Delays push John Sevier opening back a year

A delay in the transfer of property ownership for the John Sevier Center from the Johnson City Development Authority to the center's developers was revealed at the board's regularly scheduled meeting. Representatives from 1st and Main, primary partners to Lansing Melbourne Group (LMG), shared an updated timeline for the hotel's development progress with the board on Friday morning. It was during the presentation Rory Dowling, owner of 1st and Main Development, said there has been a pause in getting a full scan of the building to understand its structure, causing a delay that would push back the property transfer from the fourth quarter of 2026 to June of 2027. "We need to do a little bit more exploration, so demolition in addition to potentially some abatement before we can do a full scan of the building," he said. "That scan is needed in order to take next steps in the design process." The scan, Dowling said, looks at the original structural pieces of the building and can only be completed once the proper demolition and abatement is complete. He added the estimated grand opening for the hotel is now planned for the first quarter of 2029, when it was originally set around mid-2028. "We're just a little bit delayed in that grand opening, but hopefully no more delays and we're still moving forward as planned," Dowling said. Dowling also mentioned plans to flood-proof the outside of the Downtown Center portion of the future hotel. Due to the John Sevier Center being in a flooding zone, Dowling said the Downtown Center would either have to be elevated three feet from its current flooring or options would have to be considered for flood-proofing the outside of the structure. Jack Simpson, board chair of the JCDA, said while the delay of the property transfer isn't ideal, he understands it isn't an uncommon circumstance and remains excited about the continued progress of the building. "Obviously, it looks like the timeline is going to take a bit longer than we originally hoped, but I think anyone who's ever done any kind of a construction project knows that those projects tend to have delays or tend to take more time than you hoped they will take," Simpson said. "So far, it's not surprising that it's going to take a little longer." Simpson added while optimistic, the delay forces the board to have to keep paying for the building and will likely cause different financial planning to accommodate the cost. "Obviously, the JCDA is carrying the cost of the hotel, owning the building while it's vacant without any tenant income," he said. "We're going to have to do a little bit of work in our finance committee to figure out how we're going to manage that. We have a plan, but our plan can only take us so far, so the longer that delay is, the more we have to amend and adjust that plan." Freddie Malone, JCDA treasurer and Washington County commissioner, reflected similar optimism about the project's end goal, but admitted the delay is discouraging. "This is a significant and very important component of the redevelopment of downtown Johnson City," Malone said. "It is exciting. I am a little sad and disappointed to hear there has been delays, but it's understandable, especially when you're dealing with a building that's as old as this one." Malone added the extra costs from the delay is something "manageable" by the JCDA. "The delay does create an added financial challenge for the Johsnon City Development Authority, but it's one that I believe can be manageable," he said. "We will have to partner with the city and partner with the county, but it is something that I believe the Johsnon City Development Authority can manage through." Alongside the small timeline changes, Dowling also shared three different hotels and their boutique brandings being considered for the John Sevier Center project. These were Marriott's "Triute," Hyatt's "Unscripted" and IHG's "Indigo." Dowling said the brand chosen will be decided by the end of May.