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A resolution to approve the Eleventh Amendment to the Lease Agreement between The Metropolitan Government of Nashville and Davidson County and Square Investment Holdings, LLC for office space in the Washington Square Building located at 222 Second Avenue North (Proposal No. 2025M-020AG-001).
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WHEREAS, The Metropolitan Government of Nashville and Davidson County (“Metro”) and Square Investment Holdings, LLC are parties to a Lease Agreement approved by Ordinance BL2008-226 to provide office space for various Metro departments; and,
WHEREAS, Metro and Washington Square Holdings, LLC executed a First Amendment to said lease on January 10, 2011, adding space for the Office of the District Attorney for Davidson County, to house its Juvenile Court staff displaced after the May 2010 flood, which lease amendment was approved by BL2011-842; and,
WHEREAS, Metro and Washington Square Holdings, LLC executed a Second Amendment to said lease on October 24, 2013, adding space for the Office of the District Attorney for Davidson County, which lease amendment was approved by RS2013-921; and,
WHEREAS, Metro and Washington Square Holdings, LLC executed a Third Amendment to said lease on March 19, 2014, providing space for Criminal Justice Planning, which lease amendment was approved by RS2014-1016; and,
WHEREAS, Metro and Square Investment Holdings, LLC executed a Fourth Amendment to said lease on April 17, 2019, providing a new space for Criminal Justice Planning and allowing the Office of the District Attorney for Davidson County to utilize the space previously occupied by Criminal Justice Planning, which lease amendment was approved by RS2019-1678; and,
WHEREAS, Metro and Square Investment Holdings, LLC executed a Fifth Amendment to said lease on August 7, 2019, to expand the leased premises within the building, which lease amendment was approved by RS2019-1863; and,
WHEREAS, Metro and Square Investment Holdings, LLC executed a Sixth Amendment to said lease on June 4, 2020, which lease amendment was approved by RS2020-337; and,
WHEREAS, Metro and Square Investment Holdings, LLC executed a Seventh Amendment to said lease on May 8, 2023, which lease amendment was approved by RS2023-2141; and,
WHEREAS, Metro and Square Investment Holdings, LLC executed an Eight Amendment to said lease on August 28, 2023, which lease amendment was approved by RS2023-2267; and,
WHEREAS, Metro and Square Investment Holdings, LLC executed a Ninth Amendment to said lease on November 21, 2023, which lease amendment was approved by RS2023-104; and,
WHEREAS, Metro and Square Investment Holdings LLC executed a Tenth Amendment to said lease on May 21, 2024, which lease amendment was approved by RS2024-456; and,
WHEREAS, Metro and Square Investment Holdings, LLC have agreed to an Eleventh Amendment to the Lease Agreement; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that this Eleventh 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 Eleventh Amendment to the Lease Agreement between The Metropolitan Government of Nashville and Davidson County and Square Investment Holdings, LLC, 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 eleventh amendment to the lease agreement between the Metropolitan Government (“Metro”) and Square Investment Holdings, LLC for office space in the Washington Square Building at 222 Second Avenue North.
Metro currently leases a total of 69,633 square feet of the Washington Square Building. Metro began leasing space in this building for Office of the District Attorney General in 1993. A new lease agreement was approved in 2008 (per BL2008-226) to add another 18,000 square feet for the Metropolitan Department of Law (“Metro Legal”). In 2013, Metro exercised a right to lease an additional 4,508 square feet and to extend the term of the lease through November 30, 2023 (per RS2013-921). In 2014, an additional 2,051 square feet was leased for use by Criminal Justice Planning (per RS2014-1016). In 2019, Metro leased an additional 1,491 square feet for use by Criminal Justice Planning (per RS2019-1678) and an additional 3,854 square feet for use by the Community Oversight Board (per RS2019-1863).
In 2020, the lease term for the Department of Law and Office of the District Attorney space was extended through November 30, 2028 (per RS2020-337). In 2023, the lease terms for the Criminal Justice Planning space was extended through November 30, 2028 (per RS2023-2141), the lease term for the Community Oversight Board was extended through May 31, 2024 (per RS2023-2367), and an additional suite of 1,300 square feet,, was added to the leased premises with a lease term which extends through November 30, 2028 (per RS2023-104). The most recent amendment extended the term through August 31, 2024 and set a new rental fee for the Community Review Board space (per RS2024-456). The Community Review Board no longer rents office space at this location.
The proposed amendment extends the lease for Metro Legal’s space by 10 years from November 30, 2028, to November 30, 2038. The lease extension does not apply to the Office of the District Attorney General or Criminal Justice Planning.
The proposed amendment would also lease two suites with 4,078 rentable square feet of space to be occupied by Metro Legal, effective November 30, 2025. Rent for the expanded Metro Legal space would begin at $23.18 per rentable square foot and increase the rent approximately two percent each year between 2025 and 2028 and every five years from 2028 to 2038. Rent would also be abated in December 2025 and 2026 for the expanded Metro Legal space. Rent would be abated in December 2027, 2028, and 2029 for the original Metro Legal space. As part of the agreement the original and expanded Metro Legal offices would receive new carpet, paint, and shelving at no cost.
Amendments to this lease must be approved by resolution with 21 affirmative votes, per Ordinance No. O97-1039.
Fiscal Note: The rental rate for the Metro Legal expansion space, Suite 311A with 1,377 rentable square feet and Suite 312 with 2701 rentable square feet, from the rent commencement date to November 30, 2025 is $23.18 per rentable square foot. The rent is abated for the months of December 2025 and December 2026. The rental rate will increase at approximately 2% each year from 2025 to 2028 and every five years from 2028 to 2038. The Metro Legal expansion space will receive from Square Investment Holdings, LLC new carpet, paint, ceiling tiles, subdivision of offices and creation of opening between Suites 311A and Suite 312. The original Metro Legal Space will also receive at no cost new carpet, paint, and shelving and the rent is abated for the months of December 2027, December 2028 and December 2029.