In an unprecedented move by Nashville Mayor Freddie O’Connell, the administration’s Chief Development Officer Bob Mendes, shared a, “snapshot in time”, of its ongoing negotiations with the East Bank master developer The Fallon Company. The “timely” information offered was not final as his negotiation teams continue their work. The information comes on the heels of the O’Connell Administration’s commitment to transparency and wanted to update and obtain feedback from the Metro Council on the current status.
The information in this story relates only to the Metro owned campus on the East Bank in the Central Waterfront District. This area is comprised of approximately 113 acres of Metro owned land and referred to as The Initial Development Area or IDA. The diagram below provides additional context to the development districts within the East Bank.
IDA Rezoning
Currently, most new developments within the East Bank have been rezoned SP (Specific Plan) from its previous industrial zoning. However, Metro Planning is currently discussing opportunities and options for the IDA to become part of the downtown plan. This currently includes the lettered parcels highlighted in yellow below.
Adopted in 2010, the Downtown Community Plan is divided into zoning districts that cover most of downtown. Only downtown has the DTC zoning and each one of the colors fields in the image above have specific urban design standards and land use standards for each neighborhood. The zoning East Bank would propose specific land use requirements that would:
- Encourage a mixed-use urban neighborhood that would limit and transition industrial uses out.
- Would have limits/restrictions on certain parking locations by using specific urban design requirements.
- Short-term rentals would be prohibited.
- Would have restrictions on the number and proximity of bars within this area.
CDO Mendes also mentioned that the planning department has been lockstep with the Mayor’s office in realizing the East Bank as a neighborhood similar to the Gulch, and not an extension of Lower Broadway. He also noted that the intent is to have the agreement avoid rows of bars that go on for blocks and emphasized that the objectives on this side of the river are different.
Infrastructure Cost
CDO Mendes emphasized that while in theory the cost to build the infrastructure would be offset by development, there is a significant investment required on the front end to make that happen. The table below is the in-progress list of infrastructure projects Metro believes it will need for building construction activities to take. For example, the current plan anticipates:
- Within 2 years, start 300 residential units and 1 other building.
- Within 6 years, start a total of 700 residential units.
- Within 10 years, start a total of 1,250 residential units.
The snapshot of costs in the column highlighted in yellow represents what it would take to build today. The column highlighted in blue is a snapshot of cost estimates based on a capital spending plan, meaning what it would take to start construction a couple of years from now. According to the table from the snapshot in time, current construction costs are projected at approximately $103 million if the work was to start soon. They are projected at approximately $181.2 million if they were to start a couple of years from now.
The total construction estimates (in blue) include soft costs, contingencies, and escalation through expected years of construction. CDO Mendes also noted that the funding responsibility column may change as negotiations continue.
Land Use Updates
Overall, there are minor changes in unit counts for both affordable and market rate apartments since the RFP. However, the overall number of units have increased by approximately 310 units for a total of 1,550 units in the IDA. Within the IDA there will be two 100% Affordable buildings (Parcels A & G) and 95 affordable units spread across market-rate buildings. The table below shows the RFP vs. in progress unit counts.
East Bank Central Waterfront
Initial Development Area: Phase 1
Building Use | RFP | January Update |
Hotel | 775 Keys | Negotiating |
Retail | 170K SF | Negotiating |
Affordable | 745 Units | 695 Units |
Market | 495 Units | 855 Units |
Timeline | 2025 – 2028 | Negotiating |
Another change to the overall plan is the shift from the pedestrian-dominant vibe of the RFP document to a plan more similar to the Imagine East Bank concept. Both the In-progress update and the RFP share the spirit of the Imagine East Bank concept and include pedestrian centric elements with different approaches. Slide the image below to compare the Imagine East Bank concept to the In Progress Draft Master Plan.
Slide the next image to see the RFP Plan compared to the In-Progress Plan.
Music City Mile
Overall, the entire length and width of the MCM has been reduced. The plans suggest that the primary function of the MCM has shifted its function from a pedestrian-centric retail plaza to serve primarily as an egress path. Other changes to the MCM are noted in the descriptions below.
Parcel C
The updated master plan shows refinements to the overall layout of Parcels C. One major change is the landing of the MCM. The RFP Document showed the landing of the MCM in Parcel C which opened up to the Stadium Village with amphitheater style seating as well as a separate retail lined elevated path to the stadium and parking structure (as shown in the images below).
Parcel C now reflects a layout more similar to the Imagine East Bank concept. The RFP document shows standalone retail along Shelby Avenue with the hotel and parking structure situated closer to the stadium. In the updated document, the hotel (and/or residential) structure is now along Shelby Avenue and the retail is closer to the stadium within a smaller footprint. The hotel and parking deck are now shown as a single structure with a new-curb cut along Shelby Ave for access.
Overall, Parcel C has eliminated a lot of the pedestrian-centric amenities shown in the RFP. The South Plaza (stadium village) has shifted its function as an entertainment and cultural hub to more of a primary access point into the stadium. The stadium also has its own entertainment elements integrated within its building as well. Renderings of what the new South Plaza would look like were not included in the update. It’s also important to note that Metro remains committed to ensuring access of shared right-of-way.
Parcel D
The MCM now lands in Parcel D and opens to S 2nd Street. The plan suggests the amphitheater style seating and stairs will remain. However, pedestrians will now have to cross S 2nd Street, which will likely have to be closed on game or event days.
The overall footprint and functionality of the MCM in Parcel D has been reduced from what was shown in the RFP. The RFP document showed a wide pedestrian plaza flanked by retail along Shelby Avenue and hotel/retail on the opposite side. Like Parcel C, the hotel is now shown facing Shelby Avenue and there is a jewel-box retail structure where the hotel was previously. Slide the rendering below to see the previous MCM crossing over S 2nd Street.
Parcel E
The Administration has a tentative agreement with the Tennessee Performing Arts Center (TPAC) to relocate from its downtown location to Parcel E in the East Bank. It was noted that Metro has been working with TPAC extensively since the new administration began. While the shape of the building is still not final, TPAC has agreed to a size which creates a new parcel within the IDA called E1 that will be developed by Fallon.
This is a major win for the City as TPAC will bring a significant cultural use. Now that that structure doesn’t occupy the entire parcel, Metro can derive some market revenue from the E1 site. Additionally, there is a commitment from TPAC to share in the cost of the roads adjacent to the parcel, as well as the segment of the pedestrian bridge as it traverses TPAC. Although the MCM and TPAC structures will be closely integrated, they will serve as separate structures. TPAC would likely move its back-of-house operations below the pedestrian bridge. Although Metro will continue to own the land leased by TPAC, the exact cost split between the two entities have not been finalized.
Parcels A&B
Parcels A and B are located North of the stadium. Parcel A includes the WeGo transportation hub with affordable housing above it and Parcel B is likely hotel and retail, and a parking. The parcels directly adjacent to the stadium require a 300 feet stadium security perimeter by the NFL. It was noted that both Parcels A&B, “would almost certainly be last” given project constraints such as:
- Parcel A has a couple of major impediments to early development including the future East Bank Boulevard that runs through the existing stadium. There is also the issue of James Robertson Parkway which acts as a 35 feet wall and will need to come down.
- Parcel B will be a lay-down lot for construction for the football stadium, it therefore wouldn’t be available until after the football stadium is completed.
Parcels A&B are anticipated to be completed within a 10 Year time frame.
IDA Negotiations are anticipated to go through February 2024 with plans to file legislation for the March 2024 Agenda. For more on the Nashville East Bank tap the banner above the sponsorship grid.
Be sure to subscribe for more on this and other Developments In & Around Nashville!