NC clears key hurdle for Bank of America Stadium renovations with 29-year tax extension

Mecklenburg County’s food and beverage tax has been extended by the North Carolina legislature — a move that could open the door to Bank of America Stadium renovations.

The 1% meals tax — which covers prepared food and drinks sold at venues such as restaurants and bars — had been set to expire in 2031 but will now continue until 2060, under legislation approved Wednesday by the General Assembly — Senate Bill 154. Revenue from the tax is used to support hospitality related projects, including stadium renovations.

The extension comes after city officials talked in a private Jan. 31 meeting about a total $1.2 billion project for Bank of America stadium improvements using $600 million in public money, The Charlotte Observer’s news partner WSOC reported. To date, the Panthers and Tepper Sports and Entertainment haven’t commented publicly about intentions to renovate or replace the stadium in uptown Charlotte.

In a statement Thursday, a Tepper Sports & Entertainment spokesperson said the group appreciates the legislature showing support for the hospitality and tourism industry with the tax extension and remained quiet about any renovation plans.

Charlotte City Council member Malcolm Graham, who leads the city’s economic development committee, said the extension Wednesday “will enable us to do forward planning as it relates to travel and tourism and projects that may be associated with that industry.”

State Rep. John Bradford, a northern Mecklenburg Republican who spearheaded legislative extension work, told the Observer Thursday he’s intentionally stayed out of any direct discussions of stadium renovations while lobbying for the tax but that he “knows for a fact” Bank of America Stadium “needs upgrading.”

“This really helps make sure that there’s a mechanism by way of which the town can lean into (the stadium), and so that’s exciting because I think that stadium is a staple, not just to Charlotte but the state and even the region,” Bradford said.

In a statement, the city of Charlotte said the extension was important for the tourism and hospitality industry, “a vital part of our region’s economy.”

“It is important that our community has venues for the games, concerts and other events that help create a vibrant and growing city that delivers services to our residents,” the statement said.

The Charlotte Business Journal first reported the meals tax extension.

Prior attempt

House Bill 408, introduced by Bradford, was an initial attempt to extend the 1% food and beverage tax and a 2% hotel occupancy tax to 2060.

But it ultimately stalled in committee.

Bradford stopped pushing for the hotel occupancy tax to be extended in the 2023 legislative session, he told the Observer previously, but continued to advocate for the meals tax to be extended. The hotel occupancy tax extension could be taken up again in a future legislative session, according to Bradford.

Greater Charlotte Hospitality and Tourism Alliance President Mohammad Jenatian and other tourism leaders told the Observer in May they were lobbying for the bill on behalf of the city.

Charlotte needs to be proactive to keep the Panthers in town and draw high-profile sporting events, such as the NFL Draft and MLS All-Star Game in the future, Jenatian said at the time.

“The question becomes how do we enhance an asset for it to generate more revenues, more tourism for our communities,” he said.

Panthers stadium renovation deal

In a statement Thursday, Charlotte Regional Visitors Authority CEO Tom Murray said the newly improved extension “is crucial for advancing our tourism efforts and will provide us with the means to bond future revenues, enabling the funding of important initiatives.”

“As for Bank of America Stadium, the CRVA has supported substantial investments in the stadium in the past,” he said. “Future investments are part of the city’s ongoing negotiations with Tepper Sports & Entertainment, and we see this extension as a positive step. We are dedicated to enhancing the stadium experience and contributing to the continued growth and success of the Charlotte region.”

Tourism leaders also aren’t the only ones talking about measures to keep the Panthers around.

Speaking at a business executive luncheon in June, Mayor Vi Lyles hailed Charlotte as a “sports city” and said both sides of a public-private partnership to renovate the stadium would need to know how much they’d have to contribute to the project.

“I think as long as we follow our model and keep our values and look at this as an industry that the city benefits from, we’ll be OK,” she said at the event.

In a Thursday statement, the Charlotte Regional Business Alliance called the Panthers and the sports and hospitality industries “powerful economic engines for our region.”

“The Charlotte Regional Business Alliance was a vocal supporter of the meals tax extension, and we will continue to support policies that position the region for greater long-term competitiveness, said Joe Bost, the business alliance’s chief advocacy officer.

Some expressed concerns about the city having enough tax revenue to go around without extending the food and beverage tax amid votes to spend up to $65 million to lure the Western and Southern Open, a tennis tournament, to Charlotte with a new stadium complex and reserving millions for a development at the site of the former Eastland Mall.

“Under the current ‘affordability’ of the tax, there isn’t enough for all three,” Councilman Tariq Bokhari told the Observer in June. “In fact, there isn’t enough for the Panthers by itself.”

The Western and Southern Open ultimately opted to stay in its current home in Ohio, but the Charlotte City Council did approve spending $30 million on Eastland Yards when they finally approved a plan for the long-stagnant property in early October. And it’s possible that more public funding could be requested as the newly approved plan progresses.

In fiscal year 2022, the two taxes brought in a combined $58.2 million for Mecklenburg, according to data from the local tourism alliance. If 2022 numbers persist, the food tax could generate $340.8 million before it was scheduled to sunset in 2031, and the hotel occupancy tax could generate $234 million before it expires in 2038.

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