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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 KIPP Nashville, a Tennessee nonprofit corporation (Proposal No. 2025M-021AG-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 (“MNPS”), and KIPP Nashville desire to enter into an agreement for the lease of property for the use as a Charter School; and,
WHEREAS, Metro wishes to lease the Premises noted in the lease to KIPP Nashville.
NOW, THEREFORE, BE IT ENACTED 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 KIPP 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 ordinance of the Metropolitan Council receiving twenty-one affirmative votes.
Section 3. That the Director of Schools shall have authority to approve any and all renovation and/or improvement projects presented by and for KIPP 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 Education (“MNPS”) and KIPP Nashville for use of property at 1000 Sevier St. as a charter school. The property includes approximately 60,948 square feet of the building and a 3.9 acre property.
The term of the lease begins July 1, 2025, and ends on June 30, 2035. Upon termination of the lease, the property will revert to MNPS. For the first year, the lease payment will be $335,214 annually, or $27,934.50 per month, which represents a rate of $5.50 per square foot. The lease payment will increase by 3% each year throughout the term of the lease. The monthly rental payments will be as follows:
- July 1, 2026 - June 30, 2027: $345,270.42/year, or $28,772.54/month
- July 1, 2027 - June 30, 2028: $355,628.53/year, or $29,635.71/month
- July 1, 2028 - June 30, 2029: $366,297.39/year, or $30,524.78/month
- July 1, 2029 - June 30, 2030: $377,286.31/year, or $31,440.53/month
- July 1, 2030 - June 30, 2031: $388,604.90/year, or $32,383.74/month
- July 1, 2031 - June 30, 2032: $400,263.05/year, or $33,355.25/month
- July 1, 2032 - June 30, 2033: $412,270.94/year, or $34,355.91/month
- July 1, 2033 - June 30, 2034: $424,639.07/year, or $35,386.59/month
- July 1, 2034 - June 30, 2035: $437,378.24/year, or $36,448.19/month
At the end of the initial lease learn, KIPP Nashville shall have the option to extend the lease for one renewal period of up to 10 years to run concurrently with a possible extension of the school’s charter. The rent and terms of the renewal must be mutually agreed upon by the parties.
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. KIPP Nashville will be entitled to a credit of fifty percent (50%) of the base building lease rent for tenant capital improvement expenditures made by the charter school, subject to MNPS’s approval.
MNPS is also responsible for ground maintenance, the cost of which is included in the lease payment. KIPP Nashville is responsible for custodial services, refuse collection, utilities, routine maintenance of the premises, ADA compliance, and building, fire, and zoning codes and regulations. KIPP Nashville must maintain commercial general liability insurance of not less than $1,000,000 per occurrence.
Fiscal Note: The annual lease amount is $335,214 or $27,934.50 per month for the building’s approximate square footage of 60,948 and 3.90-acres of grounds during the first year. The lease rate will increase by 3% each year starting in year 2. The lease rate includes capital repairs and grounds maintenance. The total estimated revenue is $3,845,000 for this lease agreement.