NASHVILLE, Tenn. (WTVF) — The head of Bristol Motor Speedway plans to bring back a proposal that would expand and upgrade the racetrack at the Nashville Fairgrounds and bring NASCAR Cup races to Music City.
Under the proposal - Metro would issue bonds to help cover the cost of the project and taxpayers would be responsible if revenue from the racetrack does not cover the cost of the bonds.
The plan had the support of former Mayor John Cooper but stalled over the summer as Cooper left office.
The President and General Manager of Bristol Motor Speedway, Jerry Caldwell, told NewsChannel 5 Investigates, "We understand and respect that this new mayor and council will want to put their fingerprints on a deal, and we look forward to having a conversation with them on what that could possibly look like."
NewsChannel 5 Investigates questioned Caldwell about the proposal and how it compares to a deal Wilson County received for its super-speedway more than twenty years ago.
Wilson County issued $26 million in bonds to pay for infrastructure like sewer lines to the remote speedway.
However, the county required the developer to protect taxpayers by putting up a letter of credit.
Wilson County's current mayor Randall Hutto said that letter of credit means taxpayers have never had to cover bond payments when revenue from the track slowed - which was critical in years when the track closed.
"It's a big deal to have. It keeps taxpayers free and clear of any debt that they should not be incurring," Hutto said.
NewsChannel 5 Investigates asked, "Are taxpayers on the hook if something goes wrong?"
Hutto responded, "Taxpayers are not on the hook, and the people that made the deal long before I got here, made a good deal."
Two years ago the parent company of Bristol Motor Speedway, Speedway Motorsports, bought the Wilson County speedway along with its obligations including a legal requirement to put a letter of credit on file to protect taxpayers.
NewsChannel 5 Investigates asked Jerry Caldwell, "Can Nashville get a similar letter of credit in its deal?
Caldwell responded, "Well it was a very different deal. I wasn't involved in what was done in 1999 and our company wasn't involved."
The Nashville Fairgrounds deal that stalled this summer, allows Bristol Motor Speedway to lease the old Fairgrounds racetrack for 30 years and then use bonds to expand and upgrade the facility so it can host NASCAR Cup races.
If revenue from the track does not cover those bond payments, taxpayers must make up the shortfall.
NewsChannel 5 Investigates asked Caldwell, "If there is a shortfall then Metro makes up for that shortfall?"
Caldwell responded, "Forty to fifty percent of the deal is guaranteed by our rent. So there is already that guarantee. Again this is a partnership. We are guaranteeing about fifty percent of it."
Caldwell said it is wrong to compare the fairgrounds proposal with the Wilson County deal.
First, Metro owns the fairgrounds. In Wilson County, the developer owned the land.
Also, the fairgrounds racetrack is in disrepair - and needs $40 million just to fix.
Plus he said Metro would share in the profits from events at the racetrack in ways Wilson County does not.
"Look at it from our side, we are going to operate a facility for 30 years with Metro government. It's their property, but we are willing to commit to it for 30 years. We need to know that we are partners in this. We need to know we both have an interest in making sure this can work," Caldwell said.
Council member Sheri Weiner supports bringing NASCAR to the fairgrounds and voted in favor of the proposal as chair of the Fair Board.
"If they want to give us the same letter they gave Wilson County, I'm all in," Weiner said.
She was very supportive of a protection like what Wilson Couny received.
"I love that. I wouldn't be opposed to that at all," Weiner said.
In May of 2022, an independent financial review of the racetrack proposal concluded the racetrack would likely "require the use of (Metro's) General Funds to meet its financial obligations."
After that report, Bristol improved the deal.
Bristol increased its rent payments to Metro and the Nashville Convention and Visitors Corporation increased its contribution to the project to $17 million.
That's on top of $17 million from the state.
A more recent independent review found the finances worked, but taxpayers remain on the hook if revenues fall short.
NewsChannel 5 Investigates asked, "If you are assuring us it's such a great deal, why not just remove the (taxpayer) obligation from the deal?"
Caldwell responded, "Because it's a partnership. We are guaranteeing half of it and then we are also bringing major events to town."
The biggest of the promised events are NASCAR Cup races, but NASCAR does not normally make long-term deals.
NewsChannel 5 Investigates asked, "How can you guarantee that there will be races over the 30-year term of this lease?"
Caldwell responded, "We've been in business for over 60 years and we've always had races at our racetracks and have a wonderful working relationship with NASCAR."
NewsChannel 5 Investigates asked, "What would you say if someone is concerned there is not a written agreement (with NASCAR)?"
Caldwell responded, "That's why we put into the contract, if we can't bring a race basically we still have to pay the tax revenue."
Wilson County went nearly 20 years before getting a NASCAR Cup race.
Caldwell said there are just too many differences to compare Wilson County with the Nashville Fairgrounds.
He promises this deal is good for Nashville because it fixes an old racetrack at the fairgrounds and gives Metro a chance to benefit from events Bristol brings in.
"This is a 120-year-old facility and we're saying, 'You know what, you've got to spend money to fix this thing up, we'll come in with you. We'll spend money and we'll bring in all these events and help you generate enough revenue to pay for all of that,'" Caldwell said.
