East Bank Master Developer Agreement with The Fallon Company Approved

Last night, the Metro Council unanimously approved the Master Developer Agreement between Metro Nashville Government and The Fallon Company to develop 30 acres of Metro-owned land on the East Bank.

The agreement allows Metro and Fallon to bring to life the Imagine East Bank Vision Plan, which was developed by the Nashville Planning Department after two years of deep community engagement to create a vibrant, mixed-income, multimodal community adjacent to Nashville’s downtown – an economic engine for the city and state.

"Nashvillians told us they wanted great neighborhoods on the city’s East Bank,” said Nashville Mayor Freddie O’Connell. “This agreement with The Fallon Company will help us deliver a neighborhood for all Nashvillians – with unprecedented commitments in affordable housing, childcare, and complete streets.”

Fallon, a leading national real estate development firm, was selected to be Metro’s Master Developer for the Initial Development Area’s (IDA) 30 acres of the East Bank after a highly competitive procurement process. The company’s commitment to bringing the community’s vision to life and prioritizing providing much-needed affordable housing is part of what led Metro to select the firm.

“We’re grateful to Mayor O’Connell, Chief Development Officer Bob Mendes, the Metro Council and the Metro East Bank team for their partnership in advancing this project to transform the East Bank into a vibrant and inclusive new neighborhood for Nashville," said The Fallon Company CEO Michael Fallon. "Our team appreciates the many Nashvillians who shared their perspectives and feedback throughout the comprehensive community engagement process. We look forward to continuing our partnership with Metro and all project stakeholders, working together as we create this dynamic neighborhood.”

Throughout the negotiation process, a commitment to upholding the community’s vision in the Imagine East Bank was a top priority for the O’Connell administration and The Fallon Company.

The agreement lays the foundation for building neighborhoods that prioritize safe and simple multimodal connections by prioritizing alternative modes of transportation for Nashvillians – wide sidewalks for pedestrians, protected and separated bike paths, and Nashville’s first-ever dedicated transit lanes, so residents can decide how they want to move throughout the neighborhood, and subsequently the city, safely and easily.

“I am excited that the East Bank can serve as a model for how we invest in our neighborhoods all across our city,” Mayor O’Connell added.

Another top community priority was creating an East Bank neighborhood that will be an equitable and affordable space for all Nashvillians. Fallon has agreed to build more than 1,500 housing units with nearly half being dedicated at affordable rates – including some deeply affordable. The agreement also requires that the affordability requirements remain in place for the entire 99-year duration of the ground leases, which ensures stable, affordable housing options near jobs and transit for Nashville workers.

Significant essential infrastructure investments will be needed to develop a walkable, bikeable, and transit-friendly neighborhood. Preliminary studies project that infrastructure costs will be around $147 million (see below for cost-sharing breakdown) for nine key projects within the Initial Development Area, including extending the John Seigenthaler Pedestrian Bridge, removing and relocating key utilities, and new street network connections.

The Metro Council also approved a Memorandum of Understanding (MOU) between Metro Nashville and the Tennessee Performing Arts Center (TPAC) to build its new performance hall within the Metro-owned land on the East Bank. A definitive development agreement will come back before Metro Council later this summer. The MOU requires TPAC to share in a portion of the infrastructure costs necessary to develop the East Bank neighborhood.

“For the last six months Metro’s negotiating team has worked hard to ensure we a bringing the community’s vision for the East Bank to life,” said Metro Nashville’s Chief Development Officer Bob Mendes. “I believe we have achieved that with this master developer agreement and I’m grateful we have a great partner in Fallon who also values our community’s goals.”

To learn more about the East Bank Development visit nashville.gov/eastbank.

East Bank Initial Development Area (IDA) By the Numbers:

• $147 million: Estimated infrastructure cost for the Initial Development Area
  • $72.6 million: Fallon’s share of the infrastructure cost (49%)
  • $67.6 million: TPAC’s share of the infrastructure cost (46%)
  • $6.8 million: Metro’s share of the infrastructure cost (5%)

• 1,550: Number of total residential units to be built by Fallon
  • 695: Number of residential units that are affordable (80% Area Median Income (AMI) and below)

• 30: Acres of Metro-owned land to be developed by Fallon in the Initial Development Area (IDA)
  • 130: Acres of land on the East Bank owned by Metro
  • 550: Acres of public and private land on the East Bank

View source version on businesswire.com: https://www.businesswire.com/news/home/20240417526012/en/