NASHVILLE - The Tennessee Republican Party calls on Gov. Phil Bredesen and his wife to “put the brakes on the ballroom” in light of documents uncovered that indicate the Bredesens have been playing a shell game to mislead the public about the true cost of – and who is really paying for - the massive underground ballroom and entertainment complex they intend to build on the grounds of the Governor’s Mansion.

The documents from the State Building Commission – which the TRP is making available online for taxpayers, media and legislators to view – show a timeline of rapidly ballooning costs as the original project of needed renovations of the state’s executive residence metastasized to include the ballroom facility.

The documents also show a shell game designed to mislead the public as to the source of funding for the ballroom, in total disregard for taxpayers who are just now learning that they’re paying millions for a project they knew nothing about as it was concocted in secret.

“Gov. and Mrs. Bredesen have claimed that the ballroom is being funded with private donations rather than tax dollars, but that’s not really true,” said Bill Hobbs, communications director for the TRP. “The Bredesens shifted nearly $3 million in private donations to the ballroom project that had been given for the renovation of the mansion itself – and then replaced that mansion renovation money with tax dollars.

(A 20-page PDF file of the documents can be found online at the Tennessee Republican Party website,
http://www.tngop.org/ballroom_SBC_documents.pdf .)

The State Building Commission documents show that the original project for renovation of the
governor’s mansion, described as a “maintenance” project and identified as SBC Project No. 460/028-01-2002, was first discussed by the SBC on October 10, 2002, three months before Gov. Bredesen took office. It had an estimated cost of $350,000.

The project – and its cost to taxpayers – soon grew like kudzu.

June 12, 2003, the SBC approved a $100,000 increase in the project cost.
July 10, 2003, the SBC increased the estimated cost of the project to $1,415,000.

Records indicate that these cost increases do not include the $550,000 that the Tennessee Residence Foundation donated for replacement of the mansion’s roof.

January 8, 2004: First lady Andrea Conte and state architect Mike Fitts obtained approval from the SBC to increase spending on the project by $4,325,000, bringing the new grand total to $5,740,000. SBC meeting minutes quote Mr. Fitts saying the extra money would “allow for the full planning of the complete maintenance repair and upgrades at the Residence and will include ADA improvements as well as address environmental deficiencies.”

Minutes from the same meeting mention that Fitts talked of a $5.1 Million project and a commitment by Ms. Conte on behalf of the Tennessee Residence Foundation that the Foundation would raise 60 to 80 percent of that from private donors.

An SBC spreadsheet shows that of this $4,324,000 increase in costs for the original project, $2,260,000 was to be provided by the Tennessee Residence Foundation, while the state’s share, $2,064,000, was unfunded and expected to come from state budgets for fiscal years 2004-05 and 2005-06.

October 13, 2005: State Architect Fitts got the SBC to agree to another $2,060,000 increase in the projected cost of the original project, to $7,800,000, because the lowest bid received was purportedly 20% higher than what the SBC had budgeted to that point. According to the SBC spreadsheet, the Tennessee Residence Foundation was to cover $1,095,369.

Less than three years after it began as a $350,000 project, taxpayers now were on the hook for more than $4.4 million. ($4,444,631)

September 14, 2006: The SBC approved another cost increase of $350,000, bringing the total to $8,150,000.

This is where the shell game began.

According the SBC spreadsheet – although the meeting minutes don’t show it was discussed – the $350,000 cost increase was accompanied by an increase in state funding of $3,255,369, which were to be paid for through the issuance of bonds.

The Sept. 14, 2006 increase in state funding was almost ten times the increase in the project cost.

Why?

Because on that same day, the SBC approved the “Conservatory Hall” project (SBC Project No. 460/028-01-2006) to be funded by a “gift” of $4,000,000 from the Tennessee Residence Foundation. Conservatory Hall was to be an above-ground addition to the mansion that would include a grand dining hall and related features.

The $4 million given to the Tennessee Residence Foundation for renovation of the mansion – and held up as proof that the mansion renovation was being funded mostly by private donors - was shifted to the Conservatory Hall addition.

Mr. Fitts has told various news media that the Tennessee Residence Foundation is paying the entire cost of the Conservatory Hall project. But that’s only technically true because the Foundation shifted money given for the renovation to the Conservatory Hall project.

In fact, of the $4 million gift, $2,905,369 was funds that had already been promised to the mansion renovation and included in the various cost figures for the renovation approved by the State Building Commission. Now, that cost was being shifted to taxpayers – allowing the Bredesens to claim the new construction was funded by private donations.

And the costs – of the project and to taxpayers - would continue to rise.

March 8, 2007: Fitts requested SBC approval of $860,000 in new funding for another new project (SBC Project No. 460/028-01-2007) that, according to the SBC meeting minutes, was for improvements “in support of the Conservation Hall project.”

July 12, 2007: The SBC approved a $3 million cost increase for those improvements “in support of the Conservation Hall project.”

The name of the project had changed, too – from Conservatory Hall to Conservation Hall – because the project’s designed was changed from an above-ground “conservatory” to a below-ground structure.

Funding for the $3,860,000 additional project is portrayed as coming from the Foundation, but the SBC spreadsheet it is doing so with moneys provided a state grant to the Foundation funded primarily through the issuance of additional bonds.

While Mr. Fitts and the Governor and Mrs. Bredesen claim the Tennessee Residence Foundation is paying for the cost of the ballroom project, the SBC minutes and spreadsheets clearly show that the addition of the Conservation Hall project to the mansion renovation will cost taxpayers $6,765,369, when you add the state’s cost of the original project due to shifting of the Foundation “gift” and the cost of the state’s grant to the Foundation.

“Without a single shovel of dirt moved for the underground ballroom, Tennessee taxpayers can not have any confidence that these costs will not continue to rise,” Hobbs said. “They also can not have any confidence that anything the Bredesens say about the project and its costs is true.”

And construction costs aren’t the only unknown. The Bredesens have presented no estimate to legislators and taxpayers of the expected annual costs for utilities, maintenance, upkeep, and staffing for the new 13,000 square foot ballroom facility, and the project and its fiscal impact have not been considered by the legislature’s Fiscal Review Committee.

“It’s time the Bredesen administration put the brakes on the ballroom project, level with the taxpayers, and allow the people, through their elected representatives, to have a say in whether or not the project goes forward,” Hobbs said.

### December 19, 2007 TNGOP.org

Notes and Documents:

State Building Commission membership
The State Building Commission members are the governor, the House and Senate speakers, the comptroller, the secretary of state, the state treasurer and the F&A commissioner. All of those positions were held by Democrats from the inception of the mansion renovation and ballroom project through January 2007.)

Alternate Facilities
The state of Tennessee already owns two facilities capable of hosting large events similar in size to those envisioned taking place in the underground ballroom. They are the War Memorial Auditorium, and the penthouse atop the William R. Snodgrass Tennessee Tower. Both are located in downtown Nashville.
War Memorial Auditorium is a historic venue with “elegant ambiance and amazing acoustics,” run by the Tennessee Performing Arts Center management. The multi-purpose hall features a crescent-shaped stage and beautiful hardwood floors. The open-floor configuration is perfect for banquets and allows for the option of a dance floor as well as live entertainment. The room can accommodate a maximum seating capacity of 400 on orchestra level when set in the banquet configuration.
Located conveniently in the heart of downtown Nashville, War Memorial Auditorium sits in the shadow of the State Capitol and is adjacent to a picturesque outdoor plaza area. This Greek Revival landmark is within walking distance of area hotels, and less than 20 minutes from Nashville International Airport.
Website: http://www.tpac.org/facilities/warmemorial.asp
The Penthouse at the Tennessee Tower is a large entertaining facility tightly controlled by the Governor’s Office. (F&A Public Information Officer Lola Potter says the space is controlled “by the Department of General Services in coordination with the First Lady’s office.”) Attendees at events held there get a spectacular 360-degree panoramic view of the Nashville skyline and cityscape.
Website: http://www.state.tn.us/generalserv/psm/tennesse.htm
In addition to those state-owned facilities for large events, the governor’s office could rent the Laura Turner Concert Hall at the Schermerhorn Symphony Center in Nashville, a lavish space capable of hosting banquets for up to 400 people.
Website: http://www.nashvillesymphony.org/main.taf?p=17,8,1
Documents:
A 20-page PDF file of the State Building Commission documents referenced in this release can be found online at the Tennessee Republican Party website at this link:
http://www.tngop.org/ballroom_SBC_documents.pdf - or you can receive a copy via email by contacting:

Contact:
Bill Hobbs
Communications Director
Tennessee Republican Party
2424 21st Avenue, Suite 200
Nashville, TN 37212
billhobbs@tngop.org