Graceland expansion financing delayed again

Graceland’s latest expansion plan hit another snag that an economic development board member says is related to a legal dispute between Graceland and the Memphis Grizzlies.

A bid for a $20 million bond issue for new exhibit space was held up Wednesday amid speculation that the board could draw a legal challenge from either Graceland or the Grizzlies.

Graceland owner Elvis Presley Enterprises in recent years has completed a resort hotel and exhibit complex, backed by financial incentives from the Economic Development Growth Engine of Memphis and Shelby County (EDGE).

The company is seeking EDGE revenue bonds for an 80,000 square foot expansion of exhibit space that would have a seating limit of 1,700 people in any single area.

The exhibit space expansion is separate from a Graceland proposal for a 6,200-seat performance venue, which was put on hold last year after Graceland accused the Grizzlies of opposing EDGE funding for it.

Graceland last summer applied for up to $110 million in EDGE revenue bonds for a 300,000-square-foot expansion.

That project contained a 6,200seat performance venue, which Graceland later offered to down-size to 3,500 seats, in attempts to resolve what Graceland officials said were objections by the Grizzlies.

Graceland put the project on hold and went to court to challenge the FedExForum non-compete clause. The lawsuit was dismissed in Shelby County Chancery Court in February.

The non-compete clause grew out of decision by public officials to steer concert business to the FedExForum after the $250 million public arena opened in 2004.

The new delay is intended to allow the EDGE board to review both projects before acting on the exhibit space expansion.