Plans For New Memphis Arena Hit A Snag With Court Ruling

Chancery Judge Walter Evans ruled Wednesday that public funds cannot be used to build an arena for the Grizzlies because the deal violates the TN state Constitution by "primarily serving a private rather than a public purpose," according to Lawrence Buser of the Memphis COMMERCIAL APPEAL. Evans banned Memphis and Shelby County from spending public funds or "pledging government credit" to support construction of a new arena without approval of a referendum by 75% of the voters. Evans did say that there "would be no constitutional problem in refurbishing the publicly owned Pyramid." Attorneys for the team, city and county promised "an immediate appeal" (COMMERCIAL APPEAL, 7/12). In Memphis, Blake Fontenay reports the appeal will be filed in the TN Court of Appeals. Memphis Mayor Willie Herenton and Shelby County Mayor Jim Rout "expressed confidence" the higher court will find the arena would serve a public purpose (COMMERCIAL APPEAL, 7/12).

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