NOT 1 million new visitors
The Music City Center Coalition appears to have pulled a figure of 1 million new visitors out of the air. A 2004 KPMG study ordered by Metro’s independent office of Internal Audit estimated total convention and tradeshow visitors to be 262,500 after 5 years of operation of a new or expanded convention center. Convention and tradeshow attendance at the time the study was done was estimated at 170,000, meaning Nashville would benefit from only about 92,500 new overnight visitors. Are 92,500 new tourists worth a $1 billion investment?
SOURCE: Metro Nashville Internal Audit
Current convention center NOT paid for entirely by tourism taxes
When Nashville Convention Center was constructed in 1985, major funding (about 20% of the required $50 million) came from a federal Urban Development Action Grant. Private investors paid all costs to construct and operate the headquarters hotel.
SOURCE: Metro Nashville Internal Audit
NOT $700 million in new spending
The Music City Center Coalition cites $700 million in new spending. In 2004, the KPMG study estimated new direct spending would be $60.8 million to $137 million, which is significantly lower than the $700 million in new direct spending estimated by the MCCC.
SOURCE: Metro Nashville Internal Audit
NOT $65 million in new sales taxes
The Music City Center Coalition says that a new convention center will generate $65 million in state and local sales taxes. The KPMG study found that total sales taxes — including those we can attribute to the existing convention center — would be about $22 to $31.7 million annually. Of this amount only $5 to 7 million would be local option sales tax.
SOURCE: Metro Nashville Internal Audit
NOT $10 million for public schools
The Music City Center Coalition promises $10 million a year for public schools. In fact, funding for public schools is at risk to convention center costs. Imagine the impact of taking $10 million a year and investing it directly into public school needs.
Hotel will NOT be privately financed
Dallas recently financed a convention center hotel using almost all public dollars. Nashville is likely to have the same experience as the private investors shy away from the hotel and lodging business.
NOT mandatory to spend tourist tax
on new convention center
Revenues from the 3¢ “tourist tax” do NOT have to be spent on a new convention center. Only 2¢ of the 3¢ tax has been earmarked — for ANYTHING related to tourism or entertainment. Money already collected is currently spent on Sommet Center’s Predators contract, overtime expenses for off-duty police directing traffic, and more. It could be spent on expanding the current convention center, building a new tourist attraction, or enhancing existing venues. Or, the earmarked money can easily be redirected through a request from Metro Council to the state General Assembly. We will NOT lose the revenue if we don’t spend it on a new convention center.