Memphis City Council resolution could complicate Liberty Stadium renovation plans
The University of Memphis is set to move one step closer toward kickstarting the planned renovations to Simmons Bank Liberty Stadium, but a City Council resolution could complicate the process.
The City Council will consider a resolution at its Tuesday meeting that would formally allocate $120 million in state funding toward the football stadium's renovations. According to an agreement between the city and the University of Memphis, the city would also transfer ownership of Simmons Bank Liberty Stadium to the University of Memphis Auxiliary Services Foundation.
But before that can be finalized, City Council will consider a resolution that could affect the stadium deal. Councilman JB Smiley Jr. is sponsoring a resolution that would make the $120 million allocation "contingent" on the addition of board seats to the University of Memphis Auxiliary Services Foundation (ASF). Those proposed additional seats would be filled by representatives appointed by the city.
"All of the land surrounding the Liberty Bowl is owned by the city of Memphis. The city of Memphis should have a say or at least have a voice on what transpires," Smiley said in an interview with The Commercial Appeal. "It just gives the city of Memphis some authority, some insight on what's transpiring at the Liberty Bowl."
The university sent a letter to councilman Chase Carlisle — the chair of the budget committee — saying that the foundation's charter does not allow for "external appointee processes." The foundation also "governs dozens" of university projects, the letter noted.
The letter, which was obtained by the Commercial Appeal, also listed a few points from the stadium project's letter of intent related to the project. Among those points: The city would have the right to reacquire the stadium if the university wants to sell and the $120 million can only be used for stadium renovations and not on any other projects.
"The university ASF anticipates the mayor, city council and university ASF to maintain an ongoing partnership in perpetuity," the letter says. "We look forward to working with the mayor and council to develop this partnership within the allowable structure of the ASF charter."
Smiley said Monday afternoon that the foundation's charter could be amended to allow city representatives to only be a part of stadium discussions. He added that he isn't concerned with the other projects with which foundation deals with and expects a "robust discussion" when the committee meets to discuss the resolution on Tuesday morning.
The budget committee will meet at 10:30 a.m., while the full council will meet later in the afternoon. The resolution that would formally allocate the $120 million notes that "the City Council recognizes that the planned improvement will assist in creating a world-class sports tourism destination and will add further value to the Memphis economy and enhance quality of life in our community."
It's a formal step that takes the university closer to breaking ground on the long-planned renovations to the stadium. In April, the state legislature approved $350 million for various stadium improvement projects in Memphis. But discussions among officials from the city, University of Memphis and Memphis Grizzlies had been slow-moving until last month, when FedEx founder Fred Smith and his family announced a $50 million gift for Simmons Bank Liberty Stadium renovations.
More: FedEx founder Fred Smith donates $50 million for Memphis stadium renovation project
The announcement of Smith's gift also came with an agreement between the three parties — the city would allocate $120 million of the $350 million to the stadium and would also transfer ownership of Simmons Bank Liberty Stadium to the university. University President Bill Hardgrave said at the time owning the stadium would help the university fundraise in the future, and the transfer would help the city free up money it has to spend on upkeep and smaller renovations.
There has still not been an agreement between the city and the Grizzlies for FedExForum renovations, which are expected to cost significantly more than the $230 million left in state money.
The University pushed to get the deal done now because it wants to break ground on renovations after the AutoZone Liberty Bowl on Dec. 29. The announcement about Smith's donation also came with a caveat — the Simmons Bank Liberty Stadium renovation will cost around $220 million, so the university is planning to fundraise $50 million to go with Smith's $50 million and the $120 million from the city.
It's not clear if the university would begin renovations on the stadium before it has the full $220 million, but the City Council approval and the Smith family donation would give officials at least $170 million before the end of the year.
Reach sports writer Jonah Dylan at jonah.dylan@commercialappeal.com or on Twitter @thejonahdylan.
This article originally appeared on Memphis Commercial Appeal: Memphis City Council resolution could hinder Liberty Stadium renovation
