In a major win for Nashville's Major League Soccer expansion hopes, the Metro Council on Tuesday night voted overwhelmingly to approve Mayor Megan Barry's financing plan for a new $275 million MLS stadium on the city's fairgrounds.

The council voted 31 to 6, with two abstentions, to sign off on a plan to issue $225 million in revenue bonds for the stadium project, giving Nashville's expansion bid a critical boost as it competes against 11 other cities for an MLS franchise.

The action could make Nashville one of two favorites, along with Sacramento, to land an MLS expansion team after lead team investor John Ingram has done what several rival cities haven't — secured financing for a new stadium built specifically for soccer.

Nashville soccer fans won't know the city's fate, and whether the stadium will be built, until MLS awards two expansion cities next month.

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"As stadium deals go, this really is a standard-bearer of those," said Councilman Russ Pulley, who voted for the resolution. "When you look at Nissan Stadium, you look at Bridgestone Arena and you look at First Tennessee Park, this deal is much better for us."

The stadium's approval, which comes just one month after the financing plan was introduced, crosses off the final box Ingram had remaining in his MLS push. It also delivers a big political win for Barry, who has worked with Ingram for the past year on the project and made it one of her top economic development undertakings.

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Mayor applauds council for saying 'YES to Major League Soccer in Nashville'

More than 450 spectators, including many wearing Nashville Soccer Club gear, produced an overflow crowd at the Metro courthouse for the final vote.

“The Metro Council should be applauded for joining the majority of Nashvillians who say YES to Major League Soccer in Nashville," Barry said in a written statement. "Their vote tonight puts Nashville in a very strong position to be awarded a franchise later this year by MLS.

"Thank you to John Ingram and the MLS to Nashville committee who have worked tirelessly over the last year to make this night possible for soccer supporters all across the Nashville area.”

The bond resolution that passed was a substitute version that had some last-minute amendments engineered by council members. Changes include additional guarantees from the owners, including a new clause that makes the ownership liable for any cost overruns that result from new city infrastructure built for the stadium. The team would also have to pay for any construction budget overruns.

Ingram, in a statement, called the vote a "great night for Nashville" that has capped a "long road" and brings Nashville one step closer to landing an MLS franchise. Nashville began the MLS expansion process as an overwhelming underdog.

"Of course the final decision on the team won’t be ours, but tonight Nashville checked off the final item that MLS needed to see," Ingram said. "I’m always proud of this city, and tonight we’ve shown — once again — how we all come together around something important to make Nashville the best it can be."

Council members debate private development part of stadium proposal

The council's six no votes came from council members John Cooper, Larry Hagar, Steve Glover, Holly Huezo, Mina Johnson and Dave Rosenberg. Council members Ed Kindall and Mike Freeman abstained. Councilman Robert Swope was not present.

The financing overcame criticism over a part of the deal to give the Ingram-led ownership group 10 additional acres of city-owned fairgrounds land for a future private development next to the stadium.

Ingram, along with minority owners Steve and Jay Turner of MarketStreet Enterprises, has planned a mixed-use development with affordable and market-rate housing, retail, restaurants, a hotel and office space that he says is "essential" to the fan experience and the overall deal. Skeptics have slammed it as a "giveaway" to wealthy developers — on top of eight acres of fairgrounds land needed for stadium's footprint.

"We're giving away tens of millions of dollars worth of land to billionaires," Rosenberg said.

Attempt to eliminate private development defeated

Cooper put forward an amendment to eliminate the 10-acre development from the project. "Public land is a public trust and we have to protect what we have," he said. "This went from being a soccer deal to being a real estate deal."

But the council, at the request of Councilman Colby Sledge, the fairgrounds neighborhood's representative, voted 26 to 10 to table Cooper's motion. Sledge touted the development as a way to bring new affordable housing and activate an underutilized site.

"Currently what we have is underused, and many times unused, asphalt parking lots that sit in our urban core while we tell each other and know that we have issues with affordable housing in our city," Sledge said.

At-large Councilman Bob Mendes said the private development piece could have been handled better but argued the stadium would benefit the city.

"On balance, I think the pros outweigh the negatives," he said.

► More:Nashville MLS stadium vote: What's at stake, and what's next

Owners to take on majority of stadium's debt

Longtime fairgrounds attendees have denounced the plan for the impact the stadium would have on existing uses at the site, even though Barry has promised to keep auto racing, expo center events and the annual state fair intact. Some watched from the gallery Tuesday wearing stickers that read, "Vote No to Free Land."

Other critics have said the stadium would come at the expense of more important investments needed in neighborhoods.

But most council members said any drawbacks were worth the chance for Nashville to land another professional sports franchise — one they said would unite the city around soccer and complement Nashville's growing diversity.

"We want it. I want it. They want it. And tens of thousands of Nashvillians want it," Councilman Fabian Bedne said.

Under the plan approved Tuesday, the ownership team led by Ingram — majority owner of Nashville Soccer Club — would pay $25 million up front and $9 million a year over 30 years to help retire Metro’s annual $13 million debt for the $225 bond issuance.

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Sales tax revenue generated by the stadium, as well as a $1.75 ticket tax that would increase over time, is designed to cover the remaining $4 million. Metro would be on the hook to pay the difference if projections fall short. Metro would cover the gap for years from five through 10 of the stadium up to $3 million.

Mayor's office: stadium tax revenue could initially fall short

Two council committees endorsed the stadium's financing, but it wasn't without a debate.

During a Budget and Finance Committee meeting Monday, Councilwoman Angie Henderson pressed Barry's administration on the city's assumptions on the amount of sales and ticket tax revenues that would be generated by the stadium to help pay off the debt.

Sales tax earmarked for the stadium include ticket sales, concessions, on-site merchandise and revenue from non-soccer events.

"I don't see that (revenue) in the early years as filling that gap of $4 million, and Metro is on the hook," Henderson said, later asking why the team owners aren't willing to cover the potential shortfall.

► More:Mayor Barry makes last-minute changes to Nashville MLS stadium proposal, keeps private development

Barry's Chief Operating Officer Rich Riebeling said the administration expects a shortfall of around $1.5 million over the first five years of the stadium's operations — dollars that Metro would be required to cover. But he said that gap is expected to close by the sixth year. He said the risk absorbed by Metro is the best the city could do during negotiations.

"We're optimistic — if attendance is really high, we get a lot of other events — we could actually have no exposure during any of the years," Riebeling said.

"Every deal has negotiating points, and I think this one, unlike other transactions the city has done, is much more in the city's favor and it greatly limits any exposure," he said.

Minority contracting a top concern from African-American council members

During a separate committee meeting prior to Tuesday's vote, At-large Councilwoman Sharon Hurt, who voted for the project, pressed Riebeling on whether minority- and women-owned businesses would receive contracts for the stadium's construction. It set off a tense exchange.

"Our history doesn't show that you've been committed," said Hurt, who is African-American. "The history says that there's been broken promises."

Riebeling fired back, "You have my word and the mayor's word, and I'm disappointed that that's not enough."

Council members Erica Gilmore and Scott Davis, both African-American, also raised concerns over minority contracting, but like Hurt voted for the project with a warning that they'll be tracking the issue.

In recent weeks, council members have received increased lobbying from the mayor's office and the ownership group on the stadium. The latter has been armed with six registered lobbyists, including Gov. Bill Haslam's former Chief of State Mark Cate and his government relations firm Stones River Group.

Issuing the bonds is contingent on Nashville getting a team, which would begin play at a still-undetermined temporary location in 2020. The new fairgrounds stadium would open for the 2021 season.

Future Metro Council action on MLS stadium await

If Nashville does land a team, Barry’s administration plans to later ask the council to approve two separate $25 million general obligation bond deals to pay for fairgrounds upgrades and infrastructure work.

► More:Nashville one of four cities energized for MLS expansion, commissioner says

The city would later seek legislation to demolish existing fairgrounds buildings needed to make way for the stadium — which would require 27 votes because a 2011 public referendum on the fairgrounds — as well as separate legislation to rezone fairgrounds property for the mixed-use development. Metro would still need to approve a stadium lease agreement as well.

Of the 12 cities vying for MLS teams, MLS commissioner Don Garber has singled out Nashville, Sacramento, Detroit and Cincinnati as places that have shined during the expansion process.

Sacramento is widely considered a shoo-in to land one of the two teams, having already secured deals for new stadium. Multiple cities among the group of 12 have either struggled on the stadium front or not finished deals, including Cincinnati and Detroit. The latter last week offered Ford Field, home of the Detroit Lions for their MLS stadium, bucking MLS criteria for soccer-specific stadiums from cities.

Reach Joey Garrison at 615-259-8236, jgarrison@tennessean.com and on Twitter @joeygarrison.