Bill would direct Nashville TDZ excess revenue to new tourism board, authorize large project spending

Leader Johnson presented Senate Bill 1672 on April 15 to create a joint capital tourism board to allocate excess revenues from Nashville’s Tourism Development Zone (TDZ). He said the TDZ has produced surpluses beyond initial obligations and that current law lacks a clear allocation mechanism; the bill would route funds through the comptroller and authorize one‑time uses including convention center expansion and East Bank infrastructure.

Leader Johnson said the bill does not create new taxes or expand the TDZ’s geographic footprint and that the legislation was drafted with Metro government, the Department of Economic and Community Development and the comptroller. He explained that excess is calculated after required obligations (operating expenses, debt service, annual capital funding and public safety funding) each increase by 3% and described allocation rules for annual set‑asides to attract major events.

Senators pressed whether earlier state contributions (for example, bonds or stadium investments) were included; the leader said prior $500 million stadium funding was not part of this money. Others raised concerns about the new statewide board having a majority of state appointees and about potential uses that could flow to private actors; proponents said the framework was crafted to preserve Metro’s role and meet obligations first.

The committee adopted the finance amendment and recommended the bill for passage to the committee on the calendar.