Save Our Fairgrounds v. Metropolitan Government of Nashville and Davidson County, Tennessee

CourtCourt of Appeals of Tennessee
DecidedJuly 14, 2023
DocketM2021-00074-COA-R3-CV
StatusPublished
AuthorJudge W. Neal McBrayer

This text of Save Our Fairgrounds v. Metropolitan Government of Nashville and Davidson County, Tennessee (Save Our Fairgrounds v. Metropolitan Government of Nashville and Davidson County, Tennessee) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Save Our Fairgrounds v. Metropolitan Government of Nashville and Davidson County, Tennessee, (Tenn. Ct. App. 2023).

Opinion

07/14/2023 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE October 20, 2022 Session

SAVE OUR FAIRGROUNDS ET AL. v. METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE ET AL.

Appeal from the Chancery Court for Davidson County No. 18-952-III Ellen Hobbs Lyle, Chancellor ___________________________________

No. M2021-00074-COA-R3-CV ___________________________________

Citizens sought to stop the construction and operation of a soccer stadium at The Fairgrounds Nashville. The plaintiffs advanced a plethora of legal theories in support of their claims that the soccer development violated the Metro Charter. After a month-long trial, the court dismissed the plaintiffs’ claims with prejudice. On appeal, the plaintiffs raise two issues: (1) whether the trial court’s orders were final; and (2) whether the court erred in ruling that the Metro Charter did not require a public referendum before any demolition and new development could occur at the Fairgrounds. We conclude that the court’s orders were final. But, because the challenged demolition and construction have already happened, we dismiss this appeal as moot.

Tenn. R. App. P. 3 Appeal as of Right; Appeal is Dismissed and Case Remanded

W. NEAL MCBRAYER, J., delivered the opinion of the court, in which FRANK G. CLEMENT JR., P.J., M.S., and JEFFREY USMAN, J., joined.

James D.R. Roberts, Jr., Dickson, Tennessee, for the appellants Save Our Fairgrounds, Mildred Smith, Neil Chaffin, and Nashville Flea Market Vendors Association.

Lora Barkenbus Fox and Catherine J. Pham, Metropolitan Attorneys, for the appellee Metropolitan Government of Nashville & Davidson County.

John J. Hamill and Mary M. Shepro, Chicago, Illinois, and William N. Helou, Nashville, Tennessee, for the appellees Nashville Soccer Holdings, LLC and Walsh Management, LLC. OPINION

I.

A.

The Fairgrounds Nashville, an approximately 125-acre tract, is located four miles south of downtown Nashville. The Fairgrounds has been the site of the annual Tennessee State Fair, a monthly flea market, a motorsport racetrack, and various exposition events. In 2011, a majority of Davidson County voters approved an amendment to the Metropolitan Charter related to the Fairgrounds. The amendment provided,

All activities being conducted on the premises of the Tennessee State Fairgrounds as of December 31, 2010, including, but not limited to, the Tennessee State Fair, Expo Center Events, Flea Markets, and Auto Racing, shall be continued on the same site. No demolition of the premises shall be allowed to occur without approval by ordinance receiving 27 votes by the Metropolitan Council or amendment to the Metropolitan Charter.

Metro Charter pt. I, art. 11, § 11.602(d).

The Metropolitan Government of Nashville and Davidson County (“Metro”) owns the Fairgrounds, which is operated by the Metropolitan Board of Fair Commissioners (“Fair Board”). Id. pt. I, art. 11, § 11.602(a); id. pt. II, art. II, § 10. The Fair Board’s duties and authority stem primarily from the Metro Charter. See id. pt. I, art. 11, §§ 11.601 to 11.602; id. pt. II, art. II, §§ 1-12.1 But Metro may add to those duties by ordinance. Id. pt. I, art. 11, § 11.602(c). The Fair Board’s principal duty is to hold an annual “fair or exposition” at the Fairgrounds.2 Id. pt. II, art. II, § 10. Otherwise, it may lease property at the Fairgrounds for educational or amusement purposes as long as the leases do not interfere with the operation of the annual fair. Id. pt. II, art. II, §§ 8, 10.

1 By private act, the General Assembly created a board of fair commissioners and granted it certain powers and duties. 1909 Tenn. Priv. Acts 1781 (ch. 490); 1923 Tenn. Priv. Acts 1975 (ch. 515). Section 11.602(a) of the Metro Charter makes those powers and duties applicable to the current Fair Board. Metro Charter pt. I, art. 11, § 11.602(a). And Article II of the Metro Charter reflects the text of chapter 515 of the 1923 Private Act, as later amended. Id. pt. II, art. II, §§ 1-12.

2 Before 2010, the Fair Board held an annual fair at the Fairgrounds known as the Tennessee State Fair. In May 2012, the General Assembly passed the Tennessee State Fair and Exposition Act. Tenn. Code Ann. §§ 4-57-101 to -107 (2021). Under that Act, the Tennessee State Fair and Exposition Commission is the sole body authorized to administer “a state fair and exposition.” Id. § 4-57-102. And the State controls the use of the name “Tennessee State Fair.” Id. § 4-57-106. From 2012 to 2019, the Fair Board hosted the Tennessee State Fair at the Fairgrounds under a contract with the Tennessee State Fair Association and/or the Tennessee State Fair and Exposition Commission.

2 In 2017, Major League Soccer announced that it had awarded a soccer franchise to Nashville. To attract a franchise, Metro agreed to the construction of a soccer-specific stadium and an adjacent multi-use development at the Fairgrounds. It pledged to use half of the property taxes generated by the multi-use development to create a capital fund for the Fairgrounds. Metro viewed the soccer development as an opportunity to attract more people to the Fairgrounds and to create an additional source of funding for the Fair Board.

Metro Council passed a resolution giving conditional approval to the Sports Authority of the Metropolitan Government of Nashville and Davidson County to issue bonds to construct and equip the stadium and related facilities. See Tenn. Code Ann. § 7- 67-109(15) (2015). The bonds were to be paid with funds generated from a tax on soccer ticket sales. Nashville Soccer Holdings, LLC, the entity that owned the team, agreed to cover any shortfall.

Metro directed the Sports Authority not to sell any stadium bonds until the conditions specified in the resolution were satisfied. One condition was the execution of an operating lease between the Sports Authority and the team containing specific provisions, including “a reasonable mechanism for resolving scheduling disputes between the Team and the Executive Director of the Fair Board.”

For its part, the Fair Board approved the terms of a ground lease allowing the Sports Authority to use part of the Fairgrounds for a soccer stadium. It also agreed to a binding term sheet, outlining the basic terms of an operating lease between Walsh Management, LLC, a wholly-owned subsidiary of Nashville Soccer, and the Sports Authority for the operation of the stadium.

In 2018, Metro Council enacted multiple ordinances in connection with the soccer development. One ordinance approved the demolition of the dilapidated buildings and sheds at the stadium site. The approval ordinance, which garnered more than 27 votes, required the construction of new facilities for the existing activities at the Fairgrounds before demolition could begin. Metro also authorized the issuance of general revenue bonds to fund the construction of the new facilities and infrastructure.

At the same time, Metro declared that 10 acres adjacent to the stadium site were surplus property. It rezoned the property to allow a multi-use development. And it authorized the Fair Board to execute a ground lease for the 10-acre site with a subsidiary of Nashville Soccer. The site plan proposed a multi-use development that included residential, retail, and restaurant space. Nashville Soccer agreed to ensure that the developer reserved space for a childcare facility, affordable housing units, and a micro-unit incubator for artisans and small businesses that did not compete with existing flea market vendors.

3 B.

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Bluebook (online)
Save Our Fairgrounds v. Metropolitan Government of Nashville and Davidson County, Tennessee, Counsel Stack Legal Research, https://law.counselstack.com/opinion/save-our-fairgrounds-v-metropolitan-government-of-nashville-and-davidson-tennctapp-2023.