Why a Memphis City Councilman wants city oversight of Simmons Bank Liberty Stadium

The University of Memphis is close to getting $120 million from the city to renovate Simmons Bank Liberty Stadium, but there are still hoops to jump through.

One of those hoops is a resolution from councilman JB Smiley Jr. that would make the transfer "contingent" on the university allowing city representatives to be added to the board of the University of Memphis Auxiliary Services Foundation. Part of the deal between the city and the university includes transferring ownership of the stadium from the city to the ASF, which controls various projects on land owned by the university.

City officials have said the stadium is a "massive liability" because the city has to pay for upkeep and smaller renovation projects. But Smiley pushed back on that, telling the Commercial Appeal in an interview on Monday that the stadium is an asset.

"It's an asset because it adds value to the city's portfolio, so to speak," Smiley said. "It may cost us a little bit to keep up, but it still adds value. That's like saying, to me, that we get rid of every park in the city of Memphis because we have to pay some money to maintain it."

Smiley said he plans to introduce the resolution because he wants the city to have a say in the goings-on at Simmons Bank Liberty Stadium. The resolution will be considered on Tuesday by the budget committee, which is chaired by councilman Chase Carlisle. The university sent a letter to Carlisle saying they opposed the resolution because the ASF's charter does not allow for "external appointee processes."

More: Memphis City Council resolution could complicate Liberty Stadium renovation plans

The letter, which was obtained by the Commercial Appeal, said the ASF could not add external members to the committee because it manages "dozens" of university projects. Smiley said he wasn't concerned about those projects and only wanted city oversight of the Simmons Bank Liberty Stadium project. He said he didn't initially expect the university to "push back" against his proposal but believed university officials would have conversations about how it would impact them and the ASF.

He also said the ASF's charter could be amended to allow city officials to only sit on the committee for discussions about Simmons Bank Liberty Stadium and not on the other projects the ASF deals with. The resolution includes a process for appointing city representatives to the foundation where the Mayor appointees will be nominated by the Mayor and approved by City Council.

"A lot of times when you talk about complex deals that have broad implications, the people generally don't hear anything about it," Smiley said. "And the bills are made. And I want everyone to put their cards on the table so that ultimately, the people kind of get to have an opportunity to decide on what they want for the city of Memphis. It's not my job to tell the people what they want. It's my job to propose ideas, have have robust conversations and let the people decide."

City Council will consider Smiley's resolution — which specifically asks for the ASF to amend its "governing documents" to allow for a city appointee that would only have a say in stadium discussions — when the budget committee meets at 10:30 a.m. on Tuesday. A vote on the resolution that would formally allocate the $120 million to the university for the stadium renovations is planned for Tuesday afternoon.

That resolution was introduced last month after months of discussions between the city, the university and the Memphis Grizzlies. Officials were trying to decide how to allocate $350 million from the state for various renovation projects in the city, but those conversations finally hit a breakthrough when FedEx founder Fred Smith and his family announced they would donate $50 million for Simmons Bank Liberty Stadium renovations. The university announced it would attempt to fundraise $50 million more. With the $120 million from the city and that additional money, the university would have the $220 million it wants to renovate the stadium.

That deal, which city officials said Grizzlies officials agreed to, also included the transfer of the stadium from the city to the university. Officials have said that the city will still retain ownership of the land around the stadium, including Tiger Lane.

"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. "It just gives the city of Memphis some authority, some insight on what's transpiring at the Liberty Bowl."

Reach sports writer Jonah Dylan at jonah.dylan@commercialappeal.com or on Twitter @thejonahdylan.

This article originally appeared on Memphis Commercial Appeal: Why a Memphis City Councilman wants city oversight of Liberty Stadium