Yesterday, I wrote that council members Barbara Swearengen Ware and Kemp Conrad had called the funding plan for the fairgrounds redevelopment project "pie in the sky" and "half-baked," respectively.
Conrad asked me to clarify his position on the fairgrounds proposal, saying he thought the plan half-baked because the process isn't working:
"I like the idea of private development paying for public improvements. I like the development team and their vision for the project, their track record and their diversity.
What is 'half baked' is a project totally predicated on $100 million in retail sales – yet we have just now receiving the retail study (which I recommended months ago) that
A) will confirm or not if this level of retail sales is even feasible – especially in this economy, and
B) where will these sales come from? I.e. Are we cannibalizing existing retail dollars that are being spent in Memphis? Or are they net new dollars that are currently being spent in Mississippi or Arkansas?
One has to look no further than the Winchester corridor – a carcass of once vibrant retail – now dead due in large part to retail spending migration to Wolfchase once it was built.
Also, if the majority of the $100 million are Memphis sales tax dollars now – the sales tax dollars these sales generate will then be diverted from the general fund (and we have a deficit as I’m sure you know) to be plowed into the public improvements."
The council is expected to hold a three-hour evening meeting in the near future to discuss the project.
Showing posts with label fairgrounds. Show all posts
Showing posts with label fairgrounds. Show all posts
Wednesday, February 18, 2009
Tuesday, February 17, 2009
Fairgrounds Update
Mayor Willie Herenton is in front of the city council's economic development committee right now, talking about the Fairgrounds development project.
"I'm growing weary of getting all of these innuendos. The press has gotten involved. I keep hearing there are councilmembers ... concerned about development fees," said Herenton. "At the end of the day we're going to do this project or we're not.
"What are your issues?"
Under the proposal, the developer, Henry Turley (full disclosure: Turley is one of Contemporary Media's stockholders) is set to get $9.5 million in development fees.
Council member Shea Flinn asked that the mayor take the focus off the stadium and onto the Children's Museum of Memphis.
"It needs to stop being about a stadium. People in this city are worn out about stadiums and sports authorities," he said. "The guiding light has to be the children's museum. ... It already brings disparate parts of our community together right there."
Herenton said he heard what Flinn was saying but that the Liberty Bowl Stadium is "a horrendous challenge" because of the ADA requirements that haven't yet been met.
"We're not going to build a new one, but we've got to improve that stadium and we've got to do it in concert with the ADA requirements," Herenton said.
Under the current proposal for the fairgrounds redevelopment, $50 million in funding will be generated by the developer from retail sales.
Council members Barbara Swearengen Ware and Kemp Conrad both called that plan into question:
"I hate to use the terminology, but it sounds a little pie in the sky," said Ware.
"It's predicated on $100 million in retail sales, but the economy is not good right now. People are not spending money," Conrad said, calling the proposal "half-baked."
Herenton then said that based on what he was hearing from the council, the project was not ready to be moved forward and that he would instead focus on the stadium upgrades required by the department of justice.
The council plans to schedule a three-hour meeting to discuss the fairgrounds proposal in detail.
"I'm growing weary of getting all of these innuendos. The press has gotten involved. I keep hearing there are councilmembers ... concerned about development fees," said Herenton. "At the end of the day we're going to do this project or we're not.
"What are your issues?"
Under the proposal, the developer, Henry Turley (full disclosure: Turley is one of Contemporary Media's stockholders) is set to get $9.5 million in development fees.
Council member Shea Flinn asked that the mayor take the focus off the stadium and onto the Children's Museum of Memphis.
"It needs to stop being about a stadium. People in this city are worn out about stadiums and sports authorities," he said. "The guiding light has to be the children's museum. ... It already brings disparate parts of our community together right there."
Herenton said he heard what Flinn was saying but that the Liberty Bowl Stadium is "a horrendous challenge" because of the ADA requirements that haven't yet been met.
"We're not going to build a new one, but we've got to improve that stadium and we've got to do it in concert with the ADA requirements," Herenton said.
Under the current proposal for the fairgrounds redevelopment, $50 million in funding will be generated by the developer from retail sales.
Council members Barbara Swearengen Ware and Kemp Conrad both called that plan into question:
"I hate to use the terminology, but it sounds a little pie in the sky," said Ware.
"It's predicated on $100 million in retail sales, but the economy is not good right now. People are not spending money," Conrad said, calling the proposal "half-baked."
Herenton then said that based on what he was hearing from the council, the project was not ready to be moved forward and that he would instead focus on the stadium upgrades required by the department of justice.
The council plans to schedule a three-hour meeting to discuss the fairgrounds proposal in detail.
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