If Metro officials plan to build a new convention center anytime soon, they’ll first have to shift at least $11 million of expenses back to the city’s general fund.
The two-cent hotel/motel tax dedicated to operations of a new convention center is now going largely to the city’s subsidy for the Sommet Center. Other agencies receiving part of that $11 million pot are Municipal Auditorium, Opryland, the Country Music Hall of Fame and the Metro Transit Authority.
Metro Finance Director Rich Riebeling says it makes sense to use that money instead of setting it aside since operations of any new convention center would be several years off.
“Ultimately, when we come to the Council with a plan to finance the entire project, we’ll have to answer all these questions, as to where all the money’s coming from, but until that time, we’re going to use a portion of it for some of these other needs of the community.”
There is an additional $17 million in new tourist taxes that are being collected and can only be spent on the new convention center. The city has collected $7 million so far.
Riebeling says the combined taxes would be enough to pay back the $600 million in debt the city would take on plus the cost of operating the building. Riebeling calls it a viable project. Mayor Karl Dean has made it a priority.
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Hotel/Motel tax usage as proposed for 2009 by Mayor Karl Dean:
Convention Center Subsidy – $800,000
Sommet Center Subsidy – $7.4 million
Municipal Auditorium Subsidy – $870,000
Farmers’ Market Subsidy – $260,000
Regoinal Transit Authority – $760,000
Metro Transit Authority – $500,000
Sister Cities – $40,000
Partnership 2010 – $300,000
Nashville Sports Council – $100,000
Adventure Science Center – $200,000
Country Music Hall of Fame – $100,000
Opryland Tourist Development Zone – $400,000
Arts Commission Grants – $150,000
*Information provided by the Metro Finance Department
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