Tag Archives: tower

Nashville’s L&C Tower Owner Says State Wrongfully Broke Lease, Owes $4 Million Plus

The owner of the downtown L&C Tower filed a claim with the state earlier this week in response to the state’s plans to sever its lease and move out of offices it has occupied in the tower since 2004, reports The Tennessean.
401 Church St., which owns the building, names the Department of General Services, the Department of Environment and Conservation and the Department of Finance and Administration as defendants in its complaint with the state Division of Claims Administration. The complaint seeks $4.15 million in potential lost rent and between $250,000 and $2 million in additional damages.
Because of the state’s new plan to condense and modernize its office space, General Services told the tower’s owners they were severing the lease agreement. But the L&C owners argue that the state needed to receive approval from the owner’s lender, CIBC, before it severed the lease agreement. No such approval was ever sought, according to the complaint.
In 2005, the state received a break on its rent in exchange for eliminating the lease provision that allowed the state to break the lease for essentially no reason. Under the most recent version of the lease, which went into effect in 2004, the state can sever the agreement provided it gives one of eight agreed-upon reasons.