Metro committee reviews TPAC development agreement; pedestrian-bridge access and funding timelines draw scrutiny

Masami Tyson, the mayor's chief of staff, and city legal and finance staff presented a proposed development agreement and ground lease with TPAC, describing the project as a new, city-accessible performing-arts venue while noting the city will pay only part of surrounding infrastructure costs.

Tyson said the deal grew out of prior East Bank planning (Imagine East Bank) and a master development agreement passed in April 2024. She told the committee that an earlier nonbinding memorandum of understanding reflected facts at the time and that the agreement before the committee contains differences from that MOU.

Tom Cross, the city's legal presenter, described the two-part structure common to such projects: a development agreement that assigns construction and funding responsibilities, and a ground lease that governs long-term occupancy. Cross said TPAC is responsible for the facility’s design and construction and related infrastructure immediately adjacent to the building. "They have to show by this time next year, by 12/31/2026, that they have the funding in place to do the entire project," Cross said, describing the funding requirement as a condition precedent to the city's continued engagement.

Janine Reed, director of finance, gave a line-by-line funding picture: she said the state of Tennessee is contributing $500,000,000; TPAC is responsible for roughly $124,600,000 in total (about $100 million in privately raised pledges plus $24.6 million earmarked for infrastructure); Metro's share of infrastructure was presented as roughly $35.7 million. Reed also confirmed TPAC will make a $6,000,000 contribution to Metro infrastructure, paid at $400,000 per year for 15 years, though she said the contract itself does not specify an exact spending plan for that contribution.

Council members focused on operational and community-access questions. Councilwoman Toombs (also identified as Swar) asked what the $6 million would be spent on; Reed said the agreement is silent but the administration anticipates using those funds toward the pedestrian-bridge portion of Metro’s responsibility. Toombs also confirmed the building will not generate property tax for the city under the lease arrangement.

Several members voiced concern about the pedestrian bridge that connects the East Bank to surrounding neighborhoods. Councilman Parker asked whether the new agreement obliges Metro to extend the pedestrian bridge across the new East Bank Boulevard; Cross said some adjacent projects (e.g., Fallon work) include pieces of the extension but that under the TPAC deal the bridge is a freestanding structure and TPAC is not contractually responsible for it. Tyson and Cross said the mayor’s office is committed to keeping the bridge open for pedestrians and cyclists but acknowledged "there is no agreement that we can anticipate that would memorialize that legally" at present.

The presenters offered additional operational details: the ground lease term is initially 35 years with two possible 30-year extensions; TPAC will pay nominal rent but is responsible for capital and ongoing maintenance and will pay market rates to use Metro-owned parking; Metro and Metro Nashville Public Schools (MNPS) will receive 30 days of free use of the venue per year in total. Reed estimated a full-day rental value at about $40,000, which informed the administration’s calculation of the access value.

Committee members asked about contingency and oversight. Cross emphasized that TPAC must meet project deadlines and absorb its own cost overruns for the portions it is responsible for; should TPAC fail to show required funding by Dec. 31, 2026, Metro could terminate the agreement. Several council members requested the administration return with detailed design and community- engagement plans, particularly to address how pedestrian and bicycle access will be maintained during construction.

The committee did not take a formal vote during the session. Presenters said they would return with further design information and work with council staff on how the $6 million contribution is allocated.