NASHVILLE — Nearly four years ago, as Tennessee was hemorrhaging tens of thousands of manufacturing jobs, the Metro Council here passed a measure to create a three-mile tax district around a site that will soon open as the most expensive publicly financed complex in the state’s history: a $623 million downtown convention center whose campus stretches the length of more than a dozen football fields.
A keynote of Mayor Karl Dean’s pro-development administration, the Music City Center is nearing its completion alongside a 21-story Omni hotel, for which the city is putting up an additional $128 million. The twin projects are just south of lower Broadway, the province of honky-tonk row — once the city’s seedy skid row, it has since emerged as the pulse of the country music scene.
Although Middle Tennessee already has two convention centers, the Music City Center’s 350,000 square feet of exhibit space is triple the amount of the Nashville Convention Center, which is just a stone’s throw from the Music City Center, and exceeds Gaylord Opryland Resort’s space by more than a quarter. Its 1.2 million square feet in total space positions it among the largest of its kind in the South.
At the time, Mr. Dean admitted that it was “counterintuitive” to pass a costly project on the backs of taxpayers while the state’s jobless rate hit its highest point in decades. Yet with construction costs and interest rates at record lows, the mayor wagered that there was no better time to reap a greater share of convention business, capture new jobs and spawn development in the city’s core. Plus, the taxpayers in this case would be tourists, not residents, since hotel rooms and other types of visitor spending within the three-mile zone would be charged fees that, over time, would pay off the project’s debt.
Project boosters predict that the new center, which has been in planning since the late ’90s, will lure hundreds of thousands more visitors a year to Nashville. “The project is going to create a vitality that just radiates across downtown,” said Ralph Schulz, who leads Nashville’s chamber of commerce. “It shows that we’re really banking on Music City. We think it’ll be a great win.”
Worried that annual visitors will fall far below these estimates, some observers say there is a risk that the project will dip into the city’s budget at the expense of other city services. Butch Spyridon, president of the city’s convention and visitor’s bureau, disagrees, saying the building will pay for itself by taxing tourists. Hotel bookings so far, he said, signal a declaration of faith in the project’s prosperity. “Our revenue streams are outperforming our projections,” he said. “We didn’t need a bigger center because of our ego. We need a bigger center based on the marketplace, and this project will deliver.”
Colonizing four city blocks, the striking building, called a widescraper by some, has 150-foot-tall floor-to-ceiling windows and features an eco-roof with four acres of sedum plants to control water runoff. But some community leaders continue to question the wisdom of the project, whose 14-acre undulating roof is intended to conjure Tennessee’s high hills and pastoral basins. It also has a 162-foot guitar-shaped structure that weaves vertically through the building.
“Nashville has always been a tourism city,” said Jason Holleman, a city councilman who was among the minority to vote against the project. “The question was whether we should build this to grow the tourism pie or immediately invest in mass transit and other infrastructure needs,” he said. “Our choice to begin with the convention center has somewhat delayed our pursuit of mass transit.”
Other critics note that rehabbing and expanding downtown’s existing convention center, built in the mid-1980s, could have bolstered the city’s exhibit space at a fraction of the cost. Even so, there is ample evidence to suggest that the project has already been a catalyst for new investment. The Country Music Hall of Fame, adjacent to the new convention center, is in the midst of a $75 million expansion expected to double its size. Real estate brokers say that demand has surged for parcels in the shadow of the hulking structure, with several hotels in various stages of development. And restaurants and retailers have also recently opened or announced expansions.