Study: Convention center would add $135M to local economy

Wednesday, January 6, 2010 at 1:56pm

The new downtown convention center would add nearly $135 million to the Nashville economy, according to an impact study released by Mayor Karl Dean Wednesday.

The study, prepared by convention consultants HVS, estimates that by the year 2017 — the point at which the Music City Center’s business would have “stabilized” — $134.9 million would be generated annually.

The vast majority of that figure — $86.6 million — represents so-called “direct spending,” dollars spent by conventioneers and exhibitors.

“Consider the debt service of $40 million per year. … Every dollar spent will create $2 in revenue," Dean said. "These new dollars go directly into the local economy."

The balance of the impact would come from indirect and induced spending, cash laid out by businesses in capital improvements and new employees, for example, and the dollars those employees spend.

“[A waitress] could have $5,000 more per year available to spend at the dry cleaners in Hermitage or the grocery store in Old Hickory,” Dean said.

HVS also projected 1,500 new jobs in the city by 2017.

The impact study did not include the now-shelved plans for a new hotel. The mayor said holding off on the hotel was “the right decision.”

“The demand study says we are going to essentially double the number of convention visitors. The medical mart will bring 100,000 to 150,000 new room nights. We are going to be one of the strongest cities for the hotel industry,” he said.

The mayor touted HVS’s study as “conservative” and noted the current convention center’s bonds were paid off ahead of schedule.

“It was an enormous success. We paid off that building without using the general fund. Any operation deficits were covered using the hotel-motel tax. The model we have proposed works,” he said.

Restaurateur Randy Rayburn, who owns Sunset Grill, Midtown Café and Cabana, said even his restaurants — all located outside downtown — see business from convention-goers, with more than 30 percent of his customers from outside Middle Tennessee.

“In my 34 years, I can tell when there’s a convention in town, even in Hillsboro Village and Green Hills,” he said. “I think [the study] confirms all the studies. … It will be transformative, particularly as the Medical Mart comes online, adding another economic accelerator.”

Convention & Visitors Bureau chief Butch Spyridon said opponents who argue the convention center does not help provide for the city’s residents are missing the point.

“The convention activity fuels us, which helps us do things like July 4 and New Year’s Eve. That’s another induced activity,” he said.

The next step for Music City Center comes 8 a.m. Thursday, as the Convention Center Authority is set to vote on the financing package, which then will be before the Metro Council Jan. 19.

 

51 Comments on this post:

By: MusicCity615 on 1/6/10 at 3:19

Thank you....

Build the Music City Center!

By: Kosh III on 1/6/10 at 3:28

"“The convention activity fuels us, which helps us do things like July 4 and New Year’s Eve."

Wow! That's really gonna help get sidewalks in my neighborhood---NOT.

--------------
"“Consider the debt service of $40 million per year. … Every dollar spent will create $2 in revenue," Dean said. "

So does that mean there will be 80 million per year in taxes being generated? Not holding my breath...

By: Floyd2 on 1/6/10 at 3:29

Nashville needs the jobs and the economic development. Build the Music City Center!

By: some1else on 1/6/10 at 3:36

that's *ALL*??

the mayor and the Foolish Fair Board want to dump the fairgrounds and close the State Fair-- an operation that has an annual economic impact to metro of $50-60million -- almost half of the estimated MCC impact-- and costs Metro NOTHING (and never has!) -- but he wants to spend almost a $1BILLION-- $40million a year payments-- for something that will only have a $135million impact?? and it's going to take until 2017 to get to that point of $135mil??

is there something wrong with the math here???

By: 117_acres on 1/6/10 at 4:26

The fairgrounds property is a dinosaur! The City and the residents of Nashville lose money every year by not doing something else with the property. How many acres of land is the Convention Center going to take up? How many acres of land does the Ryman Auditorium use? You can probably take the Sommet Center, the Ryman, L.P. Field, the Sounds Stadium, and the Schermerhorn Symphony House and they all combined would probably be less total acres of land than the fairgrounds property which is at or around 117 acres that basically sits empty almost the entire year. The point is the fairgrounds property is a waste of space. There are over 600,000 Nashville residents that should be able to have access to this property everyday.

I’m excited about the new Convention Center and the world’s first Medical Mart. Hopefully, the council will approve the financing package for the convention center and these projects can start putting people to work. I’m also looking forward to hearing the future plans for what the city plans on doing with the fairgrounds property! The Mayor has consistently said the public will have some type of public park or green space somewhere on this property. Hopefully everything will come together. The fairgrounds is only about 2 miles from the the Convention Center site as well as where the new Medical Mart will be built (old convention center site). The South side of Nashville between 65, 2ve, 440, and downtown needs a boost! Thank you Mayor Dean and Fair board members!

Remember all you race car drivers and fans, weekly racing will continue in March at Highland Rim racetrack in Greenbrier just 20 miles North up 65. Check out the website which is still under construction at http://www.highlandrim.com/. The fairgrounds speedway may be closed for good but the Rim will be rocking all year long and has been since 1962. Highland Rim is owned by Bobby Hamilton Jr. son of the late but great Bobby Hamilton Sr. The track is privately owned and is not located on government land so you don't have to worry about anyone telling us the noise is a public nuisance. See you at the Rim!

By: airvols on 1/6/10 at 4:38

I said from day one "Build it and they will come". Nashville is a city that people want to live, work and party in, unlike many cities that do not have attractive venues. We need to move this forward as fast a we can. The economic impact to the workforce and the local merchants will be great. Two Thousand construction jobs and that's just for the MCC, how can any publicly elected official vote against the project? Build it and they will prosper!

By: bfra on 1/6/10 at 4:45

Wonder where dean is finding all these "jackleg" companies to make these reports? This "build it and they will come" is really way out! The "they will come" will go somewhere else, where they are not adding special tax on top of tax to fuel dean's ego boondoggle!

By: some1else on 1/6/10 at 4:55

117 .. Let's see... using your logic...

"The Centennial Park property is a dinosaur! The City and the residents of Nashville lose money every year by not doing something else with the property. How many acres of land is the Convention Center going to take up? How many acres of land does the Ryman Auditorium use? You can probably take the Sommet Center, the Ryman, L.P. Field, the Sounds Stadium, and the Schermerhorn Symphony House and they all combined would probably be less total acres of land than the Centennial Park property which is at or around 130 acres that basically sits empty almost the entire year. The point is the Centennial Park property is a waste of space. There are over 600,000 Nashville residents that should be able to have access to this property everyday. "

"The LP Stadium property is a dinosaur! The City and the residents of Nashville lose money every year by not doing something else with the property. How many acres of land is the Convention Center going to take up? How many acres of land does the Ryman Auditorium use? You can probably take the Sommet Center, the Ryman, L.P. Field, the Sounds Stadium, and the Schermerhorn Symphony House and they all combined would probably be less total acres of land than the LP Stadium property which is at or around 117 acres that basically sits empty almost the entire year. The point is the LP Stadium property is a waste of space. There are over 600,000 Nashville residents that should be able to have access to this property everyday. "

Should I go on with all the locations in Davidson County that cost the taxpayers money instead of having a large economic impact on the community without any cost involved to the taxpayers?

And incidentally, all of the venues you listed cost the taxpayers millions of dollars *each* in support and subsidies... except the Ryman of course... and except for perhaps LP Field, have less economic impact on the community than the fairgrounds property.

Particularly based on today's figures, there is not much you could put on that property that would have *more* economic impact than the fairgrounds.

and 117 -- once again-- get your facts straight.
(1) there are not "over 600,000" residents of Davidson County - http://quickfacts.census.gov/qfd/states/47/4752006.html

(2) each of the approx. 550,000 residents has full access to the fairgrounds property every day of the year.

(3) there are events at the fairgrounds almost every weekend of the year.

(3) the Ryman Auditorium is not publicly owned - it's owned by Gaylord Entertainment.

and if you believe the mayor has future plans for that property that will help you or enhance the neighborhood, i've got a bridge for sale at a good price-- any park or greenway there will be about the size of a dinner napkin and squeezed between the buildings and the asphalt parking lots if he has his way.

By: slzy on 1/6/10 at 6:11

are there any "pro center" voices who are not paid ,with tax dollars to lobby for this money pit?

By: NewYorker1 on 1/6/10 at 6:13

Build the bitch.

By: MusicCity615 on 1/6/10 at 8:25

Slzy-

ME.

By: 117_acres on 1/6/10 at 8:37

Some1esle: FYI when the new census numbers come out Nashville/Metro population will be over 600,000. Please see below.
Nashville has a consolidated city-county government which includes seven smaller municipalities in a two-tier system. The population of Nashville-Davidson County stood at 626,144 as of 2008,[1] according to United States Census Bureau estimates. The 2008 population of the entire 13-county Nashville Metropolitan Statistical Area was 1,550,733,[3] making it the largest metropolitan area in the state. The 2008 population of the Nashville-Davidson-Murfreesboro-Columbia combined statistical area was estimated at 1,632,671.
I'm not trying to be insensitive but the fairgrounds is a dump! If you have been supporting it for years and years you are as much to blame as the next person who supports keeping it for allowing it to be ran into the ground.
Centennial Park is used by all of Nashville for free where most events at the fairgrounds with the exception of the flea market cost money to get in. Centennial Park is "not" surrounded by rusty chain link and barb wire fencing.

I'm sure you and your buddies will be able to car pool out to Highland Rim Speedway in a few months and listen to the noise for 7 or 8 hours at a time on Friday and Saturday nights. This year you can also go to the Wilson or Williamson county fairs where you wont have to worry about getting shot, mugged, or having your car broken into.

The best thing we can do now is work together to make sure this property is not just given away to a corporation and that the public has a designated area for a park or green space and maybe some expo space.

By: AmyLiorate on 1/6/10 at 9:49

Build the MCC at the fairground property. It's only 2 miles down the street.

You get to keep the PRIME downtown real estate ON the tax roles while really ADDING value to property nearby. The whole area would blossom.

And it would reduce the cost of the MCC by about $100million!

By: slzy on 1/6/10 at 11:53

music city 615,why should i believe you?

By: tv8527 on 1/7/10 at 4:11

Convention attendees want 2 things when they get out of meetings, gambling & lap dances.This will not pay for it's self, If it would PRIVATE dollars would build it.

By: border collie on 1/7/10 at 9:24

Bend over taxpayers.... no lube provided!!!! 1500 jobs that will mostly pay under $15 per hour...woo hoo!!! that will employ half of nashville...NOT! and will the few businesses that will benefit pay for it when they realize the entire American economy is going down the tubes and the need for huge convention halls is not necessary when companies are downsizing and closing their doors everyday...no...the taxpayers will pay for this thing in the end...And the fat cats who do not have to worry about money will not agree to pay more taxes to help out the people who are already struggling to pay their electric bills??? the ones this will help is a small number compared to all the taxpayers in Davidson co who will suffer from the balance due on this monster of a money pit!!!
Pie charts and random figures of speculation are not the way i choose to risk my money...i am not a gambler like our mayor is!!!! i cannot afford to gamble !!!!! glad some people are so financially secure that a large debt such as this makes them smile!!!

By: idgaf on 1/7/10 at 9:25

Revenue "produced" does not mean money to pay off the debt. Only about 2% of the sales tax on that revenue goes to the city or roughly 15 million leaving us 25 million short not counting the operating expences.

That is assuming all that money is spent in the "zone".

By: Kosh III on 1/7/10 at 9:29

'1500 jobs that will mostly pay under $15 per hour."
since it is mostly construction and motel jobs, how many will be illegal aliens?

By: TN4th on 1/7/10 at 10:55

I suggest that some of the people who are criticizing the study and making up the accounting actually READ it and UNDERSTAND where the numbers come from. It seems like there are a number of "anti's" who are going to blast it just as a kneejerk reaction, and are going to malign the firm that did the study, without even considering that they may be qualified professionals who actually know how to do these studies and figure the accounting. They are going to be against it, regardless of the most competent analysis available, and are going to make up their own "facts" and "accounting" to support their view.

By: DustyU on 1/7/10 at 11:07

TN4
I read it and know accounting principles. All I can say about some of the report's assumptions is that figures lie and liars figure.

DustyU.WordPress.Com

By: border collie on 1/7/10 at 11:34

Speculation! pure and simple and if it is not then show me the names of the large companies and show me their reservation dates and how many people will be attending each month as soon as the doors open. show me the payroll and how many of these employees will make more than $15...and i believe that is a high number!
if their is such a demand then there must be a waiting list for reservations. show me the credit card confirmations for the reservations and the dates and numbers of attendees....YOU CANNOT! therefore, yes it is speculation.... and yes, i can figure numbers and I need help paying not only my property taxes this year but my freaking electric bill this month....so GET REAL and get your heads out of the sand rich people.! most of us live paycheck to paycheck and we are not exciteed about our taxes rising in the future to pay for something we will never utilize! BUT your resumes will look impressive with this little addition!!!

By: producer2 on 1/7/10 at 11:35

DustyU,
Apparently only proponents figures lie. According to some on these boards the opposition information is totally correct and above reproach.

By: border collie on 1/7/10 at 11:44

In addition the people who compiled these numbers make anywhere from $100,000 salaries and up i am sure. so, therefore, their reality is not my reality and they could care less about the working people in nashville...they got paid to make the figures align with the stars...therefore they will make it happen but who will pay for the damn thing when the dust is settled! taxpayers! do not try to insult the intelligence of the working class and those opposed by demeaning us!

By: producer2 on 1/7/10 at 11:54

boder collie,
Why are you so bitter?

By: JeffF on 1/7/10 at 12:08

Curiously no one mentions the consultant failures HVS has at Raleigh and Austin. Neither is performing up to the promises from their convention industries using the HVS reports. HVS knows who pays for their "studies" and they know that they would never get a job again if they started be honest about the industry. They continue to use the failures at Shaumberg, Raleigh, etc to get jobs. In fact Albany officials cited their work with those cities when they granted the "study" work to HVS. I guess that means that the people wanting a new hotel in Albany got to choose who did the study.

Raleigh since opening their center (HVS told them they had a brand by the way) has seen no where near the attendees or meetings they were expecting. They are still having to depend on local groups, weddings, and Bar Mitvahs (the Knoxville model of making a convention center boondoggle not look quite so bad) to keep the numbers from completely tanking. Hmm come to think of it Knoxville was advised by HVS as well and they were told that their center would be a hit.

The Shaumberg tragedy is even more painful in that HVS is the "asset manager" for the hotel. Yes they missed the forecasts and are hemorrhaging cash at a record rate, but HVS still gets paid to run the place.

By: producer2 on 1/7/10 at 12:29

How many facilities, HVS or otherwise have closed or caused any city to go bankrupt?
Even in our own facility which was paid off early, there is enough money being brought in to pay for the overage in operating debt. This is also coming from the HOT fund. Underperforming in this economy is not news. Causing your city to go bankrupt to pay for the facility would be. Show me an instance where that has happened.

By: JeffF on 1/7/10 at 12:30

Something caught my eye with a competitor to HVS. Attached is a link to a proposal brochure to a city that apparently wants to hire someone to have them spit back that a center is a good idea.

http://cityofbrookings.org/council/agendas/actionpdfs/paperless_2008_06_24.pdf

They give a about 15 or so examples of their work with details about what they did for those other cities. No where is there an example where they said it was a good idea not to build.

Here is a link to a HVS proposal crowing about their experience with other cities:

http://www.tucsonprocurement.com/ContractImages/SolicitationAttachmentImg_100323_100323_1_ATTACH%20C_HVS%20Scope%20of%20Updated%20Report.pdf

Missing? Yep, there were not any 'No' studies. In fact, they listed the consulting examples with the hotel and rooms they ended up saying was good. Including Schhaumburg by the way. And get this, they included the St Louis hotel as a good example of their consulting work! The foreclosed hotel is an example of their prime work. The nosediving and famous failure known as the Baltimore convention hotel is also listed! (http://articles.baltimoresun.com/2009-08-22/business/0908210178_1_convention-hotel-revenue-room) My God when does HVS get anything right?

By: JeffF on 1/7/10 at 12:33

I want to stress, HVS advised the city of St Louis that building a convention center hotel would be a GREAT idea and that revenue streams would be more than capable of paying for the place.

I doubt that HVS had that report engraved in bronze and put in the hotel lobby. I would also guess that they would be keen to listing the cities now using general fund revenue to pay Convention industry debt and operating expenses including in the "bad work" column. I am sure Honolulu officials would like do that if asked.

By: DustyU on 1/7/10 at 12:34

Right on Jeff!
Prod - yes I agree there are self-serving idiots on both sides but how many studies is Dean going to issue (4 or 5 so far) each one inflating and manipulating the numbers a little more to justify his monument to himself?

DustyU.WordPress.Com

By: producer2 on 1/7/10 at 12:47

Go back to your one example JeffF, and it still has not bankrupted the City of St. Louis has it? Was that hotel City owned or privately owned?

By: Magnum on 1/7/10 at 12:50

What am I missing. $135M is not the tax revenue is it? Thats just saying that $135M is the amount of $'s brought into the economy...right? If that is correct, what is the tax revenue estimated to be because that tax revenue is what pays the $40M debt service + operating losses. The tax revenue is the most important piece of the puzzle.

By: DustyU on 1/7/10 at 12:58

Exactly Mag!
They are manipulating numbers again - hoping nobody looks too close!

DustyU.WordPress.Com

By: AmyLiorate on 1/7/10 at 1:36

Producer is misleading when asserting that since the whole city hasn't gone "bankrupt" then that means their convention center isn't a problem due to under performance.

By: JeffF on 1/7/10 at 2:12

HVS made asserts about the economic viability of a center or hotel (just like hotel). A large number of those assertions have been incorrect, sometimes resulting in foreclosure and taxpayer bailouts. Yes no one went bankrupt, but it wasn't due to a like of trying.

The St Louis hotel was public, now it is private after being bought on the courthouse steps (actual statement) for pennies on the dollar. This was after two previous incidents of tax money infusion to prevent the foreclosure. This was after HVS told everyone in government that the risk of financial problems was next to nothing and go ahead with the deal. This was after the downtown St Louis hotel market was trashed by high occupancy and nosediving nightly rates. This was also after the convention center itself failed miserably at meeting consultant promises.

This is not about bankruptcy at the moment, this is about the overall accuracy of the numbers coming from a company with a noted history of bad numbers for the sake of getting hired. Now are council members are being told these numbers are good, ignore the baggage they brought in with them or we will never get this thing.

For some reason a large number of HVS consulting hotels turn out to be Marriotts (including St Louis and Schaumburg). Wonder why that is?

By: JeffF on 1/7/10 at 2:14

Producer, where are those 30,000 new jobs you were prone to promising? Did someone at HVS jerk the rug out from under you on that one?

It was funny that you kept delivering that line while Baghdad fell behind you.

By: Kosh III on 1/7/10 at 2:28

Producer2
135 million.
How much in sales tax revenue will that generate? Will it be enough to pay off the debt? Show us the numbers, convince us.

By: border collie on 1/7/10 at 2:29

Are we really expected to believe that the fight by our mayor for this thing is a wholehearted approach to improve our livelihoods in nashville? the restaurants & bars downtown will make money...they already do...show me a list of friends and former business assoc who stand to benefit from this....my name is not on that list nor are thousands of other taxpayers who are struggling and it is a slap in the face to think average working people will be thrilled at the site of this monstrosity! we see it as a threat to our already over-burdened wallets!

By: JeffF on 1/7/10 at 2:31

we got hosed in Nashville:

KPMG and HVS PROMISED Raleigh that they would see $340 million (never mind that they haven't even seen a 5th of that. They are booking local groups mainly with zero likelihood of hotel nights. The local universities and some church groups are the largest users of their "bring 'em in" facility.

http://www.raleigh-nc.org/portal/server.pt/gateway/PTARGS_0_2_111780_0_0_18/CC-minutes-20030604.doc

tell me if we paid full price for our own report. There are a lot of phrases reused between reports from these guys.

Raleigh Officials Heavily Discount Convention Center
It took deep markdowns to get the first 164 conventions to sign
http://www.carolinajournal.com/exclusives/display_exclusive.html?id=5020
If the visitor’s bureau approves all the grants now on the table, taxpayers will have footed the bill for a total of $332,800 in subsidies.

By: JeffF on 1/7/10 at 2:43

Another wonderful item in the news:
http://www.chattanooga.gov/General_Government/110_ordi_reso.asp?pathh=/ordireso/Resolutions%202008

HVS was hired to appraise the Chattanoogan hotel for possible sell. The city cannot afford to continue paying the operating losses of this can't miss business investment in the city's future. The consultant who told Chattanooga to make this investment? HVS.

By: JeffF on 1/7/10 at 3:00

This is a good one
http://www.baltimoredevelopment.com/uploads/materials/2005_summer.pdf

"The cash flow models, prepared and reviewed by the City's financing team (HVS, First Southwest Company, Jackson Securities, and nationally-respectd bond underwriter Piper Jafray), and also supported by Hilton Hotels' own analysis, show that the hotel's net revenues are alone sufficient to pay all the operating expenses and the debt service on the bonds. These conservative projections have also taken into account the competitive and cyclical nature of the hotel business

They even went so far as to lie that the bond rating agencies REQUIRED City participation as a backup. FYI they did not require the partcipation, they simply put a truthful ratings on the risky revenue projections and would not take them off unless the City of Baltimore backstopped the deal with public money.

A reminder:
http://articles.baltimoresun.com/2009-08-22/business/0908210178_1_convention-hotel-revenue-room
August 22, 2009
"Faced with the worst economy in decades as it completes its first year, the Hilton Baltimore Convention Center Hotel has failed to live up to rosy predictions made in more robust times."

"But the hotel falls short in revenue per available room, which is average daily room rate multiplied by occupancy rate. City and hotel officials won't disclose the Hilton's revenue per room, occupancy or average room rates. But a calculation using the hotel's reported room revenue of $6.8 million for 2008 and the number of days open last year shows revenue per available room of $68.46. That's well below the $112.57 projected for the Hilton for 2008 by consultants,"

"The city will make its debt service payment in September without dipping into reserves and expects to do so when the March payment comes due, Van Sant said.
Beyond that, it might be difficult to meet projections, even without a recession, one convention expert said."

By: JeffF on 1/7/10 at 3:10

I f you do not like Dr. Sanders, here is a terrific article from Forbes:

"The Answer Is Always Yes"
http://www.forbes.com/forbes/2005/0228/082.html

"It lost $5.5 million last year on $15.3 million in revenue. Occupancy since the expansion has fallen from 71% to 43%. The Wood Technology Showcase, a Portland event for 34 years and one that expansion boosters cited as needing the enlarged venue, has been postponed because of lagging attendance. The same run-down buildings and third-rate restaurants that always surrounded the center, like Burgerville and a deli that sells sushi and Beanie Babies, are still there. "

""We haven't set our sights on being profitable," says Oregon Convention Center's executive director, Jeffrey Blosser. "These are challenging times in our industry." "

This is from 2005. He is admitting that the time were challenging in 2005, a time before the current recession but after the 911 bombings. This was a year that would be as good as it gets.

"A common excuse of the convention center builders is that Sept. 11 cut travel. But trade show attendance peaked in the mid-1990s. Something more fundamental is going on: Shows in general are far less relevant. Consolidation in industries like manufacturing, retail and technology has left a smaller pool of exhibitors. And far more trade now gets done in China, which is rapidly adding shows and square footage of its own. "

"You lose clients if you shoot down projects. They've already made up their minds by the time they come to us,"

"We don't recommend to build or not to build. We're just being asked if there is a potential demand."

"The slump is good news only for show managers. The Quilts Market show is getting space at Kansas City's soon-to- be-expanded center for no cost, and hotels are paying for the show setup. "I definitely had the upper hand in negotiating," says Quilts Market operations chief Wilma Hart. "

By: JeffF on 1/7/10 at 3:43

Help for the various CVBs from the Destination Marketing Association on how to get the yokels to build you a new building and how to write an RFP to get a consultant to say exactly what you NEED them to say. Curiously these appear to be the only top secret documents on their web site.

The document on how to distract the yokels from Dr. Sanders' work is not top secret.

top Secret (sssshhhhhhh)
IACVB White Paper on Convention Center Growth and Expansion (Members Only)
This white paper was written to help members understand the research and issues regarding convention center growth and expansion. This will provide CVBs with a solid position for handling questions that may surface in your local area.

see RFP Samples - Convention Center Feasibility Studies (Members Only)

By: JeffF on 1/7/10 at 3:44

I always thought that the convention leaches in the various U.S. cities seemed to be playing from the same playbook but had never been able to find the book.

http://www.destinationmarketing.org/Resource_Center/resource_content_view.asp?Act=LIST&mresource_id=12

By: AmyLiorate on 1/7/10 at 4:26

Here is what I see about this project:

The jobs it creates will pay about $43 million per year. The cost is $40 million a year.
$3,000,000 a year difference. That makes me wonder a lot.

The increased revenue from the HOT and the tourist district will be good except they must be factored against the lost property taxes from the land used by the MCC and the $25M it already brings in.

How much property taxes will be lost when these blocks are removed from the tax roll?

By: AmyLiorate on 1/7/10 at 4:43

Man, I think Jeff has taken that guy to the cleaners. I bet he can't respond to all that before the snow melts.

Sushi and Beanie babies anyone? Maybe Nashville can snag that quilt convention away from KC.

By: producer2 on 1/7/10 at 4:46

See you all at the ground breaking!

By: JeffF on 1/7/10 at 5:01

You have got a whole lot of court dates before the bonds are even issued. They are playing a game they have never tried before with this "moral obligation" bond trick. I think a judge from the appeals level will rule them to be General Obligation causing the mayor to either decide to finally listen to everyone at the ballot box or more than likely withdraw the deal until the we barbarians quit taking away his toys.

I have no doubt that the council will overwhelmingly vote yes (if it even gets that far). The political game begins when the people of Nashville armed with the actual results from other cities storm the castle and take back their government.

You have to admit Producer, the elected officials have been trying to keep this project out of public purview since the beginning, rationing out information when it was deemed not hurtful to their one and only goal. We Barbarians finally started making some headway only after the MP&F professionals were placed by the paranoid whack jobs at Cooley.

By: border collie on 1/7/10 at 5:28

groundbreaking??? think we need to start a movement to boycott paying taxes that year....how many more people can our overcrowded jail hold?? thousands?? ha!

By: Magnum on 1/7/10 at 5:43

There are two things I believe I know about this project:
1. It would never pass a NPV test. There is no way that investing $585M today with expectations of max tax revenue on $135M per year in 2017 would ever show a positive NPV (since we will be incurring $40M debt service + operating costs from day one). Furthermore, it wouldn't pass if it was going to create $135M/year tomorrow. Most likely this project will literally lose money, but even if it makes a little, any descent analysis would show that the risk/reward is no where near acceptable levels (which is why the government is doing it in the first place).
2. It will be built.

By: HCPforme on 1/7/10 at 9:17

To quote the HVS study Jan 6 2010, Table 1 Event Demand Comparison between the current Nashville Convention Center to the proposed Music City Center:

Conventions and Tradeshows NCC : 55
Conventions and Tradeshows MCC : 55

Net gain = 0