Bill addressing FedExForum funding bumped back amid concerns about Memphis Tourism revenue
The bill which would allow Shelby County to reallocate funds raised from the hotel-motel tax was moved to next week's Tennessee Senate State and Local Government Committee after concerns were raised about the continuing negotiations for how Memphis Tourism's budget would be impacted.
State Sen. Brent Taylor, a Republican representing a portion of Shelby County and the bill's senate sponsor, told committee members initially that discussions on how the reallocation of the tax would be divided up were still ongoing but was confident in getting a consensus among the stakeholders in the coming weeks.
"We have to make sure we do what we can to keep a dedicated revenue stream to the Tourism and Convention Visitors Bureau so there's still more work to be done with this bill once it elevates out of committee," Taylor said.
Some legislators expressed concern about passing the bill through committee when there is still work left to be done.
Wayne Tabor, CEO of the Metropolitan Memphis Hotel and Lodging Association, and Doug Browne, the President of Peabody Hotels and Resorts, expressed concern over the tax change and its impact on Memphis Tourism's bottom line.
"In Memphis, we do $4 billion a year in hospitality in the hospitality industry and we have 50,000 jobs in Shelby County that's affected by hospitality," Tabor said. "This bill will cut the Convention Visitors Bureau, Memphis Tourism's annual budget to be able to promote Memphis and to bring visitors to Memphis and Shelby County."
Tabor said out of the $60 million deficit needed to fund the FedExForum renovations, Memphis Tourism has offered to pay $30 million.
Taylor said he was fine with rolling the item to next week to secure the five votes needed to pass it.
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"We have to try to figure out how to close that funding gap so we can complete the renovations to FedExForum but at the same time we need to make sure that CVB has a dedicated revenue stream so that they can continue to promote tourism and Memphis and Shelby County," Taylor said. "I think we can do both. It may not make everybody happy, but it'll be something that everyone can live with."
The Shelby County Commission passed a resolution Monday that would change the hotel-motel tax to allow for funding allocation to the FedExForum. The resolution would be implemented if Taylor's bill is passed.
The resolution also requires Memphis Tourism to add two individuals nominated by the Shelby County Mayor and approved by the commission to the Convention and Visitors Bureau.
Brooke Muckerman covers Shelby County Government for The Commercial Appeal. She can be reached at (901) 484-6225, brooke.muckerman@commercialappeal.com and followed on X, formerly known as Twitter @BrookeMuckerman.
This article originally appeared on Memphis Commercial Appeal: FedExForum funding: Brent Taylor bill stalled by Memphis Tourism funding issue
