Nissan Stadium upkeep could put Metro on hook for millions

Metro government could be on the hook for up to $11 million to cover new upgrades and upkeep at Nissan Stadium over the next few years as the Tennessee Titans’ home already undergoes a $15 million seat replacement.

The looming expense has members of the Metro Nashville Sports Authority looking for a plan to cover the city-owned stadium's future capital costs, which are on track to exceed the $1 million annual subsidy the NFL organization receives from Metro.

Upcoming anticipated projects eyed by the Titans include a $1.8 million environmentally friendly lighting system; a $1 million digital security surveillance system to replace its outdated analog version; and $500,000 for a new system to control stadium lights.

The sports authority’s board of directors voted earlier this month to request a recommendation from Mayor Megan Barry’s Metro finance department on how to pay for capital upgrades that have become more costly as the 17-year-old stadium ages.

“Clearly, $1 million a year is not going to continue to cover that,” sports authority member board Ralph Perrey said. “Our concern is simply, do we have a plan to pay for that? Historically, the balance has never been this high.”

Under terms of the team’s stadium lease agreement with the city, the Titans pay for miscellaneous capital improvements on the front end and then get reimbursed by Metro at the end of each year from a pool of city revenue that comes from the $1 million subsidy.

Metro’s Nissan Stadium capital fund is currently at just $157,947.

But the Titans have incurred $5.9 million in already completed capital projects that the team is expected to ask the city to reimburse. This includes $2.5 million that covered a recent Wi-Fi upgrade, as well as funds for a newly installed storm water drainage generator, HVAC improvements and new field tarp, among other expenses.

“Under the agreement with the Titans, the city ultimately is responsible for ongoing repairs to Nissan Stadium,” Barry’s chief operating officer, Rich Riebeling, said in a statement.

“Over the years, the Titans have frequently paid for miscellaneous repairs only to be repaid as funds became available,” he added. “However, as Nissan Stadium gets older, we can anticipate repairs to increase. We are in the process of getting our arms around what these costs may be and will work with the Titans and the Sports Authority on a funding plan.”

Titans begin replacing Nissan Stadium seats

Moving forward, the Titans front office has presented the sports authority with a list of 21 projects, totaling $5.1 million, it says is needed to keep Nissan Stadium up to date. Timelines for the projects aren’t clear, but many are targeted for this summer or next spring.

In addition to the new security and lighting systems, other projects include fiber-optic upgrades for broadcast TV trucks and transmissions; new freight elevators, projected to be $425,000; and renovations to the stadium’s ticket offices, $410,318.

Other anticipated projects still lack cost estimates. They include roof replacements of concession stands, door replacement throughout Nissan Stadium, new speakers at gate entrances and restroom renovations.

“These are projects that we are know are coming down the pike,” said Jenneen Kaufman, the Titans’ vice president and chief financial officer. “Some of them we actually have real proposals on and we’ve gotten information. Some are TBD, which means we haven’t gone out and gotten a firm proposal yet, but we are working towards that process.

“It’s certainly not a pressing receivable, but the stadium is getting older, and a lot of these things that are on the list have reached their useful life or, frankly, they’re no longer supported.”

Titans' stadium LP Field to be renamed Nissan Stadium

Since 2010, the Titans and Metro have charged a $3 tax on every ticket sold for events at Nissan Stadium to create a pool of funds for major stadium upgrades. It has generated $14.3 million overall in funding earmarked specifically for stadium capital costs.

A $2 chunk of that tax was devoted to new elevators, oversized scoreboards and other upgrades that were installed as part of a 2012 renovation project. The $1 portion of the ticket tax is being used to pay off debt for the $15 million seat replacement, which the sports authority approved last summer. That undertaking, still ongoing, also includes repairing concrete expansion joints.

This offseason, the Titans also have used their own resources to take on various cosmetic projects, including painting the stadium’s ramps and light breakers and pressurizing the entire facility.

Sports authority board member Dudley West applauded the Titans’ transparency in outlining future needs of the stadium and for being proactive on the front end.

He said the sports authority now needs a plan on how to pay for the costs.

“Basically, Metro is expending $1 million a year and there’s now $5 million that’s already booked and some additional funds that are anticipated,” West said. “We’ll never catch up unless we address the problem."

Reach Joey Garrison at 615-259-8236 and on Twitter @joeygarrison.