Press release from Nashville-Davidson Metro mayor Karl Dean, 6 January 2010:
NASHVILLE, Tenn. – Mayor Karl Dean presented the findings of an economic impact analysis today that projects Music City Center will generate $134.9 million in new annual spending in Nashville by 2017.
The report was completed by HVS Consulting, which recently conducted an independent feasibility analysis of Music City Center that confirmed demand for the facility and the revenues that will support it. Using the updated demand projections, the economic impact analysis specifically examines the increase in local spending that will be caused by Music City Center over what is currently generated by the Nashville Convention Center.
“This report is important because the reason to build a new downtown convention center – and the only reason I’ve supported this project from day one – is to make an investment in our city,” Dean said. “We have an opportunity to take visitor taxes and fees, and invest them in a way that creates jobs and grows our local economy.”
The $134.9 million total economic impact of the project includes both direct spending from individuals and organizations that will use Music City Center and secondary spending that will result from their activities, such as a restaurant owner purchasing food.
In direct spending alone, the report estimates convention attendees, event planners and exhibitors will spend $86.6 million in Nashville during a stabilized year of the center’s operations.
“If you consider the debt service at $40 million a year, for every dollar spent on building Music City Center, the people that use the facility will spend two new dollars on goods and services in Nashville. When we refer to this project as our own economic stimulus, that’s what we’re talking about. Those new dollars go directly into our local economy,” Dean said.
Using a nationally-recognized model to estimate economic impacts, called the IMPLAN input-output model, HVS estimated that 1,524 jobs will be supported by the total new spending generated by Music City Center. The spending will also produce $11.97 million in new local tax revenue that is not dedicated to paying off the center’s debt.
HVS is a global consulting and services firm for the hospitality and leisure industries. The HVS method for economic study of a project is considered the industry standard. More information about HVS is available here.