Committee approves intergovernmental agreement to implement convention-center refinancing and $300M East Bank investment

The Budget & Finance Committee voted to approve resolution 20 26 21 35, authorizing an intergovernmental project agreement between the Metropolitan Government of Nashville and Davidson County and the Convention Center Authority to implement recent state legislation that extends convention-center revenue streams and funds East Bank infrastructure.

Janine Reed, Metro director of finance, told the committee the law extends the Tourism Development Zone (TDZ) through 2043, extends the campus sales-tax diversion in some cases through 2058, and authorizes other tourism-related taxes through the life of future convention-center bonds. Reed said the statute also permits a $300,000,000 cash transfer of available CCA cash to the East Bank Development Authority to fund infrastructure needs including Marine Drive, James Robertson Parkway, an east-side pedestrian bridge, utilities and parks. “East Bank Development Authority will receive 300,000,000 in available CCA cash to fund the infrastructure needs,” Reed said.

Reed said implementation steps include prepaying the Omni incentive (thereby releasing Metro’s backstop), refinancing the 2010 bond series, exiting the Build America Bonds structure, transferring funds into a trust for the East Bank, and issuing initial expansion bonds in the $350–$375 million range to fund land acquisition and predevelopment (30-year bonds maturing in 2056). Reed said the plan requires no new taxes and preserves Metro’s bonding capacity while creating a convention-center operating reserve and a $20 million capital reserve.

Tom Cross of Metro Legal summarized the ordinance and the resolution the committee considered: the ordinance aligns local ordinances with state law on tax duration and permitted uses, and the resolution approves the intergovernmental agreement for the bond issuance and debt-restructuring steps. Reed and Cross said the administration’s analysis projects roughly $44 million in net direct annual benefit beginning in 2033 and about $500 million in direct benefit over the 2033–2043 TDZ extension window, driven by avoided debt service, preserved bonding capacity, and new revenues reserved for public-safety and event-related needs.

Council members pressed for details during Q&A. Councilmember Allen asked whether hotel-tax streams for the convention center are distinct from the Titans deal; Reed clarified the total hotel tax is 7% and that separate portions fund different uses. Councilmembers raised concerns about ensuring funds freed by retiring Metro’s backstop would be used for citywide priorities (for example, affordable housing) rather than concentrating downtown; Reed said the administration is developing bonding and capital-spending metrics and that an affordable-housing bond is under consideration.

The committee approved the resolution by voice vote. The intergovernmental agreement implements the mechanics Reed described: CCA will prepay the Omni incentive, refinance bonds, and transfer the cash for East Bank infrastructure; the CCA will issue expansion bonds and manage reserves consistent with state law and the agreement.