City, Performa Could Settle Lawsuit

MEMPHIS, Tenn. - Over the last twenty years, Beale Street has gone from a worn down street, to the state's biggest tourist attraction. And nearly all that time, Beale has been the subject of a lawsuit.

But now, a settlement is on the table.

"I'm pushing the lawyers, I want the case settled," said Memphis Mayor A C Wharton. "I'm not going to accept anything less than that."

Talk of a settlement comes less than a week after Performa received the results of an audit it ordered. The audit said Performa took a $1.4 million dollar loss on the street over the years. This, a stark contrast to the city's audit that said Performa had profited more than $6 million.

Local watchdog Joe Saino has been following the suit for years.

"It just seems something's going on there that's not quite right," said Saino. "If they made a profit, then the city should have been paid."

The city's agreement with Performa was that the company would get Beale up and running and any profit turned would go to the city. But the city hasn't seen any money. Only the attorneys have cashed in on this deal. Saino estimates millions have gone to lawyer fees.

"If they settle it I guess it lets everyone off the hook," said Saino. "Except the tax payers."

City Council Member Jim Strickland sees the potential settlement as a chance to move forward.

"What both sides want is for Mr. Elkington to move on and the city take back management of the street," said Strickland.

Wharton, who would not reveal any details of a settlement offer, said settling this case is for the good of Beale Street.

"I'm not interested in the crisis of the moment," said Wharton. "I'm focusing on the opportunity of the future. Sometimes you have to do things to get a crisis out of the way to enjoy the future, that's the way I'm looking at it."

Elkington and the city's attorney did not elaborate on any details of a potential settlement.