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QUESTION: How would the proposed multi-use stadium be used, in addition to hosting Tennessee Smokies baseball games?

ANSWER: The Smokies play 60 or more home games each season, from May through September. But the proposed publicly-owned stadium in East Knoxville, at the edge of the Old City, would host more than 200 non-baseball events each year – everything from soccer games to festivals, concerts and other special events. (The new USL professional soccer team, One Knoxville Sporting Club, will play its games at the stadium.) Also, the stadium concourse would be open year- round (except when in use for scheduled events) for community use, much like a park.

QUESTION: What is the cost of the stadium? How would it be paid for?

ANSWER: The publicly funded cost of the proposed stadium is $74.3 million, with the developer Randy Boyd funding approximately $5.8 million of additional funds for a total construction cost of approximately $80.1 million. The state of Tennessee has provided a $13.5 million economic development grant toward construction costs. Sales taxes collected from concessions and merchandise sold inside the stadium and private development at the site would produce enough new revenue to cover around 60 to 70 percent of the stadium debt service. The Tennessee Smokies have agreed to pay roughly $1 million a year in lease payments. Any remaining debt payment would be relatively small, and would be split by the City and County.

QUESTION: After new revenue, gifts and grants are accounted for, what would the City and County cost be?

ANSWER: The estimated cost to the City and County would be $240,000 for each government annually for the first 10 years. At that point, according to the economic impact study, the project has the potential to pay for itself.

QUESTION: What is the projected economic impact of the stadium?

ANSWER: An independent analysis calculated the total economic impact of the stadium and surrounding private development to be nearly $480 million over 30 years. More than 400 full-time jobs are expected to be created.

QUESTION: What assurances do the City and County have that, if they build and own a public stadium, the Tennessee Smokies will be a long-term tenant?

ANSWER: Smokies owner Randy Boyd has agreed to a 30-year lease contract, committing to a $1 million per year lease payment.

QUESTION: How is the Smokies baseball team lease structured?

ANSWER: The lease would be roughly $1 million a year – the highest fixed rent paid by a AA baseball team in a comparable city at a stadium opened after 2010. The Smokies lease is so much higher than the average lease in other cities because it’s structured to limit the risk to City and County taxpayers. The City and County would not share in concessions revenues, for instance, but they also would not be on the hook for any operational shortfalls. For example, if games are cancelled or attendance is reduced due to a pandemic or some other major event, the rent will still be paid. The Knoxville lease is a high-dollar fixed amount with terms that are predictable and low-risk for the local government owners.

QUESTION: Are Boyd and the Smokies paying their fair share?

ANSWER: In addition to the $30 million in lease payments ($1 million a year for 30 years), developer Randy Boyd is donating the land valued at $10 million along with $6 million for construction costs. So, Boyd and the Smokies will ultimately pay more than $46 million toward a stadium that they lease and do not own.

QUESTION: How much financial risk are the City and County taking on?

ANSWER: Relatively little when compared to the projected economic gain. The estimated cost to the City and County would be $240,000 for each government annually for the first 10 years; at that point, the project could potentially be paying for itself, with no shortfall at all to be funded by local government. How significant is the initial tab of $240,000 a year? As a comparison, that’s slightly more than the City pays for its annual cell phone contract – or what the City or County pay for an annual mowing contract for a few large public parks.

QUESTION: What would the stadium’s seating capacity be? How many people could attend a concert?

ANSWER: Permanent seating in the stadium would accommodate about 7,000 guests. But for a concert, with chairs set up, capacity would be about 15,000.

QUESTION: Are there enough parking spaces nearby to support a stadium?

ANSWER: GEM Community Development Group will build parking to support the residents and tenants who live and work in the privately-financed apartments, townhouses and offices that would be built near the stadium. But there are almost 7,700 public parking spaces already within a 10-minute walk to the stadium – 15,000 parking spaces in garages and surface lots within a 20-minute walk. Urban planning models recommend 1 parking space for every 2.5 attendees at an event – suggesting that existing parking, coupled with a walkable, greenway-connected and transit-friendly design, is sufficient.

QUESTION: Will the stadium be easily accessible by transit?

ANSWER: Yes. KAT bus routes currently run near the stadium, and the free Green Line trolley now runs directly past the stadium site. If the stadium is built, both bus and trolley service will be enhanced to provide transit passengers with a great option for conveniently getting to and from the stadium and the surrounding amenities. In addition, planners are designing specially designated drop-off and pick-up spaces near the stadium for transit and ride-share passengers.

QUESTION: What are some of the public amenities that will be a part of the stadium design?

ANSWER: The proposed stadium will be constructed for more than just baseball. The stadium seating and field have been designed for soccer or other “rectangular field” sports. The capacity of the stadium fills a need in Knoxville for attracting certain types of performance acts. The stadium concourse, which will open for public use dawn to dusk except during events, will provide a 360-degree walking and jogging path. The proposed stadium will include retail space built in along Jackson Avenue, “activating” the street and providing additional jobs and economic activity. Indoor event spaces at the stadium can be rented by individuals or community groups to host weddings, reunions, parties and meetings.

QUESTION: Will this stadium and the GEM Community Development Group’s private investment leverage more economic opportunities in East Knoxville?

ANSWER: As part of a larger redevelopment effort around the stadium, GEM Development Group, the private development partner to Boyd Sports, is planning to invest more than $100 million to build apartments, condos, restaurants, retail stores, offices and space for a grocery store. The site plan envisions street retail along Jackson Avenue, which will encourage further redevelopment extending eastward on Jackson (and other streets) past the stadium.

QUESTION: Will the stadium and events held there generate new economic activity, or would spending just be shuffled from one part of Knox County to another?

ANSWER: The goal is for new money generated by the project – such as sales taxes on concessions and new revenue from surrounding private property development – to pay off the construction bonds. No property tax revenues will be used to pay for the stadium. But, the bigger, more important picture: An analysis by consulting group Conventions, Sports & Leisure International estimates that a third of stadium visitors will be “day-trippers” who do not reside in Knox County. CSL projects $281.9 million over 30 years in “net new direct spending” – economic activity that is new, not a relocation of current existing spending.

QUESTION: Could property taxes be diverted to pay for the stadium?

ANSWER: No property taxes can be diverted to pay for a stadium. New revenue (a state grant, team lease payments, new sales tax revenue, etc.) will pay for the majority of the cost of the stadium. Any remaining debt will be relatively small, and will be paid out of non-property tax revenue.

QUESTION: Would the City and County’s debt obligation be comparable to, say, the City building its Convention Center?

ANSWER: The Knoxville Convention Center opened nearly 20 years ago, and it cost roughly 3 times what’s being proposed for a publicly-owned stadium. The City took the lead in retiring the Convention Center debt, with Knox County contributing $1.5 million a year. For this stadium project, the City would be partnering with Knox County and the Smokies, with guaranteed predictable rent from the team as part of the revenue mix. So a stadium is decidedly less risky than building a Convention Center was. The Convention Center does provide a good example of a project that has proven to be a successful City investment, bringing in visitors who have pumped tens of millions of dollars into Knoxville’s local economy.

QUESTION: Can the Sports Authority pursue other projects?

ANSWER: The Sports Authority was formed specifically for this proposed stadium project, and does not have the ability to take on any debt or other projects without authorization from the City and County.

QUESTION: What is the history of the proposed project site?

ANSWER: Prior to railroad lines coming to the area in the mid-1800s, the site of the proposed project was green and mostly undeveloped due to the proximity and flow of nearby First Creek, which was a source of flooding in the area until the mid 20th century. The nearby area was home to residences, including an early subdivision and homes for more affluent Knoxvillians, many of whom moved out of the area due to flooding and because of the noise and other impacts from nearby industry. The area evolved into a more mixed-race, working class neighborhood. By the end of the 19th Century, more industry moved into the area, including meatpacking factories and stockyards. The surrounding neighborhood grew into an area that was mostly African American. An active community of businesses, social activities and churches populated this area known as “the Bottom.” The Willow Street Urban Renewal Project resulted in the displacement of businesses and residents from the Bottoms, with impacts that continue today. The Lay’s meatpacking factory continued to operate on site, employing up to 350 people, until closing in 2002.

This video from the Beck Cultural Exchange Center provides more history and context, including the long history of baseball in East Knoxville

QUESTION: How will this stadium benefit the community?

ANSWER: The proposed multi-use stadium will fulfill a desire that has been expressed by many in our community: It will bring baseball back to Knoxville! It will create a new public facility that will be a place for people from throughout our community to cheer on their team, and enjoy other sporting events, entertainment activities, or simply walk the concourse. The project will bring benefit to the entire City and County and, because of its location, it will bring significant benefits to East Knoxville.

This former site of the Lays Packing Plant has been vacant for more than two decades, creating a physical division between downtown Knoxville and the East Knoxville community. Redevelopment of this property will help connect the two and create opportunities for increased positive activity, investment and development.

At least $100 Million in private investment has already been committed to this area. And, an independent analysis calculated the total economic impact of the stadium and surrounding private development to be nearly $480 million over 30 years. More than 400 full-time jobs are expected to be created.

Often times disadvantaged business enterprises and workers are left behind during major redevelopment projects. In this case, in an intentional effort to maximize opportunity, work to engage disadvantaged businesses and people started months prior to the project being brought forward for approval.

The Knoxville Area Urban League, through an agreement with the developer, has been leading this work to identify and recruit minority contractors, subcontractors and suppliers, to recruit and train local community members for the project’s skilled workforce, and provide training for small disadvantaged businesses for participation in stadium construction and operations.

Additional benefits of this project are highlighted throughout these FAQ’s.

QUESTION: Will there be a Community Benefits Agreement for this project?

ANSWER: Both Mayors, the Sports Authority Board, Boyd Sports and members of other elected bodies have publicly committed to ensure the proposed project benefits the community. Unlike the Nashville soccer stadium deal, which included a Community Benefits Agreement between a nonprofit and the private company that was developing the stadium on public land, Knoxville’s multi-use stadium is being built on private land that will be donated to the public.

Agreements are in place with the Knoxville Area Urban League to identify and recruit minority contractors, subcontractors and suppliers, to recruit and train local community members for the project’s skilled workforce, and provide training for small disadvantaged businesses for participation in stadium construction and operations. The stadium is being designed to make it open as a community amenity. Randy Boyd has a long history of investing in youth and education in Knoxville’s urban area, and has already engaged East Knoxville school and youth leaders to hear their thoughts about how the project can benefit the area. He and his partners are funding youth development programs and have provided grants to improve playgrounds and sports fields in East Knoxville. Contracts between the Sports Authority, the developer and the Tennessee Smokies include accountability measures to ensure the project respects the history and culture of the community, provides opportunities for Disadvantaged Business Enterprises, and provides professional internship opportunities for area college students.

QUESTION: How is the Knoxville Area Urban League assisting with recruitment of black-owned businesses to participate in the construction and operation of the stadium?

ANSWER: The local Urban League has an agreement with GEM Development Group to identify and recruit minority contractors, subcontractors and suppliers, to recruit and train local community members for the project’s skilled workforce, and provide training for small disadvantaged businesses for participation in stadium construction and operations.. The Knoxville Area Urban League has offered close to 20 “match-making,” training and other events related to the project. The KAUL website describes the stadium project this way: “This proposed project will be transformational for a community in need of permanent jobs that pay a livable wage and for ownership and growth of Black businesses.” Call the Urban League at 865-524-5511 (ask for Terrence Carter, Vice President of Workforce and Economic Development, at Ext. 205, or email him at [email protected]). Or visit www.thekaul.org/baseball for more details.

QUESTION: What’s the risk of passing on the opportunity to build a public stadium?

ANSWER: The biggest risk of doing nothing is that the site will remain vacant with no economic activity, dividing East Knoxville from downtown as it has since the chicken processing factory closed 20 years ago. Another potential is that the private owners of the site will develop it in the way they see fit. They would choose how to use their property, and it would not necessarily include any public amenities. In fact, without the estimated 438,000 annual stadium attendees, any go-alone private development would likely have much less broad community benefit. Also consider the potential for growth and redevelopment along Magnolia Avenue and other East Knoxville corridors. Forgoing the stadium project reduces the potential to jumpstart entrepreneurship and new investment far from the stadium footprint.

QUESTION: Will this project push current residents out of the area if rents rise?

ANSWER: The proposed stadium site is completely vacant, and has been for the past two decades since the chicken processing factory closed. There are nearly 3,000 units of income-based affordable housing either in place or in progress within one mile of the proposed stadium site. The sources of funding for these units ensures long-term affordability protection for existing residents and new residents with low incomes. In partnership with KCDC, the City is investing nearly $13 million in improvements in Austin Homes to increase the number of units at that site from 129 to 400. Austin Homes will be directly connected to the proposed development by a new park and greenway. The City’s newly established Affordable Housing Fund has committed $50 million over 10 years to continue increasing the number of affordable units across our community.

QUESTION: What is Lawler Wood’s role as the Sports Authority’s construction consultant?

ANSWER: After a competitive bidding process, the Sports Authority, which will own the proposed stadium once it is built, selected Lawler Wood to be an advisor and liaison with respect to construction-related issues including budgeting, schedule and project execution. It is typical for the owner of large, complex “turn-key” development projects like this to retain an experienced expert to serve as a liaison and advisor during project planning and construction.

QUESTION: Best-case scenario – when could baseball return to Knoxville?

ANSWER: If the project is supported by the City and County, then construction could begin early next year. The stadium is anticipated to open in late 2023, with plans for Southern League professional baseball to be played here in spring 2024.