Developer seeks city to serve as grantee for TDEC brownfield assessment grant at former Aramark site

Cody Huddleston, who identified himself as vice president of Velacher Development Group, told the Shelbyville mayor and city council at their Sept. 2 study session that his company has a property under contract at 1315 Madison Street and has been awarded a $100,000 assessment grant from the Tennessee Department of Environment and Conservation (TDEC) for environmental work at the former Aramark building.

Huddleston said the grant covers environmental assessment steps including a Phase I review (already completed), and that the next steps would include a Phase II investigation, core drilling and geotechnical work. He said TTL, his environmental consultant, is budgeting the Phase II work at about $50,000 and that total costs are expected to exceed the $100,000 assessment award. He added his team may apply for a larger, competitive TDEC award—potentially up to $500,000—to address cleanup costs.

Huddleston told the council the grant requires a local qualifying entity to be the grantee so state funds can flow: “These dollars have to flow from the state to the city back to us,” he said, and asked the city to serve as that grantee/administrative recipient so the contract can be executed. He said the state’s oversight would be used: the site would enter TDEC’s FOAP program (described in the meeting as a voluntary oversight assistance program) and that TDEC would provide approval templates and reimbursement procedures.

City officials asked how the pass-through would work and whether the city could be held financially responsible if the project fails to meet grant conditions. The city attorney and city staff said they would review the grant documents; one council member asked specifically about “clawbacks” and whether TDEC could seek repayment from the city. Huddleston said he would provide invoices, invoice proofs and other documentation and that reimbursements would follow TDEC’s approval processes. A city staff member said about $5,500 of the award would be retained by the city for administration under the program as described.

There was no formal vote at the study session. Council members asked staff to review contract language and return with more detail, including any repayment obligations and the draft budget for the work, before the council takes formal action.

If the city agrees to be the grantee, Huddleston said TTL will perform the Phase II work and the city would review and sign invoices for reimbursement; TDEC would then review and release reimbursement according to the approved budget. Huddleston said his company’s ownership of the site is not yet finalized; the property is under contract but not closed.

The discussion made clear that TDEC oversight and state reimbursement templates will govern payments and that the city’s formal role would be administrative. Council members asked staff to confirm the city’s exposure to repayment obligations and requested to see the full grant contract and proposed budget before approving any city action.