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Bus Riders Union Member ‘Happy’ to See County Step up with MATA Funding


The Shelby County Commission approved a $2.5 million allocation in CIP (capital improvement plan) funds to the Memphis Area Transit Authority (MATA) last week, which the agency plans to invest in three projects.

Since then, many, including representatives of the Memphis Interfaith Coalition for Action and Hope (MICAH) who have played a prominent role in the conversation about transit funding, have lauded the commission for making the investment. MICAH leaders said now, and as the regional economy begins to heal, a public transit system is critical.

Justin Davis of the Memphis Bus Riders Union (MBRU) expressed similar sentiments, saying the group is “happy to see the county stepping up to help fund MATA, especially in times like these.”

CEO of MATA Gary Rosenfeld told the county commission that the agency plans to use the funds to implement a demand-response system in the entertainment district and the Westwood/Boxtown area, a mini-transit station near Third and Brooks, and an investment in the Bus Rapid Transit project. All three projects are in line with MATA’s Transit Vision Plan.

Davis said the MBRU supports MATA’s proposal of a demand-response system in Boxtown/Westwood, as the area has been a big focus of the group for a while.

Davis said if the demand-response model is successful and has community support in Boxtown/Westwood, then MATA should consider using that model in other low-density neighborhoods that don’t have frequent service, like Northaven.

Rosenfeld said he expects to see the demand-response system introduced in the entertainment district and in Boxtown/Westwood before the end of the year. Moving forward, Rosenfeld said, MATA is “embracing the new transit paradigm” and will consider implementing this service and other forms of alternative transit models in the future in additional neighborhoods. The Transit Vision plan calls for alternate forms of transportation in about six areas with low ridership density.

Another project MATA plans to invest in, the $75 million Bus Rapid Transit (BRT) project, mostly funded by federal grants, will be a high-frequency route from Downtown to the University of Memphis.

Davis said many MBRU members are “deeply concerned” about continued investments in Midtown and Downtown, as these areas already have the most reliable bus service.

“It’s vital that MATA starts filling in the huge gaps in their infrastructure in places like North, South, and Southeast Memphis so that riders in those places can stay connected to their basic necessities and get higher quality service,” he said.

However, Rosenfeld said the project is federally funded and needs continued local support in order to maintain federal match dollars. He also said that it will benefit a number of bus riders, not just those living in Midtown and Downtown.

“It’s a community development project that will enhance the opportunities for any bus rider whose ride intersects with the BRT,” he said. “The BRT will improve their connection time and improve their access to jobs within the corridor. Although I understand the Bus Riders Union’s concerns, we can’t just turn our back on a project that we have received funding for on the federal level.”

Rosenfeld added that MATA is not investing in this project on a whim, but that the project was previously selected out of 26 alternate transit projects. The BRT is “well thought-out plans tested against formulas to make sure the federal government gets the maximum return on its investments and that our community gets the maximum return on local dollars.”

He noted that based on the design of the BRT, ridership is likely to increase by between 25 and 50 percent. “There aren’t a lot of other routes in our network or alignments that would even come close to that increase in ridership.”

The BRT project is currently in the development phase. Rosenfeld said he anticipates the service coming online in late 2023 or early 2024.

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County’s $2.5M Allocation for MATA to Fund Three New Projects

Facebook/MATA

The Memphis Area Transit Authority (MATA) will receive a $2.5 million investment

from the county that will go toward implementing parts of the Transit Vision plan, including a transit on-demand model for two areas. 

The Shelby County Commission voted 9-4 Monday in favor of a resolution sponsored by Commissioner Tami Sawyer to allocate the funds.

MATA CEO Gary Rosenfeld presented a spending plan for $2.5 million in capital improvement funds last week, which he says will be used to implement parts of the Transit Vision plan — a piece of the comprehensive Memphis 3.0 plan, the guiding document for how the city moves forward over the next several years.

“As we move to the next step in the evolution of this pandemic, we will be using the Transit Vision plan to re-tool the network as we come out of this,” Rosenfeld said. “This is kind of a positive outcome of the pandemic, if you will. We are able to move in the direction of starting to put the transit vision in place.”

Rosenfeld said the county’s $2.5 million will be invested in three projects. The first is a demand-response system for two areas, Boxtown/Westwood and the Downtown entertainment district.

Rosenfeld said in the Boxtown/Westwood area, the ridership count doesn’t suggest that there should be a complete fixed-route service. But the demand-response model will improve residents’ opportunity to get to public transportation and provide service in an efficient manner, Rosenfeld said.

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The model will work similar to Uber, allowing people to call in and get picked up at their house, transporting them anywhere within a certain zone or connecting them with the transit network.

In the entertainment district, MATA plans to provide a similar service. Rosenfeld said employees in this district often cannot catch a bus home because their shifts end long after the buses stop running. With the new service, employees in the district will be able to call in and be picked up and driven home.

Rosenfeld said the endeavor for both areas will require seven vehicles, which will cost a total of $500,000.

MATA also plans to put $1 million of the county’s investment into a mini transit center near Third and Brooks. Rosenfeld said the center will house four to five bays and will meet the need of new routes in the Transit Vision Plan.

Lastly, Rosenfeld said MATA will provide the local match portion for the $75 million Bus Rapid Transit (BRT) project, which is mostly funded by federal grants. The BRT would be a high-frequency route from Downtown to the University of Memphis.

Rosenfeld said all three areas of investment are “highly visible” and would “greatly enhance everyone’s access to public transit in the future.”

The Memphis Interfaith Coalition for Action and Hope (MICAH), which has long been advocating for more funding for MATA, commended the county commission’s decision to allocate the $2.5 million.

“Both now and as our regional economy begins to heal, our public transit system is critical,” said Ayana Watkins, executive director of MICAH. “It matters now for essential workers and residents who depend on public transit for food, supplies, and health care. And it will matter as we all begin returning to work and school en masse.”

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Samantha Bradshaw, co-chair of MICAH’s economic equity task force said the county’s investment is a “hopeful recognition that the county intends to keep transit a top priority to encourage a restored and more equitable local economy.”

“Memphis Transit 3.0 needs to keep on track to ensure the many Memphians who don’t have access to better paying jobs have an equal shot at a job that supports their families at a dignified level,” Bradshaw said.

MICAH also urges the city to reconsider its “drastic reduction” to MATA funding of $10 million, noting that public transportation has been underfunded for decades, “unable to maintain service levels from year to year, much less afford the needed upgrades to make it a truly viable system.”

Bradshaw encourages the city to prioritize funding for MATA so that “the planned improvements of Memphis Transit 3.0 can enable all residents to have equitable access to jobs, education, necessities, and the full scope of all this city and county has to offer.”

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MATA CEO Talks Funding, Frustrations, and the Future

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The city’s proposed budget for the upcoming fiscal year allocates $10 million less to the Memphis Area Transit Authority (MATA) than this year’s.

In Memphis Mayor Jim Strickland’s proposed budget, which he presented to the Memphis City Council last week, MATA would get a little under $19.2 million in fiscal year 2021, down from this year’s amount of $29.2 million.

However, Gary Rosenfeld, CEO of MATA, said he does not anticipate this affecting the agency’s ability to provide services over the next year, largely due to a substantial stimulus package from the federal government.

Under the federal CARES Act, MATA is slated to receive approximately $35.7 million in aid. Rosenfeld said the guidelines for spending CARES Act funds for transit is fairly liberal.

“This money is available and we will charge whatever we can legitimately charge to these accounts,” he said. “We should not see any type of degradation of service because of the city’s financial situation. We should be okay as long as we move cautiously and make sure every expenditure we want to use the stimulus package for is legitimate based on the rules and regulations.”

Rosenfeld said MATA has spent a “considerable amount of money” in response to the coronavirus, on expenditures such as PPE, cleaning, and hazard pay for employees.

These expenses can potentially be offset by CARES Act funds, he said: “We don’t anticipate a negative impact on this fiscal year.”

Service will continue, but there likely won’t be enough funds to make significant improvements in the upcoming year, based on the city’s budget. MATA was also on track to receive a $10 million investment from Shelby County next year.

Since September, Shelby County Mayor Lee Harris, backed by a number of county commissioners and community members, has been leading the charge to generate dedicated funding for MATA.

Harris’ proposal to generate the funds would have implemented an annual fee of $145 for a household’s third vehicle. Early this year two county commissioners presented an alternate plan that would have increased the countywide motor vehicle tax, also known as the wheel tax, by $20 for every vehicle owner.

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But in the midst of a pandemic and economic uncertainty, both plans have been thwarted. Now, Harris is proposing to increase the wheel tax by $16.50 but to supplement the county’s budget.

“Given the financial situation of the city and the county as a result of the COVID-19 pandemic, I don’t think the county is going to move forward with that plan, at least not for this next fiscal year,” Rosenfeld said.

MATA was planning to use the additional funds to make major improvements along the agency’s core routes that would have increased service frequency.

With these improvements, Rosenfeld said 80 percent of riders would have been able to get from point A to point B in less than an hour. “Well that’s going to be on hold for a bit, and that’s unfortunate. As we plan to bring routes back on line in the future, we will be looking to make changes to bring our routes in line with the transit vision plan. Any opportunity we get to move in that direction, we will certainly be doing that.”

On Board

Rosenfeld said the level of service MATA is able to provide is being affected by the pandemic, but the agency is doing its best to meet passengers’ needs. 

Per city guidelines, which heed the advice by the Centers for Disease Control and Prevention, only 10 passengers are allowed on MATA buses at a time.

“There’s still social distancing issues, and that puts a limit on the resources available to provide service to the community,” Rosenfeld said. “We’re having to run three or four buses to provide the same level of service that one or two buses did before. That’s also additional costs.”

Rosenfeld said he believes MATA has been “fairly successful” at filling the gaps with extra buses to shorten wait times and maintain continuity of service.

Typically carrying about 22,000 passengers in a given day, MATA has had between 7,000 and 8,000 passengers a day since the pandemic began. Rosenfeld said these numbers are similar to other transit agencies across the country since COVID-19 has caused ridership to decrease: “So from a statistical standpoint, we’re doing good.”

Still he knows service hasn’t been “100 percent accurate” and is aware that customers are frustrated.

“Have we received complaints from the public that they don’t like the route network in its current form?” Rosenfeld said. “Certainly, we have. We share that frustration with customers in the fact that we have had to limit our core network. We also fully understand that it’s frustrating to have a bus pass when there are ten people on a bus already and you can’t get on.

[pullquote-2]“However, the safety of passengers and employees is of greater concern to us. We’re making these decisions with their safety in mind. It may not necessarily be with their convenience in mind, but it certainly is with their safety.”

Rosenfeld also urges employers to recognize some of the inconveniences that transit riders are facing now and be understanding.

Preparing for the Future

From fare boxes to reopening its transit centers, Rosenfeld said MATA has a lot to consider as it returns to “normal.”

“When we resume fare collection, what is that going to look like?” Rosenfeld said. “The fare box will still be something that everybody is touching and it’ll be taking money that’s dirty. So we’re reviewing what that will look like. What technology is available to enable us to be able to collect fare safely.”

MATA is also looking at how to change the seating configuration on its buses so that passengers can practice proper social distancing, while also considering what type of barriers can be installed on board to protect bus operators.

“We’re looking at all of these things and trying to gain as much information as possible,” Rosenfeld said. “I’d be foolish to say I know what tomorrow is going to bring. There’s a lot of information out there. Rules keep changing. We do a lot of work to find out the guidance has changed and now the end zone is in a different place.”

Rosenfeld said this is one reason why MATA has to take a cautious approach, especially when it comes to how to allocate the CARES funds.

“If we invest it too quickly, we might find that we are overspending on one thing and not spending enough on something else,” he said.

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Mayor Harris: ‘It’s Time to Seal the Deal’ on Transit Funding


The conversation about adequate funding for the Memphis Area Transit Authority (MATA) continued Tuesday — a day deemed Transit Equity Day.

Transit Equity Day 2020, which marks the 106th birth anniversary of Rosa Parks, is a collaborative effort by several organizations and unions across the country to promote public transit as a civil right and strategy to combat climate change.

Here, the Sierra Club Chickasaw Group organized a press conference to speak on the importance of transit and the barriers that are still in place and limiting residents’ — particularly those of color and those living in low-income areas — access transit.

This comes as the Shelby County Commission considers a strategy to invest dedicated funding in MATA. The discussion began in September when Shelby County Mayor Lee Harris proposed a $145 sustainability fee for households with more than three vehicles. Now, the county commission is considering a $20 wheel tax increase.

Marquita Bradshaw, Environmental Justice Chair for the Sierra Club Chickasaw Group spoke of transit and environmental justice Tuesday: “Transit equity has everything to do with environmental justice.”

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“Environmental justice is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to development, implementation, and enforcement of environmental laws, regulations, and policies,” Bradshaw said. “Transit equity is a plan to justly transition away from climate change. The root of climate change is pollution. People with lower incomes not only have problems accessing transit to get to work, but they also deal with the burden of pollution.”

Allison Donald of the Memphis Center for Independent Living, also at Tuesday’s press conference, said Memphis is at a “pivotal point” as it relates to funding transit.

“We must understand on the 106th birthday of Rosa Parks, that transit justice is not a new fight, not only for Memphis but for other underserved communities around the country,” Donald said. “Funding for public transportation is necessary not only for our city to grow, but it brings businesses, better educational opportunities for underserved children in underserved communities, and it gives people an opportunity to do what communities are supposed to do — connect.”

The most recent resolution to fund transit before the commission is sponsored by Commissioner Brandon Morrison. The proposal includes a $20 increase to the vehicle privilege that would generate $12.8 million. Of that $9 million would go to MATA and the remaining $3.8 million would support the hiring of 51 new sheriff deputies in areas soon to be de-annexed from Memphis.

In January, the commission voted to delay voting on the resolution, sending the proposal back to the commission’s general government committee. The commissioners decided at that meeting to send the measure to an ad hoc committee.

In order for the wheel tax proposal to pass, at least nine members, or two-thirds of the Shelby County Commission, must vote in favor of the move at two consecutive meetings.

Harris, who was at Tuesday’s press conference said securing the funding is a “huge challenge,” but he believes the resolution is close to garnering the nine votes it needs to pass.

“I think it’s time to seal the deal,” Harris said. “How do we seal the deal from here? We’ve got to get that ninth vote. We feel like we’re sitting at a soft eight and we need that ninth vote. We’re working real hard to build comfort with the commissioners so that we can get to a place where at least nine commissioners are prepared to vote on dedicated funding for transit.”

Some commissioners maintain that their constituents, mainly those living in the suburbs, don’t support the increase as they don’t use public transit and won’t benefit from increased funding for it.

“There’s a benefit to all of us from transit,” Harris said. “We’re trying everything except for the kitchen sink to try and identify that ninth vote. We think we’re on the way. We have a great case that’s been made and a broad coalition. We trust that the commissioners will see we can’t be about just talking about issues. We have to be about action.”

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Harris said with upwards of $10 million invested in MATA each year, there will be over one million new transit rides generated.

Courtney McNeal with Innovate Memphis, who worked closely with MATA to develop the Transit Vision Plan, said a key focus when creating the plan was job accessibility.

With the implementation of the Transit Vision Plan, McNeal said there would be a 39 percent increase in job accessibility within an hour for all residents, a 45 percent increase for minority residents, and a 49 percent increase for residents living in low-income neighborhoods.

MATA CEO Gary Rosenfeld said his group “stands ready” to implement the Transit Vision Plan, which “goes so far in delivering quality service and opportunity to the community as a whole.”


Last month, the mayor set an informal, 30-day deadline for the passage of a resolution to fund MATA, but it does not look like the commission will make that deadline. 



Now, the the $20 wheel tax and other funding options for MATA are being discussed in a series of six ad hoc committee meetings, co-chaired by Commissioners Tami Sawyer and Mick Wright. The committee has been tasked with returning to the commission with recommendations about how to move forward.

All meetings run from 5:30 p.m. to 7 p.m. and are open to the public. See the dates and locations below.

2/4 – Monumental Baptist Church, 704 S Parkway East

2/11 – Hickory Hill Community Center, 2910 Ridgeway Road

2/18 – Hollywood Community Center, 1560 N Hollywood Street

2/25 – Agricenter International, 105 S. Germantown Parkway

3/10 – Bartlett Senior Center, 5727 Woodlawn Street

3/35 – Golden Gate Cathedral, 3240 James Road

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Harris Amends County Plan to Fund MATA

Justin Fox Burks

Shelby County Mayor Lee Harris announced today that he is amending the previously announced plan to invest $10 million in transit here.

Harris presented a plan to the Shelby County Commission last month that would generate $10 million in funding each year for the Memphis Area Transit Authority.

The original plan would have implemented an annual $145 registration fee for households’ third vehicle and beyond. Harris said at the time this would only affect about 17 percent of residents here.

But, after meeting with the public and receiving feedback on the plan, Harris said Thursday that instead of requiring households to pay $145 for each another vehicle over the second, households would only have to pay one yearly $145 fee.

“We have been pleased by the willingness of residents to engage in a conversation about how public transit could help lift thousands out of poverty and preserve our shared environment,” Harris said. “We have had many great suggestions from the residents, including tailoring the plan to have an even more narrow impact.”

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Alternative vehicles, such as motorcycles, trailers, antique cars, and boats will not require fees.

Under the amended plan, Harris said the county will still provide $10 million a year to MATA.

“The investment would still have zero impact in most families,” Harris said. “This plan does not call for a broad tax or fee on all citizens…. Furthermore, the idea is to try as best we can to tie the solution the problem. We know that traffic congestion and car emissions are problems that will only get worse. We believe that households or business with thee cars are using that infrastructure more and producing more wear and tear. Our proposal focuses on that problem or cars on the road while supporting a solution to congestion and emissions, public transit.”

This is the county’s first effort to provide dedicated funding for MATA. The plan is slated to go before the county commission by February 2020.


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Harris Presents ‘Landmark’ Funding Plan for MATA

Memphis Area Transit Authority

Mayor Harris wants to give MATA $10 million.

Shelby County Mayor Lee Harris presented a plan to the Shelby County Commission Wednesday to generate $10 million in funding each year for the Memphis Area Transit Authority (MATA).

In the past, MATA has said it needs an additional $30 million in funding to build a more robust, frequent, and reliable system.


Gary Rosenfeld, CEO of MATA said Wednesday that the mayor’s proposal is a “landmark plan” that would “dramatically change the trajectory of funding for public transit in this community.”

Harris said the plan would have “zero impact” on most families and does not include an increase in property taxes. Instead, the plan would implement an annual $145 registration fee for households’ third vehicle and beyond. Harris said this would only affect about 17 percent of residents here.

“Today I presented out #Future4Transit plan to the Shelby County Commission,” Harris wrote on Twitter. “If adopted it will have a big impact on transit.”

If the commission adopts the plan, the county would also allocate 1.5 percent, or $1 million of its capital improvement budget, to transit.

Harris anticipates the additional funds will be used to implement recommendations laid out in the Transit Vision 3.0 Plan, such as an express route to the airport and increased frequency on MATA’s most popular routes.

The additional $10 million would have an economic impact of more than $40 million, Harris said, citing expanded job access and a reduction in car accidents.

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The mayor also said the plan would have a significant impact on poverty, noting there are 15,000 available jobs in the county: “More frequent transit helps people get a job and keep a job.”

The transit investment would also have a “big impact on our shared environment.” Harris said. With more frequent and reliable transit options, there would be more ridership and a reduction of automobile emissions by thousands of tons.

“Everyone has to play a role in trying to preserve our shared environment, even local officials,” Harris said. “We will all enjoy the benefits of clean air, reduced congestion, and a reduction in poverty. This sustainable investment in transit helps achieve all those objectives.”

Harris is looking for the commission to vote on the plan by February 2020. County approval could be contingent upon MATA giving the county a place on its board.

Earlier this year, the county commission approved $2.5 million of the county’s 2020 budget going toward MATA and related infrastructure improvements. This was the first investment in public transit by the county.

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County Looks to Make First Ever Investment in MATA

Justin Fox Burks

The county is looking to make its first ever investment in public transit, beginning this fiscal year.

Five Shelby County Commissioners pushed Tuesday to amend Shelby County Mayor Lee Harris’ budget proposal to include funding for the Memphis Area Transit Authority (MATA).

The amendment, sponsored by Commissioners Tami Sawyer, Van Turner, Eddie Jones, Edmund Ford Jr., and Mickell M. Lowery, would allow for $2.5 million in county funds to be allocated to MATA “to support improvement of transportation services provided by MATA.”

The funding is contingent on MATA providing two board seats to the board of commissioners and final approval by the commission. 

Harris has previously said that he would be presenting a proposal for MATA funding to the commission in September.

But, commissioners like Sawyer said it’s important to begin funding MATA now. The $2.5 million of proposed funding became available after it was left over from $5 million set aside for the county election commission, according to Sawyer.

Sawyer said Tuesday that “this isn’t a formula for how we continue to fund MATA, but it’s a start.”

“In conversations that many of us have had with representatives of MATA and representatives of the community and the mayor’s administration themselves, we know that this is something that people want to see now,” Sawyer said. “But also we have to figure out one, what can we really do in this amount of time? And two, once the county gets into the transportation game, what ability will we have to participate in the oversight?”

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Nicole Lacey, chief communications officer for MATA, said that “yesterday’s action by the Shelby County Commission is a positive step in the right direction for Shelby County Government to begin investing in public transit.

The Memphis Area Transit Authority executive team looks forward to continued dialogue with the Shelby County Commission and Shelby County Mayor Lee Harris regarding the possibilities of funding that could begin this fiscal year.”

In April, Memphis Mayor Jim Strickland included in his proposed 2020 budget an additional $2.5 million in funding for MATA for a total of $29,170,000. The mayor said then that would bring the total funding increases for MATA to $5 million since he took office in 2016.


In the past, MATA officials have said that in order to provide a more frequent, reliable, and robust system, the agency needs an additional $30 million a year.

With the additional funding, Lacey said MATA will pursue the recommendations laid out in the Transit Vision Plan — a piece of the Memphis 3.0 plan.

Lacey said the plan includes more frequency, weekend and evening service, and new and redesigned bus routes that help people connect across the city and county.

Members of the Memphis Bus Riders Union (MBRU) said the city’s current proposal for MATA funding might not be enough to pay for new buses, routes, or service hours.

Justin Davis of the MBRU said the city and county governments can’t keep putting off a large investment in transit “if we want to increase ridership and improve MATA’s public perception.”

“If MATA does get that new funding for fiscal year 2020, we want to see it going to operations first: more bus routes, more frequent service, and more service on nights and weekends,” Davis said. “But if MATA doesn’t get a significant investment, we’re worried that they will be pushed to cut service again to balance their budget — just like what happened last fall.”

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Meeting Needs

The Cannon Center for the Performing Arts — and the expansion of the Cook Convention Center — was one of the most challenging construction projects in recent years. Plagued by missed deadlines, cost overruns, and lawsuits, the expansion was finally completed about four years ago.

But Pierre Landaiche III, the Cook Convention Center’s general manager since 1996, says the story has a happy ending. So happy, in fact, that the convention center board has even brought up the idea of adding more space.

“Memphis is a hot destination right now. No one else will ever claim Elvis or Beale Street,” Landaiche told a group from the local Public Relations Society of America last week. “We just have to meet the need.”

To be a successful meeting destination — and share in the hundred billion dollar convention industry — a city needs hotel rooms, attractions, transportation, and meeting facilities. Before 1995, Memphis had three of the four. What it lacked was meeting facilities.

“Generally, we heard, ‘Your building needs to be updated,'” Landaiche said. “‘You need more meeting rooms.'”

Though Landaiche said it was easy to justify the project by the time it was completed, the public didn’t always see it that way.

“The general consensus was that it was the worst public project ever done in the city of Memphis,” Landaiche said.

The convention center is funded with the hotel/motel occupancy tax. During the expansion, the convention center added a 28,000-square-foot ballroom, as well as 10 smaller meeting rooms and the Cannon Center auditorium.

“The Cannon Center is arguably one of the top five theater venues in the country, especially when it comes to acoustics,” Landaiche said. “Compared to other facilities around the country, we got a bargain.”

Miami’s new Carnival Center — which includes a concert hall and opera house — cost about $473 million. A new symphony center is being erected in Atlanta for $300 million. Nashville’s 1,900-seat Schermerhorn Symphony Center cost $120 million (The Cannon Center seats 2,100.)

“We paid $60 million and that was only four years ago,” Landaiche said. “It’s paying off.”

Since the project — which cost $106.5 million in construction and additional settlement fees — the convention center’s annual revenue has almost doubled from $1.3 million before the expansion to $2.5 million afterward. Before the renovation, the center saw about 12 national conventions a year and now it’s almost triple that. That means an additional 200,000 people through the doors each year, and roughly 95,000 hotel-room nights each year generated just from convention center and Cannon Center events.

Landaiche estimates the conventions mean a $70 million economic impact for the city. But even with the investments paying off and revenue up, the convention center still runs at a $2 million deficit each year.

“We can’t charge enough for our product to break even,” Landaiche said. “Places like Phoenix and Ft. Lauderdale are giving their convention space away.”

The convention industry is notoriously competitive.Washington, D.C.’s convention center expects to have a $22 million deficit this year. And it’s surely bracing itself for next April when the Gaylord National Resort and Convention Center — created by the company behind Nashville’s Gaylord Opryland resort — opens with 2,000 rooms and 470,000 square feet of convention space in nearby Maryland.

Memphis is not only competing with similar size cities such as Birmingham, but with industry leader Las Vegas, as well. And with a possible expansion in the works for the six-year-old DeSoto Civic Center, Memphis may get more competition closer to home.

Generally, convention-center renovations and expansion happen in 10-year cycles.

“Because of the level of activity we’ve had at the Cook Convention Center, the board along with the convention bureau and the hotel community are beginning to look at a long-range convention plan to start talking about the need for an expanded facility,” Landaiche said. “It’s basically, how do we address the meeting planners’ needs in the future?”

The talk is still just that — talk — but any expansion would be predicated on a needs analysis for events that are currently too large for Memphis but are interested in coming here.

Said Landaiche: “A $2 million deficit at the end of the day for $70 million [of economic impact], it’s not a bad investment.”