The City Council was told Tuesday that proponents of a new Southside stadium want a Tax Increment Financing District for it and formation of a new city-county Sports Authority approved by both the city and county in less than a month.
City Chief Financial Officer Brent Goldberg, pressed by former Council Chairman Chip Henderson, acknowledged that any future deficiency in debt service would fall on the city and county.
Jim Irwin, master developer on the 120-acre U.S. Pipe/Wheland site where the stadium would be a "catalyst," was very optimistic. He said revenue projections on what the TIF would bring in are "shockingly conservative."
The projections are based on at least $350 million in development at the site. He said he is in touch with developers who should eventually invest over $1 billion in the long-vacant industrial site off South Broad Street. He said Core Development of Nashville has already committed to $160 million in multi-family housing.
City Economic Development Director Jermaine Freeman set this schedule:
July 19 Continued discussion by the City Council
July 21 Public hearing at the county Industrial Development Board
July 27 Presentation to the County Commission at an agenda session
Aug. 1 Presentation to the city Industrial Development Board
Aug. 3 County Commission vote on the TIF and joint Sports Authority
Aug. 9 Vote by the City Council
One reason for the rush is that Republican county mayor nominee Weston Wamp has raised a number of questions about public funding of the stadium and said most citizens oppose it. If he wins the general election, he will take office on Sept. 1.
Mr. Freeman said the project "will do some really big things. It will help our city to shine for many decades to come."
He said study of the large tract began in 2016 and a study came out in 2018 that included the stadium idea. He said Major League Baseball has told the Lookouts that they cannot continue at AT&T Field, which he said was cheaply built on a scale that is too small under today's stadium guidelines.
Mr. Freeman said the TIF District will include the Southside Gardens and go to Alton Park. It will help fund completion of the Alton Park Connector trail along an old rail line,he said.
He said $650 million in development has gone up around a new ball stadium on a 130-acre site at Columbia, S.C.
Mr. Goldberg said the debt service will be covered:
63 percent from TIF collections
22 percent from $1 million annual payments from the Lookouts. He said that amount will gradually go up.
6 percent from sales tax inside the stadium
4 percent from parking
2 percent from $1.5 million each from the city and county.
Mr. Goldberg said the stadium is projected to cost around $72 million. He said debt service would be around $3 million per year.
Councilwoman Jenny Hill, saying she is "not a sports person," said, "A lot of mens sports are asking government to pay for a place for them to play." She said a Double A player makes about $600 a week, which she said is "not enough for rent at $400 a month" (considering other living costs).
Councilman Henderson said baseball has been described as being "part of the fabric of our nation." He noted that the city and county have long supported the Tivoli.
He wanted to know what would happen if the economy went into a tailspin, and Mr. Goldberg said he felt that was highly unlikely.
Councilman Ken Smith asked about the possibility of MLB dropping the Lookouts. He said that had been a real possibility recently. Mr. Goldberg said in that case the city and county would need to find other uses for the stadium.
Councilman Smith will get two votes on the issue as he currently is on both the City Council and the County Commission.
Councilwoman Carol Berz said she wants to see a cost/benefit analysis and said she is concerned about gentrification the project might cause.
Chairman Darrin Ledford, from his questions, appeared to be on board with the project, and Vice Chair Raquetta Dotson said she supports the development that is in her District 7.
Officials said the current city Sports Authority would not be used, saying it needed to be joint city/county.
Thirty year bonds would be issued in the name of the Sports Authority.
Mr. Goldberg said it would be structured so no debt payments would be due the first two years. He said if development numbers soar above the $350 million mark that the project would be paid off sooner.
Mr. Irwin said old industrial buildings at the site would be preserved and built into the development. He said the stadium would be sunk down - not fortress-like - similar to one at Fort Wayne, Ind. He said the Riverwalk could go on the stadium concourse.
He said Councilman Henderson had "a brilliant idea" to set up a nearby dock on the Tennessee River so that some Lookouts fans can come by boat.
Mr. Irwin said he plans to first consider the whole site, what infrastructure and roads should go where, and what types of development should be in what areas.
The developer of $1 billion projects in Nashville and Atlanta on much smaller plots said, "This project is tied up better than any I've ever known. It's like all the planets have perfectly aligned there."