East Bank Master Developer Agreement with The Fallon Company Approved
April 17 2024 - 1:15PM
Business Wire
Last night, the Metro Council unanimously approved the Master
Developer Agreement between Metro Nashville Government and The
Fallon Company to develop 30 acres of Metro-owned land on the East
Bank.
The agreement allows Metro and Fallon to bring to life the
Imagine East Bank Vision Plan, which was developed by the Nashville
Planning Department after two years of deep community engagement to
create a vibrant, mixed-income, multimodal community adjacent to
Nashville’s downtown – an economic engine for the city and
state.
"Nashvillians told us they wanted great neighborhoods on the
city’s East Bank,” said Nashville Mayor Freddie O’Connell. “This
agreement with The Fallon Company will help us deliver a
neighborhood for all Nashvillians – with unprecedented commitments
in affordable housing, childcare, and complete streets.”
Fallon, a leading national real estate development firm, was
selected to be Metro’s Master Developer for the Initial Development
Area’s (IDA) 30 acres of the East Bank after a highly competitive
procurement process. The company’s commitment to bringing the
community’s vision to life and prioritizing providing much-needed
affordable housing is part of what led Metro to select the
firm.
“We’re grateful to Mayor O’Connell, Chief Development Officer
Bob Mendes, the Metro Council and the Metro East Bank team for
their partnership in advancing this project to transform the East
Bank into a vibrant and inclusive new neighborhood for Nashville,"
said The Fallon Company CEO Michael Fallon. "Our team appreciates
the many Nashvillians who shared their perspectives and feedback
throughout the comprehensive community engagement process. We look
forward to continuing our partnership with Metro and all project
stakeholders, working together as we create this dynamic
neighborhood.”
Throughout the negotiation process, a commitment to upholding
the community’s vision in the Imagine East Bank was a top priority
for the O’Connell administration and The Fallon Company.
The agreement lays the foundation for building neighborhoods
that prioritize safe and simple multimodal connections by
prioritizing alternative modes of transportation for Nashvillians –
wide sidewalks for pedestrians, protected and separated bike paths,
and Nashville’s first-ever dedicated transit lanes, so residents
can decide how they want to move throughout the neighborhood, and
subsequently the city, safely and easily.
“I am excited that the East Bank can serve as a model for how we
invest in our neighborhoods all across our city,” Mayor O’Connell
added.
Another top community priority was creating an East Bank
neighborhood that will be an equitable and affordable space for all
Nashvillians. Fallon has agreed to build more than 1,500 housing
units with nearly half being dedicated at affordable rates –
including some deeply affordable. The agreement also requires that
the affordability requirements remain in place for the entire
99-year duration of the ground leases, which ensures stable,
affordable housing options near jobs and transit for Nashville
workers.
Significant essential infrastructure investments will be needed
to develop a walkable, bikeable, and transit-friendly neighborhood.
Preliminary studies project that infrastructure costs will be
around $147 million (see below for cost-sharing breakdown) for nine
key projects within the Initial Development Area, including
extending the John Seigenthaler Pedestrian Bridge, removing and
relocating key utilities, and new street network connections.
The Metro Council also approved a Memorandum of Understanding
(MOU) between Metro Nashville and the Tennessee Performing Arts
Center (TPAC) to build its new performance hall within the
Metro-owned land on the East Bank. A definitive development
agreement will come back before Metro Council later this summer.
The MOU requires TPAC to share in a portion of the infrastructure
costs necessary to develop the East Bank neighborhood.
“For the last six months Metro’s negotiating team has worked
hard to ensure we a bringing the community’s vision for the East
Bank to life,” said Metro Nashville’s Chief Development Officer Bob
Mendes. “I believe we have achieved that with this master developer
agreement and I’m grateful we have a great partner in Fallon who
also values our community’s goals.”
To learn more about the East Bank Development visit
nashville.gov/eastbank.
East Bank Initial Development Area
(IDA) By the Numbers:
- $147 million: Estimated infrastructure cost for the
Initial Development Area
- $72.6 million: Fallon’s share of the infrastructure cost
(49%)
- $67.6 million: TPAC’s share of the infrastructure cost
(46%)
- $6.8 million: Metro’s share of the infrastructure cost
(5%)
- 1,550: Number of total residential units to be built by
Fallon
- 695: Number of residential units that are affordable
(80% Area Median Income (AMI) and below)
- 30: Acres of Metro-owned land to be developed by Fallon
in the Initial Development Area (IDA)
- 130: Acres of land on the East Bank owned by Metro
- 550: Acres of public and private land on the East
Bank
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version on businesswire.com: https://www.businesswire.com/news/home/20240417526012/en/
Alex Apple Deputy Director of Communications 615-626-1086
alex.apple@nashville.gov Erin Evanoka Senior Vice President Elevate
Communications on behalf of The Fallon Company 646-456-9649
eevanoka@elevatecom.com