Saddled with new expenses and a decline in funding sources, officials say the Riverfront Development Corp. faces six-figure budget deficits for years to come… - Commercial Appeal
It all started in 2000 when the Herenton Administration split-off the riverfront properties from other parks city-wide. Except for those on the riverfront, parks became a responsibility of a new City Parks department.
A 10 year management contract was signed with the RDC, under which the City was to pay the RDC $2.6M each year for 5 years. That amount was to decrease during the next 5 years and reach 0 in 2010. But the contract was amended in 2005, and annual payments to the RDC did not decrease. Since 2010, the RDC has continued to be paid annually and also to receive the income generated by the riverfront parks, including Mud Island River Park and lease and rental fees from Memphis in May, Memphis Yacht Club, and Memphis Riverboats.
At budget time in 2013 the RDC reported a $361,000 operating deficit to the City Council, but said they hoped when Beale Street Landing opened it would break even.
To read the City/RDC Management contract & extension, click Read More
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