Graceland chief seeks Whitehaven's help in expansion; Memphis mayor pushes back

Mayor Jim Strickland pushed back Friday against Graceland claims that the administration is blocking an expansion that wouldn't cost taxpayers.

Strickland issued a statement saying Graceland's proposal, aired in a Thursday night meeting in Whitehaven, would take millions from basic services such as fire and police.

Joel Weinshanker, who's leading Graceland redevelopment, told residents that a proposed $40 million arena and other additions won't take money out of city and county treasuries.

"We're not looking for additional financial support from the city or county," Weinshanker said. He accused the Strickland administration of refusing to discuss the expansion.

Strickland disagreed. "At a meeting last night in Whitehaven, Elvis Presley Enterprises managing partner Joel Weinshanker made some misleading — and downright false — claims in regard to the economic development plans he’s made public," the mayor said.

"Today, I want to correct the record. Cut through it all, and this boils down to one thing: Mr. Weinshanker simply wants more public cash for his business," Strickland said.

"We want him to build whatever entertainment complex he wants to build," Strickland added. "We’re excited to see it happen, in fact. But he wants to build it with your money — cash that would have to come out of our operating budget. All told, that amounts to about $3 million."

Weinshanker urged Whitehaven residents to rise up and demand a fair share of investment, starting with city and county government backing of a continuing expansion of the Elvis Presley-themed tourist magnet. The expansion comes before the County Commission on Monday.

Weinshanker, the entrepreneur who has overseen $137 million additions of a resort hotel and exhibit complex, railed against lack of support by city officials and asked for residents’ help in breaking the political logjam.

He told residents if Graceland can win political support, the expansion could grow to include an outlet mall, a soundstage venue for TV and movie productions and a 1,000-job facility to manufacture collectibles and craft items.

More: New Graceland arena approved, on condition it doesn't violate FedExForum agreement

More: Graceland's bid for expansion incentives slated for airing by EDGE board Thursday

Weinshanker said Graceland has added 250 new jobs with the hotel and new attraction, Elvis Presley’s Memphis. The expansion could bring 500 more.

“All we’re asking for Whitehaven is our fair share. It’s been a long, long time since we got that,” Weinshanker said.

Weinshanker, managing partner of Graceland Holdings, said the proposed expansion is scheduled to go to the Shelby County Commission Monday, and the state has been supportive.

But “we’re unable to have a conversation with the city mayor. We want to bring the jobs in, but you have to be able to have a conversation…” Weinshanker said.

Weinshanker’s comments came in a community meeting at The Guest House at Graceland resort hotel. Some 150-200 people showed up to find out about the expansion proposal and advocate for the general uplifting of Whitehaven.

Weinshanker didn’t mention one reason he and Strickland have been at odds: Chancery Court lawsuits that Graceland has filed against the city, county, Memphis Grizzlies and a local economic development board since last fall, in which Graceland alleged foot-dragging on the expansion.

Strickland's statement said the administration has met with Weinshanker multiple times.

"Also, please know that, contrary to what Mr. Weinshanker said last night, we have indeed met with him to discuss his plans," Strickland said.

"But at the end of the day, please understand that Mr. Weinshanker’s words are all about his desire for public money, and my decision not to divert taxpayer money from services to his private business," Strickland said.

Elvis Presley Enterprises' lawsuits stem from Graceland’s plans to redevelop an area on the west side of Elvis Presley Boulevard where the old Heartbreak Hotel would be replaced by new facilities.

More: Graceland 'disappointed' in Memphis stance, releases settlement proposal

Weinshanker said a $20 million project to build an 80,000-square-foot exhibit hall is under construction, but the ball is in the city and county’s court on the next project: a 6,200-seat arena, valued at $40 million. The exhibit hall is due for completion next year, and will host a Muhammad Ali exhibition, he said.

Future plans include a 1,000-job facility to manufacture collectibles and Americana-themed crafts. Weinshanker said Graceland would partner with minority businesses on manufacturing, and the facility could house some of his other business interests, such as a recently acquired company that makes Chia Pets and Clappers.

Strickland said, "As for the manufacturing facility he proposes, I’ve told him for over a year that we want him to build it. We’d be thrilled to work with Elvis Presley Enterprises on a tax incentive to bring new jobs to our city — not unlike when we grant incentives for other projects to bring jobs. We stand ready to make it happen."

Previously undisclosed features of expansion are a soundstage that could handle 12-15 productions next year and an outlet mall featuring products made in Whitehaven.

Weinshanker is founder of National Entertainment Collectibles Association and part of a group that took control of Graceland's operations and branding and marketing of Elvis Presley in 2013.

Up for County Commission consideration Monday is a resolution backing a larger share of Graceland’s tax-increment financing (TIF) district for Weinshanker’s group. Graceland is trying to get the resolution on the City Council’s agenda.

Graceland’s TIF sets aside 50 percent of any increase in property taxes resulting from development within the district, with that money reserved to be spent on project debt. The city and county get the other 50 percent.

The resolution proposes to give Graceland 65 percent of the TIF revenue, with governments keeping 35 percent, improving Graceland’s ability to finance expansion but taking away general tax revenue.

The resolution, already approved by a local economic development board, says Graceland could get the larger TIF share and build the 6,200-seat arena only if a court guarantees that the arena project wouldn’t conflict with non-compete provisions of the Grizzlies’ lease on the FedExForum.

Weinshanker bemoaned lack of investment in Whitehaven’s business and public infrastructure, and people from the neighborhood joined in.

They complained about potholes, poor lighting and old utility poles along Elvis Presley Boulevard, lack of shopping and the gritty appearance of Brooks Road between Whitehaven and the airport.

Speakers also praised the efforts of Weinshanker and Elvis Presley Enterprises. “I thank you for what you’re doing, and I’m sure I thank you for everyone in here,” said William Gandy Jr.

Weinshanker urged residents to take action, show up at County Commission and lobby city and county elected officials to support the expansion.

Commission chairwoman Heidi Shafer attended the meeting. She agreed elected officials need to hear from the public.

“I cannot express to you how very, very much influence you actually have as individual voters. If you will call and express your will, starting with the County Commission, and then with the City Council, it will make a difference,” Shafer said.

Reach reporter Wayne Risher at (901) 529-2874 or wayne.risher@commercialappeal.com.