The Metro Nashville Council voted, at its regularly scheduled meeting Tuesday, to defer resolutions approving the term sheet related to the stadium as well as one related to the development of the campus area surrounding the stadium.
The resolution to approve the term sheet, which gives an overview of the terms and conditions of the agreements and transactions for the financing, construction, and operation of a new domed stadium adjacent to the existing Nissan Stadium, which will then be demolished, was deferred for two meetings. Both the Metro Budget and Finance Committee and the Public Facilities, Arts and Culture Committee had previously voted to defer for two meetings.
A second resolution that would allow the purchasing department to proceed with a request for proposal for the development of the campus area surrounding the stadium was deferred for one meeting. The three committees the resolution was referred to had all voted for a one-week deferral.
Exhibit 1 attached to the resolution identifies the area as the “initial development area.”
Both of the resolutions appeared on the consent agenda, but were removed and voted on individually.
A third resolution, critical to the funding of the new stadium, would increase the hotel occupancy tax (HOT) by one percent. The proceeds from the tax increase would be directed to partially cover the costs of the debt service for the construction of the new stadium as well as future capital improvements.
The HOT resolution passed on first reading, typical for most resolutions in order for them to be referred to the appropriate committees.
Two amendments were filed on the term sheet resolution, RS2022-1827. One filed by Council Member-At-Large Sharon Hurt requires that any contracts resulting from the resolution shall utilize minority- or women-owned businesses,
Another amendment, filed by Council Member-At-Large Bob Mendes, would add to the 10th “whereas” clause of the resolution that the term sheet is non-binding. The amendment would also add the term “non-binding” to Section 1 of the resolution as well as clarifying that council approval is solely for the purpose of facilitating ongoing discussions and that, in recognition of the non-binding nature of the term sheet, the expenditure of any funds is at the sole risk of the party expending the funds.
Hurt, who said on The Tennessee Star Report with Michael Patrick Leahy that she favors the proposed deal for a domed stadium, filed a similar amendment to resolution RS2022-1828 for an RFP for a stadium campus developer as she did for the term sheet resolution.
Mendes said he supported the deferral for one meeting for the RFQ, even though it is different than the term sheet deferral of two weeks. He explained that the administration is eager to get the RFQ for a development partner sooner than later. In conversation with the council’s legal counsel, Mike Jameson, Mendes is considering an amendment that would clarify that if the RFP process moves ahead of the term sheet process, the council is not committing to anything.
Council Member-At-Large Zulfat Suara, also in support of the one-meeting deferral, added that some of the information from the RFP is needed in order to proceed.
Council Member Emily Benedict (District 7), who took to Twitter in a lengthy thread to explain her objections to the stadium deal, said she supported the deferral. She explained that the purpose of her comments the previous night in committee was to make absolutely sure that the community has a voice on the council floor.
My thoughts on the stadium negotiations and current legislation. 🧵
We need to go back to the drawing board – and involve the Council first this time.
1/x
— Emily Benedict (@emilyfor7) October 28, 2022
She added that with all of the opposition seen so far, it was “loud and clear” to her that something needed to be said with regard to the process and how it’s being done.
Benedict said she appreciated that the council was slowing down the process to look at it over the next month, as well as for the work that Mendes is doing as the chair of the East Bank Stadium Committee.
Benedict alluded to the VSG report the council received the previous night, which claims to substantiate the $2.1 billion estimate to renovate Nissan Stadium, of which “there’s many, many questions that the public needs answered.”
Based on the votes to defer, the term sheet resolution is expected to be taken up by the council on December 6 and the resolution to proceed with an RFP would be taken up at the November 15 meeting.
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Laura Baigert is a senior reporter at The Star News Network, where she covers stories for The Tennessee Star.
