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A resolution to approve the Second Amendment to the Lease Agreement between The Metropolitan Government of Nashville and Davidson County and the Metropolitan Nashville Airport Authority for use of the property commonly known as the John C. Tune Airport for the development and construction of an aircraft hangar. (Proposal No. 2026-047AG-001).
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WHEREAS, The Metropolitan Government of Nashville and Davidson County (“Metro”) and the Metropolitan Nashville Airport Authority entered into a lease agreement approved by Resolution RS2022-1915 whereby Metro leases 0.84 acres or 36,624 square feet of unimproved land; and,
WHEREAS, Metro and the Metropolitan Nashville Airport Authority desire to enter into an agreement to develop and construct an aircraft hangar and a lease for the storage of aircraft, aeronautical equipment, and other related materials; and,
WHEREAS, the Lease approved by Resolution RS2022-1915 contemplates the payment of Supplemental Rent by Tenant equal to the cost of design and construction for the improvements divided by the term of the lease, in addition to the base rental amount approved by RS2022-1915; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that this Second Amendment to the Lease Agreement be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Second Amendment to the Lease Agreement between The Metropolitan Government of Nashville and Davidson County and the Metropolitan Nashville Airport Authority, a copy of which is attached hereto and incorporated herein, is hereby approved and the Metropolitan Mayor is authorized to execute it on behalf of the Metropolitan Government.
Section 2. 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
This resolution approves the second amendment to a lease between the Metropolitan Government (“Metro”) and the Metropolitan Nashville Airport Authority for use of the John C. Tune Airport for the development and construction of an aircraft hangar. As approved by the Metropolitan Council in Resolution No. RS2022-1915, Metro plans to design and construct an aircraft hangar and ancillary facilities for the storage of aircraft, aeronautical equipment, and other related materials.
The agreement allowed Metro to lease a parcel consisting of .84 acres or 36,624 square feet of unimproved land. The term of the lease is 30 years, with one option to extend the term for an additional period of five years.
The first amendment to the lease agreement set the supplemental rent for the property at $66,746.54 per month starting July 1, 2024. The amendment also provided for the installation of a domestic water submeter and the granting of an access easement.
The proposed amendment changes the amount of supplemental rent payments to $67,781.66 per month.
Fiscal Note: This amendment will change the supplemental rent from $66,746.54 to $67,781.66 starting September 1, 2026, through the end of the initial term.