HB 65 – SB 495
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 7, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
HB 65 – SB 495
SUMMARY OF BILL: Authorizes cities incorporated under a city manager-commission
charter to contract with a private entity for the development, construction, management, or
operation of an indoor or outdoor sports facility under terms acceptable to the city, including, but
not limited to, terms between the city and a private entity regarding operating revenues or losses, for
the lease or sale of all or part of the facility, for the payment of management fees, or for such other
terms the city determines to be in the best interests of the city and its residents.
FISCAL IMPACT:
OTHER FISCAL IMPACT
Due to numerous unknown variables, the timing and amount of any permissive increase in local
revenue or expenditures cannot be reasonably determined.
Assumptions:
• There are 47 municipalities in the state incorporated under a city manager-commission
charter.
• Pursuant to Tenn. Code Ann. §§ 6-19-101(a)(4), (a)(13), and (a)(8), such cities may:
o Contract and be contracted with;
o Make contracts with any person, firm, association or corporation, for public utilities
and public services to be furnished the city and those in the city; and
o Acquire or receive and hold, maintain, improve, sell, lease, mortgage, pledge, or
otherwise dispose of property, real or personal, and any estate or interest therein,
within or without the city or state.
• This legislation specifically allows a city to lease all or part of any such facility to a private
company.
• At the time of this analysis, the only known municipality to which this legislation would
directly apply is the City of Brentwood, which created the Brentwood Racquet Facility Ad
Hoc Committee (Committee) to research design options, operating policies and procedures,
including cost and revenue projections, for a racquet facility.
• It is assumed that this legislation will result in the City of Brentwood entering into a
contract for the development, construction, management, and operation of a racquet
facility.
HB 65 – SB 495 2
• Based on the study performed by the Committee in November of 2023, this facility is
estimated to cost approximately $13,690,000 for development and construction, and to
result in a net increase in local revenue of approximately $712,615 annually.
• However, an exact increase to revenue and expenditures of the City of Brentwood cannot
be estimated, as such figures will depend on the parameters of any agreement with a private
entity.
• It is not known precisely how many cities will contract with private companies for the
development, construction, management, and operation of a sports facility within their
jurisdictions as a direct result of this legislation.
• Additionally, the terms of any future contract for the provision of materials and services is
unknown.
• However, it is reasonably assumed that any contract for materials or services, or for the
lease or sale of all or part of the facility, will be in the best interest of the city.
• Therefore, it is assumed that any funds expended through such contracts will be offset by
various revenue streams, including, but not limited to fees imposed for the operation of
such facility, as well as the sale or lease of all or part of the facility.
• Due to numerous unknown variables, the timing and amount of any permissive increase in
local revenue or expenditures cannot be reasonably determined.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director