As Nashville Racetrack Deal Faces Narrow Deadline, 3rd Lawsuit Filed Over Approval Vote

The lawsuit tries to stop a state law making it easier for the Nashville racetrack renovation to pass the Metro Nashville Council.

By Adam Friedman [Tennessee Lookout -CC BY-NC-ND 4.0] –

As a plan to renovate the Nashville Fairgrounds Speedway faces a tight deadline at the Metro Council, a third lawsuit dropped to stop the state from making it easier for the deal to pass. 

A group of Nashville residents living in the neighborhoods surrounding the track filed a suit Monday, joining the Metro Nashville Legal Department and a group of Metro Nashville Council members in trying to block a new state law lowering the votes needed to pass the renovation plan from 27 to 21 of the 40-member body. 

The lawsuit filed argues that state lawmakers violated a state constitution provision preventing them from passing laws specifically targeting a locality. It’s an argument similar to those made by the council members and legal department. The group hopes the courts will enjoin all three lawsuits, providing a more robust community standing.

The state law, passed earlier this year, is an attempt to supersede a Metro Nashville Charter amendment requiring 27 votes for any changes made to the fairgrounds speedway and make it easier for the renovation plan to pass in the final days of this Metro Council term. Proponents of the deal would like to pass it before the next council and a new mayor come to office. 

The council term expires at the end of August, while the racetrack deal can in all likelihood only be heard after July 25, meaning it it would require a special called meeting from Vice Mayor Jim Shulman to pass the deal. At the same time, any court ruling blocking the new state law could invalidate a council vote on the racetrack plan that doesn’t receive 27 votes.

Wally Dietz, the Metro Nashville Legal Director, said he’s working with state attorney general’s office to speed up the hearing dates in hopes of getting a court ruling before the council’s final meeting in August.

“If there isn’t a ruling and the plan gets between 21 and 26 votes,” Dietz said. “we’ve discussed with Vice Mayor Jim Shulman declaring the vote is only valid pending the court decision.”

Publicly funding and state preemption

Sen. Jon Lundberg, R-Bristol, sponsored the state legislation after lobbying from Bristol Motor Speedway, a subsidiary of Charlotte, N.C.-based Speedway Motorsports LLC, that would oversee the renovation and running of the new facility. 

Racetrack advocates argue the city wrongly interprets the charter amendment and that it should take 21 votes anyway to pass the deal. 

The renovation has faced opposition from some council members over the project’s publicly funded aspect, especially two months after the council approved $1.26 billion in taxpayer funding for a new NFL stadium. The vote over that deal was 25-11, hinting there might be less than 27 votes for a racetrack renovation. 

To help fund the project, the state and the Nashville Convention & Visitors Corporation have pledged to provide $34 million in taxpayer money for the new racetrack. Bristol then wants the Metro Nashville Sports Authority and council to issue bonds to cover the rest of the project cost, putting taxpayers on the hook if the new racetrack doesn’t generate enough revenue under any potential deal. 

The latest estimates put the project cost at around $100 million.

Despite opposition from business and neighbors surrounding the racetrack, as well as studies showing government investments in sports facilities don’t bring a full return on the expense, Gov. Bill Lee said Tuesday he supports the Bristol Motor Speedway plan because “tourism gets a big return in Tennessee.”

“I think that economic activity in the region is important, and tourism is a huge part of what drives the economy in Tennessee. This is obviously a big tourism issue for the state and for the community, so that’s why we support it,” Lee said.

Running out the clock

Procedural maneuvers and the pending lawsuit could stop the deal from passing. 

By law, the Metro Nashville Council can only vote on the renovation plan after a public meeting held by the council member representing the fairgrounds. 

Council member Colby Sledge scheduled a meeting for July 25 but by doing so has prevented there from being enough scheduled council meetings left to pass the deal before the term expires at the end of August

There are two council meetings on the schedule in August, but Shulman could call a special-called meeting to get the deal over the finish line. 

Note: Tennessee Lookout Senior Reporter Sam Stockard contributed to this report.