Moving another step forward in the Music City Center process, the Metropolitan Development and Housing Agency board on Tuesday voted unanimously to enter into a $64 million loan agreement to secure funds for land acquisition.
The agreement between the agency and First Tennessee Bank comes with a three percent minimum interest rate. According to MDHA Executive Director Phil Ryan, the loan is secured by the tax package created to fund the new convention center project as well as a lien on any property acquired by the agency with the money.
The loan is spread out over 12 months to eventually be paid for by the project’s bond financing, although there is a contingency provision in the deal in case Metro takes longer in working through the bond set up.
“Metro expects within the next 12 months they'll get the bond deal done and take this out,” Ryan said. “But if they don't do it in 12 months, they'll be another 12 month period on the $64 million loan or whatever the balance is.”
Ryan expects the loan to close within the next few weeks, after which MDHA will begin to purchase property from the current landowners.
The Music City Center is a planned $635 million convention center for downtown Nashville.