Nashville Chamber Supports Plans for MLS Stadium

On November 7, the Metro Council voted to approve the $225 million project to build a Major League Soccer stadium. 

Finalizing these plans is the first step to securing an MLS team here in Nashville. We are competing with 12 other cities for the team, and this plan is crucial to keeping us in the running.

The resolution that the Council approved authorizes the Metropolitan Sports Authority to issue up to $225 million in revenue bonds. We support this plan, which is similar to prior infrastructure projects that have led to quality of life improvements and enhanced economic development such as: Nissan Stadium, Bridgestone Arena, Music City Center and First Tennessee Park.

We are grateful for the support of the community in achieving this first step.

Now, we need your help again. 

As a valued member of the community, you are invited, and encouraged, to participate in a survey regarding the potential team and stadium project. Your input and feedback will be essential in assisting the potential ownership group in their long-term planning efforts. 

Please click here to participate in the survey.

Note: Please do not use the “BACK” button in the survey.  For more information, please contact CAA ICON, the firm that is assisting the ownership group in refining the soccer-specific stadium plan, at NashvilleMLS@caaicon.com. 

This plan has a lot of moving parts, so if you’d like more information on how we got to this point you can read more details below.

On October 2, 2017, Mayor Megan Barry and the MLS2Nashville organizing committee presented a private-public proposal to construct and maintain a 27,500 seat Major League Soccer (MLS) stadium at the Fairgrounds Nashville. On October 12, the Metropolitan Sports Authority approved the plan. On October 18, the Board of Directors of the Nashville Area Chamber of Commerce adopted the attached resolution in support of Resolution No. RS2017-910. On November 7, Metro Council approved the resolution.

Resolution No. RS2017-910 provides:

  • The construction of the stadium is anticipated to cost $250 million.
  • Sports Authority will issue revenue bonds not to exceed $225 million over a 30-year term.
  • The MLS ownership group will commit to $25 million in cash for construction of the stadium.
  • Metro Nashville commits to $25 million in general obligation bonds to support public infrastructure associated with the stadium that will also generally benefit the overall redevelopment of the Fairgrounds. 
  • The MLS ownership group will be responsible for lease payments for the facility used for debt service of the bonds, estimated to be $13 million annually. 
  • Funding for the debt repayment will be a combination of lease payments, state and local sales taxes collected at the stadium, (estimated to be $15.1 million annually), and a ticket tax of $1.75 to be assessed and directed towards repayment of the bonds.  In years six and seven the ticket tax will increase by 50 cents to a total of $2.25, after year seven the tax will increase by another 25 cents to $2.50 to offset the cost of long-term capital expenses for the stadium
    • If sales and ticket tax revenues are below $4 million for the first five years of operation, or $3 million in years 6-10, Metro agrees to contribute the difference from non-tax revenues, which means fee revenue instead of revenues generated from property and sales tax. 
  • The MLS ownership group will be responsible for any cost overruns associated with the construction of the stadium. 
  • Metro Nashville will own the stadium.
  • As an inducement for the MLS ownership group to enter into the lease for the use of the stadium, the Metropolitan Government will enter into a 99-year no-cost lease of approximately ten (10) acres adjacent to the proposed stadium for development.

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