Senate approves framework to allocate Tourism Development Zone surplus, including $300M appropriation to East Bank Authority

Leader Johnson introduced and the Senate passed Senate Bill 16 72, a measure to set a framework for allocating excess revenues generated by a Tourism Development Zone (TDZ).

Johnson said the statute creating the TDZ did not anticipate substantial excess funds and the bill defines how those excess revenues may be used, establishes a joint capital tourism board, and provides for funds to be administered through the Comptroller. The sponsor described the bill as providing for a $300,000,000 appropriation from TDZ excess funds to an East Bank Authority connected with a planned new football stadium and directing the greater of $30,000,000 annually (increasing 3% per year) or 40% of excess revenues to event recruitment and other authorized purposes.

Senator Oliver and other members raised concerns that Nashville residents and nonprofits that regularly use the convention center also generate revenue and urged that allocations consider local needs such as infrastructure, childcare and affordable housing. Leader Johnson and others said Metro Nashville had asked the state for a TDZ in 2008 and that the state-local partnership produced the convention center; sponsors framed the bill as a continuation of that partnership and a way to direct surplus revenue to public safety, capital improvements and economic programs.

Why it matters: The bill sets a significant allocation framework for hundreds of millions in surplus TDZ revenue and creates a joint board to direct spending priorities. Supporters framed the measure as economic development and stewardship of surpluses; critics warned the board structure and allocation priorities could shortchange local community needs.

The bill was adopted on the floor and the chair declared it passed after a roll-call showing a constitutional majority.