. -CONTRACT
BETWEEN
STATE OF TENNESSEE
DEPARTMENT OF CORRECTION
STATE FUNDING BOARD
AND
METROPOLITAN NASHVILLE DAVIDSON.COUNTY
GOVERNMENT
THIS CONTAACT is made and entered into by and between the
State of Tennessee, Department of Correc~ion and the State
Funding Board. he!'"einafter referred to as the State, and the
Metropolitan
Government
of
Nashville
Davidson
County,
Tennessee, hereinafter referred to as Metro, for the purpose of
making ill grant and providing funding to assist Metro in the
construction and operation of structures, hereinafter referred
to ·as the "Facilities", comprising new structures (the ·'New

Facility")
operated

to
as

be

built

on

Tract

I,

the DeBerry Correctional

and

property

Institute,

(the

currently
"Existing

Facility") located on Tract II, both in Nashville, Tennessee: and
WHEREAS, the property currently operated hy the DeBerry
Correctional Institute has been divided into Tracts I and II as
shown on Attachment I-A tp this Contract and incorporated herein
by reference ..
WHEREAS, the parties have previously executed a grant
contract ("original grant contract") executed on January 12,
1989 for the purpose of making a grant of $3,000,000 and
transferring Tracts I and II for the purpose of construction and
renovation of a facility to house 585 locally sentenced inmates;

and
WHEREAS, the parties to the Amended and Restated Contract
have mutually determined that the State's grant contribution for
construction and renovation of new structures at the "Facility"
shall not exceed $3,000,000.00: and
WHEREAS, the parties determined
contract should be amended: and

that

the

original

grant

WHEREAS, an Amended and "Restated Contract dated August
21, 1990 was entered into pursuant to the provisions of the
County
Corre"ctional
Incentives
Act
of
1981,
as
amended,
hereinafter referred to as the Act. which is set 'out in
Tenne~see Code
Annotated, "Sections 41-8-101 through 41-8-117,
and the regUlations adopted pursuant thereto; and
WHEREAS,' the parties determined that the Amended and
Restated Contract should be further amended by a First Amendment
to the Amended and Restated Contract dated February 19. 1991: and
W~EREAS,
in order to financp. r:onstructioll costs to buiJ ~
nt."'" tilca.ium-:'f~curir..y prJ.son on cert"ain ll;.lld desiqnated as Tract
I in the '~rent Cont:act to be used to carry out Metro's
obligations to house Locally Sentenced Felons under the Grant
Contr"'ct
(the "New Facility")
Metro is preparing to issue
special limited obligation revenue bonds or other evidences of
indebtedness to be secured by and paid from revenue to be
received
by
Metro
pursuant
to
this
Contract
(the
-Debt
Instruments"): and

D

WHEREAS, the parties mutually agree that the State will
reimburse Metro pursuant to the Contract for the actual,
allowable costs of debt service for construction and renovation
of structures to h01J'Se locally sentenced felons in accordance
with State law and pursuant to rules and regUlations of the
nepartment of Correction; and

•

WHEREAS, this document incorp-:-....ates the terms, cov,- .• ants
and conditions of the parties as expressed in the original Grant
Contract,
the Amended and Restated Contract and the First
Amendment to the Amended and Restated Contract, collectively
hereinafter referred to as the Contract.
NOW, THEREFORE, in consideration of the mutual covenants
hereinafter contained, the parties hereby agree to the following:

SECTION 1.

COVENANTS BY METRO

Metro hereby covenants the following:
A.

Metro agrees that the State shall provide a grant in
an amount not to exceed $3,000.000 to fund a portion
of the cost of construction of the New Facility {the
"grant"}.

B.

The plan for the project as reflected in Attachment 2
has
been
submitted
to
the
conunissioner
of
the
Tennessee Department of Correction, and Metro has
obtained the proper approval of the Metropolitan
Council to enter into this Contract prior to its
execution.

C.

A construction contract for the New Facility was
awarded in reliance on and subsequent to execution of
the
Amended
and
Restated
Contract
and
said
construction
contract
was
approved
by
the
State
Building
Commission
pursuant
to
Tennessee
Code
Annotated, Section 4-15-102.

D.

Metro
agrees
to
proceed
expedi tiously
wi th
and
complete the New Facility in accordance with the
approved plan, scope, and funding for the New Facility
as reflected in Attachment 2 and as may be amended
from time to time upon approval of said amendments by
the Department of Correction and the State Building
conunission.

E.

The
parties
agree
to
comply
with
all
rules,
regulations and procedural guidelines established by
the State for the administration of the grant program
and with all State statutes applicable to such grant
program.
State and Metro shall comply with all
requirements and conditions imposed by this Contract
or State and federal laws for maintaining exemption
from State and federal income tax for interest payable
on Debt Instruments except for certain State privilege
and excise taxes.
In the event that this Contract is
terminated, it is expressly recognized and agreed upon
by all parties to this Contract that notwithstanding
such termination they will comply with all covenants
and conditions imposed by this Contract or State and
federal laws for maintaining such exemption until such
';:'im~
that:. s\.\ch Debt In~tr1l..nC!!i;"~ i.ave ':::-een paid in
full.
This Paragraph shall su~vive the termination of
this Contract.
If any other paragraph or section of
this Contract shall be determined to conflict in any
way with the requirements of this Paragraph, the
requirements of this Paragraph shall contro~.

F.

Metro agrees to house all felons convicted in
Davidson County and given a maximum sentence of
one (I) to six (6) years, in accordance with the
amendments to T.C.A. § 40-35-104, as enacted by
the Sentencing Reform Act of 1989, Chapter 591,
Public
Acts
,
and
subsequent
amendments,
hereinafter
referred
to as Locally Sentenced
Fe Ions, except for those felons who are selected
by
the
State
for
placement
in
the
Special
Alternative Incarceration Unit
(Boot Camp)
in
accordance with Chapter 217, Public Acts of 1989

and sUbsec;uent amendments. ,::.~tro shall have no
responsibility
for
felons
selected
for
the
Special Alternative Incarceration Unit once State
has assumed physical custody.
Metro agrees to
provide proper safekeeping, care. and housing for
all such felons, male and female, consistent with
Article I, Section 32 of the Constitution of
Tennessee and T.e.A. S 5-7-110.
2.

In accordance with the requirements of T.C.A. SS
41-8-106 (hI

and

41-8-111 (3) (AI.

Metro

agrees

to

keep 100 percent (l00\) of the "New Facility's"
correctional
capacity
available
for
housing
locally sentenced felons.
Capacity not used for
the housing of locally sentenced felons may be
used by the county for the housing of appropriate
local inmates.
3.

a.
In the event that the population of Locally
Sentenced Felons with sentences of 1 to 6 years
housed in Davidson County exceeds the capacity of
the "New Facility" Metro shall use all available
capacity at the "Existing Facility" to house an:,
additional Locally Sentenced Felons.
b.
If the population of Locally 'Sentenced Felons
exceeds 95% of the capacities of the "Facilities"
for 120 consecutive days Metro and the State
shall mutually consider and agree on additional
construction
if
needed.
Capital
funding,
including
debt
service,
for
any
such
new
construction will be reimbursed as part of actual
allowable cost under the County Correctional
Incentive Act, T.C.A. § 40-8-101 et seq. and
the
rules
and
regulations
adopted
pursuant
thereto and subject to the provisions of Section
2.B.2.

4.

The parties agree that the obligation of the
State to make payments for debt service shall
continue notwithstanding the number of inmates
which may be housed at the New Facility or any
breach of this covenant by Metro or State unless
the Contract has been terminated as provided
herein.

G.

Metro shall maintain or cause its contractor to
maintain documentation for 'the total costs incurred
for
the construction of the "New Facility" and
renovation of the "Existing Facility."
The bOOKS,
records, and docwnents, insofar as they relate to work
performed or money received under this Contract, shall
be maintained for a period of three full years from
the date of the final payment, and shall be subject to
audit, at any reasonable time and upon reasonable
notj ce, h·...· ; ,;'.P.: . s"tate .!.gar.cies or the f:0mptroller of
the
Treasury,
or
their
duly
appointed
representatives.
The records shall be maintained in
a9 cor dance
with
generally
accepted
accounting
principles and at no less than those recommended in
the Accounting Manual for Recipients of Grant Funds in
Tennessee,
published
by
the
Comptroller
of
the
Treasury.

H.

The
procurements
of
construction,
and
goods,
materials, supplies, equipment. or services shall be
made on a competitive basis (including the use of
competitive bidding procedures) consistent with local
requirements.

I.

Metro warrants that no part of the total grant amount
provided herein shall be paid directly or indirectly
to any officer or employee of the State of Tennessee

.'

\

as

wages,

compensation,

or

gifts

in

e;'._i.lange

for

acting as officer, agent, employee, sub-contractor, or
consultant to Metro in connection with any work
contemplated or performed relative to this Contract.
J.

Metro warrants that no person on the ground of
handicap, age, race, color, religion, sex or national
origin, will be excluded from participation in, or be
denied benefits of, or be otherwise SUbjected to
discrimination in the performance of this Contract, or
in the employment practices of Metro.
Metro shall
upon request show proof of such non-discrimination,
and shall post in conspicuous places, available to all

employees

and

applicants,

notices

of

non-discrimination.
K.

All notices, informational pamphlets, press releases,
research reports, signs and similar public notices
prepared and released by Metro or its representatives
shall inclu.de the statement, "This project is funded
under
a
contract
with
the
State
of
Tennessee,
Department of Correction, and the State Funding Board".

L.

Metro shall submit quarterly certified status and
financial reports to the State showing the progress of
the project, amount expended, amount obligated and
funds available for obligation.

M.

Metro agrees to provide adequate all-risk property
7asualty coverage and other appropriate forms
of
~nsurance and
to pay all taxes incident thereto for
the New Facility and, following the transfer of Tract
II to Metro to provide said coverage for the Existing
Facility.
Metro is self-insured up to the limits of
public
liability
set
forth
under
the
Tennessee
Governmental Tort Liability Act.

N.

In all contracts dealing with the construction of the
New Facility and renovation of the EXisting Facility,
Metro shall require compliance by the construction
contractors
with
the
prevailing
wage
laws
in
accordance
with Tennessee Code Annotated,
Section
12-4-401, et. seq., and Metro shall require surety
bonds from the construction contractors in accordance
with Title 12, Chapter 4, Part 2 of Tennessee Code
Annotated.
Metro shall not award any construction
contract in reliance on a grant through the program
until
such
time
as
the
Building Commission has
approved plans and designs pursuant to Tennessee Code
Annotated, Section 4-15-102.

o.

Metro will have the responsibility of advertising and
awarding the construction and lor management contract,
SUbject
to
prior
approval
by
appropriate
M.etro
officials and the State Building Commission.

P.

Mr;tro shall ensure that- archil.ects employed to assist
in the construction of the New Facility shall be
licensed
to
conduct
business
in
the
State
of
Tennessee.
Neither
proceeds
of
the
grant
or
reimbursements of reasonable allowable costs shall be
used to pay architectural andlor engineering fees in
excess of the State's standard fees for architects and
engineers.

Q.

Metro agrees to use the "Facilities" beds designated
in Section 1.F. of thi!i Contract for housing locally
sentenced felons.
In the event any such felon becomes
a disciplinary problem or security risk sufficient to
require closer custody status which cannot be provided
adequately or safely in the "Facilities", or has
physical, emotional or mental disabilities sufficient
to qualify such felon for a special needs facility,

·.
Metro
shall
have
the
authority
to
petition
:";... e
sentencing
judge
or
request
permission
from
the
Tennessee Department of Correction for transfer of
such felon to the Department of Correction.
R.

Metro reserves the right to use the "Facilities" beds

designated in Section I.F.
of this Contract for
housing of felony offenders from nearby counties who

are sentenced in accordance with TeA 41-8-111, or for
housing of any other felony offenders as mutually
agreed to by the parties to this Contract, or other
appropriate local inmates as provided in Section
1.F.2., provided sufficient bed space is available.
S.

Any new construction or renovation shall conform to
the Tennessee Correction Institute standards for the
purposes
proposed
for such
facilities.
Any new
construction
shall
also
conform
to
the
American
Correctional Association standards for the purposes
proposed for such facilities.

T.

Metro agrees to operate or control the operation of
the
"Facilities".
Any
contract
for
management,
operation or ownership of the "Facilities" shall be
subject to the prior approval of the State.
The
parties agree that any financial arr'angement whereby
the Metropolitan Government does not own or control
the Facilities must be approved by the State.
Any
substantial change, such as per diem rates, in any
operating contract for the New Facility between Metro
and a private management firm must receive prior
approval by the Department of Correction.

U.

Metro agrees to provide to the Commissioner of the
Department of Correction a timetable for construction
of the "New Facility".
Said schedule was submitted to
the State prior to October 31, 1990.
Such schedule
provides for occupancy by March 1, 1992.
In the event
the construction shall be delayed more than sixty (60)
days past any scheduled date, including the occupancy
date, it is agreed that State may require Metro to
assign to it any or all of the following:
1.

Metro I S right to enforce the provisions of the
construction contract for the New Facility or to
seek remedies against the Contractor under such
construction contract.

2.

Metro's
right
to
terminate
contract for the New Facility.

3.

Metro I s rights under any performance
the construction of the New Facility.

4.

Metro's

the

construction
bonds

for

rights

under any resolution or trust
"'!h:i ch t'1P n~bt !nstruments are
is&ued to approve or di1.t:ct disbursement for the
construction of the Facility.
i:.1c'1~nh'.L~

!!~der

The parties agree that the obligation of the State to
make payments for debt service on the Debt Instruments
shall
survive
notwithstanding
Metro's
failure
to
complete construction in accordance with the timetable
for construction of the New Facility provided the
Contract has not been otherwise terminated.

SECTION 2.

COVENANTS OF THE STATE

The State hereby covenants the following:
A.

The parties agree that State shall pay to Metro grant
funds in an amount not to exceed Three Million Dollars
($3,000,0001 upon adequate certification by Metro or

\

,.

the

project

architect

of

a

like

amount

of

cost

incurred for construction of the New Facility.
B.

The

State

will

reimburse

Metro

for

housing

Locally
Sentenced
Felons
pursuant
to
this
Contract.
Such reimbursement shall be equal to
Metro's reasonable allowable costs as provided in
T.e.A. S 41-8-106, as amended, and rules and
regulations promulgated by the Department of
Correction thereunder.
Pursuant to such regulations, "reasonable allowable costs" to be reimbursed hereunder shall include Metro's annual
debt service upon Debt Instruments and any replenishment of the debt service reserve fund for
such Debt Instruments which may be required in
the

event of

a

draw upon

said fund.

Said reim-

bursement, excluding debt service on Debt Instruments, will begin upon acceptance of Locally
Sentenced Felons at the New Facility.
The State
agrees
not
to
contract
with
any
other
governmental or for profit or non-profit corporation for the housing of Locally Sentenced Felons.
2.

A plah
of
financing
was
approved
by
the
Department of Correction after consultation with
the
Comptroller
of
the
Tre~sury
prior
to
execution of any contract for construction. Debt
service shall be reimbursed to Metro pursuant to
a debt service schedule filed by Metro and
approved by the Department of Correction after
consultation
with
the
Comptroller
of
the
Treasury.
Said debt service schedule shall
include any required replenishment to the debt
service
reserve
fund
for
Debt
Instruments.
Further, the parties agree that the debt service
schedule may
be amended from time
to
time
pursuant to the provisions outlined in this
Section B.2 for approval of the debt service
schedule _
State shall agree to reimburse Metro
for any debt service on Debt Instruments issued
to refund or refinance Debt Instruments; such
reimbursement shall be included in Ilreasonable
allowable costs'l
only after
a
debt service
schedule for such Debt Instruments has been filed
by Metro and approved by the Department of
Correction
after
consultation
with
the
Comptroller of the Treasury.

C.

Such reimbursement, excluding debt service on Debt
Instruments,
shall not be paid until Metro has
submitted
to
the
Department
of
Correction
the
necessary information for each convicted felon for
whom a claim for reimbursement has been made.
Such
information
shall
include
the
name
and
other
sentencing information for each convicted felon housed
at the ~A.~U i.t:ips as deemed necessary by the State to
cumpate
6e.~tenc~...
il~
C1::cu::.-n~rlce
wit~\
T.(..A.
SS
40-28-129 and 40-35-501 (e) and pursuant to applicable
rules.
·Where the required information has not been
received by the State, such reimbursement, excluding
debt service on Debt Instruments, shall be withheld
from Metro until such time that the information is
received by the Department of Correction.

D.

Upon the transfer of Tract II, inclUding improvements
thereon,
the
State
shall
have
completed
all
renovations
which
are
outlined
and
included
in
Attachment 3.

E.

The State commits to utilize its best effort to obtain
appropriations and allotments to provide reimbursement
for all payments which are provided for under the
terms of this Contract.
In addition, the Department
6

·

.

\

of: Correction of the State of Tennessee commits to
include
in
its
annual
budgetary
request
to
the
Department of Finance and Administration a line i tern
sufficient to cover payment of all reasonable allowable
costs
including
debt
service
on
the
Debt
Instruments.

SECTION 3.

MUTUAL COVENANTS

A.

Strict standards of confidentiality of records will be
maintained in accordance with the laws of the State of
Tennessee ..

B.

This

Contract

is

subject

to

the

appropriation

and

allotment of State funds.
C..

This Contract shall not be binding upon the parties
until it is approved by the Metropolitan Council and

the

Tennessee

Commissioner

of

Finance

and

Administration and the Comptroller of the Treasury.
D.

This
Contract
may
amendment executed by
by
the
Tennessee
Administration and the

E.

Metro shall not assign this Contract or enter into any
contract for private management of the Facilities
without the prior written approval of the State.
Provided, however, Metro may assign its right, title
and interest in and to the New Facility or its right
to receive payment for debt service on the, Debt
Instruments to a trustee or other fiduciary for the
benefi t of the Debt Instrument bond holders without
the approval or consent of State.
Further, subject to
the foregoing the parties agree that Metro may execute
any and all documents necessary to finance the New
Facility.

F.

In no event shall the liability of the State under
this Amended and Restated Contract exceed the grant
amount of $3,000,000 and reimbursement for reasonable
allowable cost and actual debt service as provided
herein.

G.

The
parties
agree
that
Metro
may
issue
Debt
Instruments, the proceeds of which in addition to the
$3,000,000
grant,
are
to
be
utilized
to
fund
construction, capitalized interest and other related
costs
associated
with
the
financing
of
the
New
Facility.
Debt Instruments shall be issued in an
amount sufficient to fund the cost of financing and
construction of the New Facility including interest
payments which may accrue prior to completion of
construction
and/or
any
scheduled
or
deferred
principc~ Di"YJhrnt.
A pC1rt,;C'n o~ the rroceedc; of any
Deb~..
IIL:... ~rume!1ts snaJ.l be ut;'.J.:Lzed t.q reimburse the
State for any expended grant funds to the extent
permi tted
by
law.
Reimbursed
grant
funds
and
unexpended grant funds shall be returned to the State
and may be utilized for payment of any and all
outstanding costs associated with the construction of
the New Facility.
Following a final accounting and
payment of all costs associated with construction of
the New Facility, and payment of any and all costs
associated therewith, unexpended or reimbursable grant
funds shall revert to the County Correctional Incentives Program and shall no longer be reserved for
Metro.

H.

Breach

a~d

Termination

7

be
modified
only
by
written
all parties hereto, and approved
Commissioner
of
Finance
and
Comptroller of ~he Treasury.

"

.

1.

to the
The parties agree
following specific
remedies
upon
rights
and
breach
of
their
covenants as set forth herein:
a. Breach of Covenants by Metro
(i)
If Metro should breach its covenants
contained in paragraphs F and T of Section 1
prior
to
payment . in
full
of
the
Debt
Instruments and fail to correct such breach
after receipt of notice thereof as provided in
Section

3,

paragraph

J,

State

shall

have

the

right to terminate this Contract.
Prior to
termination of this Contract State may enter
into
a
new
agreement
with
Metro,
its
successors or assigns for use of the New
Facility
for
a
term
not
to
exceed
the
remaining
years
on
the
Debt
Instruments,
provided that any such agreement shall include
a provision which states that use of the New
Facility by State is contingent upon payment
of debt service payments pursuant to the debt
service
schedule
as
provided
herein
and
sUbject to annual appropriations and allotment
of State funds.
Said agreement shall also
provide that upon payment in full of the Debt
Instruments by State pursuant to the debt
service
schedule Metro,
its successors or
assigns
shall
execute
all
necessary
instruments to convey the New Facility to the
State.
Should State elect not to enter into an agreement for use of the New Facility as provided
herein, such breach may result in a cefault
under the Debt Instruments pursuant to T.C.A.
S 9-21-311 and Metro and State pursuant to
this Contract may be subject to the remedies
provided
pursuant
to
T.C.A.
§§
9-21-301
through 9-21-316.
(ii)
If Metro should breach its covenants
contained in paragraphs F and T of Section 1
after payment in full of the Debt Instruments
by State and fail to correct such breach after
receipt of notice
thereof as
provided
in
Section 3, paragraph J, then State shall have
the right to terminate this Contract and the
New Facility shall revert to the State.
(iii)
The
parties
agree
that the State's
obligation to make debt service payments shall
survive breach of this Contract by Metro
unless this Contract has been terminated by
Metro or State.
b. i:.:oeach of.

(il

C,",V€~lal.c.s

If

by :tal;e

the State should fail to pay Metro
allowable costs for housing Locally
Sentenced Felons in accordance ""ith rules and
regulations promulgated by the Department of
Correction,
including amounts sufficient to
pay the Debt Instruments in accordance with
the debt service schedule filed by Metro and
approved
by
the
Department of Correction,
after consultation with the Comptroller of the
Treasury, and such failure should occur prior
to
the
payment
in
full
of
the
Debt
Instruments, then Metro shall have the right
to terminate this Contract if such breach
continues for thirty (30) days after receipt
by State of written notice by Metro of such
reasonab~e

breach.
In the event of" such termination
State shall use its best efforts to cooperate
with Metro to have all Locally Sentenced
Felons resentenced to the custody of the
State.
In the event of such termination State
shall have no right to future access to the
New Facility and Metro shall no longer have an
obligation
to
accept
Locally
Sentenced
Felons.
In addition, such breach may result
in a default pursuant to T.C.A. S 9-21-311 and
Metro and State may be subject to the remedies
provided pursuant to T.C.A. § 9-21-301 through
9-21-316.
Alternatively, Metro shall have the
right to utilize the New Facility for the
benefit of the holders of any Debt Instruments.

(ii) If the State should fail to pay to Metro
reasonable allowable costs in accordance with
the rules and regulations promulgated by the
Department of Correction subsequent to payment
in full of all Debt Instruments by State, then
Metro shall have the right to terminate this
Contract if such breach continues for ninety
(90) days after the State's receipt of written
notice of such breach; however, upon such
termination, Metro agrees that' it will execute
all necessary documents to convey the New'
Facility to the State for $1,000 plus any
costs or related expenses incurred by Metro
pursuant
to
the
Contract
necessary
to
consummate this conveyance in addition to all
outstanding and reasonable allowable costs.
c. Conveyance Upon Termination
(i) If termination of this Contract should
occur as a result of a breach by State of its
obligation
to
pay
to
Metro
reasonable
allowable costs, including debt service prior
to the payment in full of Debt Instruments,
State shall execute and deliver all necessary
documents to convey to Metro an absolute fee
simple title to Tracts I and II and all
improvements thereon subject to any interest
which
may
be
acquired
by
third
parties
pursuant to this Contract.

(ii) If termination of this Contract should
occur as a result of a breach of any covenant
of this Contract by State, subsequent to the
payment in full of the Debt Instruments, State
shall execute and deliver all necessary documents to convey to Metro absolute fee simple
title to Tracts I and II and all improvements
thereon except the New Facility and Metro
sh;:>1.1 t17an~f~r to State absolute fee simple
~:,tle :_0 i..ho.:. 'I.:!lo; r"ciaC.i..J,:" ty,
provi . .1 ed that State
has full}' complied with its covenant to make
debt service payments in accordance with the
debt service schedule -, as provided herein.
In
the event of tr"ansfer of the New Facility t.o
State, Metro Agrees to grant to State all
necessary easements to ensure State's right to
continued use of said New Facility.
(iii) If termination of this Contract should
Occur as a result of a breach of this Contract
by Metro, State shall execut~ and deliver all
necessary documents to convey to Metro all
Metro
owned
or
controlled
structures
or
improvements on either Tract I or Tract II
except the New Facility.
In such event, Metro
agrees to grant to State or any third party

'.
with· -.n interest in the New Facility pursuant
to this Contract all necessary easements to
ensure their right to continued use of the New
Facility.
State or said third party shall

grant

to

Metro

all

necessary

easements

to

ensure Metro's right to continued use of Metro
structures or improvements provided that such
easements do not interfere with the operation

of the New Facility. Metro agrees to pay just
compensation for land transferred to Metro
pursuant to this provision.
Notwithstanding anything provided in sub-paragraph c(i) or (ii) should the State breach its
covenant to make payments of reasonable allowable costs prior to the transfer of Tract II
pursuant to this Contract, Metro shall acquire
no right, title or interest in or to Tract II
·or any improvements thereon.
d.

In addition to the rights and remedies provided
in this paragraph H., the parties shall have the
right to enforce this Contract pursuant to all
applicable laws of the State of Tennessee.

e.

In the event of termination of this Contract by
Metro, Metro shall reimburse the State for any
grant monies in accordance with T.C.A. S 41-8-111
as the same may be amended.

I.

The term of this Contract shall be from the date of
execution of
the original Grant Contract by the
parties, and shall continue perpetually, as to the
terms and conditions relating to the housing of felony
offenders, until terminated by the State or Metro
under the terms of this Contract or by mutual [Grant
Contract] (sic) among the parties.
It is the intent
of the parties to this Contract that Metro will
continue to house locally sentenced felons.

J.

If Metro fails to comply with the rules, regulations.
and procedural guidelines established by the State for
the administration of the grant program, the express
terms and conditions of this Contract, or with all
state statutes applicable to the grant program, the
following sanctions may be utilized by the State at
its option:

L.

1.

The State may deliver by certified mail a written
notice to Metro of the failure to comply.

2.

In the event that Metro fails to comply wi thin
sixty (60) days of the receipt of such notice,
the State may withhold any grant funds or paymflnt
of
reasonable
allowable
costs,
except
debt
serv;.cp. on fl. n~"~_ 111e;t'"u,"p.I"-';, for the hC1ls"ng of
LOl 'i.-.ly S~nt.jrl\,.. ec;. l--elon::;.
'I'he S{_al.~ may deliver
by certified mai~ a wric~en notice to Metro,
informing
Metro
tn
'rpm; t.
thn~e
grant
funds
already awarded and paid under this Contract.

3.

In the event that Metro shall fail to remit the
amount set
forth
in
such notice within one
hundred and twenty (120) days of the receipt of
the notice described in J.2 above, the State
acting
through
the Tennessee Commissioner of
Finance
and
Administration,
may
withhold
a
portion of any State shared taxes apportioned to
Metro until the grant amount owing has been
remitted.

The State agrees to transfer the property identified
in Attachment I-A and SUbstantially in the form of an

10

,.

Amended Deed For

ConvP'''~nce

as set fo;:th in Att.achment

I-B.
The
Mayor
on
behalf
of
the
M~tropolitan
Government is authorized to "accept said property upon
execution of an Amended Deed For Conveyance of Realty
substantially in the form as reflected in Attachment
1-B.

M.

Except as otherwise provided herein, whenever it is
provided herein that notice, demand, request, consent
or approval or other communication shall or may be
given to or served upon either of the parties by the
other, such notice, demand, request, consent, approval
or other communication shall be in writing and, shall

not

be

effective

for

any

purpose

unless

given

or

served as follows:
1.

I f to Metro by mailing the same to the following
Metropolitan Government officials:

The Metropolitan County Mayor
The Metropolitan Government of Nashville and Davidson
County
107 Metropolitan Courthouse
Nashville, Tennessee 37201
The Dir~ctor of Finance
The Metropolitan Government of Nashville and Davidson
County
106 Metropolitan Courthouse
Nashville, Tennessee 37201
The Director of Law
The Metropolitan Government of Nashville and Davidson
County
204 Metropolitan Courthouse
Nashville, Tennessee 37201
2.

If to State by mailing or hand delivering
same to the following State officials:

the

Conunissioner
Department of Correction
320 Sixth Avenue North
Nashville, Tennessee.37219
Commissioner
Department of Finance and Administration
State Capitol
Nashville, Tennessee 37219
Comptroller of the Treasury
State Capitol
Nashville, Tennessee 37219
IN \O;'ITNESS WHEREOF, the parties have by their dUly authorized
representatives, entered into this grant contract this _~ day
of

--(li:I.ra. '2- __ ,

19 j~~:"",

THE STATE OF TENNESSEE

THE METROPOLITAN GOVERNMENT OF
NASHVILLE AND DAVIDSON COUNTY

~~---

~~
Metropol~tarl

Department of Correction

County Mayor

ATTEST:

11

APPROVED AS TO AVAILABILITY
OF FUNDS'

~ -1C~~

«m~

Director of Finance

APPROVED AS TO FORM AND
LEGALITY,

t

APPROVED:

f)~/lt ~
.

of Law

Commissioner, Department

Finance and Administratio

APPROVED AS TO FORM AND

. ~/g<
~

Attorney General & Reporte£

J2