Entertainment District - Cumberland Event Center
In talking with community and business leaders, the top issues of discussion have been: how do we create new jobs; increase our shopping opportunities; attract new restaurants and venues for entertainment for both adults and youth.
We know what infrastructure is needed to attract conventions, sporting events and concerts. Our community has been discussing this issue for over 25 years. We are now at a crossroads to our future.
Now is the time to put plans in place that will achieve these goals which will result in the betterment of Lebanon and Wilson County.
The first step of many will take place during the January 17th Tuesday night regular Council Meeting at 6:00 p.m. at Lebanon City Hall. The vote on Resolution 11-1591 will decide if we move forward on a plan which will totally change Lebanon and Wilson County. I hope you join us for this important vote.
In simplistic terms, what is being asked for is the ability for the city and county to partner together in setting up a legal savings account which will flow through an Entertainment District Authority with the main goal of building and paying for a community event center.
The cooperative efforts of the City of Lebanon and Wilson County in the construction of this community event center will be a game changing event for our community. This project will require no tax increase or additional taxes. It will require a commitment from the city and county to establish an Entertainment District Authority, with State approval, to capture new growth revenues generated on these unproductive acres.
This center is proposed to be 150,000+/- square feet, have convention space of 12,000 to 15,000 square feet, seating capacity of over 6,000 people when using the floor area (4,500 +/- arena seating), the capability to provide two sheets of ice at one time, and create over 3,000 jobs once the Cumberland Center is fully built.
This community event center will truly be for the community. The citizens of Lebanon and Wilson County will be our partners and owners of the center. The revenues generated on these 376 acres will be accumulated under the Entertainment District Authority’s guidance. The construction of this center will be largely dependent on the developer’s ability to attract new retail tenants to the Cumberland Center Project.
Projections for construction of the center being built could range from 4 to 10 years. The main purpose of putting this plan in place now is to enable future leaders to have funds in place to accomplish this goal and allow future tenants confidence in completion of this plan. This center is a job and revenue producer, not only for Lebanon, but throughout Wilson County and the region. This will give Lebanon / Wilson County the edge in attracting additional business partners.
The concept of a community event center has been a topic of discussion in our community for over 25 years. This plan is different in several ways which will result in its success. My excitement for this project doesn’t need to be confused with the fact that this is a long range plan. We are not starting construction on the event center next week. It will only be built when the Authority is confident of a solid flow of revenues.
Points of Difference:
1. More roof tops in Wilson county and surrounding areas.
2. Developer owns roughly 165 acres of the 376 of Entertainment District.
3. Developer has already started Phase 1 with tenant commitments.
4. Equal partnership between City and County.
5. Developer is donating 20 acres of land for the Event Center site. (Conservative estimated value is $3 - 4 million dollars) Previous plans had the city purchasing the property for $1.4 million dollars.
6. Interest cost is considerably less at today’s rates. Debt service on $40 million for 25 years at 5% = $2,808,000 Principal and Interest. This results in roughly $700,000 reduction in annual debt service as opposed to past proposals.
7. Commitment of Entertainment District Authority to build only when revenues are in place and a professional economic impact study has been completed.
8. Using more conservative revenue projections on only ½ of proposed Entertainment District.
9. Three sources of revenue generation – as opposed to one source in years past.
a. Projection when Cumberland Center is fully developed
1) Increase in new growth of property taxes generated in Entertainment District - $1,500,000
2) Local share of sales tax generated in Entertainment District (city & county share 2¼ %) – Estimated $5.2 million
3) State share of sales tax generated at center itself- estimated $400,000.
10. Community support is coming from local business and financial leaders, local citizens and national entertainers in need of smaller venues.
With an increase of acceptance of hockey in our region, we have strong support from the Predators’ organization.
11. We have two entities, with impressive credentials and capabilities, interested in becoming the CHL franchise and becoming a tenant at our event center.
12. The City of Lebanon and Wilson County will not be held accountable for bonds issued under the Entertainment District Authority.
NEXT STEPS:
1. 2/3 plus support of proposed state legislation by City Councilors.
2. 2/3 plus support of proposed state legislation by County Commissioners.
3. Passage by State Legislators to establish Entertainment Authority Board with bonding capabilities and ability to capture proposed revenues.
4. Form the Entertainment Board – proposed 7 board members. The Chairman of the Entertainment Authority Board alternates every two years between City and County Mayor.
A City and County Mayor
B Member of City Council chosen by peers
C Member of County Commission chosen by peers
D Resident of City chosen by City Council
E Resident of County chosen by County Commission
F Member chosen by first six board members after reviewing applications.
5. Start collecting revenues available to the entertainment Authority Board.
6. Wait for developer to reach MILESTONE ONE - 225,000 square feet with supporting revenue dollars. This is when the land is transferred to the Authority and we start the design and site engineering phase of the event center.
7. MILESTONE TWO IS WHEN 400,000 square feet of tenant space is reached along with supporting revenue dollars. The Authority will then proceed to the next step which is the selection of the architect and contractors for the event center. Construction will then start under the guidance of the Authority.
8. Selection of a management team to run the center before completion and opening of the new event center. The Authority will need to search for the right manager with a solid understanding of how to get the results needed for a successful center by following the successes of other similar projects.
9. The goal of the Authority is to run a successful center which will attract tourists to our area, establish programs to lead Lebanon and Wilson County to becoming a destination; be aggressive in seeking grant opportunities to bring a train stop for the Music City Star and other grants for infrastructure for the center, and to maintain a plan to repay the event center’s debt as quickly as possible, but always insuring a significant amount of reserves and while recognizing the needs of the community.
The goal is to turn back the revenues used to support and pay for the center to the local government entities as soon as possible. If this plan is approved with these funding sources within this district $176,000,000 is expected to be generated over a 30 year period. Other revenues which are not included in these numbers but will be of immediate benefit to the City and County are Hotel-Motel Taxes; gas taxes; building permits; tap fees for water, sewer and gas; impact fees; stormwater fees to name a few.
The additional revenue impact for the City and County will also be substantial due to a ripple effect which the synergy from the Cumberland Center will create.
This plan is a solid plan which will work. The only way it will fail is from the lack of support from our government leaders.
Let us embrace the future with enthusiasm and the drive of achievement. Let us not set back and wait for growth to happen on its terms, but let us drive that growth to us today by setting in place this building plan.
Let us make a difference today.
Thank you for your support and input.
Philip Craighead
Mayor City of Lebanon
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Additional
Info Packet 1 (pdf) - Click Here
Info Packet 2 (pdf) - Click Here
Letters of Support (pdf) - Click Here
Entertainment District Cumberland Event Center (docx) - Click Here
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