Speedway Motorsports, the company trying to bring NASCAR back to Nashville, pitched a plan that called for $54 million in bond payments and $2 million in cash from the city, according to city officials.

Mayor David Briley's administration rejected the proposal, but ongoing discussions could end with tax revenue collected at the track financing part of the project.

In a presentation to Briley in late February, the group offered various possibilities on how the upgrades necessary for NASCAR's return to the Fairgrounds Speedway could potentially be financed — including an option that uses Metro dollars.

But Briley would reject a deal involving funding from taxpayers, according to his administration, which previously said the mayor is insistent on private investment in any proposal.

"Mayor Briley does not support using public money to bring NASCAR to the fairgrounds," Briley spokesperson Thomas Mulgrew told The Tennessean on Monday.

It was not immediately clear why the group specifically made a pitch for $2 million in cash or how the $54 million in bonds — more than double the $25 million in general obligation bonds the Metro Council approved to support public infrastructure associated with the soccer stadium — would be used.

Details on what upgrades are necessary and how much they’ll cost have not been released.

But a top Speedway Motorsports executive said there's been a shift from talks of using general obligation bonds to a plan that emphasizes a private-public partnership with the possibility of using revenue from the track to fund any project.

“We remain very interested in helping Metro return its historic property to a showcase venue that will host major races and special events that generate substantial new revenue for Nashville," Jerry Caldwell, executive VP and general manager, Bristol Motor Speedway, said in a statement.

"We believe this redevelopment can be accomplished in a private-public partnership that is funded by revenues within the fairgrounds and our capital investment and without use of the city's current tax revenues."

Caldwell said the company brings the capital and "professional expertise" to deliver major events and "advance a true renovation of the historic fairgrounds property."

He said the renovation would improve the surrounding neighborhood.

“Our team is optimistic that we can work with the Briley administration, Councilman (Colby) Sledge and Metro Council, the Fair Board and MLS to find solutions that are in the best interests of the community and provide a better future for the Nashville Fairgrounds Speedway," Caldwell said.

Financing remains a roadblock that has emerged in the ongoing talks between Speedway Motorsports and Briley. The group has already proposed a project that clashes with plans already in place for the new Major League Soccer stadium.

The feasibility of a major upgrade to the racetrack remains questionable since the soccer stadium project will place a mixed-use development building so close to the Speedway.

“Mayor Briley is happy to entertain a common-sense proposal to revitalize the iconic track at the fairgrounds,” Mulgrew previously said. "To date, (Speedway Motorsports) has not presented an option that was either practical considering the planned MLS stadium or financially feasible ... ."

Sledge, whose council district includes the fairgrounds, said he also would not support a plan that calls for public dollars to be invested into the racetrack.

"They should be doing it within their own budget," Sledge said. "There should be no money from the city going into this plan. Or if there's some sort of improvement the city is a partner in, it should be extremely low exposure from the city."

The Nashville Fairgrounds has not been "privy" on what Speedway Motorsports is proposing, according to Holly McCall, a fairgrounds spokesperson.

Racetrack to fund racetrack

One possible solution to the financing conundrum that's being discussed at the legislature would essentially have any racetrack project be funded by racetrack patrons.

The state legislation on the table, if passed, could redirect tax revenue generated at future NASCAR-sanctioned races to help pay for upgrades at the racetrack.

Currently lingering in a subcommittee, the bill mirrors similar legislation for professional sports facilities in Memphis and Nashville. It would redirect state and city sales tax generated at any NASCAR-sanctioned event and use that revenue to pay for debt issued for track upgrades.

The legislation wouldn’t touch sales tax revenue set aside for public education, so the initial estimates are that the bill would redirect $598,500 annually for the estimated three ticketed NASCAR events.

Nashville also would be able to impose an additional sales tax on tickets to NASCAR races and use that revenue for upgrades.

Speedway Motorsports and its advocates are backing the bill filed earlier this year by state Rep. Kirk Haston, R-Lobelville, and state Sen. Todd Gardenhire, R-Chattanooga.

Speedway rendering 'bizarre'

Last week a rendering commissioned by Speedway Motorsports made its rounds on social media, showing what an upgraded Fairgrounds Speedway would look like alongside the MLS stadium.

In one post, the public for the most part gave its approval for the flashy mock-up — giving not one, but two, Starksy's "Do it."

It's a first look how the racetrack proposal clashes with a site plan already in the works at the fairgrounds.

An overhaul is already underway to make room for the $275 million soccer stadium and surrounding mixed-use development. The new expo center and fair buildings, which are moving to the northeast end of the site, are expected to be operational by August.

The project is about 30% complete with just more than $13 million spent, according to a budget update at Tuesday's regularly scheduled Board of Fair Commissioners meeting.

The plan "deletes" the entire mixed-use development, said Sledge, who called the rendering "bizarre."

Track operator Tony Formosa previously told The Tennessean that the building and its parking garage, which is planned for 20 feet from the current front entrance to the racetrack, will make the flow of fans in and out of the racetrack impossible.

But the portion of land is specifically zoned for that development, according to Sledge, who said any changes to the plan would require not only rezoning but more talks and approval from the planning commission and Metro Council.

"I have no desire to do that," he said. "We just went through this huge process where everyone knows what's coming. It doesn't seem to make a whole lot of sense."

The site plan and its proximity to the track were briefly discussed at Tuesday's meeting when Chairman Ned Horton pressed if the development group was aware of the potential issue it might have with its proximity to the track.

“They are aware of it," said Ron Gobbell, who is overseeing the fairgrounds redevelopment. "As they develop those designs we’ll be bringing them back," he said, adding construction for the building is not set to begin until the end of the year.

Sledge referenced further issues he saw in proposals that show the north end of the racetrack structure encroaching on Wedgewood Avenue, while the south end looks to take out part of Fair Park.

Fair Park recently opened on the underutilized, flood-prone south end of the fairgrounds that is flanked by Brown’s Creek. It includes eight multiuse soccer fields, a 1.3-mile greenway, a dog park and other amenities. The fields, made of fiber-reinforced turf, also will be used for temporary parking for fairgrounds events.

Any work to put a structure in the area also would require further approval for a variance from the stormwater regulations.

"Fair Park was designed to mitigate the Brown's Creek flow," Sledge said. "(Speedway Motorsports) put very little thought into how their proposal impacts all the various parts that we've already gone through the public process for.

"The current proposal is not only not feasible but doomed from the start," he said, saying that the process would have to jump many hurdles for it to happen. "If their proposal stays within the current footprint and all the operations around it ... then I'm willing to have that conversation."

'Bring real proposal to table'

The Metro Board of Fair Commissioners is frustrated.

Talks between Speedway Motorsports and Briley continue behind closed doors, keeping the public and the fair board in the dark.

And now the board wants to be included in talks or the group could risk the fairgrounds moving on with their own project.

"It just keeps going on and on," fair board member Jason Bergeron said at Tuesday's monthly meeting. "We have no concrete proposal and no real engagement with the community."

Said Fairgrounds Director Laura Womack: "My understanding is that we’re still working toward that coordination of activities. Can this occur? What impact does this have inside and outside the footprint? It’s still a work in progress.”

The fairgrounds has $860,000 in its current budget for racetrack upgrades, out of the $1.7 million originally allocated for work at the speedway.

"At some point, I'm a lot more interested in seeing us going ahead with renovating this track with the funds that are there and working with the Formosas under their current contract," Bergeron said.

"We just can't keep waiting forever," he said.

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Reach Yihyun Jeong at yjeong@tennessean.com. Follow her on Twitter @yihyun_jeong.