Metro Nashville’s Council approved a non-binding term sheet related to building a new $2.1 billion Tennessee Titans stadium on Tuesday night.
The term sheet outlined a deal that includes $1.26 billion in taxpayer funds toward building the stadium along with a tax fund that is projected to collect $2.9 billion during the 30-year lease to pay off $760 million in revenue bonds from Metro Nashville’s Sports Authority. This tax fund will also pay for future maintenance and upgrades at the stadium.
Nashville’s East Bank Stadium Committee plans to parse information on a new projected $2.2 billion Tennessee Titans stadium deal once it’s announced, along with information on the city’s current lease obligations and a $200,000 stadium study the council has planned along with land-use requirements around Nissan Stadium.
But the group will not be producing its own economic impact and tax impact numbers related to the proposed project.
“I am guessing the council doesn’t have an appetite for spending $25M on its own professionals, or $5 million or $1 million or half a million,” committee chair Bob Mendes said in the group’s planning meeting. “So we’re, necessarily, going to have to rely on information from others on that. I assume we’re going to hear about that. When we’re going to get presented with an actual deal, there’s going to be a list of income streams and a look forward on what it generates over time. Sources and uses.
A lease agreement between the Tennessee Titans and the limited liability Cumberland Stadium LP, calls for the Titans to be provided “a modern, first class, open air, stadium designed primarily for football, with a grass playing surface, to be located on the Stadium Site,” according to a copy of the lease acquired by The Center Square.
Cumberland Stadium is an operator that works for the Metro Nashville Sports Authority at the stadium.
Nashville will consider spending $200,000 on a “stadium study” to evaluate the Tennessee Titans’ claim that the city would owe $1.839 billion under the terms of the team’s current lease if Nissan Stadium in Nashville was renovated instead of having a new estimated $2.2 billion stadium built.
The line item called “study of Nissan Stadium obligations” appeared on a revised city budget from Metro Nashville Budget and Finance Chair Burkley Allen. The amendments will be discussed at Tuesday’s council meeting.
Tennessee Titans Chief Executive Officer Burke Nihill estimated that Nashville would owe $1.839 billion under the terms of the team’s current lease if Nissan Stadium in Nashville was renovated instead of having a new stadium built.
The estimate is based upon maintenance and a lease stipulation saying the city must pay for capital projects to keep the stadium in “first-class condition to keep pace with comparable facilities.”