Image Credit: Nashville Fairgrounds Speedway Racing
The Center Square [By Jon Styf] –
The Nashville mayor’s office presented to the Fair Board the tax deal for a $75 million renovation of the Nashville Fairgrounds Speedway in hopes of bringing a NASCAR race back to the site.
The Fair Board will be asked to vote on the lease, term sheet and approval of bonds in early 2023. If approved, it will next go to Nashville’s Metro Council for approval and then the Sports Authority before returning to Mayor John Cooper for his signature.
The 30-year lease with operator Bristol Motor Speedway and the renovation deal leans on a $17 million payment from the state of Tennessee, $17 million from the Nashville Convention and Visitors Corporation and a tax fund that will include sales tax from events and any merchandise or food and drink sales at the speedway.
“Recognizing our obligation to maintain the track, we are leveraging investments from the state, the tourism industry, and facility users to make this a financial success for the city,” Nashville Mayor John Cooper said in a statement. “We can put this landmark back on the national stage. I look forward to working with the Fair Board, Sports Authority and the Metro Council in the months ahead.”
The bill allowing for state sales tax at the venue to be retained to use for the renovation revenue bonds became law July 1 with an estimated impact of $65,400 in tax revenue per year before the renovation with that number growing to an estimated $734,000 per year if a NASCAR Cup series race comes to the fairgrounds. If a race came to Nashville, it would lead to an estimated $14 million in taxable revenue.
The track originally opened in 1904, making it the second-oldest speedway in the country. The track hosted a NASCAR Cup Series race from 1958-84.
Renovations will include expanding the grandstand to 30,000 seats along with adding sound mitigation equipment and features while adding a multi-purpose event facility.
“There is a lot of work ahead of us as we meet with city officials and work with the community to complete a truly comprehensive restoration of the Nashville Fairgrounds Speedway for the enjoyment of future generations,” said Jerry Caldwell, president and general manager of Bristol Motor Speedway. “We encourage race fans to continue to show their support for this special piece of motorsports history.”
The sales tax deal is similar to one passed for the Tennessee Titans at both Nissan Stadium and proposed new $2.1 billion stadium along with Bridgestone Arena (NHL’s Predators), Geodis Park (MLS’ Nashville SC) and minor league baseball stadiums in Nashville, Knoxville and Chattanooga.
Economists have shown that sports stadiums do not bring significant additional spending to an area but instead lead to diverted spending in an area. Economic impact reports, such as one presented as part of this deal, do not take into account the lost spending elsewhere in a state or city when a new venue opens.
The fund to pay the bonds on the project will also include a $1 million annual lease payment from Bristol and $650,000 annual rent from the Convention and Visitors Corp for use of the facility. The bond fund will also receive the first $600,000 of sponsorships at the speedway, 10% of any naming rights deal, 15% of food and beverage sales, 5% of gross revenues, ticket taxes and at least a $103,125 additional annual payment from Bristol.
The project has a $6 million design budget with $2 million from Bristol and $4 million from the Nashville Convention and Visitors Corporation and any overages are set to be paid by Bristol.
About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.
