assist existing employers in developing and maintaining competitive employee compensation packages.

Industry Appreciation October 2016Job Fair 2016

7

economic development and tourism projects. The Chamber’s Economic Development and Tourism Divisions’ funding remained “revenue neutral” while a new economic development fund controlled by the County Commission was created. The new tax took effect in April.

The committee heard from Impact Cleveland’s director, Dustin Tommey, on the implementation of the $3.75 million TVA grant to improve energy

efficiency for homeowners in the Blythe-Oldfield community of Cleveland.

The Chamber Board approved a letter of support for the passage of the “E-Fairness Internet Sales Tax” bill dealing with collection of sales tax from online-only retailers.

Advocating positive change

The Public Affairs Committee met with our state legislative delegation on a regular basis to keep abreast of activities in the state legislature. The committee also heard from our two local directors of schools on activities and issues facing our public school systems.

Throughout 2016 the Public Affairs Committee continued its support of the improvements planned for the proposed new interchange on APD 40. The new interchange, planned between Exit 20 and Lee Highway (U.S. 11), will

open access to a large area for commercial and industrial development. The APD 40 interchange was completed in late 2016.

The Public Affairs Committee continued to monitor and support the negotiations between Ocoee River whitewater outfitters and TVA regarding their contract

regarding water releases for recreational use of the river. The current contract expires in 2018.

An information session on broadband issues was held with representatives of Cleveland Utilities, the Electric Power Board of Chattanooga, AT&T, Charter, Voiceopia and VOLstate Inc. sharing their views on issues surrounding this important topic. The Public Affairs Committee continues to monitor

the issue and has met with legislators to express our concerns regarding the impact lack of higher speed internet access at affordable pricing is having on our business community and residents in rural parts of Bradley County.

President Gary Farlow provided testimony at House sub- and full committees moving the Lodging Tax bill through the legislature. The County Commission resolution to increase the tax and reallocate the proceeds from the tax passed the legislature. The primary purpose of the increase was to provide more funds for

8

Tim Taylor’s home, the first house in the Blythe-Oldfield community that received TVA upgrades

At right, Dustin Johnson (ClearResult) and Jamie Creekmore (Cleveland Utilities) explaining energy efficiency to some of the $3.75 million TVA grant recepients/residents.

The Public Affairs Committee supports negotiations between outfitters and TVA regarding water releases for recreational use of the Ocoee River.

Promoting the community Current annual tourism revenue is $132.7 million, the highest ever reported for Bradley County, Cleveland and Charleston. These revenues, and the just over $11.5 million generated in local and state taxes, are important to our local economy and are a strong reminder that we must continue to promote our community to visitors.

The Tourism Development division embarked on a digital journey at the end of 2014 by working with a professional social media manager using social channels strategically. We now have more than 8,650 Facebook

fans and an active, engaging Instagram presence. In September, a giveaway contest for two Cowpea Cook-off spoons reached more than 59,000 people. Daily posts promote events, share stories, facts and photos, and highlight community activities and accolades.

Latest figures reported for Bradley County in the state of Tennessee’s annual study, Economic Impact of Tourism on Tennessee Counties, showed a 3.4 percent increase in 2015 over 2014’s numbers. This steady, healthy growth rate is on the heels of having the highest growth percentage in the state with the 2012 numbers (9.43%) and the second highest in 2011 (13.1%).

Promotion is crucial for tourism, and we are always looking for opportunities to create or enhance visitor experiences—reasons to come here, stay longer and return often. Many times we collaborate with other organizations, the state of Tennessee or neighboring counties for a more effective effort. Following are updates on several of these ongoing projects.

We finally broke ground on the two major Cherokee heritage projects in Charleston. We have reached the fundraising goal for the expansion of the Hiwassee River Heritage Center. The expansion will include an exhibit space and a classroom/meeting space. Additionally,

the $200,000 federal Recreation Trails Program (RTP) grant awarded to the Charleston-Calhoun-Hiwassee Historical Society in 2013 has finally become available. This will be the first section of the National Historic Trail Experience, conceptualized by the National Park Service.

The city of Cleveland participated in Thriving Communities, an arts-focused program of Thrive 2055. The local team was to develop a plan to spark interest in furthering arts and culture in the community. The immediate plan is to develop illuminated art galleries in the unused alleyways of the downtown area. The project, Back Alley Galleries, was awarded a $20,000 Lyndhurst Foundation grant. The installation goal is spring 2017.

The fifth International Cowpea Festival and Cook-off in Charleston saw crowds of at least 4,000 throughout the day. The harvest festival is an event of the Charleston-Calhoun-Hiwassee Historical Society, but we invest a lot of time and effort in this unique event because it has potential to attract visitors to our community. The event raised $12,000 for the Hiwassee River Heritage Center operations in 2016.

We continue to work with the Southeast Tourism Association and representatives from Polk, McMinn and Meigs counties on development of the Hiwassee River Blueway. With technical assistance from the National Park Service, the group is working to improve access and signage and promote usage and stewardship of the Hiwassee River. Progress in 2016 included completion of

a signage plan and a grant to fund signage for one site per county. The site for Bradley County is the Charleston Boat Ramp. Additionally, our website, www.hiwasseeblueway.com, went live.

9

Groundbreaking for the Hiwassee River Heritage Center expansion

Connecting and educating members

“Chamber Connect,” the Chamber’s new tiered dues investment structure approved by the Board of Directors, was rolled out in September with the “Go for the Goal” membership event. Over 185 volunteers helped enroll 256 new members, with the overall new-members count standing at 300 for the year. Staff members spent the fall in the conversion process with all members either selecting or being assigned to a tier for 2017.

Educational programs

♦ Special program on implementing the Department of Labor’s new overtime regulations by Karen Smith, Miller & Martin PLLC.“ The new ruling was overturned in December.

♦ Leadercast® simulcast, under the theme “Architects of Tomorrow,” in partnership with People for Care & Learning—320 local leaders from across business, education and nonprofit organizations in the community.

Networking ♦ Mel Bedwell Small Business Person of the Year award luncheon—

● Jeff Cocks, Corporate Networking Solutions and MacPC Market, honored with the Bedwell Award

● Lamp Post Properties President Tiffanie Robinson was keynote speaker ● Members exhibited tabletop displays for business networking

♦ “Food for Thought” —Topics of interest to members ● Erika Burke on WACKER POLYSILICON North America’s shift from

construction to production ● Lee University President Dr. Paul Conn on developments at the school ● Econonic Development Vice President Doug Berry on economic

development highlights

♦ Women’s Council—Successful program focused on “Your Personal Brand” ● “Presentation Style and Skills” by Dr. Evaline Echols ● “Presenting Yourself” by Kelly Bedwell Williams ● “Online Branding” by Susan Webb-Curtis ● “Business Ethics” by Dr. David Smartt

♦ Membership Coffees ● Average attendance 120 ● Sponsors committed for

2017 and some of 2018

♦ PrimeTime Business EXPO ● Returned to Bradley Square

Mall in October ● 46 businesses shared

products and services to members and the public

♦ Ambassadors welcomed businesses at 29 ribbon cuttings/groundbreakings in 2016. Several were recognized at the December Coffee for exceptional efforts:

● Platinum—Melinda McIntire

● Gold—Lauren Blackwell ● Silver—Gail Gray

Member-to-memberactivities

CommunicationsCommunications efforts continued to blend traditional media, electronic media and social media with print publications and press releases; postings on the Chamber website; and an online community calendar. 225 Keith transitioned from a print newletter to an electronic publication, allowing for greater flexibility in content and production of a four-color publication.

10

Working for youThe Organizational Development division of the Chamber of Commerce, chaired by incoming Chairman of the Board Roger Pickett, focuses on the internal operations of the organization. Programs in this area ensure good governance, maintaining a professional staff and optimum participation by members of the board of directors.

The 90th Annual Meeting convened on Jan. 21 convened in the Omega Center International. The Chamber presented the prestigious M.C. Headrick Free Enterprise Award to Stephen D. Wright, Wright Brothers

Construction Company Inc. The Robert W. Varnell Jr. Leadership Award was presented to Cheryl Dunson, Santek Waste Services Inc.

The Chamber achieved 4-Star accredited status with the U.S. Chamber of Commerce, putting it among the top 3 percent of chambers nationwide. This accreditation was the result of an exhaustive yearlong self-study that occurs every five years and marks the Chamber’s 35th year as an accredited

Chamber. Recommendations from the self-study will be taken under advisement for future program development.

Past Presidents and past Chairmen of the Board met for breakfast at Chamber in May for an update on important activities and initiatives within the Chamber. This annual event provides an opportunity for the current leadership to reconnect with past leaders and past leaders to stay informed about Chamber activities.

Past Presidents/Chairmen of the

Board—At left, Hal Roe, Lou Patten and

Jerry Bohannon; right, Nancy Casson and Beth Woodard

Tennessee Gov. Bill Haslam addressed the Chamber’s

20th Annual Meeting.

Stephen D. Wright, Wright

Brothers Construction

Company Inc., recipient of

the 2016 M.C. Headrick Free

Enterprise Award

2016 Robert W. Varnell Leadership Award winner Cheryl Dunson, Santek Waste Services Inc.

11

An orientation session for incoming board members, held in January, introduced them to program goals for the year prior to the beginning of their term and included an organizational overview.

Chamber Executive Vice President Bernadette Douglas celebrated her 35th anniversary with the organization in November.

Chamber staff members Gary Farlow, Bernadette Douglas, Nancy Neal and Aaron Weatherford attended the annual Association of Chamber of Commerce Executives conference in Savannah, Ga., in August.

Bernadette Douglas

2016 Officers and DirectorsExecutive Committee

Shannon Ritzhaupt, Café Roma, Chairman of the Board

Matt Hurst, United Community Bank, Treasurer

Roger Pickett, MurMaid Mattress Inc., Chairman-Elect

Robert Bradney, Bender Realty, Immediate Past Chairman

Marcia Botts, Award Realty, Vice Chairman, Membership Development

Tracey Wright, Cleveland State Community College, Vice Chairman, Community Development

Matt Ryerson, United Way of Bradley County, Vice Chairman, Public Affairs

Blake McPherson, Platinum Financial Funding LLC, Vice Chairman, Tourism Development

Bob McIntire, McIntire & Associates Insurance Inc., Economic Development

Gary Farlow, Cleveland/Bradley Chamber of Commerce, President & CEO

Directors

Andy Brown, William J. Brown & AssociatesKimberly Casteel, USA Mortgage Inc.Douglas Caywood, Downtown Design Studio of the Lewis Group ArchitectsCason Conn, Tri-Con Inc.Jill Culpepper, Whirlpool Customer Experience CenterD. Gary Davis, Bradley CountyJoyce Everett-Jones, Surgical Associates of ClevelandAndy Figlestahler, Ed Jacobs Wealth Management AdvisorColeman Foss, Tennova Healthcare—ClevelandStacey Greene, Cormetech Environmental Technologies Inc.Mike Griffin, First TennesseePhil Jacobs, Logan-Thompson PCSharon Marr, MainStreet ClevelandWes Robbins, Landmark Insurance & Brokerage Corp.Tom Rowland, City of ClevelandCole Strong, Lee UniversityJulian Sullivan, Bank of Cleveland

USPS 695190

Copyright © 2017 by Cleveland/Bradley Chamber of Commerce. All rights reserved. No part of this publication may be reproduced without publisher’s written permission. 225 Keith is published monthly by the Cleveland/Bradley Chamber of Commerce, with offices at 225 Keith Street SW, Cleveland, Tennessee. 423-472-6587. FAX: 423-472-2019.

Nancy A. Neal, EditorGary Farlow, Publisher

Subscriptions: Free with membership. $25 for nonmembers. Periodical postage paid at Cleveland, Tennessee.POSTMASTER: Send address changes to 225 Keith SW, PO Box 2275, Cleveland TN 37320-2275.