BusinessTN

Two world-class museums—one boasting the legacy of the Titanic, and the other, the charm of old Hollywood—were recently slated to open in Pigeon Forge, Tenn. But no matter how comparable their potential allure to visitors, the first opened with enormous success, while ongoing conflicts and delays beset the other. And ironically, this time it was the Titanic that experienced smooth sailing.

On April 8, the Titanic Museum Attraction’s grand opening, hosted by Regis Philbin, drew thousands of guests, including descendants of those on board the ship’s 1912 maiden voyage. Within three weeks, over 50,000 people had visited the $25 million museum built half to scale of the White Star liner’s front half.

Over 400 artifacts are on display in the 30,000-square-foot venue, including recovered deck chairs and four of the eight remaining life vests. Stepping on board the ship is like stepping back in time, as visitors walk through First Class suites, into freezing temperatures on the ship’s deck, beside an 18-foot iceberg and to the museum’s centerpiece—a $1 million recreation of the Grand Staircase.

“We expect to see about 750,000 visitors this year,” says John Josyln, president of Cedar Bay Entertainment, which also owns Titanic exhibits at the Luxor Hotel and Casino in Las Vegas and the original in Branson, Mo. The latter has attracted over two million people since opening in 2006. “We expect this to be equally successful because there are about eight million people visiting Branson a year and 11 million here,” Josyln says.

Elsewhere in Pigeon Forge, sailing has been less smooth for the Debbie Reynolds Hollywood Motion Picture Museum, originally set to open in 2008 within Belle Island Village, a $114 million, 26-acre entertainment complex announced in 2003. Plans veered off course after a chain reaction of bankruptcies halted its completion.

“We’re talking about $30 million worth of artifacts sitting in a warehouse ready to go,” says Todd Fisher, son of Debbie Reynolds and the museum’s CEO. As the world’s largest private collection of Hollywood memorabilia, those artifacts include more than 3,400 film costumes, including Marilyn Monroe’s white dress from The Seven Year Itch, and Judy Garland’s ruby red slippers from The Wizard of Oz.

Unfortunately, the museum is no stranger to bankruptcy drama. It first filed in 1997, and later sought Chapter 7 protection in June 2009 when the museum—still without a home—could not pay lender Gregory Orman for a $1.6 million bridge loan acquired for a previous failed venture.

For Belle Island Village, Fisher says the “stake through the heart” occurred a year earlier in 2008, when mortgage lender Countrywide Financial went under, forcing the developer, Southern Venue Development, to declare bankruptcy.

Despite its setbacks, the venture may finally be nearing fruition. In May, the new developer, Southern Destinations, gained permission to issue up to $70 million in recovery zone bonds, using the Sevier County Industrial Development Board as a funding conduit.

At present, Regions Bank, which purchased the property in foreclosure, plans to sell it for roughly $21 million to Southern Destinations, closing by June 30. According to Allen Newton, executive director of the Sevier County Economic Development Council, “I understand that construction will start as soon as possible, once the bonds are issued, and be completed in early 2011.”

Otherwise, Fisher says, “We will have no choice but to liquidate the collection. Currently, there are some very large offers for it overseas.” With over $70 million already spent constructing 80-90% of Belle Island Village, including the 50,000-square-foot, riverboat-themed museum, the collection's fate hinges on the viability of this latest endeavor.

After seven years, the Debbie Reynolds Hollywood Motion Picture Museum may finally begin its maiden voyage. If it does, the museum will rely on the tourist-teeming Pigeon Forge area to keep it afloat. And in this case, the more like the Titanic (museum), the better.