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An ordinance approving a lease agreement by and between the Metropolitan Government of Nashville and Davidson County acting by and through the Metropolitan Board of Public Education and United Way of Middle Tennessee d/b/a United Way of Greater Nashville (Proposal No. 2025M-037AG-001).
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WHEREAS, The Metropolitan Government of Nashville and Davidson County (“Metro”), acting by and through the Metropolitan Board of Public Education (“MBPE”), and United Way of Middle Tennessee d/b/a United Way of Greater Nashville desire to enter into an agreement for the lease of real property located at 2013 25th Ave, Nashville, TN 37208 for use as offices and a Family Resources Center; and,
WHEREAS, Metro wishes to lease the Premises noted in the lease to United Way of Greater Nashville.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The lease agreement between The Metropolitan Government of Nashville and Davidson County and United Way of Greater Nashville, which is attached hereto and incorporated by reference, is hereby approved and the Director of Schools and the Department of Public Property are authorized to execute the lease on behalf of the Metropolitan Government.
Section 2. Any amendment, change, or extension to the lease shall be approved by resolution of the Metropolitan Council receiving twenty-one affirmative votes.
Section 3. That the Director of Schools shall have authority to approve any and all renovations and/or improvement projects presented by and for United Way of Greater Nashville.
Section 4. This ordinance 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 ordinance approves a lease agreement between the Metropolitan Board of Public Education (“MNPS”) and United Way of Greater Nashville (“United Way”) for use of property at 2013 25th Avenue, also known as the McGruder Family Resource Center, for use as offices and a Family Resources Center. The property includes a 34,044 square foot building and 3.82 acres of property.
This lease would continue a partnership with MNPS, United Way, and Catholic Charites, which has historically subleased the property to operate the McGruder Family Resource Center. The lease contemplates a continued sublease from United Way to Catholic Charities, subject to MNPS approval.
The term of the lease is effective July 1, 2025, and ends on June 30, 2030. A new lease shall be executed at the end of the lease term, and United Way must notify MNPS more than 120 days prior to the initial term expiration if it desires to apply for a new lease.
MNPS will lease the property to United Way with the following rent structure:
|
Start |
End |
Annual Rate |
Rent Credit |
Adjusted Annual Rate |
Monthly |
|
7/1/2025 |
6/30/2026 |
$529,080.00 |
$529,080.00 |
$0 |
$0 |
|
7/1/2026 |
6/30/2027 |
$544,952.40 |
$544,952.40 |
$0 |
$0 |
|
7/1/2027 |
6/30/2028 |
$561,300.97 |
$561,300.97 |
$0 |
$0 |
|
7/1/2028 |
6/30/2029 |
$578,140.00 |
$578,140.00 |
$0 |
$0 |
|
7/1/2029 |
6/30/2030 |
$595,484.20 |
$595,484.20 |
$0 |
$0 |
In exchange for the rent credit, United Way shall provide goods and services from the McGruder Family Resource Center. This would include various programs through Catholic Charities and partner programs, including the Judge Dinkins Educational Center, More Computing, Pathways Kitchen, and the Nashville Food Project. United Way shall submit an annual accounting of goods and services provided for the benefit of the district on July 1 of each year. Failure to submit this verification may result in immediate termination of the lease and/or termination of rent credits. Attachment B to the agreement lists the projected costs of goods and services to be considered for rent credits.
MNPS is responsible for capital repairs on the property. This includes the building’s roof foundation, structural members of exterior walls, HVAC system components, and plumbing system. MNPS is also responsible for custodial services, grounds maintenance, preventative maintenance, refuse collection, routine maintenance and repairs, and utilities.
United Way is responsible for low voltage services, equipment and repairs, ADA compliance, and building, fire, and zoning codes and regulations. Further, any tenant improvements made by United Way during the lease term are subject to approval by MNPS and will revert to MNPS ownership as an integral part of the property upon termination of the lease. Tenant improvements will not be considered for rent credit.
Upon termination of the lease, the property will revert to MNPS. MNPS may terminate the lease for default, bankruptcy, lack of funding, condemnation, or for any reason with 120 days notice.
United Way shall maintain general liability insurance and worker’s compensation and employer’s liability insurance, with a respective limit of at least $1,000,000 for each occurrence. United Way must also maintain property insurance for full replacement. United Way would indemnify and hold MNPS harmless for any liabilities, damages, or claims against MNPS.
The appraisal report, attached to the ordinance, indicates that the market value of the property is $6,300,000 and the market monthly rent value is $44,090. Any amendment to this lease may be approved by resolution receiving twenty-one votes of the Metropolitan Council.
Fiscal Note: Metropolitan Board of Public Education (“MNPS”) will lease to United Way of Middle Tennessee the property located at 2013 25th Avenue for use as office and a Family Resource Center at no cost. MNPS will be responsible for capital repairs, custodial services, grounds maintenance, preventive maintenance, refuse collection, utilities, routine maintenance and repairs. United Way of Middle Tennessee will be responsible for tenant improvements, low voltage services, equipment and repairs, and will sub-lease to Catholic Charities of Nashville.