What's still needed to approve Nashville’s MLS stadium — and why the Metro Council could say no | Analysis

If you were falsely under the impression that Nashville’s Major League Soccer stadium proposal was decided last year, you can probably be forgiven.  

After all, the Metro Council voted 31-6 in November to signal support for a city-financed stadium at Nashville's fairgrounds. One month later, MLS awarded Nashville an expansion franchise, in part, because a deal for a $275 million soccer-specific stadium project seemed secured.

Nashville soccer fans had every reason to cheer.

But today, things are far from certain as the council prepares to take up four pieces of legislation over the next six weeks that will decide the project’s fate and perhaps the future of MLS in Music City.

What's left on the agenda?

One bill, which Mayor David Briley's administration is expected to file this week, would demolish existing structures at the fairgrounds and adopt a ticket tax for games at the new stadium to help pay off project debt.

A second would rezone the fairgrounds property. A third would approve a ground lease for a much-debated private development piece of the project. And a fourth proposal would issue $50 million in general obligation bonds for fairgrounds upgrades and infrastructure work.

New agreements:Nashville Sports Authority signs off on agreements for MLS stadium at fairgrounds

Ground lease:Nashville fair board approve MLS stadium ground lease at fairgrounds

What's happened since city won MLS franchise?

Each is required because of a major caveat on the council's action in November. Although the council authorized $225 million in revenue bonds, it was contingent on these future agreements being approved by the council. 

At the time, these details seemed like mere formalities, particularly after Nashville landed an MLS franchise. But much has changed politically in the eight months that have passed:

• Mayor Megan Barry, who had partnered with Nashville Soccer Club owner and billionaire businessman John Ingram for the MLS stadium project, resigned in March following a sex scandal with her former police bodyguard. Although Briley is now pushing for the stadium, he's untested when it comes to getting a major project approved by the council.
• The city underwent a tight budget process this spring that included shorting public schools nearly $40 million less than what they asked and reneging cost-of-living pay increases promised to Metro employees. Funds for these priorities aren't from the same pot as the stadium's bond, but that doesn't change the political complications that come with adding more city debt amid the budget situation.
• Barry's resignation triggered a special election for mayor, and now a special election for vice mayor, that put the stadium back under the microscope. Critics of the project, led by longtime fairgrounds backers and the council's conservative bloc, have looked to seize on a climate of uncertainty. That includes advocating that the stadium instead be built on land Metro owns in MetroCenter — an idea that the Ingram-led ownership has said they aren't interested in, and one that they say would cost Nashville its team.

What's been approved so far?

Last week, the soccer stadium received the nods of approval it needed from the Metro Board of Fair Commissioners and the Nashville Sports Authority. A stadium operating lease and development agreement are among items that were signed off.

Their actions effectively kicked the stadium issue back to the council. The ordinances will head to the council for a first of three votes on Aug. 7, putting it on a timeline for everything to be approved on Sept. 4. 

Briley's administration is now set for a critical stretch that will decide whether the overhaul at the long-disputed 117-acre fairgrounds happens. The mayor's office is bracing for a fight, and so is a team of lobbyists working for Ingram.

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In the mayor's corner remains Chief Operating Officer Rich Riebeling, an original architect of the stadium deal under Barry, who is still in place under Briley despite announcing his plans to depart the mayor's office in the coming weeks.

Why some still have questions?

Some council members still have questions about the stadium, as evident by a special council Codes, Fair and Farmer's Market Committee meeting earlier this month. 

Tanaka Vercher, the council's Budget and Finance Committee chairwoman, even compared the fairgrounds issue to the cloud of uncertainty surrounding Nashville General Hospital, which was briefly targeted by Barry for closure before she quickly retreated. "Here we are again," Vercher said.

Most criticism is directed at the expensive price tag. The ownership group would pay $25 million up front and contribute around $9 million annually in rent to pay off the debt load accumulated by the city.

Others have questioned how existing fairgrounds events such as flea markets, auto racing and an annual state fair can co-exist with a busy slate of MLS games. That includes questions about parking accommodations. 

Under the plan, the fairgrounds' existing expo centers and other facilities are to be rebuilt on a separate portion of the property. The team would be required to conduct good-faith efforts to accommodate the schedules of the traditional events.

Other council members are awaiting a community benefits agreement between the ownership group and union and community leaders. The agreement is still the subject of negotiations.

It all sets up a definitive month for MLS in Nashville. 

Here's four things the council needs to approve for the stadium to be built. 

1.Demolition, ticket tax ordinance

If there's a make-or-break ordinance for the project, this is probably it.

The reason: Unlike the other bills, this bill requires 27 votes in the 40-member council. That's a higher bar than a simple majority.

Making that bar more difficult: the council could be down two members following the Aug. 2 election. Councilwoman Karen Johnson is running unopposed for Davidson County Register of Deeds. It's unclear when she will step down from the council.

There's also an election for vice mayor, with council members Jim Shulman and Sheri Weiner the frontrunners. The winner would have to leave her or his council seat. (It's possible the August race will not produce an outright winner and the race continues to a runoff in September.)

The ordinance would demolish the aging expo center and other halls at the fairgrounds to clear the way for the stadium, with plans to rebuild the facilities on another location on site.

It would also enact a $1.75 tax on every ticket sold at the stadium that would go toward debt retirement that would increase over time.

2. Rezoning ordinance

This would would rezone the land use at the fairgrounds to accommodate 900 units of housing, a mixed-use development including a hotel, and a 32,500-seat soccer stadium.

Before it heads to the council, the rezoning will go before the Metro Planning Commission next month for a vote on whether to recommend the changes.

Like any zone change, the fairgrounds rezoning will require public hearings at the planning commission and council.

3. Private development ground lease

This ordinance, still being drafted by Briley's administration, would lease 10 acres of land to team owners for the private development component. This would be in addition to around eight acres used for the stadium.

The plan to lease public land for private development has been perhaps the most debated part of the project. Ingram and the club have said the private development is a critical piece of the stadium that would enhance gameday experience for fans.

The private development would be overseen by the prominent Turner family of Nashville, which includes Steve Turner and son Jay Turner of the real estate development firm MarketStreet Enterprises. The Turner family are minority owners of Nashville's MLS franchise.

4. $50 million in GO bonds resolution

The plan calls for an additional $50 million in general obligation bonds, half of which would go toward fairgrounds infrastructure upgrades, and the other half new fairgrounds buildings.

Unlike the other three bills, this proposal will be a resolution that requires just one reading. It will be filed to track with the other three ordinances and be voted on Sept. 4.

Reach Joey Garrison at 615-259-8236, jgarrison@tennessean.com and on Twitter @joeygarrison.