Murfreesboro Sends Default Notice to One East College Developer

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Most Recent Rendering of One East College from Klein Swinney Associates website.

Murfreesboro Mayor Shane McFarland first reported to WGNS Radio recently that the city has issued a notice of default to One East College, LLC. The action occurred because the development this company is responsible for at the corner of College and Church Streets, which includes the 1888-built United Methodist Church, has been at a stand-still for almost five years. If the company does not resume work on the property, it will potentially face legal ramifications. 

The project was meant to enhance livability in the downtown area with townhomes, a parking lot, provide a hotel, and offer additional retail space. Lack of movement in the project has not only left an ugly pit where the developers tore down a one-story office building and the Sunday school classroom spaces that were added to the church in the 1970s, but Mayor McFarland expressed his concerns to devX.com regarding the stagnation of growth in the downtown area as a direct consequence of the stalled project. 

Fear is that the out-of-state developers, who have projects all over the United States, have put this project into the back seat and chosen to move forward with larger or more profitable projects.  As reported by devX.com, “One East College, LLC’s leadership consists of Detroit’s Nick Patel, Nashville’s Suri Ramanna, Chairman and CEO of TRC Construction Services Inc., and Tampa-based real estate developer Dhvanit Patel.” 

Back before the pandemic hit the world, the City of Murfreesboro and the developer had come to an agreement of what would be built on the corner of College and Church Streets, and the development would incorporate the old United Methodist Church building. Since that time, the local community and historians have become concerned with the continued decay of the building. Preserving the church building was an integral part of the original deal. 

The story of the project actually goes all the way back to 2016. It was then that city leaders decided that they wanted to be particular about what happened to the empty bank building that incorporated the church. Because of the history of the church and its meaning to the community, they wanted to make sure that anyone developing the land would incorporate the church in the plan. They already owned the old bank building, so they purchased the rest of the land and went through a long process to find the right developer to buy the land and create something that was an asset to downtown Murfreesboro. One of the reasons that they chose the One East College, LLC proposal is because the group is known for their interest in community and sustainability.   

By the end of 2019, a plan was created by the developer and approved by the City Council. It was to be a mixed-use plan including 110 townhomes, retail and office space, as well as a 110-room hotel and a parking lot. The developer bought the land from the city for $1.8 million with plans to invest $70 million, with the promise of a tax break as the project was expected to draw both locals and tourists to the downtown area. It was supposed to be completed by 2022. 

During the pandemic, the developers asked to make changes to the original plan. The city understood the need caused by the pandemic. They approved the changes. Then they came to the city again, recently, to make more changes. 

Mayor Shane McFarland and the council are not happy. With no movement, there is a lot of frustrations. 

“If I knew three years ago what I know now, I wouldn’t have approved the development,” said McFarland when speaking to a local civic organization. “None of us would…But we do see things moving forward in the near future.” 

Currently, Mayor McFarland hopes that the default notice will spur movement and that all parties can work together to have the project successfully completed in the near future.