Wednesday, October 28, 2009

Insiders See Backroom Back-Scratching in Latest Music City Center Complication

Posted by Jeff Woods on Wed, Oct 28, 2009 at 3:50 PM

click to enlarge justin.jpg
State Comptroller Justin Wilson is raising questions about a key part of the funding mechanism for the Music City Center, complicating Karl Dean's big plans. Insiders suspect a little backroom back-patting between Wilson and his buddy Tom Ingram.

At issue is the new 3-square-mile tourism development zone formed to help pay off debt from the city's costliest capital project ever. All businesses in the zone--from the Jiffy Lube to the Krystal--will send their new sales tax cash to the magic kitty for the next 30 years.

It's a crazy thing to behold on a map. It takes in all of downtown, reaches across the Cumberland into East Nashville and winds all the way over to Jefferson Street.

No one really believes all these businesses will actually benefit from convention center business. Still, Mayor Karl Dean is anxious to include as much stuff as possible in this zone because he needs the cash. To win council approval of what will become his signature achievement as mayor, he must devise a financing plan that pretends not to tax ordinary citizens, but only tourists.

Enter Wilson, who thinks the zone is too big. He has sent the Dean administration a list of pointed questions. Among them:

Please explain the rationale behind how the boundary of the TDZ was determined. For instance, why are the following areas included?

*West End Avenue
*Area East of Cumberland River
*Area North of Charlotte

Good questions. But here's the curious part. Why is Wilson asking? By state law, it's the responsibility of state Finance Commissioner Dave Goetz, not the comptroller, to review the city's application. When Goetz finishes his review, he's supposed to give the application to the state Building Commission for certification. Wilson sits on the commission, so he eventually could ask his questions. But he's jumping the gun here. Why his unusual interest?

Insiders point out Wilson was a longtime attorney with Waller Lansden Dortch & Davis, which represents Gaylord Entertainment, which isn't crazy about the publicly financed hotel that we might build next to the convention center. One of Wilson's best buddies is Lew Conner, also of Waller. One of Conner's best buddies is Tom Ingram, lobbyist for Gaylord. Are you beginning to get the picture?

Metro Finance Director Rich Riebeling isn't complaining about any of this. He insists it's all merely part of the orderly governmental process, and that the council will vote on the Music City Center's financing plan on schedule in January. Good luck with that, Rich.

Comments (22)

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"The magic kitty" just made me retaste lunch a little bit. ;)

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Posted by Christian Grantham on October 28, 2009 at 4:06 PM

Dean knows that you ask for at least twice as much as you really want. Still, anything of the sort is a horrible idea.
Nice word play, Christian, it made me hack up a hair ball myself.

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Posted by Joe Kirkpatrick on October 28, 2009 at 4:15 PM

Regardless of his title, Goetz is just a TV reporter who's a really good FOP. He won't review anything. He has people to do that.
I'm glad Wilson is taking an interest for whatever reason and bringing things like this out.

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Posted by Emmett Flatus on October 28, 2009 at 4:28 PM

Once again, we see the invisible hand of Gaylord and its CEO, Colin Reed behind the "opposition" to this project.
Here's my question: when will Gaylord's puppets, Emily Evans and Mike Jameson, call on Gaylord to return the $80M in taxpayer money it got in return for not opposing the Music City Center?

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Posted by FloydR on October 28, 2009 at 4:38 PM

But here's the curious part. Why is Wilson asking? By state law, it's the responsibility of state Finance Commissioner Dave Goetz, not the comptroller, to review the city's application.
Perhaps I don't have a clear grasp of the process, but maybe someone should ask Goetz where F&A stands as far as their review.
Perhaps Goetz isn't asking questions that should be asked.
If I were asking the former chair of the Tennessee Chamber of Commerce and Industry (who is now in his current capacity as Commissioner of F&A), I might think that his answers would be relevant.

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Posted by Andy Axel on October 28, 2009 at 4:42 PM

This whole thing is starting to give me a headache. What was initially intended to be a viable investment for the city is becoming a 3 ring circus on insider dealing, lobbyist pocket greasing and simply mismanagement. Where's that darn reset button again?!?

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Posted by Grant Hammond on October 28, 2009 at 6:37 PM

At least SOMEONE is asking the hard questions, Jeff. Just because you have your opinion about who gets to ask what in what order doesn't mean the questions are not legitimate.
Wilson's concerns should be addressed, and now is as good a time as any. One could question YOUR motives as to why you suddenly have such a burr up your butt about protocol.
They should just answer the damn questions.

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Posted by Robert on October 28, 2009 at 8:02 PM

Someone needs to ask how much Gaylord has doled out in campaign contributions, especially recently.
How much has Colin Reed given Emily Evans and Mike Jameson?
Ask that question.

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Posted by Cheetos Bastardo on October 28, 2009 at 8:32 PM

Hey Cheetso - The campaign disclosures are public records. go check yourself and quit slandering honest people. Why are you so afraid of their questions?

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Posted by It's public on October 28, 2009 at 9:06 PM

So Mr. Woods finds conspiracies behind the supporters of the Convention Center and now behind the opponents and even people who ask what he calls "good questions."
This is what comes from reading too much Robert Ludlum and 'The Nation.' All that paranoid fiction is harmful.
Mr. Woods might want to also look at what Mr. Wilson has accomlished in his short tenure at the Comptroller's Office. The interests of Tennesseans have been well managed under his stewardship.

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Posted by Mark Rogers on October 28, 2009 at 10:12 PM

Rely to FloydR:
Good afternoon Dave.

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Posted by mad dog on October 28, 2009 at 10:32 PM
Posted by Really? on October 28, 2009 at 10:32 PM

Really,
As I said, look at what he has accomplished as Comptroller. The News 5 article was all speculation.

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Posted by Mark Rogers on October 28, 2009 at 10:43 PM

Did Gaylord pay those contributions out of the $80M in hush money they were given by Nashville's taxpayers to build a hotel -- a hotel they aren't even building now. What's the chance they'll give that money back?
What about the hundreds of millions of dollars in corporate welfare that Gaylord has sucked out of Nashville for years.
How many millions for the Delta expansion tax break?
How many millions for the Pennington Bend Marketing Fund? For sewers?
About $180 million to expand Briley Parkway after they opened Opry Mills.
About $5 million for water taxi boat docks they used for a couple of years.
Gaylord has taken hundreds of millions of dollars in corporate welfare. Now they oppose an economic stimulus project for downtown Nashville.
Whose interests do you think they're protecting?

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Posted by FloydR on October 29, 2009 at 8:55 AM

Reply to FloydR:
Good morning Dave or is its Walt's shift?

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Posted by Mad Dog on October 29, 2009 at 9:10 AM

Meow.

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Posted by Magic Kitty on October 29, 2009 at 9:54 AM

Howdy, Dog. The name's Floyd. Been commenting on blogs for years now, especially over at the Tennessean.
Don't know who Dave or Walt are, but do you think they would be willing and could answer the tough questions about Gaylord?
It seems that Colin Reed's puppets, like Mike Jameson, Emily Evans, and Kevin Sharp, clam up whenever they are asked.
Can you tell us when Gaylord will give back the $80M in taxpayer money they got for a hotel that they aren't building?

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Posted by FloydR on October 29, 2009 at 3:01 PM

And whose puppet are you Floyd?
When have Gaylord's puppets been as silent as you are sure to be if we start asking you why you think this project is so vital to Nashville?
Is your interest self interest? Please tell.

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Posted by hippydippychick on October 29, 2009 at 9:16 PM

Yes, it's self interest, in the sense that I want to see Nashville succeed. I love this city and want it to be a great one.
More importantly, I want our city to have a vibrant economy. I support tourism, as our second largest industry, and I support the 57,000 Nashvillians that work in it.
I want to see Nashville's 5,200 laid off construction workers back on the job. I want to see us expand our tax base by attracting more visitors. I want to see Nashville prosper.
Now, tell us why Gaylord, its CEO Colin Reed, and his puppets, like Emily Evans, Mike Jameson, John Summers, and you, dippychick, oppose prosperity for Nashville.

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Posted by FloydR on October 30, 2009 at 8:30 AM

I oppose bankrupcty for Nashville. I oppose putting all our money in one $1 billion basket. I oppose misleading the public into thinking this won't cost them a dime and there is no risk to city services, I oppose a 30 year committment to get 3 years worth of construction jobs.
But mostly what I oppose is your belief that YOUR economic development is more important then all the private hotel owners you will compete against. You want to rob Peter (The Lowes, the Hermitage, Gaylord, a gazillion independent hotel owners) to pay Paul (you). This isn't about Nashville's prosperity - its about yours.
So, who do you work for?

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Posted by hippydippychick on October 30, 2009 at 9:25 AM

That's total crap, hippydippyidiot. You write like John Summers. Did Kevin (NotSo) Sharp help you draft that?
My profit is the same as the profit for all Nashvillians, increased tax revenue from people that don't live here and don't use our services.
You, John, Kevin, Emily Evans, and Mike Jameson need to learn a little about the convention and hotel business. This convention center will increase business for all hotels. You know, a rising tide lifts all boats. That why the Hotel/Motel Association has endorsed the project.
But wait, your lord and master, Gaylord, stands in opposition because Colin Reed doesn't give a damn about Nashville. He's worried about Texas oil man Rowling and another stockholder revolt.
How long do you think Colin can hold on, hippydippydumbass?

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Posted by FloydR on October 31, 2009 at 11:40 AM

My, aren't we a little hot and bothered? Your enemies list grows, Richard Nixon.
All the incremental revenue this project will produce will go to pay debt service and operating shortfalls. That is why the taxpayers have to be on the hook - its too risky otherwise. The project it too big, the revenues too small.
For being endorsed by the hotel and lodging board, there sure are a lot of hotel owners (rather than managers) wandering around who hate it. Maybe they have been hypnotized by your enemies as well.

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Posted by HippyDippyChick on November 1, 2009 at 11:43 AM
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