MURFREESBORO, TN - WGNS has gained more insight into the recently canceled Notes Live entertainment venue that was planned for Murfreesboro. Initially, seeing the economic value generated by future ticket sales, the City allocated 20 acres along Medical Center Parkway to Notes Live developers for the construction of an indoor banquet hall, upscale restaurant, and outdoor amphitheater. However, Murfreesboro Mayor Shane McFarland stated that the City called off the deal when the developers changed their plans, eliminating the originally proposed restaurant and banquet hall.
Mayor McFarland told WGNS NEWS... The proposed entertainment center was to be constructed on a tract of land situated between the Stones River and Medical Center Parkway, an area already experiencing heavy traffic. If Murfreesboro had agreed to allow developers to increase the concert venue seating from 4,500 to 6,500 seats, it could have potentially caused major traffic disruptions. The proposed venue was to be less than 1,600 feet from Murfreesboro Fire & Rescue Station No. 4, under 1,300 feet from the main entrance to Ascension Saint Thomas Rutherford Hospital, and 670 feet from the future Atrium at Fountains Condominiums. These proximity concerns were significant, particularly regarding emergency traffic to and from the hospital and the fire station on Medical Center Parkway.
To put the seating capacity into perspective, the initial proposal called for 4,500 seats, almost double the seating capacity of the Ryman Auditorium in downtown Nashville. A request to increase seating by another 2,000 seats would almost be like adding another Ryman Auditorium to the plans, as the Ryman can seat 2,362 guests. If 50% of concertgoers drove to the proposed concert venue, that would equal 3,250 vehicles. For comparison, the Stones River Town Centre in Murfreesboro (formerly Stones River Mall) has 3,000 parking spaces.
One of the reasons for the increased crowd was said to revolve around the need to generate more revenue for the structure to be viable. When the builder's plans were initially agreed upon by the City, interest rates were around 4%, according to the Mayor. This week, the Mayor noted that the economic climate has changed significantly, with interest rates for similar projects now at about 8% or higher. 8% Verses 4% is a considerable difference. As an example, if the cost to construct Notes Live is $40-million and they finance $30-million of that pricetag, they will have to pay $286-thousand monthly on a 15-year loan at 8%. In comparison, a 4% loan over 15-years would be about $65-thousand cheaper every month.
In future negotiations for the City, the Mayor stated...
Land for Entertainment Venue: Property records show the land is currently owned by Sunset on the Stones River, LLC, based in Colorado Springs, Colorado. Records from the Rutherford County Assessor of Property indicate the land is appraised at $5.8 million. City and county taxes on the property add up to a little more than $60-thousand annually.
The land is now in the process of being transferred back to the ownersip of the City of Murfreesboro.
Scroll down to see what the City of Murfreesboro
Released about moving forward with Notes Live...
Notes Live fails to meet conditions of ‘Development Agreement’ for amphitheater project, Bourbon Brothers Smokehouse & Tavern, Boot Barn Hall, on the Stones River
as Released by Murfreesboro Officials
MURFREESBORO, TN - The City of Murfreesboro has elected not to move forward with the Notes Live project in the Gateway area due to Notes Live’s inability to meet the conditions set forth in its development agreement with the City. That agreement, which the parties executed in August 2022, called for Notes Live to construct:
- A state-of-the-art, open-air amphitheater with seating for 4,500 patrons;
- Bourbon Brothers Smokehouse and Tavern, an upscale, casual dining restaurant; and
- Boot Barn Hall, a 400-500-seat table setting, acoustically designed music and event venue that can be converted into 1,400 standing-room general admission hall.
“We had high expectations for this project, but unfortunately the project changed and those changes significantly altered what was agreed to in the development agreement,” said Mayor Shane McFarland. “The city is committed to finding the best project and use for this site. The City Council has already approved the infrastructure improvements to Medical Center Parkway and we look forward to those being completed.”
This new live entertainment campus was to be built on 20.13 acres at the southeast corner of Medical Center Pkwy and Gateway Blvd.
While both the City and Notes Live were excited about this project, Notes Live has unfortunately failed to meet the requirements of the development agreement. Under that agreement, Notes Live was to begin work on the development no later than June 1, 2023. Moreover, failure to meet this deadline would trigger a process for the land to be transferred back to the City. Nevertheless, in May 2023, the City agreed to extend the deadline for starting this work until December 31, 2024.
Despite this accommodation by the City, Notes Live has told the City that it will not be able to initiate the project under the terms set forth in the development agreement due to economic conditions and interest rates that are higher than when the parties executed the development agreement. Instead, Notes Live recently requested a substantial modification from the original agreement by requesting an increase to the amphitheater capacity from the originally requested 4,500 seats to 6,500 seats and dropping the smokehouse tavern and Boot Barn Hall from the project.
The City’s senior staff discussed separately with individual councilmembers to discuss Notes Live’s requested modifications to the development agreement and based on those conversations determined that the majority of City Council did not support Notes Live’s request. Therefore, in accordance with the original agreement, Notes Live will transfer the 20.13 acres back to the City due to Notes Live’s failure to begin work on the project. The City is initiating steps to take the property back per the conditions set forth in the agreement.
The development agreement had also called for a number of off-site infrastructure improvements including the City’s extension of Gateway Boulevard to Robert Rose Drive and the signalization of Warren Street at Medical Center Pkwy (Fire Station 4). The $7.1 million Gateway Extension Project received unanimous approval from City Council on July 21, 2022, as part of a reallocation of CIP funding from FY 21-22 Bond Proceeds. The City completed the Gateway Extension Project earlier this year.
In addition, the City Council also voted to reallocate CIP funding to expand Medical Center Parkway to improve traffic flow with a three-phase road-widening project beginning in early 2023. This approximately $26 million infrastructure improvement is independent of the Notes Live Project and could be completed in 2026-27. Council voted July 21 to reallocate CIP funding from FY 19, FY 21-22 Bond Proceeds to add an additional through lane in both directions. City Council voted to reallocate CIP funds to the Medical Center Pkwy expansion so the critical project could be initiated sooner and be completed by the time the entertainment venues opened.
The City of Murfreesboro will continue to seek an opportune public private partnership that would yield similar economic impacts in the development of this property.
