Cultural Heritage Center

The Bristol City Council, at its meeting last night, formally committed financial support to the Birthplace of Country Music Alliance Inc., for the Cultural Heritage Center (CHC) project.  A commitment of $600,000 was unanimously approved with the first $300,000 to be paid in equal $100,000 installments over the next three years to help cover pre-opening expenses and help build an operating reserve; with the second $300,000 to be provided over the first five years of operation to backstop operating losses should any occur.

The contribution, which will be formalized in a funding agreement, provides the requisite safeguards for the use of public funds including (1) that the first payment not be made until all funds to construct the CHC are in place and (2) that a facility management company be engaged to manage the center during the period of the city's financial commitment (through the first 60 months of operation).  The City of Bristol Virginia has also made a robust financial commitment that will be recognized in the funding agreement.

This project is now on the cusp of reality with a $2.2 million funding application before the Virginia Tobacco Commission which when matched with another $2.2 million in federal New Market Tax Credit proceeds, will provide the remaining funds to advance the project to construction, build-out, and opening.

The city's financial commitment and the conditions that accompany are believed prudent to maximize operational success in the early years of the CHC while ensuring, to the greatest extent possible, a sustained long-term return for our city.