Developer team has been granted another four months to finalize its plans for old Nashville Convention Center.
The private-public project to the value of $400m will include:
• The National Museum of African American Music
• Approximately 350 apartments
• 300000ft² of office space
• 205000ft² of entertainment, restaurant and retail space
• Underground parking for 781 vehicles
Metro is facing about $25m in tax-increment financing, with around $32m for the parking area. The Convention Center Authority is due to settle the bill for the garage and will pay it off with revenue fr om parking.
At the close of the land transaction, Pat Emery fr om Spectrum/Emery, and his partner, OliverMcMillan, a development company, will pay $5m, which will go to the Barnes Fund for Affordable Housing. Metro may also receive $250000 per annum, commencing five years after the receipt of the certificate of occupancy by the developer. This will continue for 25 years.
The site redevelopment has been in the planning stages for years. Emery and his partners were chosen from five finalists. Plans indicate restaurants, entertainment and retail use on both Commerce and Broadway Streets. New pedestrian paths and sidewalks are being placed to increase foot traffic. The corner area at Fifth and Broadway is being reserved for the National Museum of African American Music.
Tenants will be a mix of restaurants and soft goods retailers, along with a live music venue. Ground-floor tenant information has not been made available as yet. The project’s aim is to see the return of locals to the area wh ere they can dine, shop and relax.
The next task is to devise a merchandising plan wh ere each space is assessed and finding the best tenant mix for the development.
The developers aim to finance in excess of 90% of the project themselves and financing should not be an issue. The developers have until the end of the year to settle their finance plans. They also have the option to extend this closing date in three-month increments, until the end of next year, but it will cost them $250000 per extension. If financing is not secured by the end of 2016, the deal becomes null and void and Metro retains ownership of the property.
The development is due to creating in excess of 2000 jobs upon completion and will generate around $13m per annum in sales and new property taxes and other revenues.
Renaissance Nashville played an important role in the redevelopment agreement. The agreement stipulates that the hotel will receive renovated ballrooms and new meeting areas. The cost of that specific space is $24m and will be paid for as follows:
• Developers, Spectrum/Emery and OliverMcMillan, around $7m
• Ashford Hospitality Trust, owner of Renaissance, $13m
• Extra revenues from the Metro Convention Center Authority, $4m