Nashville CC, Gaylord Both Await Funding

Nashville, Tenn., is on the verge of a convention-building boom, thanks to two bills recently passed by the Tennessee State Legislature that are now awaiting Gov. Phil Bredesen's signature.

If the governor goes along with the plan, the city of Nashville will be able to raise enough taxes to build a new $455 million convention center downtown, and Gaylord Entertainment will get $80 million in tax money to help fund an estimated $400 million expansion of Gaylord Opryland Resort & Convention Center.

According to current plans, the new Nashville Convention Center would offer 375,000 square feet of exhibit space, two large ballrooms, breakout meeting rooms and a small theater that would seat 2,500 to 3,000 people.

Although government funds would not pay for this part, the plan also calls for a 1,000-room anchor hotel, which numerous developers have expressed interest in building, said Butch Spyridon, president of the Nashville Convention & Visitors Bureau.

The projected completion date for the new Nashville CC is 2011.

Gaylord's proposed expansion would add more than 400,000 sq. ft. of convention and meeting space to the existing 264,000 sq. ft., and a 400-room, luxury all-suite hotel. This project's anticipated completion date is 2010, but that is contingent on approval of the requested $80 million in public funding, said Brian Abrahamson, spokesman for Gaylord Entertainment.

The legislation would allow the city of Nashville to increase its bed tax by 1 percent from its current 5 percent and implement three other new measures:

• a $2 daily fee on occupied hotel and motel rooms
• a 1-percent tax on rental cars
• a $2 departure fee on each for-hire ground transport vehicle from Nashville Intl. Airport

Perhaps the most unusual element of the proposal is that it offers public funding for what may be competing convention centers in the same community, one publicly owned and the other privately owned.

Spyridon, however, said that is not a concern for him. The CVB sells space for both facilities.

"I really don't believe it will be any more than the two compete today," he added.

The two projects would almost quadruple the amount of meeting space available in the city today, moving Nashville into a new competitive atmosphere.

"The demand for Nashville is very strong," said Charles Starks, executive director of the Nashville Convention Center. "It's the lost business we've been seeing in the past 10 years" that prompted the discussion of a new convention center.

More space also means the ability to attract new groups to Nashville, host groups simultaneously and, officials hope, bring back some old regulars.

"Just in the customer that has been a regular and has outgrown us, there is plenty of opportunity," Spyridon said.

In the '90s, Nashville competed with Atlanta, New Orleans, San Antonio and Dallas, but those cities now attract bigger shows than the current Nashville Convention Center can accommodate.

"We've seen a shift back a little bit," Spyridon added.

"We know it is two very distinctive customers," Starks said, of attendees attracted to Gaylord and the current downtown facility.

Some customers want an all-inclusive event, with hotels and a convention center on the same property, which Gaylord provides.

Another group of customers wants its attendees to have the experience of the city. Starks added, "We just don't have the space for them in the urban setting. ... We just weren't able to compete in that market."

The current Nashville Convention Center has 118,675 sq. ft. of exhibit space and a few meeting rooms — but nothing the size of the proposed facility, Starks said.

"Our goal is not to get a regional meeting, but to get more back in the national front," he added.

Plans call for the current convention center to be demolished and, Spyridon said, three developers have approached the city about buying the land. They are interested in a mixed-use development with restaurants and retail shops.

The attached anchor hotel, with 672 rooms, would remain, possibly along with some existing meeting space and parking facilities.