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A resolution amending Ordinance No. BL2021-874 to extend the construction commencement date for an easement agreement pertaining to a portion of Alley 371 in connection with a development project (Proposal No. 2021M-013AB-001).
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WHEREAS, Q & A Holdings, GP (the “Developer”) owns property located at 302 McMillan Street and 301 15th Avenue North, comprising Parcel Nos. 09208036800 and 09208029100 (the “Property”); and,
WHEREAS, Ordinance No. BL2021-874 authorized the conditional abandonment of a portion of Alley 371, approved the acquisition of an interest in certain real property and improvements thereon comprising a new alley, and granted an easement above that new alley in connection with the development of a project on the Property adjacent to both sides of a portion of the new Alley 371; and,
WHEREAS, the Developer, as successor owner of the Property, proposes to construct the improvements on the Property and the portion of Alley 371 that was abandoned by Ordinance No. BL2021-874 (the “Project”); and,
WHEREAS, in order to allow for the construction of the Project, Ordinance No. BL2021-874 approved an easement agreement attached hereto as Exhibit A (the “Easement Agreement”), whereby the Metropolitan Government agreed to convey an air-rights easement to the Developer to permit construction, use, and maintenance of improvements above the new Alley 371 in exchange for a payment to the Metropolitan Government in the sum of $30,000; and,
WHEREAS, Section 3(b) of the Easement Agreement provides that in the event the Developer fails to commence construction within five years from the Easement Agreement date, the Metropolitan Government has the right to terminate the Easement Agreement; and,
WHEREAS, due to unforeseen conditions, it is unlikely that the Developer will be able to commence construction within the five-year period and the Developer has requested an amendment to the Easement Agreement, attached hereto as Exhibit B (the “Easement Amendment”), to extend the construction commencement date by two additional years.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The Easement Amendment (Exhibit A) is hereby approved, and the Director of Public Property or designee is authorized to accept and record it.
Section 2. Except as amended herein, all other provisions of Ordinance No. BL2021-874 and the Easement Agreement shall remain in full force and effect.
Section 3. This resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
Ordinance No. BL2021-874 authorized the conditional abandonment of a portion of Alley 371, approved the acquisition of a new alley and granted an easement in the air space above the new alley in connection with the development of a project in Nashville. As a part of the original ordinance, the developer, now Q & A Holdings, GP (“Developer”), was granted an air-rights easement to permit construction, use, and maintenance of improvements in exchange for $30,000.
Section 3(b) of the easement agreement provides that if Developer fails to begin construction within five years of the easement agreement date, the Metropolitan Government may terminate the easement agreement. It is not expected that the Developer will be able to commence construction within the five-year period. Amendments to the easement agreement may be authorized by resolution of the Metropolitan Council.
The proposed resolution approves an amendment to the agreement to extend the construction commencement date by two additional years.
Fiscal Note: This amendment will not change the amount of $30,000 Metro will receive under the Deed and Easement agreement.