NASHVILLE, Tenn. (WTVF) — A plan that could transform more than 10 acres of state-owned parking lots near the Tennessee Capitol into a major mixed-use district took a step forward Monday after the State Building Commission unanimously approved a revised developer selection process.
WATCH: Tennessee approves next step for major redevelopment of state-owned parking lots near Capitol
The proposal calls for redeveloping five state-owned parking lots in downtown Nashville into a district that could include housing, hotels, restaurants and other mixed-use development. The state would retain ownership of the land and lease it to a private developer, while requiring the developer to replace existing parking for state employees.
The project could eventually grow even larger. Under the proposal, the selected developer could receive an option to redevelop the James K. Polk building site, which currently houses the Tennessee Performing Arts Center, if the state ever vacates the property.
State officials say they need a privately selected master developer to help determine what kind of project makes the most sense for the property. "We want the developer to tell us what makes sense for the market and the industry," Andy Kidd, commissioner of the Tennessee Department of General Services, told the commission during a Sept. 10 meeting.
Kidd said the state is seeking expertise from the private sector as it evaluates the future of the property. "We need a master developer to give us some advice of what that would look like," Kidd said.
Concerns raised over process
The proposal first came before the State Building Commission on Sept. 10 but failed to advance after commissioners expressed concerns about the selection process and what the state expected to receive from the development.
Among the critics was State Sen. Heidi Campbell (D-Nashville) who argued the qualifications-based process could narrow the field before developers are asked to submit competing financial offers. "This makes it clear that the state is going to choose one developer without ever asking anyone what they would pay," Campbell told commissioners during public comment.
Questions also came from David Lillard, Tennessee's treasurer. "I have concerns about whether we're being specific enough about what the state needs to get out of this process," Lillard said.
The Sept. 10 meeting ended with commissioners delaying a vote to allow additional review of the proposal.
Changes lead to unanimous approval
When the proposal returned Monday, state officials said they took some of the feedback into consideration. "Since the last meeting, I believe we've addressed all the commission's concerns," Kidd told commissioners.
One significant change involved the number of developers that would remain under consideration before a final selection is made.
Secretary of State Tre Hargett pushed for multiple finalists. "I ask for no less than two," Hargett said.
Commission members ultimately approved the revised proposal unanimously. The approval allows the state to begin publicly soliciting developers interested in the project.
No Democrats are currently appointed to the State Building Commission.
Questions remain about Music City Loop site
One topic that received little discussion during Monday's meeting was the involvement of The Boring Company.
One of the parking lots included in the redevelopment proposal is also being used for construction of the Music City Loop tunnel project.
Asked about the relationship between the tunnel project and the proposed redevelopment, Lt. Gov. Randy McNally (R-Oak Ridge) said he did not believe The Boring Company was directly involved in the redevelopment proposal itself.
However, he acknowledged the company could ultimately maintain a presence on the property. "I think they'd continue to do the digging and possibly put in a station at that point," McNally said.
Campbell remains skeptical
Despite the unanimous vote, Campbell, who is not a member of the State Building Commission, said she still has concerns about the process. "I think this has been a done deal for a while," she said.
Campbell argued lawmakers should have more involvement in a project involving some of the state's most valuable real estate and questioned the decision to waive the normal legislative disclosure process just because Governor Bill Lee's term is coming to an end in January. "We should not, as a state, waive the processes that we require legally for people to go through just because he wants to hurry it up," Campbell said.
With approval now in hand, state officials can begin seeking development teams for the project. Tennessee will continue to own the land, while any selected developer will be required to replace parking currently used by state employees.
Do you have more information about this story? You can email me at Chris.Davis@NewsChannel5.com.
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