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MTSU lease amendment would add 4.8 acres at Shelbyville airport; city staff say state will pay a prorated first-year amount
Summary
The airport director and staff described an amended lease with MTSU that adds roughly 4.8 acres to an existing airport lease; the state will make a catch-up payment of about $90,000 covering July 2024 and annual payments will consolidate in July of the coming year.
Airport director Paul Perry and staff briefed the council on an agreed lease amendment with Middle Tennessee State University (MTSU) that would add about 4.8 acres to the university's existing lease at the Shelbyville airport.
Paul Perry said the amendment consolidates the existing 16-acre lease and the additional tract into a single lease of almost 21 acres and adjusts the lease shape to run along the southern border of the existing lease. He said the parties used the existing per-square-foot rate for the additional acreage so the enlarged property will be billed under one annual payment schedule.
City staff said the state (MTSU) would make a catch-up payment for the additional acreage covering the period back to July 2024, an amount council staff estimated at about $90,000. Staff also said the combined lease payment beginning the following July would be approximately $397,000 for the full leased acreage (the existing tract plus the 4.8-acre addition). The city attorney and the state attorney general's office reviewed and approved minor legal language changes before the authority approved the amendment.
Paul Perry and other staff also described ongoing airport planning for the remaining parcel contiguous to the lease and said possible future uses include aeronautical development in the rear portion and retail-facing frontage along Highway 231.
Ending: Staff advised the council that once the council approves the amendment and the state signs, the initial catch-up payment should arrive within 30 days and the consolidated annual payment will begin in July; no formal council vote on the lease amendment was recorded in the study session.
