Downtown Knoxville stadium leaders promised to use minority contractors. Are they meeting the goal?

Ryan Wilusz, Knoxville News Sentinel
3 min read
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Developers committed to awarding contract dollars to women- and minority-owned businesses to construct the downtown baseball stadium. While the percentage goal hasn't been reached – yet – stakeholders see the potential to bring more disadvantaged businesses on board as subcontractors are hired.

Tennessee Smokies CEO Doug Kirchhofer told Knox News that 15% of the stadium's $101 million contract value has been awarded to disadvantaged business enterprises.

The goal is for contracts with disadvantaged businesses to represent 17% of the stadium's full $113.95 million cost.

Team owner Randy Boyd pledged in 2021 to involve minority-owned businesses in the construction of the stadium, located between downtown Knoxville and the city's historically Black neighborhoods.

Contractors have not yet been informed of their selection. The final stadium cost was shared by local government March 6.

What is a disadvantaged business enterprise?

Disadvantaged business enterprises (or DBEs) are businesses "51% owned by a socially and economically disadvantaged individual(s)," according to the U.S. government.

This includes businesses owned by women and certain minority groups, including Black Americans, Native Americans and Hispanic Americans.

How minority-owned contractors fit in

Specifically, minority-owned businesses are currently receiving 5.5% of that $101 million, with a caveat: That number includes Elite Diversified Construction Incorporated, which is part of the construction management team − not a contractor.

That management team also includes Denark Construction and Barton Malow.

Having a minority-owed business in the construction management role certainly is a win for a development team committed to diversifying. But if it's determined EDCI should not be included in the percentage, minority-owned businesses would represent less than 1% of awarded contract dollars.

How is stadium team measuring this?

Kirchhofer said it's always been the intention to measure the percentage of contract dollars awarded, even though previous communication from the development team indicated it would measure the percentage of DBE contractors and subcontractors involved in the construction.

Could stadium hire more minority contractors?

The 15% figure is just a "snapshot" in time, Kirchhofer said.

Once contracts are awarded, all businesses − disadvantaged or otherwise − will be responsible for completing their assigned work and hiring any necessary subcontractors.

Tennessee Smokies CEO Doug Kirchhofer, left, poses with team owner Randy Boyd at the site of the forthcoming minor league baseball stadium being built just east of the Old City near downtown Knoxville. With the stadium now priced at $114 million, the development team and its partners are continuing their work to have disadvantaged business enterprises represent 17% of the total contract value.

Any subsequent dollars paid to disadvantaged subcontractors would count toward the percentage goal.

The construction manager tracks payments monthly to update the percentage.

Reactions to current minority involvement

Mohamed Abbas, senior project manager for Denark Construction, told the Sports Authority Board at its March 7 meeting that 15% of the stadium's $101 million contract value has been allocated toward disadvantaged business enterprises. The goal is 17% of the total stadium cost, now set at $114 million, with $65 million coming from local government in the form of bonds.

Mohamed Abbas, senior project manager for Denark, shared an update on disadvantaged business participation at the Sports Authority Board meeting March 7.

The project team has worked to pre-qualify disadvantaged contractors, place ads with Black-owned radio and host dozens of recruiting events and information sessions over the past two years.

While Abbas said those events were well-attended, Sports Authority Board Chair Alvin Nance said, "We don't want to assume activity is progress."

The board has asked for a more comprehensive account of the efforts to hire disadvantaged businesses.

Knoxville Councilperson Gwen McKenzie, who's not a member of the board, suggested during public forum that more could be done to ensure East Knoxville residents "change their generational trajectory" with this project.

Want to get involved with the stadium project?

A form is available at thekaul.org/baseball to help disadvantaged individuals and businesses get involved with the project. The website also includes applications for an apprenticeship program.

This rendering from left field of the forthcoming multiuse baseball stadium faces west toward the Old City. While the stadium is commonly considered part of the Old City, it actually is being constructed east of the neighborhood in the Magnolia Warehouse District.
This rendering from left field of the forthcoming multiuse baseball stadium faces west toward the Old City. While the stadium is commonly considered part of the Old City, it actually is being constructed east of the neighborhood in the Magnolia Warehouse District.

The following trades are needed to build the stadium, and training is available.

  • Asbestos and abatement workers

  • Boilermakers

  • Bricklayers and restoration workers

  • Carpenters

  • Cement masons

  • Construction craft laborers

  • Drywall finishers/tapers

  • Electrical workers

  • Elevator constructors

  • Glaziers and glassworkers

  • Heat and frost insulators

  • Iron workers

  • Millwrights

  • Operating engineers

  • Painters

  • Pipefitters, refrigeration and air conditioning services

  • Plasters

  • Plumbers

  • Roofers and waterproofers

  • Sheet metal workers

  • Sprinkler fitters

  • Tile, marble and terrazzo masons

Ryan Wilusz, downtown reporter for Knox News, can be reached at 865-317-5138 or at ryan.wilusz@knoxnews.com. Follow him on Instagram @knoxscruff.

This article originally appeared on Knoxville News Sentinel: Smokies stadium in downtown Knoxville seeks more minority contractors

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