NASHVILLE - Lt. Gov. Ron Ramsey said Wednesday that the Tennessee Valley Corridor and the organization's summits, promoted by his Republican gubernatorial rival U.S. Rep. Zach Wamp as a campaign centerpiece, never have passed the "smell test" in his opinion.
"I'll just say I've always thought it didn't pass the smell test in the fact that there was an awful lot of money coming from Washington, D.C., that ended up getting to (public relations firm) Akins-Crisp," Lt. Gov. Ramsey told reporters. "We've known that for years. What work product have they actually produced?"
He questioned whether the Corridor is "just a dog and pony show that makes people feel good or does it actually do something?"
Rep. Wamp, of Chattanooga, has touted the Corridor, which he founded in 1995, and its "summits" involving businesses, government agencies and economic development, as having played important roles in sparking economic development in East Tennessee, including the Volkswagen plant in Chattanooga.
But it all came under scrutiny this week as Nashville's City Paper revealed the Tennessee Valley Corridor, which raises funds through its conferences and by selling sponsorships, paid Akins-Crisp Public Strategies $2 million over a 10-year period to promote and run the meetings.
AkinsCrisp also works for the Wamp campaign, getting paid $9,000 a month.
The article also suggested some unnamed businesses or other entities felt pressured to participate because the congressman sits on the powerful House Appropriations Committee through which many of their projects pass.
Wamp campaign spokesman Sam Edelen said his understanding is that both Lt. Gov. Ramsey and Knoxville Mayor Bill Haslam, the other candidate in the GOP gubernatorial primary, have been "regular supporters of and featured speakers" at several Tennessee Valley Corridor events.
"Only now that Zach Wamp has jumped to the lead in the governor's race has this become an issue for them," Mr. Edelen said. "Ramsey's just doing what he does best - taking cheap political shots in a lame attempt to boost his fading campaign when he really ought to be worrying about the state budget."
Ramsey spokeswoman Rachel Taylor said "the recent appearance of impropriety coupled with Congressman Wamp's temperament when addressing such legitimate issues is troubling, to say the least. While Mayor Haslam and Congressman Wamp continue their political infighting, Lt. Gov. Ramsey is fully focused on the legislative session and delivering a balanced budget - excluding wasteful earmarks and tax increases - for the people of Tennessee."
State lawmakers struck a tentative agreement on the budget late Wednesday.
Rep. Wamp on Tuesday called the criticisms "either sour grapes or smear politics or both coming together." He said they "really should be completely discounted because it's just kind of gutter politics."
He blamed the Haslam campaign's top adviser, Tom Ingram, for the questions. Mr. Ingram denied the allegations.
To bolster its case on the effectiveness of the Tennessee Valley Corridor, the Wamp campaign released remarks made by Volkswagen of America President and CEO Stefan Jacoby at the Tennessee Valley Corridor National Technology Summit in Washington last week.
As quoted by the Wamp campaign, Mr. Jacoby thanked the congressman "for helping to bring Volkswagen to Chattanooga. We're glad we came to your congressional district and the Tennessee Valley."
Mr. Jacoby also called the Tennessee Valley Corridor a "remarkable example of regional cooperation" and noted its leadership "has helped make the Tennessee Valley a magnet for technology-driven jobs."
The Tennessee Valley Corridor's current chairman, Doug Fisher, a former district manager for Mr. Wamp, issued a statement to the board criticizing the City Paper article as "slanted" with "no apparent desire to get to the actual truth about our organization and the tremendous economic development success we have helped create in our region by working together over the past 10 years."
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