MEMPHIS, Tenn. — Members of the Tennessee State Legislature from Memphis are proposing a new revenue stream to cover the gap and pay for hundreds of millions of dollars' worth of planned FedExForum renovations that could be key to keeping the Memphis Grizzlies in town.
The state of Tennessee is providing roughly $230 million to upgrade FedExForum, leaving an estimated $270 million to be raised elsewhere.
Lawmakers like state Sen. Raumesh Akbari and Rep. Antonio Parkinson are looking to tweak an existing tax Memphians already pay to be used for upgrades on the 20-year-old building.
“I don't know what happens to Downtown Memphis if you lose an anchor like that at the FedExForum,” Sen. Akbari said.
The District 29 senator from Memphis wants to make sure the city has every available resource to keep the Grizzlies in FedExForum and the Bluff City.
In May 2023, former Memphis Mayor Jim Strickland said upgrades to FedExForum are linked to a new decades-long lease for the NBA franchise at the arena.
“It’s the largest tourist attraction in the city of Memphis,” said Memphis resident Brandon Carter. “Of course we need it. It’s mandatory. It’s necessary. Got to have it.”
The current lease is set to expire in 2029.
“To go [to FedExForum] is to escape from everything, every bad thing that’s in the city,” said Memphian Marquavian Keys.
Rep. Parkinson and Sen. Akbari’s bill (Senate Bill 2471) would make it clear that revenue from the city’s hotel-motel revenue tax could be used to upgrade and renovate sports facilities, not just build them.
“My bill deals with funds that are already allocated by state law to go towards, or allowing municipalities to build or maintain or do something to a sports facility,” Sen. Akbari said. “My bill would just provide clarity that you can use those existing funds that have been allocated to repair or renovate the facility.”
Sen. Akbari clarified that her bill would not divert any funds away from Memphis Tourism.
"It's not completely clear the intent of the law we passed last year included renovations, but we want to make sure that it's clarified in the law," she said.
In a statement to ABC24, Memphis Mayor Paul Young said the following:
"We are looking at all legislative options that help us fund the renovations necessary to keep the FedExForum as a viable option for the Grizzlies, Tigers, and concerts. Downtown vibrancy is key to the success of so many small businesses in the district and we want to do everything possible to help drive a positive outcome for all.
We are continuing to have robust dialogue with Memphis Tourism and key stakeholders about all of these options."
ABC24 reached out to the Greater Memphis Chamber for comment, and they sent the following statement:
“The Greater Memphis Chamber continues to support the Memphis Grizzlies fully understanding that the organization’s viability is a key driver in our city’s economic success.”