New Numbers For Proposed Music City Center

Posted:

By Chris Cannon

NASHVILLE, Tenn. - Several Metro City Council members got their first chance to see a condensed version of a new feasibility study on Nashville's proposed Music City Center.

The HVS consulting firm of Chicago conducted the study and was hired by the Mayor's office.

A study by a third-party, independent firm was also required by Goldman Sachs, the investment bank that would issue bonds for the project.

The study showed a projection that the number of convention attendees would more than double with the addition of Music City Center.

It also showed projected tax revenue would pay for the debt service on the building, and an operating deficit expected for the proposed convention center.

"They appear to be obviously defendable, solid numbers and I believe should be able to support this project,” said Metro Finance Director Rich Riebeling.

The firm also predicts that Music City Center will not generate enough revenue to cover operating costs. The first stabilized year the project could lose $900,000.

The numbers for Music City Center are comparable to that of similar sized convention centers across the United States.

"Most large convention centers lose money on operating [costs] and they make it up by generating economic impact for the community," said Tom Hazinski with HVS.

Also on Wednesday, Tower Investments filed a lawsuit against the Metropolitan Housing and Development Agency.

The company contends MDHA can not use eminent domain to seize a crucial piece of property needed for the Music City Center.

Tower paid $14,780,000 for the property on Fifth Avenue nearly three years ago, before the recession hit. MDHA offered the company $20,000 more. The parcel of land was last appraised at $12,500,000.

Despite the lawsuit, city leaders plan to give a financing plan for Music City Center to Metro Council within in the next two weeks.

email: ccannon@newschannel5.com