Report: Officials across Tennessee plan to spend more than $1.8 billion on stadiums
As Nashville and Tennessee officials are poised to spend $1.5 billion on a new NFL stadium, the Sycamore Institute released a report on Tuesday showing officials made plans in the last year to spend $1.8 billion in public funds on sports facilities.
"They are generally not very good decisions based purely on economics," said Brian Straessle, director of external affairs for The Sycamore Institute. "It's those other factors that might come into play."
While he said stadium subsidies don't always make sense fiscally, Straessle said they can sometimes make sense due to social and cultural benefits.
"Civic pride and engagement and all that stuff, there's probably some value to the community," Straessle said. "How are you as a policymaker going to weigh that against hard numbers on cost and benefit?"
How much and whether to spend public money on new sports stadiums has been subject to fierce debate in cities across Tennessee, not just in Nashville.
Republican Gov. Bill Lee supported a $500 million bond contribution for a new Tennessee Titans stadium in Nashville. State House Speaker Cameron Sexton, R-Crossville, said he supported the new stadium as it would draw a variety of events and attendees.
$1.5 billion, Tennessee Titans stadium
State and Nashville officials will likely spend more than $1.5 billion on building a new Tennessee Titans stadium, the report said.
Estimates provided to The Tennessean show the project will cost a total of $2.2 billion. State and local officials are set to cover almost two-thirds of the cost with public dollars, while private sources are set to pay just less than one third of the cost.
The new stadium, which would replace Nissan Stadium with an enclosed facility, could be ready by 2026. The current stadium requires $900 million to remain structurally sound until 2039 alongside $1.2 billion in renovations.
Investing in a new stadium could save more money long-term, according to TJ Ducklo, chief communication's officer for the Nashville Mayor's Office.
New Titans stadium: Titans: $2.2B new NFL stadium a better value for Nashville than Nissan Stadium renovations
"Right now, Nashville taxpayers are on the hook for hundreds of millions of dollars of stadium maintenance," Ducklo said. "A new deal would rip up that lease, and make the primary funders of the stadium the Titans and visitors to the stadium."
In this year's state budget, Tennessee lawmakers approved $500 million in bonds for the new stadium. Sales tax revenue from development surrounding the new stadium is expected to cover the costs of the bonds.
$200 million, Bridgestone Arena
State officials promised Bridgestone Arena $200 million in 2021, according to the report.
Officials extended the arena's $10 million annual subsidy, which would have expired in 2029, until 2049. Sales taxes from arena events go toward arena subsidies.
The arena hosts frequent concerts and is home to professional hockey team the Nashville Predators.
$55 million, Tennessee Smokies ballpark
Tennessee, Knox County, and Knoxville officials promised $55 million for a new Tennessee Smokies ballpark, the report said.
The new ballpark would move the Smokies from their old stadium near Sevierville to a new Knoxville stadium.
Local and state officials will use public funding for more than half of the project's cost. Private funds will cover just less than one third of expenses for the $80 million ballpark.
Related: Tennessee Smokies new Knoxville stadium is pushed back a year due to construction delays
$43 million, Chattanooga Lookouts ballpark
Tennessee, Hamilton County, and Chattanooga officials have committed $43 million to a new Chattanooga Lookouts ballpark, the report said. The new stadium would replace the Lookouts' current home at AT&T Field.
Local and state officials plan to cover roughly half the cost with public funding, while private sources will pay for more than one third of the $87 million ballpark. It's unclear who will pay for the final for the rest of the stadium.
The stadium could potentially bring $1 billion of new development to the area, according to the Chattanooga Times Free Press.
$17 million, raceway
State officials included a $17 million grant for raceways in the 2023 budget, according to the report.
While Straessle said the budget failed to name specific raceways, officials likely intended the funds to renovate the Nashville Fairgrounds Speedway in a deal with the Bristol Motor Speedway.
Raceway renovations would cost a total of $75 million, according to city estimates.
If the deal becomes final, the raceway would join the new Nashville SC soccer stadium and the Fair Park in a 117-acre development. Nashville Mayor John Cooper said he hopes the raceway could begin hosting NASCAR events by 2024.
$5 million, CHI Memorial Stadium
State legislators approved a $5 million infrastructure grant for the CHI Memorial Stadium earlier this year, according to the report.
The grant will fund infrastructure work on stadium property and nearby roads, according to the Chattanooga Times Free Press. This will help advance a $200 million project.
The East Ridge stadium is home to minor league soccer team the Chattanooga Red Wolves.
This article originally appeared on Nashville Tennessean: Report: Officials commit $1.8 billion to Tennessee stadium subsidies
