Nashville council reclaims Lot 3 after declining developer—s extension request

The Town of Nashville council unanimously declined Legacy Development Group LLC—s request for a six-month extension on a development agreement for a 10,000-square-foot shell building on Lot 3 in the West Nashville Commerce Park and directed that the deed revert to the town if the developer does not present a ready offer.

The decision follows a presentation from Philip Jones of Legacy Development Group LLC, who told council members he had been unable to secure a lease with the North Carolina Department of Transportation (NCDOT). Jones said the agency proposed a lease provision allowing it to vacate the building if its funding were cut, and "our lenders would not agree to that," a clause he described as the deal breaker. Jones asked the council for a six-month extension to market the shell building and secure a tenant.

The vote matters because the town conveyed ownership of the 1.6-acre Lot 3 to Legacy in exchange for the developer constructing a substantially complete building by January 2025 under the existing development agreement. The council expressed concern that additional delays have cost the town potential buyers and revenue and that other parties have shown interest in that parcel.

Council members pressed Jones on alternatives and timelines. Jones told the council he and his funding partner, Northern Real Estate Urban Ventures, planned a renewed marketing effort; he said contractors and a civil engineer estimated permitting and construction would take a minimum of eight months and a maximum of roughly 12 months after construction commences. He also said, as an initial financing plan, the developer generally expected to secure a tenant before building but would consult his investor about building the shell first if necessary.

Council members noted the development agreement had already been extended once and sought clarity about what guarantees the town would have if it granted another extension. One council member said the town had lost a prospective business that had wanted to build on the lot while the agreement remained with Legacy. The council asked to see a signed lease or tenant commitment before approving any extension.

Councilmember Bill moved that the town no longer remain part of the existing agreement, that the town market the property, and that Legacy convey the property back to the town under the terms of the agreement; an unnamed council member seconded the motion. The motion carried with the council president calling for voices in favor and noting the measure passed; the transcript records the outcome as unanimous. The motion's outcome means Legacy will no longer be the owner of the land under the current agreement and the town will proceed to market Lot 3.

During his remarks Jones disclosed the developer has a financing partner he described as "Northern Real Estate Urban Ventures," which he said would fund the project if a path forward were agreed. Jones also said Legacy paid $10 for recording fees at closing; he identified the conveyance and development agreement as the town—s mechanism to secure construction of the building in exchange for the land.

Next steps recorded in the meeting: the council directed staff to market Lot 3 as a willing, able and ready buyer opportunity and indicated the town would consider future proposals from Legacy if the developer returned with a signed lease or a ready-to-build offer. The council did not grant the six-month extension requested that evening.

Details from the meeting: the original development agreement was signed in April 2023; the developer had sought a completion extension in prior discussions; the lot is identified as Lot 3 in the West Nashville Commerce Park; Jones said NCDOT lease language allowing the agency to vacate for lack of funding prevented his lenders from agreeing to the lease. The council—s motion requires conveyance back to the town per the existing agreement if Legacy does not meet its obligations.