Charlotte mayor urges keeping MLS, Eastland site on track for 2021 despite COVID-19
Several Charlotte officials — including Mayor Vi Lyles — say they are still committed to help publicly fund the city’s Major League Soccer expansion franchise, even as hospitality-tax revenues are projected to plummet over the next few months.
Lyles said Friday during a Twitter town hall that building the new team’s headquarters and practice facilities at the former Eastland Mall site is important to revitalizing that neighborhood.
An estimated $110 million from Charlotte’s hospitality revenue stream would go primarily toward Eastland, City Council members have said.
“The decision on Major League Soccer was really a decision around redevelopment on the east side. It’s about Eastland Mall, a property that has been sitting for a number of years without any use,” Lyles said in a Twitter video, in response to an Observer question if public funding for Charlotte’s MLS bid is still on track.
“This is something that I think will add to our tax base. We’ll....apply that money as the plan is approved.”
In a November letter to MLS Commissioner Don Garber, Lyles said there would also be modifications to Bank of America Stadium and plans to build an “entertainment district connecting Charlotte’s center city and our Gateway District.”
The city announced plans in November to make the $110 million available in the future, as MLS was deciding between Charlotte, Phoenix and Las Vegas as the location for the league’s 30th franchise. In December, MLS awarded the franchise to David Tepper, who also owns the Carolina Panthers, with the intention of starting play in 2021.
Tepper has said he expects that more of the public money will go toward developing the Eastland site than will go for stadium upgrades.
Revitalization of east Charlotte
Garber said in December that Tepper would pay an expansion fee of between $300 million and $325 million for the team. The hospitality tax will not go toward that fee.
The city has not yet signed a contract with MLS and Tepper, nor spent any of the pledged $110 million.
Hospitality revenues — derived from taxes on hotel and motel stays, car rentals and prepared food and beverages, among other categories — are expected to plummet by 85% through mid-summer due to the coronavirus pandemic and resulting stay-at-home orders, according to national analyses City Manager Marcus Jones outlined during Monday’s City Council meeting.
Jones said revenues will gradually increase, though they won’t return to normal volumes until April 2021.
“All of us know this money is hospitality (tax) funding, and it’s a tough time for our hospitality industry right now. So as you think about this, everything is on the table,” Lyles said Friday. “But if possible, we ought to be thinking about Eastland as not just Major League Soccer, but Eastland as revitalization of the east side.”
The city had planned a community meeting on March 12 to discuss the Eastland rezoning petition, which would transform the vacant site into a mixed-use development incorporating a blend of residential spaces, retail, offices, hotels, transit facilities and a “vibrant” public park.
But as coronavirus cases began to escalate in Charlotte, officials abruptly canceled the meeting with only a few hours’ notice and have yet to reschedule it.
‘Very strong’ commitment
Charlotte City Council members expressed support for continuing with the project in interviews with the Observer this week.
“As things stand right now, our commitment to seeing that through is still very strong,” council member Ed Driggs said. “I don’t think we’re in a position where we can walk away and not suffer reputational or legal consequences.”
City Council member Malcolm Graham said tourism and construction jobs create an opportunity to spur growth in east Charlotte.
“We have to work through the crisis and plant seeds so when we get to the other side, we’re still whole as a community,” Graham said. “(MLS) fuels the hospitality economy, and it provides a reason for people to visit our community.”
City Council member James Mitchell said that MLS is not a point of discussion among local leaders currently as they grapple with public safety concerns. But it is something the city should see to completion, if possible.
“I don’t think we’ve ever had the practice of going back on a deal that’s so important to our community,” Mitchell said. “I hope we never get in a position that we have to take away that funding for MLS.”
This story was originally published April 17, 2020 at 1:11 PM.
