Sports authority board hears stadium progress; schedules Jan. 8 meeting on covenant tweaks

Bill Payne, city engineer, told the sports authority board that construction on the new stadium is progressing and that the project remains on track for an April 14 first pitch.

“We will absolutely be ready,” Payne said, describing ongoing work including field installation, painting of interior steel, installation of a standing seam roof, handrail and concourse finishes, and elevator installations across multiple buildings. He said a modular team store is being fabricated off-site and will be installed on the site.

Payne summarized the authority’s recent financial reporting. The consolidated statement showed assets of 78,000,000 and liabilities of 97,000,000, producing a reported fund balance of negative 18,000,000; Payne said the gap is primarily a timing difference between capital improvement project accounting and asset reporting and that the presentation format will be adjusted going forward. He pointed the board to a condensed budget page showing encumbrances and percentages used: the stadium budget is about 76% used and the West 26th Street public-infrastructure line shows roughly 58% completion.

On spending and reimbursements, Payne said about $1,700,000 has been spent or reimbursed for West 26th infrastructure work across general fund, stormwater and wastewater lines, and described site-preparation as a $10,000,000 budget line with roughly $6,700,000 in approved draws and about $3,300,000 remaining. He said team-supplied items show $5,100,000 in approved draws, $5,700,000 in request notices/obligations, and roughly $8,200,000 of items still being negotiated (office furnishings and end-stage items).

Payne also reported on contract equity goals: the project set a 30% Disadvantaged Business Enterprise (DBE) participation target and is currently at 22.6% participation, unchanged from the last report; he said remaining opportunities to increase DBE participation are shrinking as fewer contract dollars remain.

On site reuse and agreements, Payne highlighted reuse of existing on-site concrete as stacked slab walls under a brownfield agreement rather than hauling material away. He confirmed the team store and a neighboring 'shed' structure involve multiple property owners: the red masonry 'powerhouse' building is on sports-authority property, while portions of the shed are owned by Pipe Properties. Payne said the team operates the store via a lease from Pipe Properties and cited a closing document from the Tennessee Department of Revenue Commissioner allowing sales taxes from the store to be used toward bond proceeds for the project.

Payne described a requested amendment to recorded covenants and restrictions affecting a small area adjacent to the stadium’s left-field wall. He said New City Properties asked for a minor modification to accommodate an overhang in their building design; the change does not alter property lines or the stadium’s use, and the recorded declaration does not allow air rights, so the amendment would be limited in scope and intended only to permit a designed overhang that would not be noticeable at ground level. Payne said staff will present amended declaration documents, drawings and maps at a special called meeting on Jan. 8 at 10:30 a.m. to allow the developer to proceed with permitting on an accelerated schedule.

Board members asked clarifying questions about whether the 76% figure represented committed encumbrances or completed work; one member noted encumbrances are not the same as completed construction, and Payne confirmed the report includes encumbrances to show upcoming obligations. A board member also asked whether the covenant change would affect the stadium completion timeline; Payne said the amendment would not affect stadium construction and reiterated the April 14 timeline for first pitch.

The board confirmed attendance for the Jan. 8 special meeting. Payne closed the item by acknowledging staff and outside representatives working on the project, naming Clay Oliver and owner's representative Jeff Spava among those assisting with delivery.

Next steps: staff will bring amended covenant documents, drawings and reimbursement/draw details to the Jan. 8 special meeting for board review before any formal action on the covenant revisions.