TPAC's deal with Metro needs "additional time"
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An overview of the East Bank development. The new TPAC facility would go in lot F. Image: Courtesy of Metro Planning
The Tennessee Performing Arts Center's negotiations with Mayor Freddie O'Connell's administration for a new venue on the East Bank have hit an apparent hiccup.
- A sticking point is how to divide millions of dollars in infrastructure costs.
State of play: O'Connell's administration is already offering to give TPAC the property adjacent to the new Titans stadium for free and charge the arts nonprofit virtually nothing in annual rent.
- O'Connell's top development aide Bob Mendes told the Metro Council earlier this year the infrastructure costs would be divided among Metro, TPAC and chief developer The Fallon Company.
Zoom in: The estimated long-term infrastructure costs for the project totals $147 million, according to the council's presentation this spring. Under the initial plan, TPAC would be on the hook for $67.7 million of that sum — although TPAC has asked if the city can pay for more of the infrastructure costs.
- Most of TPAC's infrastructure bill would cover work to demolish and relocate a portion of the Seigenthaler pedestrian bridge structure so that it connects to the arts center's new building.
Between the lines: Metro Council approved a nonbinding memorandum of understanding (MOU) earlier this year that spelled out TPAC's responsibility to fundraise $100 million from donors to add to a $500 million state grant to pay for the new facility.
- The MOU also detailed TPAC's obligation to pay just $100 annually in rent to the city.
- The mayor's office told council the expectation was that legislation to approve a formal development agreement and lease would be coming this summer.
What they're saying: A Metro spokesperson declined to comment on the status of the negotiations but acknowledged talks need "additional time."
- "We are excited about having TPAC as part of the neighborhood. Knowing this, we are taking additional time to work together on a goal that creates a world-class cultural center and neighborhood amenity," Metro spokesperson Richel Albright said.
- This delay won't affect The Fallon Company's development timeline because work will begin on the east side of the project area and work its way west toward the river, Albright said.
The other side: TPAC is racing to meet its fundraising goal, complete negotiations with Metro and begin constructing the new building.
- "Infrastructure needs and costs are a natural part of our conversations with Metro that are currently happening," a TPAC spokesperson said in a statement.
Reality check: With a key component of the East Bank plan on the line, and hundreds of millions of dollars at stake, the most likely scenario is a compromise that leads to a new home for TPAC on the riverfront as expected.
The big picture: Mendes highlighted the significance of the TPAC facility in an interview with the Tennessean earlier this year.
- Explaining how the handsome facility would be framed perfectly by looking directly across the river from downtown, he said it could become a new "postcard for Nashville for a long time to come."