The economic benefits for Nashville of the Tennessee Performing Arts Center

Many urban centers are losing businesses, jobs and people. In an attempt to revitalize their downtowns, city leaders are trying to stimulate development by making their urban centers more attractive places to locate and spend time. Strategically placed arts centers often contribute to redevelopment efforts by improving perceptions and restoring confidence in urban centers and by attracting visitors who spend money. In addition arts centers create jobs and support businesses by purchasing goods and services.

The purpose of this study was to determine the impact of the Tennessee Performing Arts Center (TPAC) on Nashville's redevelopment efforts by measuring the direct, indirect and induced effects and to assess the nonquantifiable effects of TPAC. The direct effects were measured by analyzing TPAC's expenditures; the indirect effects were measured by applying a regional multiplier to expenditures made in Nashville's Metropolitan Statistical Area (MSA); induced effects were measured by conducting an audience survey; and nonquantifiable effects were assessed by conducting a literature review and interviews of businesses and key participants in downtown redevelopment efforts.

The results showed that TPAC's total direct and indirect effects were $4,683,274, and induced effects (audience-related expenditures) amounted to $3,775,097. However, TPAC's greatest contributions were nonquantifiable. The presence of TPAC improved perceptions of the downtown area, aided efforts to attract nonmanufacturing businesses to the region. Most importantly TPAC helped create an environment conducive to diverse economic and social activities.