Tennessee to Lease Underground Property for Tunnel Project

Tennessee is set to lease underground properties for approximately 50 years to construct a 10-mile tunnel, as stated by state legislators.

“It’s essentially a choice lane under state ownership, but it’s being leased,” explained State Senator Becky Massey, who chairs the Senate Transport Committee. “The lease serves as a substitute for our payments.”

Massey noted that the tunneling project will traverse beneath current state highways, utilizing Tennessee’s ground road rights.

On Monday, Governor Bill Lee announced that the project will be funded privately without any tax reductions for the boring companies involved. He added that environmental permits would follow the state’s usual process.

Steve Davis, the head of the boring company, anticipates that the project may take about two years to complete. However, the governor’s office indicated on the same day that the tunnel could be functional by fall 2026.

In this context, the state is advancing several initiatives. The building board is expected to approve a lease on Thursday for a state-owned parking lot on Rosa Parks Boulevard, which will be used for tunnel boring machinery and construction.

Democrat Nashville Mayor Freddie O’Connell did not attend Monday’s announcement, but Lee downplayed his absence, asserting that the mayor supports the project.

O’Connell later issued a statement, acknowledging ongoing discussions with boring companies in the state while emphasizing the importance of understanding operational implications for Metro and Nashvillians.

Senator Massey remarked that the leases for tunneling projects, like the Vegas Loop that built a 2.2-mile tunnel, tend to average 50 years as part of large-scale developments.

Tennessee is also preparing to accept bids for the “Choice Lane” Road project running from Nashville to Murfreesboro, which will involve leasing properties and highways to contractors under a similar 50-year agreement.

“The model exists; the major difference is that it’s underground,” Massey noted about the boring initiative.

Both Massey and House Speaker Cameron Sexton were present at the announcement for tunnel plans at Nashville International Airport. However, area Democrats were not invited.

The Tennessee Department of Transportation has not confirmed the lease agreement, directing inquiries to the governor’s office, which has yet to respond.

According to DOT spokesperson Beth Emmons, the boring company intends to submit a permit application for the Music City Loop, and more details will be available once the application process starts.

Neither Bowling nor Lee disclosed the project’s cost on Monday, but Republican lawmakers expressed enthusiasm about the prospects, suggesting it could help ease traffic congestion in an expanding Nashville.

Doubts from Democrats persist regarding environmental concerns and potential effects on Nashville’s aging storm and wastewater systems along the tunnel route. They also criticized the governor and the Department of Transportation for not inviting additional bids.

Massey characterized the contractor as “unique,” stating that the state hasn’t seen interest from other private firms wishing to develop tunnels in the area.

“It’s quite attractive when someone offers to fund everything if we allow them to go under our road; we really need to innovate,” she added.

Additionally, Massey indicated that the contractors had not proposed to establish light rail options, which taxpayers seem to oppose. The light rail idea was part of a 2018 transport plan under former Nashville Mayor Megan Barry that ultimately failed in a referendum.

This is not public transport. It is a privatized tunnel of vanity for Elon Musk, with a long path of broken promises.

– Senator Heidi Campbell, D-Nashville

State Senator John Ray Clemons, chairman of the House Democrat Caucus, voiced criticism of the Tunnel Project, claiming that the Lee administration has granted “exclusive access” and a “monopoly for lasting profits” to the boring company. He raised concerns about potential financial strain on state taxpayers and the risks posed to underground infrastructure.

Nashville Democrat Sen. Heidi Campbell accused Republican leaders of prioritizing wealthy outsiders over necessary investments in public transportation that would benefit Tennessee as a whole.

“This isn’t about public transport; it’s a privatized tunnel catering to Elon Musk, filled with empty promises,” Campbell argued.

Davidson County Councilman plans to formally request transparency from the Economic and Community Development Commissioner regarding state incentives or grants tied to the proposed tunnel.