There’s more drama and bad blood between Elvis Presley Enterprises and the city of Memphis over a proposed Graceland expansion. EPE recently filed a federal lawsuit accusing the city of delaying the expansion in retaliation and in bad faith. City leaders said that’s not the case.
The lawsuit from EPE accuses city leaders of wrongly and intentionally getting in the way of the Graceland expansion. City leaders said the lawsuit is a distraction from another major sticking point still left unresolved.
In the 23-page lawsuit, those at Elvis Presley Enterprises contend the city’s retaliatory conduct has caused substantial harm to EPE. They claim because of the city’s retaliatory conduct, EPE is now prohibited from investing and spending its own money.
“Everything that we do is private, the $150 million we put in, we put it in at our risk,” says Joel Weinshanker with Elvis Presley Enterprises.
This month, the Land Use Control Board delayed a decision on a planned expansion to add shops, exhibit space, and a 6,000-seat venue on Graceland’s campus.
“What they really blocked are 1000 new jobs. What they really blocked was new retail in Whitehaven that is so desperately needed,” says Weinshanker. “There’s outlet retail, Whitehaven desperately needs retail.”
“It seems to be their business strategy to file a lawsuit,” says City of Memphis Chief Legal Officer Bruce McMullen.
McMullen countered the delay is because a judge hasn’t ruled on whether such an arena at Graceland violates the city’s non-compete clause with FedExForum.
“Until we have clarity from the court, it’s a moot point,” says McMullen. “They can’t go forward until they get an unappealable ruling from the court that building the arena would not violate the use and operation agreement.”
City leaders also are also concerned about EPE’s wish to increase the tax increment financing for the expansion, money they say amounts to public tax dollars to a private company.
“We encourage development in Whitehaven. We like some of the previous things that EPE has done and this all hinges on the use of taxpayers money,” says McMullen. “The issue is taxpayers’ money and whether they can use taxpayers’ money to build an arena.”
“All the city does is benefit every time we open something new. They get real estate revenue, they get part of the sales tax,” says Weinshanker.
The lawsuit asks for an unlisted amount in punitive damages.
At least one lawsuit filed by EPE against the city of Memphis on this issue was dismissed.
