Johnson City Moves to Transfer Downtown Properties

Development boards advance agreements to shift ownership of the John Sevier Center and Downtown Centre, pending commission approval.

Updated on Nov. 13, 2026 in Openings & Closings

Johnson City Moves to Transfer Downtown Properties

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The Johnson City Development Authority approved transferring the John Sevier Center to the Lansing Melbourne Group, while the Industrial Development Board agreed to purchase the Downtown Centre from the JCDA for $4.026 million. Both agreements must still be approved by the Johnson City Commission.

Why it matters

The abandoned John Sevier Center has contributed to declining property values, lost tax revenue and safety concerns downtown, and officials say the transfer prevents its likely demolition. The deal also moves the city's Downtown Centre into public ownership, affecting parking, classroom space and police operations in the area.

The Downtown Centre includes 37,000 square feet of ground-floor commercial space and 343 parking spaces, and the purchase is funded from Johnson City's Economic Development Reserve Fund. The Lansing Melbourne Group's $65 million renovation plan for the John Sevier Center remains subject to the commission's approval of the transfer.

The players

Johnson City Development Authority

The Johnson City Development Authority is the local economic development body that owned the John Sevier Center and Downtown Centre before the proposed transfers.

Industrial Development Board

The Industrial Development Board is a Johnson City public body that agreed to buy the Downtown Centre for $4.026 million.

Lansing Melbourne Group

The Lansing Melbourne Group is the developer that would receive the John Sevier Center to renovate it into a hotel.

The details

The JCDA approved an incentive proposal conveying the John Sevier Center to the Lansing Melbourne Group, which plans a hotel there, while the Industrial Development Board approved purchasing the Downtown Centre from the authority. East Tennessee State University uses the Downtown Centre for classroom space, and the Johnson City Police Department operates a downtown substation inside it.

September 2019: The JCDA purchased the John Sevier Center.
Friday, before publication: JCDA and IDB committees approved the purchase and incentive agreements.
Nov. 19, 2026: Johnson City Commission to vote on both agreements.

Market Landscape

The JCDA bought the John Sevier Center in September 2019, and the building has since cost upwards of $60,000 per month to hold while it sat unused. The proposed transfer to the Lansing Melbourne Group would move that property into private redevelopment, shifting the downtown from public holding to private renovation.

Downtown Johnson City residents and businesses could see the John Sevier Center redeveloped into a hotel rather than face possible demolition. The Downtown Centre's parking and downtown police substation would move into public ownership if the commission approves the purchase.

The takeaway

Public-private handoffs like this one turn long-idle buildings into a question of whether a developer can finance the renovation. For downtown property owners and taxpayers, the commission's Nov. 19 vote will show whether the city is willing to carry these holding costs any longer.