Opryland, CC Get Funding

The Nashville (Tenn.) Metro Council recently approved two measures to fund the expansion of the Gaylord Opryland Resort & Convention Center and construction of a new Nashville Convention Center.

Both venues will benefit from a 1-percent increase of the city's current 5-percent hotel bed tax.

Along with the bed tax increase, the metro council has agreed to issue $80 million in city bonds to help fund the $400 million Gaylord expansion that includes an additional 400,000 square feet of convention space and a new 400-room, luxury all-suites hotel next to the current facility.

"The Opryland expansion, driven by the incredible demand we continue to see for this property as well as the others across our network, will create new jobs and generate additional tourism for the area," said Colin V. Reed, chairman and CEO of Gaylord Entertainment.

Once the expansion is complete — now expected in 2011 — the facility will have 3,281 hotel rooms and more than 1 million sq. ft. of convention space. Originally, the project was scheduled for completion by 2010.

To fund construction of the new $455 million Nashville Convention Center, measures are being put into place along with the bed tax increase:

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

Charles Starks, executive director of the Nashville center, said the next step in its development was up in the air. Nashville is in the midst of an election campaign with a new mayor and metro council to be chosen within the next few months.

The newly elected mayor will set a priority list for projects to be completed in the city, but the major obstacle has been tackled: "The funding mechanism is approved," Starks said.

The current plans for the new Nashville Convention Center include 375,000 sq. ft. of exhibit space, two large ballrooms, breakout meeting rooms and a small theater that will seat 2,500 to 3,000 people.