Regardless of how smoothly the Music City Center land acquisition process goes for the bulk of the 16 acres, Metro will have to eat a slice of humble pie when it buys back one parcel.
In 1995, Metro Development and Housing Agency bought the property at 301 Fifth Avenue South and sold it a year later to Arena Properties, LLC for $4 million.
That property was sold to Tower Investments for $14.7 million and now that property will need to be bought back by MDHA in order to build Music City Center.
District 6 Councilman Mike Jameson said there are other previously owned MDHA properties in the footprint and asked MDHA Director Phil Ryan to provide a list last month. Jameson estimated that the agency would have to spend significantly more than $14.7 in order to re-acquire the land.
He also worried that the property values would plummet if Council ultimately didn’t approve the financing for the new convention center and was forced to find another use for the land.
“We could own land that is depreciating in value because we aren’t using it for what we originally thought,” Jameson said.