Johnson City debates 10-year Freedom Hall lease with ETSU as public commenter cites $605,300 FY25 deficit

A public commenter urged the Johnson City Board of Commissioners on Nov. 6 to order a business review of Freedom Hall after citing multi-year operating deficits, while staff described a proposed 10‑year license agreement with East Tennessee State University that would commit the university to $1.6 million in audiovisual improvements.

Tricia Courant, speaking during the public‑comment period, said the city’s financial documents show a $605,300 operating deficiency for Freedom Hall in fiscal 2025 and earlier shortfalls she reported as $458,000 in fiscal 2023 and $410,000 in fiscal 2024. "$605,300 — that's the operating deficiency," Courant said, and she urged the commission to direct staff to “initiate a business review of Freedom Hall toward the goal of creating a plan to get it to break even.”

Assistant City Manager Steve Willis described terms discussed with ETSU: a 10‑year agreement with a 4% annual escalator on rental charges, escalators on setup/tear‑down fees, and an allowance for ETSU to sell naming rights for the arena’s inner bowl (the building name Freedom Hall would remain). Willis said ETSU has agreed to use naming‑rights revenue to fund approximately $1.6 million in video and audio upgrades; the city would have use of that upgraded technology for a set number of days each year, and ETSU would provide advance notice if it did not need the auxiliary gym so the city could rent it to others.

Willis also said revenue estimates cited in the agenda packet (previously described as $90,000–$120,000) vary by season because they depend on the number of home games and a percentage of concessions receipts, as well as auxiliary‑gym rentals. He confirmed that part of Freedom Hall’s shortfalls historically stem from community events that do not generate revenue (for example, Fourth of July fireworks) and from school and community uses that do not pay market rental rates.

Commissioners discussed the local market for live events, competition from private venues and casinos that can guarantee artists a flat fee, and limitations of a 50‑year‑old building that would require substantial capital investment to attract larger touring acts. Willis recalled a prior consultant review that concluded a private operator would still likely require about a $600,000 annual subsidy under then‑current conditions.

During the meeting the commission voted to approve the consent agenda, which included the item on a proposed 10‑year license with ETSU after discussion (roll call recorded). No separate recorded vote on the ETSU license terms appears in the transcript; staff described ongoing negotiations and the agreement terms presented to the commission.

Why it matters: Freedom Hall is a city‑owned multiuse facility that hosts university athletics, community events and regional tournaments. The commission must weigh cultural and economic benefits — including hotel, restaurant and sales‑tax impacts from large events — against recurring general‑fund subsidies and potential capital needs.

What was not resolved: The vote recorded in the transcript approved the consent agenda as presented. The transcript does not include a standalone final signed contract or detailed financial model showing whether the proposed ETSU agreement will close the historical operating gap; Courant’s request for a business review was an appeal to the commission rather than a recorded directive.

Quotes: "$605,300 — that's the operating deficiency that Freedom Hall recognized in fiscal 2025," Tricia Courant said. "Let's do the same for Freedom Hall. We need to protect as much of our general fund as possible." Steve Willis said the $90,000–$120,000 figure in the packet varies by season and depends on game counts and concessions percentages.

Next steps: Courant asked the commission to direct staff to perform a business review. Commissioners and staff discussed the facility’s market challenges and recent efforts to attract profitable niche shows; no additional directive to initiate a formal business review is recorded in the transcript.