Haslam proposes $120M for new state museum in Nashville

A plan years in the making for a new Tennessee State Museum next to Nashville's Bicentennial Mall may finally get funding for construction.

Gov. Bill Haslam has proposed allocating $120 million for a new state museum as part of an amendment to his 2015-16 budget that includes nearly $300 million in additional non-recurring investments. To become a reality, the new museum would also require $40 million in private funds from the museum's ongoing fundraising efforts.

The governor's office says it is moving forward on the museum and other new capital projects because franchise and excise tax collections exceeded estimates last month as a result of "an unusual one-time event" on top of other revenue collections and program savings.

"I think all of the plans have been pretty well agreed to, and this could move along pretty quickly now that we have the funding in place," Tennessee Finance and Administration Commissioner Larry Martin said of the museum.

Among other proposed expenditures is an additional $40 million to renovate the Cordell Hull Building — a 1952-era state building near the Capitol that once appeared slated for demolition, outraging historic preservationists.. Additional dollars would give the state the $74 million it needs to cover all renovation costs.

The budget amendment — which Haslam plans to file next week and would need approval by the Tennessee legislature — also includes $30 million in new recurring funds that would go toward health insurance coverage for teachers. That comes a week after seven Chattanooga-area school districts filed suit against Tennessee over the funding adequacy of K-12 education.

The new state museum would be built at the corner of Jefferson Street and Rosa Parks Boulevard — the previous targeted location for a new National Museum for African American Music. The latter is now set to help anchor the redeveloped Nashville Convention Center, which Mayor Karl Dean has proposed become a massive mixed-use redevelopment.

The move to fund the state museum comes amid massive change in the north part of downtown Nashville, led by the construction of First Tennessee Park, the new home of the minor league baseball Nashville Sounds, set to open April 17.

The state of Tennessee is also in the process of building a new 1,000-space parking garage that will be used by state employees during the day and visitors of the baseball stadium at night. Several apartment complexes, mixed-use development and retail projects are also slated for the area north of the Tennessee State Capitol near the Nashville Farmers' Market.

The Tennessee State Museum, founded in 1937, has operated out of downtown Nashville's James K. Polk building — where the Tennessee Performing Arts Center is also housed — for the past 32 years. Two years ago, the state building commission approved $475,000 to begin master planning the new museum.

State museum executive director Lois Riggins-Ezzell, in a prepared statement, said the museum is excited about future plans, delighted by Haslam's budget commitment and looking forward to working with the state architect to bring the project to fruition.

In the past, state officials have also explored relocating the Tennessee State Library and Archives — currently next to the state Capitol — to the Bicentennial Mall area as well. Haslam's budget amendment, however, does not provide funding for that project.

Reach Joey Garrison at 615-259-8236 and on Twitter @joeygarrison. Staff reporter Dave Boucher contributed to this story.

Wish list

Gov. Bill Haslam has proposed the following new investments in his proposed budget amendment:

•$120 million to fund the state's commitment to a new $160 million Tennessee State Museum, $40 million of which will be raised through private funds.

•$50 million for "economic development projects" to produce jobs.

•$40 million to complete renovations of the Cordell Hull building.

•$36.5 million for the Rainy Day Fund in addition to the $36.5 million proposed in the original budget bringing the total reserve to 4.5 percent of state revenues.

•$12 million for maintenance and improvements to higher education facilities across the state.

•$5 million to fund new equipment for Tennessee Colleges of Applied Technology to meet job training demands across the state.

•$1.9 million for the Department of Mental Health and Substance Abuse Services to fund adolescent residential alcohol and drug treatment grants.