city taxpayers are now (once again) paying for restaurant build-outs? So much corporate welfare, so little time.

These last two comments from Rocketsquirrel and Gonzone point out the need for a little context, information, and explanation to supplement the narrative that has begun to emerge. The City owns the space next to the cinema. This space was built for retail use. Our intent from the beginning was to retain ownership and find a suitable tenant to complement the cinema and, hopefully the tenants in the 500 block to the south of the cinema. The latter buildings are key, of course. For a variety of reasons the best strategy for them was to issue an RFP for sale/restoration/ and ultimate use. The new building could have been sold, after consultation with folks in commercial retail it seemed that the COK could best maximize its long term interest in the space as well as the immediate interest of getting a good tenant for downtown. Moreover there are common-space issues and joint walls, etc. that made lease a better option than sale.

No restaurant or retail shop ever leases space that is, basically four walls over rough stone ground, with no heating, air conditioning, bathrooms, etc. A build-out comparable to that which any private property owner would do prior to leasing space was sine qua non of any lease arrangement. While we were interested in getting market value rental we also had a strong interest in getting a good "fit" for that critically important space. To that end we approached council about having PBA handle the property for us and to work with a commercial leasing agent - (Conversion Properties also chosen by an RFP) in representing the city's interest in finding and facilitating negotiations with whoever would rent the space. This put the city, in its role as owner of the property, in a good competitive position to draw a tenant who had other options - in fact others recruiting them to various spaces. Any of these other property owners offer space built to a vanilla box standard, often built to the needs of the tenant on such issues as the placement of the drains, bathrooms, heating vents, etc.

Well, it worked very well, albeit not quite as quickly as we might have liked. Standard suburban space with typical parking and services is a less risky proposition within the comfort zone of most operators. Grid Iron a local company with two other, successful, stores had an interest in the space and understood the downtown environment. The city, through PBA and assisted by Conversion negotiated a competitive build out to a vanilla status after which Grid Iron will provide everything else. The rental is at the high end of market for the space, and the other terms of the contract are fair and sound. If the city offered space for rent without a commitment to a build out we likely would be looking at empty space for years to come.

The ultimate tenant emerged in response to a process in which the property was marketed in the standard manner, will be improved according to standard practice, and rented a sound market rates. As far as I know none of us at the city knew the folks at Grid Iron. I played a role in setting this all up and never met or even heard of them until this started. The end result is an income stream for the city that pays back the original build out in a few years and yields both rental income and sales tax revenues for years to come. Moreover downtown gets more new investment, more options for dining, and yet more investment. We are pleased that council has unanimously supported all aspects of this process throughout.

And the burgers, fries, etc. are outstanding.

The Knox GOB network thrives.

I have no idea what personal relationships might exist between the Gridiron ownership and city officials, but surely there are useful distinctions to be made between "corporate welfare" and signing a lease agreement with a small, howegrown business and between "GOB network" and community support.

You may be correct about the viability of this location.
I must say though that crowds have been steadily increasing in this area. Also, the new residences are filling up so there may soon be a better base of support.

Have to wish the guy luck. It doesn't appear to be the type establishment that would attract downtown residents and I doubt that many folks will make a special trip downtown to patronize the venture, so that leaves the lunch crowd and the before movie crowd. The few times I've been in the area in the evening, I haven't noticed any long lines in Arby's.

It may take them a minute to gain solid traction but, there is plenty of opportunity right now for a "family" restaurant to take some of the load that DTG&B bears on busy nights. I strongly suspect that this will not noticably affect the brewpub's business except to possibly make it better. There are a ton of regulars who go to the brewpub to hangout. This is at odds with those who want to grab a bite and/or beer before a show or while browsing Mast and Bliss. I should think that the burger joint will fill that niche without feeling like a fast food joint.

I doubt that I will spend much time there but, there are several business' downtown that seem to be doing just fine with my limited support.

CAFKIA

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It is impossible to defeat an ignorant man in argument.
  - William G. McAdoo

I believe you underestimated the citizens of Knoxville to think that no one will drive to downtown. Since the theater open it's been the only theater we have attended. Many Baby Boomers remember the days when downtown was all there was. We still enjoy downtown and with every new restaurant, it gives us more reasons to dine downtown. Every trip I see plenty of people my own age parking at State St Garage.

Mr. Lyons, thanks for all the work in restoring downtown.

Just what I was thinking. They need to think about adding Gay Street staples: Mett and Beans and Dip Dogs.

Yup. Does look like a pretty limited menu. I've never checked Gridiron out. But I do know a couple of places in San Antonio with pretty much the same fare that do great business. If they've got a good burger, that can sometimes stand on its own. But that's a substantial and very subjective if.

Yup. It's those who are trying to be all things to all people that end up the most mediocre.

one more thing: city taxpayers now have more invested in the Riviera than the private bondholders: $4.3 million to $4.25 million.

interesting. Wonder how much more money City Council will stick in that one building? Don't get me wrong, I love the new theater. But I worry that deals like Gridiron will open Pandora's box on downtown, where every new business will want an appropriation from city council or a "TIF to make their numbers work."

dangerous trend, folks. The city could have easily sold the shell as a "retail condo" and reduced exposure to taxpayers.

We need to let the free market do its thing downtown and reserve city investments for things that really need investment.

I know someone who is in sales for some kind of software who was the first person to move in. Also, at least one UT swim coach is there. And, yes, some students.

pgs

Pam Strickland

"We are what we pretend to be, so we must be careful about what we pretend to be." ~Kurt Vonnegut

Wasn't talking about convenience to shops, galleries, and restaurants. Was talking about the "art" community as was previously found and accessible at the Candy Factory. Just because you didn't go there did not mean it was not supported by many other citizens. Just asking where to park to go to the "replacement" art community in the Emporium.

I am curious about the specific arts venues in the CF are you referencing regularly having visited. Other than practice space and the Gary Heatherly photo studio there was the Mountain Laurel Gallery and the Art Market Gallery. The owner of the Mountain Laurel Gallery was very professional and cooperative, and realized from the beginning that there was no real justification for her rent to be subsidized at a very low level. Gary did so as well. The present Art Market Gallery is doing very well on Gay Street. Just try to get in the door on First Fridays.

The head of the Arts and Cultural Alliance was one of the major proponents of the move to the Emporium. In her opinion this goes a long way to making the 100 Block of Gay street the hub of an arts district, with UT Gallery right next store. The "replacement" dance space is well received as is the public meeting space. The Shakespeare folks seem very happy with their new space in the Emporium as well. As for parking - one can park for free nights and weekends at the Market Square Garage, in the garage behind the Brew Pub block with the Art Market, or at the State St. garage. It is all of a five minute walk to the Emporium from either Market Square. Finally, the folks who run and use the other major space that has been moved – the fine arts center - much prefer their new location on Broadway to the old facility in the Candy Factory. And it represents city investment in the Broadway North area of town.

(Cheerleader talking points.. proceed at own risk, but there is a lot more here than preferences for where arts facilities are located!) The sale of the Candy Factory and Victorians netted the city enough cash to redo the Sunpshere and the Amphitheater as well as to build out another floor of the Emporium for arts and public meetings uses. It removed a tremendous burden of spending millions of dollars to get the building accessible and up to code. It removed a major operating expense burden. It brings immediate tax dollars to the city and assured restoration and reuse of a major building. Virtually every arts-related group that was using it report having found equal or better space.

I know not everyone agreed that it was a good idea. There are people I respect who disagree, although some have rethought it. But when I walk over the Clinch Ave. viaduct and see the condition of the park, with fences down around the amphitheater, available for public use, and the Sunsphere with its visitors every day, and compare the previously crumbling structure of the Candy Factory to what was there before I feel pretty good about it. The attempt was to minimize any damage to, and hopefully improve, both access to, viability of, and use of the arts in Knoxville.

By most accounts from those who make use of and visit the facilities things are better now than they were before. In my opinion one it is a pretty difficult challenge to defend the proposition that the previous condition was superior AND IF SO was worth millions of dollars of taxpayer money to maintain and hundreds of thousands to operate relative to the present situation. But if that is one’s conclusion so be it.

I don't know what brought the Candy Factory into this thread but I promise to say no more about it.

The largest parking area nearby the Emporium is the surface lot @ Gay & Jackson.

Thanks! That is what I was asking.

Oops. I thought you were making a statement posed as a question, instead of actually asking a question. Sorry for being rude, and presuming things about you.

And, other than street parking (also available at the Emporium), where exactly is the parking immediately adjacent to the Candy Factory? The lot next to Fort Kid and on the far side of the KMA are both a bit of a hike.

Thanks Justin, and others who have not only said something supportive of the concept of interacting in this manner, but also to those who have elevated the discussion here. The kind of Q and A, comment, feedback, etc. goes back a ways, even to K2k when I was board chair during the Market Square process. The real props go to all the folks who take the time to engage here with a minimum of ad-hominem comments or excessively rude language, especially given the temptations of anonymity or pseudonymity.

As far as I can tell this kind of interaction between the administrative / executive branch and the public puts us in uncharted waters. It represents the positive promise of this evolving technology amidst a sea of negative examples. We have talked about some kind of blog run from our end, but it would be very hard for that to become much more than a promotional device where interest, let along credibility would be hard to maintain. I can see it devolving into press release type of statements with series of comments such as appear on a couple of the local news outlets.

Anyway, whatever is going on here seems to be pretty useful. It is predicated on the belief that a lot of this stuff is pretty complicated and transparency is enhanced if the thinking behind government action is explained, even pro-actively at times. I have thought of it as a bit of opening of the policy black box. My personal opinion is that nothing particularly good happens when the policy making process, including the assumptions and values and risks, are not made clear. The problem is that there is not a very good venue for this discussion. Certainly the print, radio, and TV media are not really set up to convey information in this manner, especially given the time / column inch limitations.

It goes without saying that it will be self-serving to some degree. It is also predicated on the notion that the politically active segment of the population is hungry for something more than the standard approach to the release of information and the language used for such from those entrusted with public positions. Of course the interactivity element is what makes it work; we have to maintain a bit of a thick skin and, hopefully, a sense of humor.

Again, thanks to the hosts.

Thanks jwlknox for the nice sentiment. I won't be doing much more than going back to UT to return to teaching and writing in the Political Science Department. And I have to add that Mayor Haslam is aware that I am involved here and is supportive.