title
An ordinance approving a License and Lease Agreement between the Metropolitan Government of Nashville and Davidson County and Powers Management, LLC for use of space located at 222 25th Avenue North, Nashville, Tennessee 37203 (Proposal No. 2025M-055AG-001).
body
WHEREAS, The Metropolitan Government of Nashville and Davidson County (“Metro”) owns certain real property located at 222 25th Avenue North, Nashville, Tennessee 37203 known as the Centennial Sportsplex; and,
WHEREAS, Powers Management, LLC proposes to lease a portion of the Centennial Sportsplex to ensure that the facility is operated and managed in a first class manner and used for the playing and public exhibition of hockey and other sporting activities and events; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that this agreement be approved.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the License and Lease Agreement between The Metropolitan Government of Nashville and Davidson County and Powers Management, LLC attached hereto and incorporated herein, is hereby approved and the Director of Public Property Administration, or his designee, is hereby authorized to execute the same.
Section 2. That any amendment to this agreement shall be approved by resolution of the Metropolitan Council receiving at least twenty-one (21) affirmative votes.
Section 3. This ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This ordinance approves a license and lease agreement between the Metropolitan Government (“Metro”) and Powers Management, LLC (“Manager”) for use of space located at Centennial SportsPlex at 222 25th Avenue North.
Manager is a wholly owned subsidiary of Predators Holdings, LLC, the parent company of Nashville Hockey Club Limited Partnership, which owns and operates the Nashville Predators. The hockey club has previously leased space at Centennial Sportsplex from Metro, as authorized by Ordinance No. O96-428 and Ordinance No. BL2016-420. The current license and lease agreement would terminate the previous lease and adopt a new agreement for Manager to manage and operate the hockey rinks at Centennial Sportsplex, continue to provide a practice facility for the Nashville Predators, and provide capital investments to renovate parts of the venue. As shown in Exhibit A, the swimming facility and other elements of the Centennial Sportsplex would continue to be managed by the Metropolitan Board of Parks and Recreation.
The lease would be effective July 1, 2025, and conclude on June 30, 2049. If the Nashville Predators continue their lease agreement and tenancy agreement at Bridgestone Arena, they shall retain an option to extend the Centennial Sportsplex lease for the length of these agreements. If the Bridgestone Arena lease agreement is terminated, the Centennial Sportsplex lease will terminate upon the termination of the Bridgestone Arena lease agreement or tenancy agreement.
Manager shall pay $10.00 annually as rent along with all operating expenses and construction, demolition, maintenance, and repair costs for the facility. Manager shall be responsible for contracting and paying for all utility services at the facility. Metro shall reimburse Manager for its share of utility costs at the facility.
As part of the agreement, Manager shall construct at its own expense a set of initial capital improvements as described in Exhibit C. These projects include renovations of the Nashville Predators training facility, the spectator and public areas at the facility, and the ice surface. Before the start of construction, Manager must submit specifications of its plans for Metro approval, and the parties will work in good faith to establish the date for substantial completion. After the initial capital improvements are substantially complete, Manager shall have the ability to make additional alterations to the facility. Only material alterations will require Metro’s prior consent.
Manager shall hire and supervise all personnel related to the facility’s operation, which does not encompass the areas beyond the hockey rinks and common areas. Manager will provide job offers to applicable Metro employees at the facility who may be subject to termination, relation, transfer, or furlough because of the lease agreement. Affected personnel include four full-time positions and five part-time positions.
Manager shall continue to allow legacy programs (Nashville Youth Hockey League, Nashville Skating Academy, and all other figure skating and ice hockey programs currently operating at the facility) to use the facility as provided in the programs’ written and signed agreements with Metro. Manager agrees to negotiate in good faith regarding the continued operation of all legacy programs.
Manager is responsible for all major repairs and replacements and keeping the facility in good condition and repairs. It is also responsible for minor or routine repair, cleaning, and routine upkeep for the hockey rinks and associated lobbies. Costs for the Centennial SportsPlex’s HVAC system will be shared proportionally between Manager and Metro. Manager will also provide an annual Capital Asset Management Plan for the facility on July 1 for Metro’s approval, which will not be unreasonably withheld, conditioned, or delayed.
Manager shall receive all operating revenues resulting from its use, management and operation of the facility. It will also have the right to enter into one or more agreements to sell the naming rights of the facility. Manager will receive the first $500,000 of net operating revenue, with the remaining net operating revenue split between Manager and Metro on a 75%-25% basis.
Manager shall procure and maintain commercial general liability insurance with minimum limits of $4,000,000 per occurrence and $10,000,000 general aggregate, with coverages including premises, operations, personal and advertising injury, products/completed operations, and contractual liability. Metro shall pay a proportional share of the cost of building property insurance. If Metro does not elect to self-insure, it shall procure and maintain commercial property insurance for the portion of Centennial Sportsplex that it continues to operate. Manager shall indemnify and hold Metro harmless for various acts by the Manager at the facility. Metro will not be liable for any damage sustained by Manager or its agents.
Neither Manager nor Metro shall allow any hazardous substance that would damage the facility or injure or endanger the life of any person at the facility, unless such hazardous substances are necessary to use the facility and kept, used, disposed, and transported in compliance with applicable law. Manager shall hold Metro harmless for all damages arising from a breach of this section of the agreement, except for actions taken by Metro and its employees.
Any amendment to this agreement shall be approved by resolution of the Metropolitan Council receiving at least 21 affirmative votes. The proposal was approved by the Planning Commission and the Metropolitan Board of Parks and Recreation.
Fiscal Note: Powers Management, LLC will pay $10 annual base rent, costs of the initial capital improvements and operating expenses. Metro will receive twenty-five percent of the amount over the first net operating income of $500,000, which will increase by three percent annually. Metro will reimburse its share of utility costs at the facility, and any costs associated with centennial’s HVAC system will be proportionally shared between Metro and Powers Management, LLC.