Nashville Fairgrounds Speedway deal on 'pause' until next mayor, council take office

Cassandra Stephenson, Nashville Tennessean
·4 min read
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Outside at the Nashville Fairgrounds Speedway where supporters for the deal with Bristol Motor Speedway gather for a rally at the Nashville Fairgrounds Speedway in Nashville , Tenn., Tuesday, July 25, 2023.

Bristol Motor Speedway on Tuesday requested a pause in consideration of a proposed deal to renovate Nashville Fairgrounds Speedway until the next mayor and council take office.

The deal's likelihood of reaching a final vote during the current mayoral and council term was slim. District 17 Council member Colby Sledge scheduled the required community meeting about the deal for July 25, leaving two meetings left in the current council term.

The proposal requires three readings to pass. To get it over the finish line before the end of August, Nashville's mayor, vice mayor or council would have to call a special meeting.

"We've got great community support and support in the council. There just simply aren't enough meetings left in the current term for the council to fully consider this, when you factor in the election and all of the other things going on," Bristol Motor Speedway President Jerry Caldwell said Tuesday.

The deal is still on the table, and Bristol is confident it will move forward under the next mayoral administration and Metro Council term, Caldwell said.

"The agreement that came through the Fair Board is still there, (and) we have already, through different avenues, begun conversations with folks that will be potentially coming into office, and we want to make sure that we spend the time sharing the details around this," he said. "We strongly believe that when you look at the facts and get away from any misinformation … around this deal, that we'll get strong support and it makes a lot of sense."

Mayoral candidates have been hesitant toward supporting the deal, with most saying they need more information or leaning toward disapproval. Alice Rolli is the exception — she spoke in favor at a July 26 community meeting and later released a commercial filmed at a rally hosted by Bristol Motor Speedway and community coalition Save My Fairgrounds.

In the meantime, the company will continue reaching out to the community, which has thus far been divided. Racing fans strongly support the deal moving forward, but neighbors surrounding the track have expressed acute concern over the sound, traffic and quality of life impact of bringing NASCAR races back into the heart of their community.

At the community meeting, 42 people spoke in favor of the deal and 38 spoke against. Of the 39 speakers who said they reside in the four zip codes closest to the speedway, 25 people (64%) spoke against the deal.

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Deal details

The proposal would enter Metro into a 30-year lease with Bristol Motor Speedway. The company would oversee around $100 million in renovations to the historic track, including replacing the current grandstand with a 30,000-seat structure, building a sound wall and enhancing the track's infield. Under the agreement, Bristol would bring a NASCAR event back to the speedway every other year and continue other racing events with a limit of 10 race weekends per year.

The project would be fueled by several funding sources:

  • $17 million from the state

  • $17 million from the Nashville Convention and Visitors Corp. (which itself is largely funded by hotel taxes)

  • The remainder in revenue bonds issued by the Metro Sports Authority and paid by diverted sales tax revenue. These bonds would be backed by Metro should revenue be insufficient to cover debt payments.

The Metro-backed bonds play a prominent role in opponents' concerns about the deal's financial prudence for the city.

Nashville is obligated to keep the current speedway in good repair, and one estimate found the facility needs approximately $40 million in maintenance. Bristol would be responsible for construction cost overages and any maintenance costs not covered by diverted sales tax revenues.

Over the 30-year lease, Bristol Motor Speedway and the Nashville Convention and Visitors Corp. would pay Metro roughly $57.4 million in guaranteed revenue through rent and other payments. Metro would also receive the first $600,000 of any annual sponsorship revenues at the facility, with a 1% escalator each year.

Bristol Motor Speedway has already spent roughly $9 million in consulting, planning, design and other costs related to the proposal. Of that, $4 million would be reimbursed as part of construction costs should the deal go through.

This article originally appeared on Nashville Tennessean: Nashville Fairgrounds Speedway deal won't move forward this term