The Nashville City Titans agree to the terms of a new lease, a new stadium

Nashville, Tennessee – Today, Nashville County Mayors John Cooper, Davidson and the Tennessee Titans announced their agreement to the terms of a new indoor stadium that would ease the burden of nearly $2 billion for Nashville’s taxpayers by voiding the existing lease agreement.

The Nissan Stadium lease, signed in 1996, legally obliges Nashville to provide a “tier one” stadium through 2039. The mayor’s office worked with the Metro Council to hire Venue Solutions Group (VSG), an independent and nationally recognized utility consultancy Public, to assess the condition of Nissan Stadium and to assess Metro’s financial commitment to the Titans. VSG estimates that the renovation and maintenance of the Nissan Stadium will cost between $1.75 billion and $1.95 billion over the remaining 17 years of the stadium’s current lease. This responsibility will require dollars in public funds that can support core priorities such as public schools and first responders.

Faced with the challenge of an unfunded $1.75 billion – $1.95 billion commitment on an old pitch, Mayor Cooper pursued other options to shift the cost from the general fund. After months of negotiations, and with a generous input from the Tennessee legislature, the city and the team agreed to terms that would bring a new, closed stadium to Nashville at no cost to the city’s general fund. The closed option opens up two sources of revenue that would not otherwise be available – investments from the state and the hospitality industry.

“This new stadium proposal protects Metro taxpayers by not spending a single dollar that could be spent elsewhere on our core priorities like education and public safety,” he said. Mayor John Cooper. “Doing nothing was not a legal option for us, and renovating the existing stadium has proven financially irresponsible, so we are proposing a new stadium that is paid for by the team, the state, tourists and spending around the stadium – not by your family.”

In addition, the team agrees to waive $32 million in bills owed by the city for construction and maintenance performed at Nissan Stadium over the past four years. As part of the project’s total budget, the team is also agreeing to repay the remaining $30 million in bonds owed at Nissan Stadium. This represents $62 million in additional unfunded obligations that were relieved as part of the agreement.

The proposed stadium will be built directly east of Nissan Stadium on land that currently has parking. As part of the proposal, Metro will regain control of more than 66 acres of land, including the site of the current Nissan Stadium. The land that would have been surface parking for the next 17 years can now serve Nashville with a large park, green roads, affordable housing, a multimedia street, local businesses, and more—all without selling any public land.

“I am grateful to Amy Adams Strink, Burke Neahill, and the entire Titans organization for their commitment to Nashville,” he added. Major Cooper. “Resident tax money can go to essential city services because the Giants have stepped up to cover ongoing future maintenance work for the new stadium. I also want to thank Governor Lee and our partners in the state legislature for appreciating the Titans’ massive economic contributions. Together, we make sure the Giants stay in Tennessee for generations to come.”

“When my dad brought this team to Tennessee 25 years ago, I don’t think he could have imagined a better home for our organization,” he said. titans dominant owner Amy Adams Strength. “The way Tennessee people embrace this team as their own is truly something special, and I am delighted that with this new agreement, we will cement our future here in Nashville for another generation.”

Funding for the new stadium comes from four separate sources of income, which are detailed below. Titans, NFL and Personal Seating License (PSL) sales combined represent the largest source of funding for the new stadium. General commitment bonds are not part of the offering, and zero dollars are required from Metro’s operating budget.

Funding sources for the new stadium:

1) Football related sources: Titans, NFL (subject to final NFL approval), and PSL sales;

2) the state: a one-time contribution conditional on the construction of a new closed stadium;

3) Hospitality: Tourists and visitors by levying a new 1% hotel/hostel tax on the construction of a new closed stadium; And the

4) Playground/Campus: Sales and use taxes collected on the playground and on the campus.

840 million dollars For the new stadium and any construction overruns that will come from Titans, NFL and PSL sales. $500 million It will come from a one-time state contribution. Residual 760 million dollars It will come from the revenue bonds issued by the Metro Sports Authority to be repaid through the revenue streams described above, all of which, according to state law, can only be used for this project or other stadium-related costs.

The Titans agreed to maintain and support the lease term, and Metro will own the stadium when the lease expires – creating billions of dollars in assets for the city.

“The new Nashville stadium will be a game-changer for the community, enhance the national and international reputation of our great city and state and deliver world-class events to our doorstep that could not have been dreamed of 25 years ago,” he said. Titans President and CEO, Neil Burke. “We couldn’t be more appreciative of Mayor Cooper’s commitment to prioritizing Nashville taxpayers and his vision for a bold future on the East Bank. We look forward to discussing these terms with the Metro Board and Sports Authority and listening to our community neighbors as this process continues.”

“I’m glad we’re at this point,” he said. Council Member Bob Mendes, Chairman of the East Bank Special Committee. “After two years of negotiations, there is now a proposal being shared with the community and council. I appreciate the mayor and the Giants’ leadership of a transparent process to help us all learn more about the proposal.”

The new stadium will be home to up to four Tennessee State University home games each year, and TSU will have a designated locker room on the facility. TSU will not pay any rent Under this new deal.

Venue Solutions Group (VSG) will submit a full report to the Metro Council of their findings detailing the methodology and approach by November 1. A summary of their preliminary results so far was provided to Mayor Cooper on Friday, at his request.

The new lease will run for at least 30 years, and the new stadium could be ready as early as the 2026 NFL season.

The giants agreed to cover any excesses in construction costs.

The Titans will expand their existing impact programs and launch a new community benefits platform with economic inclusion, small business and workforce development and direct support for community priorities. This plan will be detailed on Thursday, October 20th.

Local businesses, goods and labor in construction contracts and vendors will be prioritized.

Infrastructure costs related to the stadium and the demolition of the old stadium were included in the deal.

The new stadium will also feature other iconic, world-class events taking place right in the backyard, such as the CMA Fest, concerts, and potential major sporting events such as the Super Bowl, NCAA Playoff Games, WrestleMania and more.

Learn more about the stadium project at TennesseeTitans.com/NewStadium

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