The Sullivan County Board of Commissioners voted Nov. 20 to adopt a tax-increment financing (TIF) package to support redevelopment of the historic Dobyns-Taylor warehouse in downtown Kingsport into a boutique hotel and restaurant. The commission approved the item after a presentation from Stephen Bauer and discussion about term length, tax assessment mechanics and precedent.

Stephen Bauer told commissioners the request was for $1,300,000 in TIF financing spread over 25 years with a 5% holdback. The Kingsport Economic Development Board and related city authorities have approved support documents and a municipal contribution of about $2.5 million toward demolition and parking improvements, Bauer said. Developer Tim Butters of Williamsport, Pennsylvania, is the project lead; the plan preserves much of the original facade while converting interior space to hotel rooms, restaurant and event space.

Bauer emphasized the project’s projected economic impacts: more than $10 million in private investment, roughly 40 temporary construction jobs and about 50 permanent positions tied to the hotel and restaurant. Estimated recurring revenue included approximately $65,000 a year in sales tax and about $180,000 a year in hotel/motel tax, according to the presentation. Bauer said existing city and county property taxes would not be abated and that the TIF would capture incremental new value as the project is completed.

Commissioners questioned the 25‑year term and the 5% holdback. Bauer said TIF length and holdback were tailored to the project’s rehabilitation costs and that assessments and tax-rate changes can affect payoff timing; he noted other local projects have used 25‑year terms. After discussion, the commission voted to adopt the TIF measure.

The commission’s approval clears the county’s portion of the financing mechanism; city-level implementation and developer agreements will follow. The project timeline presented targets a mid-December start and a completion target of March 2027, contingent on final agreements and permitting.