Gaylord Entertainment Center carrying largest deficit ever

The price tag for the building, home to the NHL’s Nashville Predators, includes an operating deficit of $5.19 million, as well as $900,000 in debt service.

The deficit is about $1 million more than taxpayers will have to pay this year for the arena, which is owned by the city of Nashville.

And if National Hockey League owners and players don’t settle on a new collective-bargaining agreement, which expires Sept. 15, the arena could face even more costs associated with a possible work stoppage.

Building management was asked Friday by the Nashville Sports Authority to develop a contingency plan in case an agreement isn’t reached.

City Councilwoman Brenda Gilmore says the GEC’s budget, which the Sports Authority agreed Friday to recommend to Mayor Bill Purcell and the City Council, likely won’t sit well with officials.

The city already is grappling with the possibility of $100 million in cuts to balance its budget for the fiscal year starting July 1.

“It’s not going to be looked on very kindly,” Gilmore said. “As responsible legislators, I don’t think we can turn our heads while departments such as public education, public health, services that affect children, seniors are being reduced.”

GEC general manager Hugh Lombardi blamed the increase in part on changes in the way the capital budget is managed.

The arena was asked by city officials to place some items previously paid for from capital funds into the operating budget, he said. In addition, about $1.5 million left over when the building was completed in 1996, which had previously been used for capital items, has been spent.

Without those factors, the operating budget would have been the same as this year’s $4.3 million, Lombardi said.

“It’s not apples to apples as far as we’ve done the budget in previous years,” Lombardi said. “We are continuing to look at making cuts.”

The budget deficit could end up being smaller if the building has a good year, Lombardi said.

“This could come down,” he said. “It will hopefully be less.”

But if that doesn’t happen, the city and its taxpayers must continue to foot the bill, said David Manning, Metro Nashville’s finance director. The city is obligated under terms of the agreement it has with the Predators to cover operating deficits at the building.

“It’s difficult in a difficult budget year,” Manning said. “It’s difficult in any year.”

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On the Net:

Gaylord Entertainment Center, http://www.gaylordentertainmentcenter.com/