By John Rodgers,
July 13, 2005

The Metro Development and Housing Agency approved Tuesday Struever Bros., Eccels and Rouse and Direct Development Inc. as developers for Phase I of downtown’s Rolling Mill Hill redevelopment.

Rolling Mill Hill is a 34-acre site centered on the former home of Nashville General Hospital overlooking the Cumberland River. In Phase I, 7 acres will be developed by the two companies at a total cost estimated at $90 million to $100 million, said Hank Helton, MDHA’s director of development.

“Very seldom do you find 34 acres along a riverfront in a major metropolitan area downtown anywhere in the country,” Helton said. “It’s a wonderful development opportunity.”

The Baltimore-based Struever Bros. also hopes to develop a new $235 million Nashville Sounds stadium and residential/retail complex near Rolling Mill Hill in the former Thermal site.

Phase one of the Rolling Mill project consists of plans to construct a mixed-use development of 350-400 residential units ranging in price from $135,000 to $700,000, Helton said. The hospital will be converted to housing that will be built in the hospital’s art deco building and a 1800s Victorian-era building as well.

About 35,000 to 50,000 square feet of retail space will also be available as well as some office space. A smokestack facility that is part of the overall former hospital complex will likely host retail locations.

Demolition on the site has already been completed.

In addition to the developers being selected, MDHA awarded Nashville-based W.L. Hailey and Company, Inc., a $9.26 million contract to handle phase one infrastructure work on Rolling Mill Hill.

That work will begin in the next 45 to 60 days, Helton said.

“You’ll probably start seeing finished product on the site around mid to late ’07,” Helton said. “I don’t know if all of Phase I will be finished by then, but there will be finished product on the site by that time.”

With Metro arranging for the infrastructure to be built, the developers will be ready to come in after the infrastructure is finished, Helton said.

“We’re essentially providing these developers with development-ready pads,” Helton said. “Really, the only real incentives that we’re considering offering is tax increment financing on the historic hospital building.”

According to Helton, the decision to award the Rolling Mill Hill development to Struever Bros. wasn’t connected to the stadium proposal.

“It was a totally independent decision that the committee made based on truly the merits of the Struever Bros. proposal,” Helton said.

The developers were chosen in front of four other companies – three of which are locally owned – Brentwood’s Southern Land Company, Affordable Housing Resources and The Mathews Company.

MDHA put out a request for proposals to find development companies for the site. Helton said Struever Bros. and Wisconsin-based Direct Development were chosen based on the merits of their design plans and their track record in past urban projects.

For Phase II, another request for proposals will be made which will include additional parcels adjacent to Phase I.

Phase III, which will center on the development of the area’s car barns, is tentatively planned but MDHA will wait to see how the market responds to the overall development, Helton said.

The developers will work at the same time with each developing three separate parcels of about equal size.