CHARLOTTE, N.C. — For the first time, the Charlotte City Council has publicly discussed its $110 million commitment to Major League Soccer.
The Wednesday discussion was part of a larger presentation on significant projects during the third day of the Charlotte City Council retreat in Durham.
The money has not been released to Panthers and MLS owner David Tepper. City leaders said they need agreements in place with Tepper on Eastland, Tepper’s plans for a new stadium and a proposed entertainment district.
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Chief Financial Officer Kelly Flannery briefed the Charlotte City Council on the current state of the Convention Center Tax Fund. The fund is composed of room occupancy and prepared food and beverage taxes.
Funds can only exclusively be used for tourism-related purposes and can't be applied toward things like affordable housing and policing.
Flannery informed the council the bucket of money has plenty of funding and the city is in good shape to provide Tepper with the $110 million and not be limited for other major projects.
"Having been in the red, it is a lot better to be in green," Flannery said.
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Figures presented by Flannery show the Charlotte City Council has an estimated $41.7 million in the account’s fund balance. According to city projections, that fund’s balance is projected to be $101.9 million in 2024 and rise to more than $500 million in 2044.
Flannery also presented the council with a scenario in which the city takes on a $100 million project like MLS. The fund balance would then sit at $41.2 million, rise to $71.8 million in 2024 and $323.5 million in 2044.
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Payments on the debt would be spread out over an extended period of time. The fund balance total is what is available to make payments on the debt.
"I hope through the next few years we make significant investments in our city with sports, entertainment and our cultural centers," Mayor Vi Lyles said.
But before the money is provided to Tepper Sports, the city wants three "complex multi-level" agreements in place.
The first involves where the MLS team headquarters and practice facility will be, the former Eastland Mall site.
[ READ MORE: Old Eastland Mall site will be home to city’s MLS headquarters, practice facility ]
“It feels like the perfect storm, and I am very excited for the eastside and for the community as to what this can do,” Assistant City Manager Tracy Dodson said.
The Eastland Mall site will need to be rezoned. Dodson said the paperwork for the rezoning will be filed in January. A public hearing will happen, likely in April, with an early summer vote.
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The city also wants a framework in place for Bank of America Stadium and Tepper's plans for a new stadium. The tether keeping the Panthers in Charlotte expires soon and leaders see these talks as a way to make sure MLS and the NFL stay in the Queen City.
"I need to know Tepper is not going to go to South Carolina," Dodson said. "The goal is to make an investment in MLS that is also making an investment in keeping the Panthers here and building out something that is great for our city."
The last agreement the city needs in place is for Tepper’s proposed entertainment district. Lyles said the community will be engaged throughout the whole process.
“When we talk about what our vision is, it is working with Tepper Sports to accomplish our goals and create a place people want to come,” the mayor said.