With Nashville's MLS stadium progress stalled, Mayor Cooper and team owner meet to discuss hurdles

Yihyun Jeong | The Tennessean

Mayor John Cooper and Nashville businessman John Ingram, who leads the Nashville SC ownership group, went for a drive together in the mayor's Prius last week.

The two met to tour Fairgrounds Nashville and discuss the hurdles surrounding the much-debated Major League Soccer stadium project at the site, a Cooper spokesperson confirmed Tuesday.

The project has stalled as Cooper holds off on signing paperwork to green light demolition of the old expo centers, a needed step to make way for the stadium.

Cooper has said questions remain on how much taxpayers will be asked to spend for infrastructure costs surrounding the stadium, including upgrading water and sewer lines, roads and possibly a new bridge.

Cooper does not oppose the stadium project and is "certainly supportive" of soccer in Music City, his spokesperson Chris Song told The Tennessean on Tuesday.

"Demolition will occur when the next stages of the project are ready to go," Song said.

The Metro Council approved $50 million in general obligations bonds to fund the infrastructure improvements around the site related to the stadium, but city officials say that most of the funding has already been spent as part of the ongoing overall fairgrounds improvement project.

Though the administration hasn't released specific figures, Song said the infrastructure needs of the site go beyond the areas surrounding the stadium.

"There is substantial unfunded infrastructure work necessary to make the site a success," he said.

In a statement, Nashville SC's owners said the team continues to work with the city.

"We are continuing to work with Mayor Cooper and his administration to help answer any questions they have about the stadium project," ownership group spokesperson Zach Hunt said in a statement Tuesday.

Cooper on MLS stadium location

As an at-large council member, Cooper was one of the loudest critics of the MLS stadium proposal. He voted against a 10-acre private development that is part of the project and sought a November referendum to let the public decide on the infrastructure costs.

But while campaigning for mayor, he said he would "make the fairgrounds work for everyone," but didn't share any further details on the fate the stadium project.

"That's finished business," Cooper said on "Inside Politics" in April. "The MLS stadium, we need to make it a success. We need to make (it) a big success."

Cooper has said his fundamental issue with the MLS stadium was that he believed it was "in the wrong place." The new soccer stadium, he has said, should have been in the downtown area, so that it can take advantage of existing resources and parking.

Cooper has at least discussed other locations — including a longtime object of redevelopment desire, the PSC Metals scrapyard on the east bank of the Cumberland River.

Council member Brett Withers, whose District 6 includes the scrapyard, confirmed to The Tennessean that Cooper asked him what he thought about the potential of the PSC site for the soccer stadium during his meeting with the mayor and his senior legislative director Mike Jameson, a former council member for the district.

Former Mayor David Briley — as prior administrations before him — was in talks with PSC to relocate across downtown to potentially District 20, which includes the area around John C. Tune Airport and also borders the Cumberland River west of downtown, according to multiple sources.

But Cooper soundly defeated Briley in the September mayoral runoff.

Cooper told the Nashville Business Journal last month he has not been given a formal pitch for a deal by anyone representing PSC.

"Our financial environment has changed and we’re faced with tough choices. We must hold ourselves to higher standards in terms of the deals we make," Cooper said in a statement to the Nashville Business Journal.

Song declined to comment when asked if Cooper wants to relocate the stadium. Hunt told The Tennessean the ownership group would "absolutely not" support a relocation.

Cooper opposed the 10-acre private development as a council member and that as mayor, his thoughts on using public land for private gain "have not wavered," Song said.

Nashville SC will begin MLS play in February. The team plans to play at Nissan Stadium in its first two seasons before moving into a completed fairgrounds stadium in 2022. They have not yet signed their new lease.

Mixed-use development and NASCAR

As part of the MLS stadium deal, the city approved giving 10 acres of land at the fairgrounds for a mixed-use development that includes housing, retail, public space and other amenities near the stadium.

But a clause in the lease has proven a financing obstacle. Legislation currently penalizes Nashville SC if the club fails to play a single game in a 24-month period during the first 30 years of its lease at the stadium.

If the team fails to meet the terms, the 10 acres land — which would be run by MarketStreet Enterprises, minority owners of the MLS franchise — would revert to the city.

Council member Colby Sledge, whose district includes the city-owned fairgrounds, previously told The Tennessean he will file legislation to fix the "last-minute" amendment the city adopted in September 2018, when council approved the deal.

If the stadium were to be relocated, NASCAR's return to the fairgrounds could also come into play. Speedway Motorsports, LLC,. who has made a $60 million pitch to bring NASCAR to the fairgrounds, has said the placement of the mixed-use development and a parking lot near the racetrack entrance is a problem.

The close proximity, SMI says, makes the flow in and out of the track nearly impossible and creates a potential public safety issue.

Cooper has not yet said if he supports a deal to bring NASCAR to the fairgrounds. In his first official day as mayor, Cooper told reporters he needed more information about the stadium financing and legal issues before making any decision.

The Fair Board voted last month to end its contract with Formosa Productions, the current operators of Fairgrounds Speedway, saying the group has failed to pay its outstanding debt to the city.

Fairgrounds Director Laura Womack said Tuesday at the board's monthly meeting that she has been in talks with a "reputable professional promoter" and will engage in further talks of a potential contract with the group for the 2020 racing season.

Fairgrounds spokesperson Holly McCall told The Tennessean the fairgrounds is looking to secure a deal with Bob Sargent of Track Enterprises for at least three races next year. Sargent previously promoted one race a season at the fairgrounds.

The fair board has the authority to execute a deal without a formal bidding process.

Meanwhile, Song confirmed Tuesday that the administration has received a new proposal from SMI that is currently under review.

Fair board member Caleb Hemmer said he has spoken to Cooper's senior adviser, Mary Falls, on the progress of the fairgrounds project and about "decoupling" the demolition of old expo centers from the soccer project.

Initially slated for October, the demolition contract will expire mid-December. Officials are in talks about extending the bid at current pricing in order to avoid rebidding the contract.

A lawsuit by the Save Our Fairgrounds coalition to stop construction of the stadium is still playing out in court. The group, which includes flea market vendors, sued the city over the MLS stadium plans in September, arguing the construction at the fairgrounds and the elimination of 3,500 parking spaces would make it impossible for the Nashville Flea Market to operate there.

Yihyun Jeong covers politics in Nashville for USA TODAY Network -Tennessee. Reach her at yjeong@tennessean.com and follow her on Twitter @yihyun_jeong.