Say "No" to the Taxpayer Funded Music City Convention Center

****Billion Dollar Boondoggle****

The price-tag is nearing $1 billion dollars, fully funded by tax dollars. In 2005, the price-tag for the convention center was $455 million, and in 2008, that number jumped to $635 million. Adding a city-run hotel will cost a reported $300 million. This assumes there will be no cost overruns. (By comparison, Titans stadium was a $292 million dollar deal).

"It appears likely that the new taxes and growth from the established hotel/motel taxes will not produce enough money to pay for the bonds needed for the $455 million" project. – Mayor Bill Purcell’s Finance Director David Manning.

The hotel is “gonna be big, expensive and metro will have to ante up in some form or fashion.” Email from Mayor Dean’s Finance Director Rich Riebeling to David Fox of PR firm McNeely Pigott & Fox.

****80 Million Spent****

In the past 18 months, the council has overwhelmingly approved the spending of nearly $80 million on architectural designs, consulting, public relations work and land acquisition. (By comparison, the city spent $2.5 million before landing the Titans).

****Eminent Domain****

The city publicly announced they had $75 million to spend on land acquisition, before making offers to land owners. Surprisingly, the land owners thought their land was worth nearly $75 million. When the city disagreed, they voted to authorize Eminent Domain on 16 acres and dozens of properties.

****Already Over Budget****

• PR giant McNeely Pigott & Fox has billed the city more than $458,000 after initially being given a $75,000 cap. Once this was reported, MPF left the project and was replaced by MPF alum Dave Cooley, who's company was a subsidiary of MPF until very recently.

• Chicago-based C.H. Johnson Consulting Inc. has contracts to study the feasibility and consult on a business plan. Initially capped at $258,500, they were authorized to spend $750,000 back in early August.

• Conventional Wisdom, a facility-programming firm, saw their billing cap grow from $250,000 to $303,424.52.

****No Public Vote****

Mayor Dean has promised not to use property or sales tax revenues to pay for the convention center. Had property or sales taxes been used, voters would have had a say at the ballot box. Interestingly however, a NY investment firm says Metro would pledge to use “legally available non tax revenues” to fill in any gaps in paying off the debt on the facility. In other words, if the tourist-targeting taxes and fees that are supposed to pay for the project come up short, the city will have to dip into other fees it collects to make up the difference.

****Taxes****

“Now, we’re gonna have to find other sources or make other decisions about some of the things that were receiving [hotel/motel tax] money, I’ll grant you that….we’ve been fortunate that we’ve been able to use this money….for other purposes that what it was originally designed for.” -Mayor Dean attempting to explain why he proposes taking the surplus of tourism-related tax dollars away from essential city services and using them for a second convention center.