Taxpayers shouldn't have to fund Graceland expansion, mayor says - WBRC FOX6 News - Birmingham, AL

Taxpayers shouldn't have to fund Graceland expansion, mayor says

Jim Strickland (Source: WMC Action News 5) Jim Strickland (Source: WMC Action News 5)
MEMPHIS, TN (WMC) -

The Memphis mayor and the manager of Graceland are at odds over the use of city funds.

Mayor Jim Strickland released a statement Friday saying Joel Weinshanker--managing partner of Elvis Presley Enterprises--is criticizing City leaders simply to get more money to fund his business.

A day earlier, Weinshanker urged people at a town hall meeting to vote out city council members and Mayor Strickland. Weinshanker said the city leaders are refusing to communicate with him and help him with expanding Graceland, which he says will improve Whitehaven.

"What we rally need is to have an interaction with city government, which, at this point, they won't even speak to us because of our disagreement with the arena [FedExForum]," Weinshanker said.

Strickland released a 300-word statement Friday pushing back against Weinshanker's claims.

Strickland said the whole controversy boils down to one thing: using public money to fund a private business.

"Mr. Weinshanker wants us to direct taxpayer money that would otherwise go to services like police and fire to his business. We would have to cut City operations to enable these cash payments to a business that keeps 100 percent of the profits," Strickland said.

He also said he and his administration have met with Weinshanker more than a dozen times.

The rift has seemingly ballooned in recent months because the Strickland administration said offering city or county tax breaks to Elvis Presley Enterprises for a 5,000-6,000-seat venue would violate the terms of the lease with FedExForum--more specifically, a non-compete agreement.

Recently, the EDGE board conditionally approved added incentives for the Graceland arena, provided a court finds it legal.

Strickland said Friday that he's very happy with everything Graceland has done over the last several years. He said he's very supportive of Graceland, but he doesn't think it should receive any more cash for its entertainment facilities. 

“I want the best for Memphis; I want the best for Whitehaven; I want the best for Graceland,” Strickland said. “But I’m not going to compromise the budget of the city of Memphis for a private enterprise.”  

He said he's all for Graceland expanding those facilities, but it needs to do so on its own dollar. 

“I just think the taxpayers don’t need to be funding that anymore,” Strickland said. 

Strickland said he and his staff tried to sit down and work together with Elvis Presley Enterprises last year, but then Graceland took the matter to court.

Friday afternoon, Weinshanker released the following statement in response to the Mayor's comments.  

It is unfortunate that what the mayor chose to take from last night’s Whitehaven community meeting was not the deplorable road conditions, the inadequate power supply nor the lack of jobs and prospects for our residents.  For the record, we had an excellent relationship with the mayor, and his staff, even coming to an agreement that was memorialized in an email sent to our attorneys last fall agreeing for the arena to move forward.  Once Jason Wexler of the Grizzlies became aware of this, and obviously voiced his displeasure, the Mayor went silent, this was in September of last year (more than seven months ago).  On multiple occasions I tried to contact the mayor with no response. I again tried to call his cell today, which went right to voice mail.

We want to continue to develop, at only our risk, in Whitehaven.  We have offers all the time to deploy our capital in Nashville, and in many other cities around the nation that want development. Whitehaven was Elvis’ home and our home and we would rather not do this.We need a city government that wants development. If the city government is unwilling to partner with us, the loss will be felt by our neighbors in Whitehaven and all of Memphis.

If we had not had the City’s support for the development of the Guest House and Elvis Presley’s Memphis, the City and County would be receiving the same amount of taxes today from the Graceland Campus they received before the redevelopment. Instead, the City and County received $2,500,000 more in additional taxes (without $1 coming out of any city budget) in 2017 than they did before the Guest House was built. I hope the Mayor is using the City’s portion of additional taxes for police, fire and other services in Whitehaven.

Graceland said it needs to redevelop the site to bring more visitors to Memphis. In 1997, at the height of Graceland's popularity, the site was seeing 750,000 visitors a year. Now, Graceland says it sees about 550,000 visitors a year.

Copyright 2018 WMC Action News 5. All rights reserved.

  • NewsMore>>

  • Samford baseball wins SoCon, clinches NCAA Tournament birth

    Samford baseball wins SoCon, clinches NCAA Tournament birth

    Sunday, May 27 2018 11:47 PM EDT2018-05-28 03:47:42 GMT
    (Source: Video)(Source: Video)
    (Source: Video)(Source: Video)

    Samford claimed the SoCon Baseball Championship presented by Holston Gases at Fluor Field in seven innings when Branden Fryman launched a two-run, walk-off home run to invoke the mercy rule.

    More >>

    Samford claimed the SoCon Baseball Championship presented by Holston Gases at Fluor Field in seven innings when Branden Fryman launched a two-run, walk-off home run to invoke the mercy rule.

    More >>
  • Centre man charged with numerous sex crimes

    Centre man charged with numerous sex crimes

    Sunday, May 27 2018 10:57 PM EDT2018-05-28 02:57:26 GMT
    Source: Raycom imagesSource: Raycom images
    Source: Raycom imagesSource: Raycom images

    Douglas F. Goffaux, 57, was arrested May 25 and charged with sexual abuse of a child less than 12 years of age, three counts of second-degree sodomy and four counts of second-degree sexual abuse.

    More >>

    Douglas F. Goffaux, 57, was arrested May 25 and charged with sexual abuse of a child less than 12 years of age, three counts of second-degree sodomy and four counts of second-degree sexual abuse.

    More >>
  • TROPICS: Alberto will impact Alabamians on Monday

    TROPICS: Alberto will impact Alabamians on Monday

    Sunday, May 27 2018 10:49 PM EDT2018-05-28 02:49:37 GMT

    Subtropical Storm Alberto will be tracking across the Gulf of Mexico and impacting our state within 48 hours. The system remains subtropical, meaning it has not fully developed into a textbook tropical low. However, further organization is still possible.

    More >>

    Subtropical Storm Alberto will be tracking across the Gulf of Mexico and impacting our state within 48 hours. The system remains subtropical, meaning it has not fully developed into a textbook tropical low. However, further organization is still possible.

    More >>
Powered by Frankly