NASHVILLE, Tenn. (WTVF) — The Convention Center Authority, operator of Music City Center, voted unanimously Thursday morning to enter into a PILOT agreement with Metro Nashville.
A PILOT, or payment in lieu of taxes, is a payment made to compensate a government for property tax revenue that was lost due to tax exempt ownership.
Metro Nashville has received $10 million for two consecutive years from the Music City Center. With an additional payment of over $12 million, the city will be paid a total of $22 million from the Music City Center for this year's fiscal budget.
"Nashville's unprecedented growth in convention bookings has allowed the Music City Center to enter into this agreement with the city," said Charles Starks, president and CEO of Music City Center. "The annual PILOT payment provided to Metro demonstrates the value of the hospitality and tourism industry as we strive to be a strong city partner and benefit the residents of Davidson County."
If there is a change in tax rates, if the building appraisal amount increases or if an expansion happens, the PILOT amount could increase.
The Convention Center Authority added the Music City Center generated over $37 million in direct economic impact for Nashville during September. This amount comes from hosting 32 events with nearly 32,000 attendees and 35,000 room nights. In October, the Music City Center generated over $28 million in direct economic impact for the city, hosting 38 events with over 50,000 attendees and 28,000 room nights.