Memphis Mayor Willie Herenton justified his plan for building a new stadium for the University of Memphis football team by outlining a plan for economic development for the Fairgrounds.
Herenton presented his proposal "Project Nexus" to the Memphis City Council during an executive session Tuesday and emphasized that the stadium, at an estimated cost of $150-$185 million, would not divert money from other public needs such as safety.
"It's not about raising taxes or spending more money than we should," Herenton said. "If this was about raising property taxes, I would not support it."
Robert Lipscomb, chief financial officer of the city, studied costs and revenue streams on other recently built college and NFL football stadiums and said that a new stadium could be built by using "private funding and little public money."
Liberty Bowl Stadium, the Tigers' home and a venue for the Southern Heritage Classic, is more than 40 years old.
Lipscomb said it would cost $50 million to renovate the 62,000-seat stadium, which does not meet the requirements for the Americans with Disabilities Act.
Bringing the stadium into compliance would force the stadium to lose 10,000 to 14,000 seats, Lipscomb said.
He also found further inadequacies in the stadium's public facilities and luxury boxes.
The proposal labels the luxury boxes as "dysfunctional" and "not marketable" and the facility as "dated" and "inadequate."
"Project Nexus" includes residential and business developments of the Fairgrounds as well as the nearby Beltline community west of the Fairgrounds, along with considerable green space.
"It is not to be obtained at the expense of our city's welfare," Herenton said. "It will play an initial part in enhancing the quality of life in our city."
Herenton said that the project could be financed through state and federal funds, luxury box leasing and naming rights, which has generated as much as $205 million at some stadiums.
"If you look at where the Fairgrounds sits," Lipscomb said. "It's all about economic development."
